4.—(1) The amount of the regulatory own funds requirement is the aggregate of—
(a)a sum equal to 4% of the technical provisions of the occupational pension scheme; plus
(b)a sum equal to 0.3% of the capital at risk for members of the scheme in respect of which the capital at risk is not a negative figure, and where the capital at risk is as calculated in paragraph (2).
(2) For the purposes of paragraph (1)(b) “capital at risk” means—
(a)to the extent that the benefit payable on death in respect of a member of the scheme comprises a lump sum benefit, the amount of that lump sum payable on death; and
(b)to the extent that the benefit payable on death comprises the purchase of an annuity, payment of a sum by instalments or any other kind of periodical payments, the present value of that benefit calculated in a way consistent with the determination of the scheme's technical provisions,
less the scheme's technical provisions in relation to those members.
(3) Where any requirement of this regulation is not complied with, section 10(3) to (9) of the 1995 Act applies to a trustee or manager who has failed to take all reasonable steps to ensure compliance, as if this regulation was made under Part 1 of that Act.