Amendment to article 72 (determining whether a relevant shortfall has occurred)

3.—(1) Article 72 is amended as follows.

(2) For paragraph (3), substitute—

“(3) A shortfall in relation to a relevant period is a relevant shortfall if it is equal to, or in excess of, the mutualisation threshold for that period.”.

(3) After paragraph (3), insert—

“(4) The mutualisation threshold for a relevant period is determined as 1% of A x B, rounded to the nearest £100,000 with £50,000 being rounded upwards, where—

(i) A is the total obligation for the relevant period determined under article 12;

(ii) B is the buy-out price for the relevant period referred to in article 67(4).”.