1. Management Capital Requirement1. Management Capital Requirement

1. Management Capital Requirement

This part of the form consists of Items 1.1 to 1.9 inclusive. This section of the form aligns directly with the methodology of LPS 6.03 as set out in Section 6 of that standard. Note that some elements in this part of the form are applicable only in the case of friendly societies.

1.3. Total Amount of Liabilities for Management Capital purposes ( = L ) [derived item]

This is calculated automatically by derivations contained within the form and represents the sum of item 1.1.4 and item 1.2.3.

1.4. Management Capital Inadmissible Assets Reserve (see Section 3) [derived item]

This equals to the total inadmissible amount calculated under section 3. This item will be derived automatically by the form, i.e. no separate entry is required.

1.6. Solvency Requirement of the Shareholders’ Fund [derived item]

This is calculated automatically by derivations contained within the form, as the sum of total amount of liabilities (item 1.3), inadmissible assets reserve (item 1.4) and resilience reserve (item 1.5.3).