If a firm that is a QFC captive insurer becomes aware, or has reasonable grounds to believe, that it is or may be (or may be about to be) in breach of any provision of this part, it must—
(a) tell the Regulatory Authority orally about the matter immediately, but within 1 business day; and
(b) by written notice given to the authority by no later than the next business day—
(i) confirm the oral notification; and
(ii) explain the nature of the breach or why the firm considers it may be (or may be about to be) in breach of the provision; and
(iii) set out the action that the firm proposes to take about the breach or to avoid the breach; and
(c) not make any distribution to its shareholders or members, whether by way of dividends or otherwise, without the authority's written permission.
Examples—meaning of 'within 1 business day'
1 If, on a business day, the firm becomes aware that it may be in breach of this part, the firm must tell the Regulatory Authority immediately, but on that day.
2 If, on a day that is not a business day, the firm becomes aware that it may be in breach of this part, the firm must tell the Regulatory Authority immediately, but by no later than the next business day.
Note Business day is defined in the glossary.