Regulation 20 Minimum guarantee fund
In the year of account during which it is first authorised, a society shall maintain a minimum guarantee fund consisting of the amount in column 2 of the table below, which corresponds to its annual contribution income in the last preceding year of account, as shown in column 1 of the table.
| Contribution Income (in units of account) | Minimum Guarantee Fund (in units of account) |
|---|---|
| 500,001—1,000,000 | 100,000 |
| 1,000,001—1,500,000 | 200,000 |
| 1,500,001—2,000,000 | 300,000 |
| 2,000,001—2,500,000 | 400,000 |
| 2,500,001—3,000,000 | 500,000 |
| 3,000,001—3,500,000 | 600,000 |
Where the amount of the minimum guarantee fund determined under paragraph (1) above is below the full minimum guarantee fund of 600,000 units of account, that amount shall be increased by a tranche of 100,000 units of account in the year following any year of account during which the society’s contribution income has increased by 500,000 units of account until the full minimum guarantee fund has been reached.
Where the amount of a society’s minimum guarantee fund has been increased in accordance with paragraph (2) above, the increased amount shall be maintained thereafter, notwithstanding any later fall in the society’s annual contribution income.
Where a society seeks to be authorised to carry on long term business of a kind additional to that which it is already authorised to carry on, it shall, if it obtains authorisation for the additional business, maintain the full minimum guarantee fund of 600,000 units of account for the whole of its business (that is to say, not only for the additional business carried on but also for the business previously carried on).