Paragraph 3
This paragraph applies where, for the purpose of ascertaining the value of the assets of the subject company under regulation 47 above, any determination falls to be made in accordance with the said regulation 47 of the value of the assets of a dependant of the insurance company, a share in which, or a debt due or to become due from which, is an asset of the subject company; and references herein to a determination of the value of assets of a dependant to which this paragraph applies are references to any such determination.
Regulation 47(4) shall not apply with respect to a determination of the value of assets of a dependant to which this paragraph applies.
Where, in the case of a determination of the value of assets of a dependant to which this paragraph applies—
the dependant is an insurance company and has general business assets of a relevant description or is not an insurance company and has assets of a relevant description,
the value of such assets exceeds the permitted limit applicable to the dependant in relation to those assets, and
any controller of the dependant has no assets of the same description of the relevant class, or has assets of the same description of the relevant class and their value is less than the permitted limit applicable to that controller in relation to those assets;
then, for the purposes of such determination, there shall be added to the permitted limit applicable to the dependant in relation to the assets referred to in sub-paragraph (a) above an amount equal to the supplementary amount or, if there is more than one such controller, to the aggregate of the supplementary amounts, determined with respect to any such controller in accordance with Part I of this Schedule, subject, where the controller is not the insurance company, to the modifications specified in sub-paragraph (5) below.
In this paragraph, “a controller” means, in relation to a dependant—
the insurance company,
the subject company, if it is an insurance company, and
a dependant of the insurance company which is an insurance company and of which the subject company is a dependant.
Where sub-paragraph (3) above is being applied in relation to a controller, other than the insurance company—
Part I of this Schedule, as applied in accordance with the said sub-paragraph (3), shall have effect as if, for the reference to the insurance company, there were substituted references to the controller, and
the references to assets being of a relevant class in the said sub-paragraph (3) and in Part I of this Schedule, as so applied, shall be construed as referring to long term business assets of the controller, if the said sub-paragraph (3) is being applied in connection with the determination of the value of a long term business asset of the controller, and to general business assets of the controller, in any other case.