Insurance Ordinance

(1)
In relation to an applicable company, a capital requirement
is—
(a)
a requirement prescribed by virtue of subsection (2) that applies to the
                    company; or
(b)
if the requirement is varied under subsection (3) or relaxed under
section 130(1)
for the company—the requirement so varied or
                    relaxed.
(2)
The Authority may, by rules made under
section 129
—
(a)
prescribe requirements in relation to the capital of an applicable company,
                    including requirements as to the following
matters—
(i)
the amount of capital that the company must at least maintain, taking
                        into account the risks associated with the company;
(ii)
the types and amounts of capital resources of the company that are
                        eligible for being counted towards satisfying the amount of
                        capital;
(b)
provide for the determination of the amount of capital required to be
                    maintained, including determination by alternative approaches approved by the
                    Authority; and
(c)
prescribe, or provide for the determination of, the prescribed capital
                    amount and the minimum capital amount for the purposes of this
                    Ordinance.
(3)
The Authority may, by a written notice served on an applicable company, vary a
                requirement prescribed by virtue of subsection (2) that applies to the company if
                the Authority is satisfied, on reasonable grounds, that it is prudent to make the
                variation so that the requirement for the company is commensurate with the risks
                associated with the company.