Mr. Bernard Sheridan:

At present, the directive is a minimum harmonisation directive which allows countries to apply higher standards. In certain aspects Ireland has applied higher standards and has provided for higher margins - a buffer in place if one likes - to make the firm more solvent. However, other countries in Europe have done the same. Even with those buffers in place, there still is no guarantee that a firm would not fail. It comes back to how it is reserving and how is it meeting the solvency requirements.