Equity risk sub-module

(1) The equity risk sub-module includes a symmetric adjustment of the equity capital charge factor in the equity investment scenario, reflecting the risk arising from changes in the level of equity prices.
(2) The adjustment to the standard equity capital charge calibrated under section 100(3) is calculated as a function of the current level of an appropriate equity index and a weighted average of that index. The weighted average is determined over a suitable period, which is the same for all insurance undertakings.
(3) The adjustment may not result in an equity capital charge factor that is more than 10 percentage points above or below the standard equity capital charge factor.