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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
PIB 3 Capital
PIB 3 Part 4 — Calculating Capital Resources
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
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Financial Markets Tribunal
Archive

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  Versions
(1 version)
 
Dec 9 2012 onwards

PIB 3.13.7



Whole Section PDF

The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

Subject to the following Rules in this section, an Authorised FirmG must deduct the following from the calculation of its CET1 Capital:

(a) losses for the current financial year;
(b) goodwill and other intangible assets as defined in the International Financial Reporting StandardsG ;
(c) deferred tax assets that rely on future profitability;
(d) defined benefit pension fund assets of the Authorised FirmG ;
(e) the applicable amount, by reference to PIB Rule 3.13.12, of direct and indirect holdings by an Authorised FirmG of its own CET1 Capital instruments including instruments under which an Authorised FirmG is under an actual or contingent obligation to effect a purchase by virtue of an existing contractual obligation;
(f) holdings of the CET1 Capital instruments of Relevant EntitiesG where those entities have a reciprocal cross holding with the Authorised FirmG which have the effect of artificially inflating the Capital ResourcesG of the Authorised FirmG ;
(g) the applicable amount, by reference to PIB Rule 3.13.13, of direct and indirect holdings by the Authorised FirmG of CET1 Capital instruments of Relevant EntitiesG where the Authorised FirmG does not have a significant investment in those entities;
(h) the applicable amount, by reference to Rules PIB 3.13.13 and PIB 3.13.18, of direct and indirect holdings by the Authorised FirmG of the CET1 Capital instruments of Relevant EntitiesG where the Authorised FirmG has a significant investment in those entities;
(i) the amount of items required to be deducted from the calculation of AT1 Capital in accordance with the relevant RulesG under PIB section 3.14, that exceeds the AT1 Capital of the Authorised FirmG ;
(j) the ExposureG amount of the following items which qualify for a risk weight of 1000%, where the Authorised FirmG deducts that ExposureG amount from CET1 Capital as an alternative to applying a risk weight of 1000%;
(i) Qualifying HoldingsG ;
(ii) securitisation positions, in accordance with relevant RulesG in PIB chapter 4; and
(iii) free deliveries, in accordance with the RulesG in PIB section A4.6; and
(k) for an Authorised FirmG which is a PartnershipG or Limited Liability PartnershipG , the amount by which the aggregate of the amounts withdrawn by its partners or members exceeds the profits of that firm.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]