Home   Browse contents   View updates   Search  
     Quick search
Go
   

Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
Archive
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER34/12-19]
PIB 3 Capital
PIB 3 Part 4 — Calculating Capital Resources
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices

Rich text Print
  • PIB 3.13.7

    Subject to the following Rules in this section, an Authorised Firm 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 Standards;
    (c) deferred tax assets that rely on future profitability;
    (d) defined benefit pension fund assets of the Authorised Firm;
    (e) the applicable amount, by reference to PIB Rule 3.13.12, of direct and indirect holdings by an Authorised Firm of its own CET1 Capital instruments including instruments under which an Authorised Firm 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 Entities where those entities have a reciprocal cross holding with the Authorised Firm which have the effect of artificially inflating the Capital Resources of the Authorised Firm;
    (g) the applicable amount, by reference to PIB Rule 3.13.13, of direct and indirect holdings by the Authorised Firm of CET1 Capital instruments of Relevant Entities where the Authorised Firm 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 Firm of the CET1 Capital instruments of Relevant Entities where the Authorised Firm 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 Rules under PIB section 3.14, that exceeds the AT1 Capital of the Authorised Firm;
    (j) the Exposure amount of the following items which qualify for a risk weight of 1000%, where the Authorised Firm deducts that Exposure amount from CET1 Capital as an alternative to applying a risk weight of 1000%;
    (i) Qualifying Holdings;
    (ii) securitisation positions, in accordance with relevant Rules in PIB chapter 4; and
    (iii) free deliveries, in accordance with the Rules in PIB section A4.6; and
    (k) for an Authorised Firm which is a Partnership or Limited Liability Partnership, 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]