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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]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices
Financial Markets Tribunal
Archive

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  • Financial Group Capital Resources

    • PIB 8.3.4

      (1) An Authorised FirmG in CategoryG 1, 2 or 5 must calculate its Financial Group Capital ResourcesG by applying either of the following methods, excluding those amounts referred to in PIB Rule 8.3.5:
      (a) the accounting consolidation method, which calculates the Capital ResourcesG of the Financial GroupG based on the Financial Group'sG consolidated financial statements; or
      (b) the aggregation method, which is the sum of:
      (i) the Capital ResourcesG of the ParentG of the Financial GroupG ;
      (ii) subject to (2), the Capital ResourcesG of any Authorised FirmsG and Financial InstitutionsG included in the Financial GroupG ; and
      (iii) the Financial Group'sG proportionate share of Capital ResourcesG in Financial InstitutionsG not included in the Financial GroupG in which any member of the Financial GroupG has a participation.
      (2) For the purposes of (1)(b)(ii), an investment by one Financial GroupG member in another must not be included.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

      • PIB 8.3.4 Guidance

        The calculation of Financial Group Capital ResourcesG is subject to the provisions in part 3 of PIB chapter 3.

        Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 8.3.5

      When calculating the Financial Group Capital ResourcesG of a Financial GroupG , an Authorised FirmG must not include Capital ResourcesG or Adjusted Capital ResourcesG (as the case may be) of subsidiaries or participations of that Financial GroupG to the extent that those Capital ResourcesG or Adjusted Capital ResourcesG :

      (a) exceed the entity requirement in respect of that subsidiary or participation, calculated in accordance with PIB Rule 8.3.3; and
      (b) are not freely transferable within the Financial GroupG .
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

      • PIB 8.3.5 Guidance

        1. Because the Financial Group Capital RequirementG set out in PIB Rule 8.3.3 includes Capital RequirementsG in respect of GroupG entities, Capital ResourcesG may be included in the calculation of Financial Group Capital ResourcesG to the extent of those requirements. Capital that is surplus to those requirements is, however, subject to an additional condition before it may be taken into account for the purposes of Financial GroupG capital adequacy.
        2. In general, Capital ResourcesG or Adjusted Capital ResourcesG are considered not to be freely transferable if they are subject to a legal or constructive limitation on their transferability, whether that transfer would be made by dividend, return of capital or other form of distribution. Examples of relevant limitations might include obligations to maintain minimum Capital RequirementsG to meet domestic solvency requirements, or to comply with debt covenants.
        Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 8.3.6

      Deductions for Qualifying HoldingsG under PIB section 3.17 may be calculated based on the Group'sG total T1 and T2 Capital.

      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]