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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Rulebook Modules
Prudential — Insurance Business Module (PIN) [VER15/01-18]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Financial Markets Tribunal

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  • PIN 5.7 Value of investments in subsidiaries and associates that are subject to minimum capital requirements

    • PIN 5.7.1

      This section applies to all InsurersG .

      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

    • PIN 5.7.2

      Where an InsurerG is the Parent of a Financial Group, the value of the Insurer'sG investment in any SubsidiaryG or AssociateG that is an Authorised FirmG or a Financial InstitutionG must be taken as the amount of the Insurer'sG proportionate share of that SubsidiaryG or Associate'sG Capital ResourcesG or Adjusted Capital ResourcesG determined in accordance with PIN Rule 8.3.4(1)(b), reduced by the Insurer'sG proportionate share of the SubsidiaryG or Associate'sG Capital RequirementG determined in accordance with PIN Rule 8.3.3(2).

      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

      • PIN 5.7.2 Guidance

        The impact of PIN Rule 5.7.2 is that an Insurer'sG capital resources are calculated on a basis consistent with the manner of calculation of Financial Group Capital ResourcesG , and that capital resources required to support the capital adequacy of GroupG companies are not used to support the individual capital adequacy of the InsurerG itself. The Insurer'sG capital adequacy calculation is therefore also an indication of the degree of capital adequacy of the Financial GroupG of which it is the ParentG . In this and other RulesG where reference is made to a ParentG for the purposes of calculating capital adequacy of a group of companies, generally, it is a reference to the ultimate ParentG within the group.

        [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]