Home   Browse contents   View updates   Search  
     Quick search
Go
   

Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
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
Notices
Financial Markets Tribunal
Archive

BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player



  • PIN A5.5 Hybrid non-cellular capital adjustment

    • PIN A5.5 Guidance

      1. This section acts to limit hybrid non-cellular capital to 15% of an Insurer'sG adjusted non-cellular equity.
      2. The purpose of the hybrid non-cellular capital adjustment is to limit the extent to which an InsurerG may rely for its Adjusted Non-Cellular Capital ResourcesG on instruments that do not or may not constitute permanent capital of the InsurerG . Such instruments include share capital contributed by a Holding CompanyG , where the Holding Company'sG investment is financed by debt rather than by its own capital.

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

    • PIN A5.5.1

      Subject to PIN Rule A5.5.2, hybrid non-cellular capital includes the following items:

      (a) subordinated debt;
      (b) preference shares; and
      (c) ordinary shares issued by an InsurerG to a Holding CompanyG whose own paid-up ordinary share capital, taken together with its general reserves, is lower than that of the InsurerG .

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

    • PIN A5.5.2

      Hybrid non-cellular capital excludes any instrument that is attributable to a CellG .


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

    • PIN A5.5.3

      Subject to PIN Rule A5.5.4, an InsurerG must calculate its hybrid non-cellular capital adjustment as the amount by which the total amount of hybrid non-cellular capital exceeds 15% of adjusted non-cellular equity.


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

    • PIN A5.5.4

      The DFSAG may at its discretion and on the application of an InsurerG , permit that InsurerG to apply PIN Rule A5.5.3 as though the figure of 15% was replaced with a higher figure approved in writing by the DFSAG . The approved figure may not be more than the actual percentage which the hybrid non-cellular capital represents of adjusted non-cellular equity, and may not in any case exceed 30%.


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