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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
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Financial Markets Tribunal

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  • PIN A7.5 Fund hybrid capital adjustment

    • PIN A7.5 Guidance

      1. This section acts to limit hybrid capital to 15% of the adjusted fund equity in respect of a fund.
      2. The purpose of the fund hybrid capital adjustment is to limit the extent to which an InsurerG may rely for its Adjusted Fund Capital ResourcesG in respect of any Long-Term Insurance FundG on instruments that do not or may not constitute permanent capital of that fund.

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

    • PIN A7.5.1

      Fund hybrid capital includes the following items:

      (a) subordinated debt attributable to the fund; and
      (b) Owners' EquityG in a Takaful InsurerG of the type described in PIN Rule A7.3.4.

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

    • PIN A7.5.2

      Subject to PIN Rule A7.5.3, an InsurerG must calculate its fund hybrid capital adjustment as the amount by which the total amount of hybrid capital exceeds 15% of adjusted fund equity.

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

    • PIN A7.5.3

      The DFSAG may at its discretion permit an InsurerG to apply PIN Rule A7.5.2 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 fund hybrid capital represents of adjusted fund equity, and may not in any case exceed 30%.

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