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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
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

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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 Insurer may rely for its Adjusted Fund Capital Resources in respect of any Long-Term Insurance Fund 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' Equity in a Takaful Insurer 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 Insurer 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 DFSA may at its discretion permit an Insurer to apply PIN Rule A7.5.2 as though the figure of 15% was replaced with a higher figure approved in writing by the DFSA. 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]