Entire Section

  • Capital Conservation Plan

    • PIB 3.9C.8

      Where an Authorised Firm fails to meet a Capital Buffer Requirement, it must prepare a capital conservation plan and submit it to the DFSA no later than 5 business days after it identified its failure to meet Capital Buffer Requirement. The capital conservation plan must include the following:

      (a) estimates of income and expenditure and a forecast balance sheet;
      (b) measures to increase the Capital Resources of the Authorised Firm;
      (c) a plan and timeframe for the increase of own funds with the objective of restoring the Capital Buffer; and
      (d) any other information the DFSA might need in order effectively to carry out its considerations referred to in PIB Rule 3.9C.9.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
      [Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]

    • PIB 3.9C.9

      (1) Following assessment, the DFSA will approve the capital conservation plan only if it considers that the plan, if implemented, would be reasonably likely to conserve or raise sufficient capital to enable the Authorised Firm to meet its Capital Requirement and Capital Buffer Requirement, within a period that the DFSA considers appropriate.
      (2) If the DFSA does not approve the capital conservation plan, the DFSA may require the Authorised Firm to increase its CET1 Capital to meet the Capital Requirement and the Capital Buffer Requirement, within a specified period of time.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
      [Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]