Capital Conservation Plan
Authorised Firmfails to meet a Capital Buffer Requirement, it must prepare a capital conservation plan and submit it to the DFSAno 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 DFSAmight need in order effectively to carry out its considerations referred to in PIB Rule 3.9C.9.
PIB 3.9C.9(1) Following assessment, the
DFSAwill 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 Firmto meet its Capital Requirement and Capital Buffer Requirement, within a period that the DFSAconsiders appropriate.(2) If the DFSAdoes not approve the capital conservation plan, the DFSAmay require the Authorised Firmto increase its CET1 Capital to meet the Capital Requirement and the Capital Buffer Requirement, within a specified period of time.