Entire Section

  • AT1 Regulatory Deductions

    • PIB 3.14.4

      Subject to the following Rules in this section, an Authorised Firm must deduct the following from the calculation of its AT1 Capital:

      (a) direct and indirect holdings by an Authorised Firm of own AT1 Capital instruments including instruments under which an Authorised Firm is under an actual or contingent obligation to effect a purchase by virtue of an existing contractual obligation;
      (b) holdings of the AT1 Capital instruments of Relevant Entities where those entities have a reciprocal cross holding with the Authorised Firm which have the effect of artificially inflating the Capital Resources of the Authorised Firm ;
      (c) the amount determined in accordance with PIB Rule 3.14.8 of direct and indirect holdings by the Authorised Firm of the AT1 Capital instruments of Relevant Entities where the Authorised Firm does not have a significant investment in those entities ;
      (d) direct and indirect holdings by the Authorised Firm of the AT1 Capital instruments of Relevant Entities where the Authorised Firm has a significant investment in those entities, excluding Underwriting positions held for 5 working days or fewer; and
      (e) the amounts required to be deducted from T2 Capital pursuant to PIB Rule 3.15.4 that exceed the T2 Capital of the Authorised Firm .
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]