Minority Interests that Qualify for Inclusion in Consolidated CET1 Capital
Minority interests must include the CET1 Capital instruments, plus the related retained earnings and share premium accounts, of a
Subsidiaryonly where all of the following conditions are met:(a) the Subsidiaryis one of the following:(i) an Authorised Firm; or(ii) a regulated entity,(b) the Subsidiaryis a member of the Financial Groupand included in the scope of consolidated supervision in accordance with PIB chapter 8; and(c) those CET1 Capital instruments are owned by persons other than the Undertakingsincluded in the Financial Group.
Minority interests that are funded directly or indirectly, through a special purpose entity or otherwise, by the
Parentof the Authorised Firmor any member of its Financial Groupmust not qualify for inclusion in the consolidated CET1 Capital of the Financial Group.
Authorised Firmmust determine the amount of minority interests of a Subsidiarythat is eligible for inclusion in its consolidated CET1 Capital by subtracting from the minority interests of that Subsidiarythe result of multiplying the amount referred to in (a) by the percentage referred to in (b):(a) the CET1 Capital of the Subsidiaryminus the lesser of the following:(i) the amount of CET1 Capital of that Subsidiaryrequired to meet the sum of the Subsidiary'sCET1 Capital requirement (on a solo basis) of 60% of the Risk Capital Requirementand its Capital Conservation Bufferrequirement of 25% of the Risk Capital Requirement; or(ii) the amount of consolidated CET1 Capital that relates to that Subsidiarythat is required on a consolidated basis to meet the sum of its Financial Group'sCET1 Capital requirement of 60% of the Risk Capital Requirementand its Capital Conservation Bufferrequirement of 25% of the Risk Capital Requirement;(b) the minority interests of the Subsidiaryexpressed as a percentage of all CET1 Capital instruments of that Undertakingplus the related retained earnings and share premium accounts.