Entire Section
PIB 3.17 PIB 3.17 Qualifying Holdings Outside the Financial Sector
PIB 3.17.1
(1) Where anAuthorised Firm has aQualifying Holding in anUndertaking which is not one of the following:(a) anUndertaking that is aRelevant Entity ; or(b) anUndertaking that carries on activities that are:(i) a direct extension of banking;(ii) ancillary to banking, or(iii) leasing, factoring, the management of unit trusts, the management of data processing services or any other similar activity;and the amount of the holding exceeds 15% of the eligible totalCapital Resources of theAuthorised Firm , theAuthorised Firm must comply with the requirements in (3).(2) The total amount of theQualifying Holdings of anAuthorised Firm inUndertakings other than those referred to in (1) that exceeds 60% of itsCapital Resources are subject to the requirements in (3).(3) AnAuthorised Firm must apply the following requirements toQualifying Holdings referred to in (1) and (2):(a) a risk weight of 1000% to the following:(i) the amount ofQualifying Holdings referred to in (1) in excess of 15% ofCapital Resources ; and(ii) the total amount ofQualifying Holdings referred to in (2) in excess of 60% of theCapital Resources of theAuthorised Firm ; and(b) must not countQualifying Holdings referred to in (1) and (2) where the amount of those holdings exceeds the percentages ofCapital Resources laid down in (1) and (2).(4) As an alternative to applying a 1000% risk weight to the amounts in excess of the limits specified in (1) or (2), anAuthorised Firm may deduct those amounts from CET1 Capital.(5)Shares ofUndertakings to which (1) or (2) do not apply must not be included in calculating the eligible capital limits specified in (1) where any of the following conditions are met:(a) those shares are held temporarily during a financial reconstruction or rescue operation,(b) the holding of the shares is an underwriting position held for 5 working days or less; or(c) those shares are held in the name of theAuthorised Firm on behalf of others.Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]