(3) An Authorised Firm
may exclude any positions which it has deliberately taken in order to hedge partially or totally against the adverse effect of the exchange rate on its Capital Resources
, from the calculation of net open currency positions, if each of the following conditions is met:
(a) the positions are of a structure that is of a non-dealing nature;
(b) the Authorised Firm has notified the DFSA in writing of its intention to rely upon this Rule; and
(c) any exclusion of the position must be applied consistently, with the treatment of the hedge remaining the same for the life of the assets or other items.
(4) An Authorised Firm
need not include positions related to:
(a) items which are deducted from its capital when calculating its Capital Resources, including investments in non-consolidated subsidiaries; or
(b) other long-term participations denominated in Foreign Currencies which are reported in the published accounts at historic cost.