HLA Capital Buffer Requirement
A SIB must maintain an HLA Capital Buffer of CET1 Capital that is calculated using the following formula:
HLA Capital Buffer = HLA Ratio x Relevant RWA
"HLA Capital Buffer" is the HLA Capital Buffer that the Authorised Firm must maintain;
"HLA Ratio" is the ratio determined by the
DFSAfor that Authorised Firmunder PIB Rule 3.9B.6; and
"Relevant RWA":(a) for a G-SIB, is the value of the its Risk Weighted Assets; or(b) for a D-SIB, is the value of its Risk Weighted Assets in jurisdictions for which it is considered to be systemically important.
Authorised Firmis both a G-SIB and a D-SIB, the HLA Capital Buffer that applies under this section is the higher of the amount calculated under PIB Rule 3.9B.2 for the firm as a G-SIB and the amount calculated under that Rulefor the firm as a D-SIB.
Authorised Firmmust not apply CET1 Capital that it maintains to meet an HLA Capital Buffer Requirement towards meeting:(a) its Risk Capital Requirement;(b) its Capital Conservation Buffer Requirement;(c) its Countercyclical Capital Buffer Requirement; or(d) an Individual Capital Requirement that the DFSAhas imposed on it under PIB chapter 10.
The HLA Capital Buffer Requirement applies on both a solo and a consolidated basis for
Authorised Firmsforming part of a Group.