PIN A7.5 PIN A7.5 Fund hybrid capital adjustment
PIN A7.5 Guidance1. This section acts to limit hybrid capital to 15% of the adjusted fund equity in respect of a fund.2. The purpose of the fund hybrid capital adjustment is to limit the extent to which an
Insurermay rely for its Adjusted Fund Capital Resourcesin respect of any Long-Term Insurance Fundon instruments that do not or may not constitute permanent capital of that fund.
Fund hybrid capital includes the following items:(a) subordinated debt attributable to the fund; and(b)
Owners' Equityin a Takaful Insurerof the type described in PIN Rule A7.3.4.
Subject to PIN Rule A7.5.3, an
Insurermust calculate its fund hybrid capital adjustment as the amount by which the total amount of hybrid capital exceeds 15% of adjusted fund equity.
DFSAmay at its discretion permit an Insurerto apply PIN Rule A7.5.2 as though the figure of 15% was replaced with a higher figure approved in writing by the DFSA. The approved figure may not be more than the actual percentage which the fund hybrid capital represents of adjusted fund equity, and may not in any case exceed 30%.