PIN A8.3.2 PIN A8.3.2
Insurerarranges its affairs such that Invested Assetsattributable to a Long-Term Insurance Fundare held in a Relatedentity, the Insurermay, with the written approval of the DFSA, calculate components of the Minimum Fund Capital Requirementby reference to the interest of the Long-Term Insurance Fundin the assets that are held by the Relatedentity, instead of by reference to the interest that the Long-Term Insurance Fundhas in that Relatedentity. In that case this appendix shall be interpreted as though the assets (representing the Long-Term Insurance Fund'sinterest) held by the Relatedentity were held directly by the Long-Term Insurance Fund.Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
PIN A8.3.2 Guidance
The effect of PIN Rule A8.3.2 is to provide flexibility for
Insurerswhose investments are managed on a pooled basis within a Group, or which establish specialist Subsidiariesto manage their investments. While the Insurer'sasset in such cases is a balance with, or investment in, a Relatedentity, this rule permits the Insurerto 'look through' the corporate arrangement and apply this appendix to the assets of the Relatedentity as though they were the Insurer'sown. This flexibility extends to Invested Assetsattributable to Long-Term Insurance Funds, though this provision does not provide any exemption from PIN section 3.4 in respect of segregation of assets.
Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]