Most of the numbers in this form are transferred from the other relevant forms such as
[B10] or [B20] — Balance Sheet and appendices to [B10] or [B20] relating to the calculation of capital charges in respect of Credit, Market and Displaced Commercial Risks.
|B600_112T and B600_113T
||Tier 1 and Tier 2 capital
|[PIB Section 2.6] and Table 2.6.1 for a summary of the components of capital base. [PIB Section 2.7] describes each capital component in greater detail. Attention is drawn to Partnership Capital which constitutes the capital accounts of partners when the business is created. It must share the same characteristics as permanent share capital, particularly the fact that it must rank for repayment upon winding up or insolvency after all debts and liabilities have been paid. The deduction for partners drawings is in respect of any excess in drawings over current period profits. Attention is also drawn in respect of [PIB Rule 2.7.3] in respect of the limitation on the use of general provisions in Tier 2 capital.
Authorised Firms should note that there are related Instructional Guidelines on the capital base for forms
[B10] and [B20]. The Instructional Guidelines there would apply in their entirety to this section of the return.
||Deduction for excess of reserves
||This applies only in respect of Category 5 Authorised Firms with regards the Investment Risk and Profit Equalisation Reserves. See
|[PIB Section 2.9].
||NTB Capital Requirement
|[PIB Rule 2.8.3] for a definition of the components of non trading book capital. For Category 5 Authorised Firms, the CRCOM and FER are on self financed assets only. These numbers will be derived from forms [B10] and [B20] for Category 1-4 Authorised Firms and Category 5 Authorised Firms, respectively. The DCR charges are derived from [form B10 Appendix 4] [B10] and [Form B20 Appendix 8] for Category 1-4 Authorised Firms and Category 5 Authorised Firms, respectively.
||Capital allocated to the NTB
||The limitations on the use of capital allocated to the NTB are set out in
|[PIB Section 2.8].
||TB Capital Requirement
||This is defined in
|[PIB Rule 2.8.3]. For Category 1-4 Authorised Firms, the numbers here are derived from Appendices [B10A2] and [B10A3] (also see Instructional Guidelines relating to those appendices). For Category 5 Authorised Firms, the capital requirements are in respect of self financed assets only (PSIA assets are subject to a DCR charge). These numbers are derived from Appendices [B20A4] and [B20A7].
||Total Eligible Capital allocated to the TB
||Note the limitation on the use of Tier 2 capital as referenced to
|[PIB Rule 2.8.2] (b) (iii). Category 1 and 5 Authorised Firms must exclude from Tier 2 trading book capital any excess over 200% of Tier 1 trading book capital. For Category 2-4 Authorised Firms, the appropriate percentage is 250%.
|B600_1520 to B600_1560
||Deductions from total capital resources
||The deductions in respect of connected lending, material holdings and qualifying holdings are defined in Rules
|[PIB 2.7.4], [PIB 2.7.5] and [PIB 2.7.6], respectively.
||The non additive thresholds of capital are set out in
|[PIB Rule 2.3.1]. Details of the base capital requirement are further analysed in [PIB Section 2.4]. The Expenditure Based Capital Requirement definition is set out in [PIB Section 2.5] and applies to Categories 2, 3 and 4 Authorised Firms only.
||Resources less requirement
||Note that the total of resources over requirement is expected to be positive. In the event of the requirement exceeding resources, Authorised Firms should make immediate contact with DFSA and not wait till the form has been submitted.
||Risk Asset Ratio
||Obtained by dividing total capital resources by the risk weighted assets (whether on the trading or non trading books). The risk weighted assets have been reported by Authorised Firms in the preceding Forms
|[B10] and 20 (including appendices to these forms). The capital resources are summarised in [Form B60]. Note that the value in this cell is calculated by EPRS.
Derived from GM5/2007
(Made 16th December 2007). [VER1/12-07]