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PIB 3.13.19

(1) In making the deductions required pursuant to PIB Rule 3.13.7(c) and (h), an Authorised Firm must not deduct the items listed in (a) and (b), where in aggregate they are equal to or less than 15% of CET1 Capital:
(a) deferred tax assets that are dependent on future profitability and arise from temporary differences, and in aggregate are equal to or less than 10% of the CET1 items of the Authorised Firm calculated after applying the following:
(i) adjustments referred in Rules PIB 3.13.5 and PIB 3.13.6; and
(ii) deductions referred to in (a) to (g) and (i) to (j) of PIB Rule 3.13.7, excluding deferred tax assets that rely on future profitability and arise from temporary differences.
(b) where an Authorised Firm has a significant investment in a Relevant Entity, the direct and indirect holdings of that Authorised Firm of the CET1 Capital instruments of those entities that in aggregate are equal to or less than 10% of the CET1 items of the Authorised Firm calculated after applying the following:
(i) adjustments referred in Rules PIB 3.13.5 and PIB 3.13.6; and
(ii) deductions referred to in (a) to (h) and (i) to (j) of PIB Rule 3.13.7 excluding deferred tax assets that rely on future profitability and arise from temporary differences.
(2) Items that are not deducted pursuant to (1) must be risk weighted at 200% and subject to the requirements of PIB chapter 4, as applicable.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]