PIB 3.2.7 Guidance

1. It follows from Rule 3.2.7(2)(a) and Rule 3.2.3 that an Authorised Firm cannot use T2 Capital of more than 2% of its >Risk Weighted Assets to meet its Risk Capital Requirement.
2. It follows from Rule 3.2.7(2)(b) and Rule 3.2.3 that an Authorised Firm cannot use T2 Capital to meet more than 20% of its Expenditure Based Capital Minimum.
3. In accordance with Rules 3.9.5, PIB 3.9 A.3 and PIB 3.9B4 the CET1 Capital used for a Capital Buffer cannot constitute CET1 Capital for meeting the Risk Capital Requirement.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
[Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]