(1) In this section, a reference to a "maximum distributable amount" means the maximum amount that an
Authorised Firm may distribute in connection with CET1 Capital as specified in PIB Rules 3.9C.2 and 3.9C.3.
(2) Subject to (3), an
Authorised Firm must determine the maximum distributable amount by multiplying the sum specified in (a) by the factor determined under (b):
(a) the total of interim or year-end profits that were not included in CET1 Capital pursuant to PIB Rule 3.13.2 and which have accrued after the most recent distribution of profits and after any of the actions referred to in PIB Rule 3.9C.2(b);
(b) where the CET1 Capital of the
Authorised Firm (which is not used to meet the Capital Requirement), expressed as a percentage of the firm's RWA, is:
(i) within the first quartile (0%-25%) of its Capital Buffer, the factor is 0;
(ii) within the second quartile (25%-50%) of its Capital Buffer, the factor is 0.2;
(iii) within the third quartile (50%-75%) of its Capital Buffer, the factor is 0.4; and
(iv) within the fourth quartile (75%-100%) of its Capital Buffer, the factor is 0.6.
(3) If an
Authorised Firm undertakes any action under PIB Rule 3.9C.2(b), it must take that into account and reduce the maximum distributable amount accordingly.