W 112/2011 PIN — ACWA Power Reinsurance Co Limited
WAIVER AND MODIFICATION NOTICE
|To||ACWA Power Reinsurance Co Limited|
The Gate Precinct Building 2, Level 5, Office 1B, DIFC,
P.O. Box 506770, Dubai, UAE
|DFSA Firm Reference No.||F001352|
THE DFSA HEREBY GIVES NOTICE THAT:
|PIN Appendix 4||Rule A4.8 (Concentration Risk component)|
|PIN Appendix 4||Rule A4.9 (Size factor component)|
The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.
(1) Subject to (2),
(2) An Insurer which is a Class 1 Captive Insurer shall not be required to provide to the DFSA the written report referred to in (1) above in its first two years of operation as an Authorised Firm.
Subject to Rule A4.5.2, an Insurer must calculate its investment volatility risk component as the sum of the amounts obtained by multiplying the value of each Invested Asset with the relevant percentage applicable to that asset as set out in the following table.
(1) An Insurer must calculate its default risk component as the sum of the amounts obtained by multiplying the value of each asset of the Insurer with the percentage applicable to that asset, as set out in the tables contained in this Rule and subject to the provisions of Rules A4.4.2, A4.4.5, A4.4.6 and A4.4.7.
(a) Assets that are Invested Assets
(b) Assets that are not Invested Assets
(2) For the purposes of this Rule, a Captive Insurer may treat an intra-Group loan as a "qualifying intra-group loan" where the intra-Group loan meets all of the following criteria:
(a) the loan is made to a member of the Insurer's Group;
(b) the loan repayment is for a limited period no longer than 12 months and no automatic rollover is permitted;
(c) the loan attracts a commercial rate of interest;
(d) the loan agreement contains a condition that the loan is repayable immediately on the instruction of the DFSA; and
(e) the loan has been approved by the DFSA for the purposes of this Rule.
(3) An Insurer must ensure that the amounts referred to in (2)(a) are held as cash.
This notice comes into effect on the date of issue of this notice and remains in force for a maximum period of two years or at such a time the firm decides to hold any risk.
The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.
Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.
THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:
|Name :||Paul M. Koster|
|Position :||Chief Executive|
DATE OF ISSUE:
|6 June 2011|