14.4.1. Minimum Capital Requirement (MCR) for a Captive Takaful Operator

For the purposes of Schedule 4 of TRR, the Capital Floor for a Captive Takaful Operator is

• (a) US$150,000 for a Captive Takaful Operator carrying on Captive General Takaful Business;
• (b) US$150,000 for a Captive Takaful Operator carrying on Captive Family Takaful Business; or
• (c) An amount specified in writing by the AFSA.

14.4.2. Minimum Capital Requirement for a Protected Cell Company

(1) Subject to (2), each Cell of a Protected Cell Company must calculate its Minimum Capital Requirement in accordance with TRR 5.2.2 (Obligation to calculate MCR) as if it were a stand-alone Takaful Operator.

(2) For a Captive Takaful Operator that is a Protected Cell Company, the Capital Floor only applies to the overall Protected Cell Company and there is no Capital Floor for each Cell or the Core.

14.4.3. Prescribed Capital Requirement for a Protected Cell Company

Each Cell of a Protected Cell Company must calculate its Prescribed Capital Requirement in accordance with TRR 5.2.3 (Obligation to calculate PCR) as if it were a stand-alone Takaful Operator.

14.4.4. Eligible Capital of a Protected Cell Company

(1) Each Cell of a Protected Cell Company must calculate its Eligible Capital in accordance with TRR 5.2.1 (Obligation to calculate Eligible Capital).

(2) The Core of a Protected Cell Company must calculate its Eligible Capital in accordance with TRR 5.2.1 (Obligation to calculate Eligible Capital).

(3) In calculating its Eligible Capital, a Cell may only rely upon Non-Cellular Assets where it has entered into a recourse agreement with the Core pursuant to which it is entitled to rely upon such Non-Cellular Assets.

(4) The Core of a Protected Cell Company must not enter into a recourse agreement with a Cell where the total capital thereby made available to Cells of the Protected Cell Company would exceed the Eligible Capital of the Core.