2. Calculation of Eligible Capital
2.1. Calculating Eligible Capital
An AIFC-Incorporated Takaful Operator must calculate its Eligible Capital in accordance with the Eligible Capital Calculation Table in rule 2.2 (Eligible Capital Calculation Table) and the provisions in this Schedule.
Guidance
The AFSA may recognise forms of capital instruments in addition to those set out in the Eligible Capital Calculation Table for inclusion in an AIFC-Incorporated Takaful Operator’s Eligible Capital where those instruments comply with accepted international standards.
2.2. Eligible Capital Calculation Table
The Eligible Capital Calculation Table is as follows:
(A) Tier 1 Capital: |
Permanent Share Capital |
Undistributable Reserves |
Fund for future appropriations |
(B) Deductions from Tier 1 Capital |
Investments in own shares |
Intangible assets |
Interim net losses |
(C) Tier 1 Capital after deductions = A-B |
(D) Tier 2 Capital: |
Perpetual qualifying hybrid capital instruments |
Fixed dividend ordinary shares |
Subordinated debt |
Fixed term preference shares |
Any other item approved for inclusion as Tier 2 Capital at the discretion of the AFSA |
(E) Total Tier 1 Capital plus Tier 2 Capital = C+D |
(F) Deductions from Total of Tier 1 and Tier 2 Capital: |
Investments in subsidiaries and associates |
Connected lending of a capital nature |
Inadmissible assets |
(G) Total Tier 1 Capital plus Tier 2 Capital after deductions = E-F = Total Eligible Capital |
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