CBB Volume 4: Contents
No value, for Regulatory CapitalG purposes, may be attributed to any other instrument or resource, without the CBB's written consent. Without limiting the generality of this rule, no value is attributed to any of the following:(a) Any implicit items (which relate to future profits and hidden reserves); and(b) The unpaid element of any issued shares some or all of which are not 'fully paid' shares.Amended: January 2007
Significant investments in and lending of a capital nature to subsidiaries and associated companies engaged in financial activities must be deducted from the sum of Tiers 1 and 2.
For the purposes of CA-2.1.13, 'significant investments' are investments where the investment firm licensee holds more than 20% of the share capital of the investee company. The underlying assets associated with those investments are not included in the investment firm's assets for the purpose of computing its Regulatory Capital RequirementG . See also Module GR (Group Supervision).Amended: January 2016