• Minority interests that qualify for inclusion in consolidated CET1 Capital

    • PRU 3.16.1

      This Section applies to an Authorised Person in Category 1, 2, 3A or 5.

    • PRU 3.16.2 PRU 3.16.2

      Subject to 3.2.3, an Authorised Person must ensure that it complies with the following requirements at all times.

      (a) The ratio of CET1 Capital to Total Risk Exposure Amount must not be less than 6.0%.
      (b) The ratio of T1 Capital to Total Risk Exposure Amount must not be less than 8.0%.
      (c) The ratio of Capital Resources to Total Risk Exposure Amount must not be less than 10.0%.

      • Guidance

        In Rule 3.16.2 CET1 Capital is that calculated at step A3, T1 Capital is that calculated at step A7 and Capital Resources is that calculated at step A11 of Rule 3.15.3.

    • PRU 3.16.3

      The Regulator may impose a further requirement, termed an Individual Capital Requirement (ICR), on an Authorised Person to hold additional Capital Resources arising from Pillar 2 adjustments (see Chapter 10). Where the Authorised Person has an ICR imposed on it, then the Authorised Person must, at all times, maintain adequate Capital Resources of the type and amount as specified in Rule 10.6.1 in addition to those kept to meet the capital adequacy requirements outlined in Rule 3.2.4.