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  • PRU 3.17 PRU 3.17 Capital Conservation Buffer

    • PRU 3.17.1

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

    • PRU 3.17.2

      Where, pursuant to Section 3.4, the Risk Capital Requirement forms the Capital Requirement of an Authorised Person, then that Authorised Person is subject to a Capital Conservation Buffer requirement.

    • PRU 3.17.3

      The Capital Conservation Buffer requirement is equivalent to 2.5% of the Total Risk Exposure Amount of an Authorised Person and must comprise only CET1 Capital.

    • PRU 3.17.4

      (1) An Authorised Person must maintain the required buffer amount, calculated in accordance with Rule 3.17.3, at all times.
      (2) The Capital Conservation Buffer requirement applies on both a solo and a consolidated basis, for Authorised Persons forming part of Financial Groups.

    • PRU 3.17.5

      An Authorised Person must not use CET1 Capital that is kept to meet the Capital Conservation Buffer requirement towards meeting:

      (a) its Total Risk Exposure Amount; or
      (b) any Individual Capital Requirement as may be imposed pursuant to Chapter 10.