PRU 3.11.4

Subject to the following Rules in this Section, an Authorised Person must deduct the following from the calculation of its AT1 Capital:

(a) direct and indirect holdings by an Authorised Person of own AT1 Capital instruments including instruments under which an Authorised Person is under an actual or contingent obligation to effect a purchase by virtue of an existing contractual obligation;
(b) holdings of the AT1 Capital instruments of Relevant Entities where those entities have a reciprocal cross-holding with the Authorised Person which have the effect of artificially inflating the Capital Resources of the Authorised Person;
(c) the amount determined in accordance with Rule 3.11.8 of direct and indirect holdings by the Authorised Person of the AT1 Capital instruments of Relevant Entities where the Authorised Person does not have a significant investment in those entities;
(d) direct and indirect holdings by the Authorised Person of the AT1 Capital instruments of Relevant Entities where the Authorised Person has a significant investment in those entities, excluding Underwriting positions held for five working days or fewer; and
(e) the amounts required to be deducted from T2 Capital pursuant to Rule 3.12.4 that exceed the T2 Capital of the Authorised Person.