Regulatory Alerts2016-09-29
Statement of Substance and Purpose – Proposed Amendment to Capital Requirement Rule
The Trinidad and Tobago Stock Exchange (TTSE) proposes implementing a risk-based approach to determine capital requirements for its member firms. This amendment requires firms to maintain capital buffers proportional to the riskiness of their balance sheet assets. The change aims to strengthen risk management and provide greater investor protection by ensuring higher capitalization for riskier operations.
The TTSE is proposing to implement a risk based approach for determining the capital requirements for its member firms with the purpose of strengthening the management of risk. This approach will allow for member firms to be capitalized based on the riskiness of the assets on their balance sheet. This will allow for larger capital buffers in those firms who assume more risk compared to those who assume less risk and therefore provide greater protection for investors.
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