Regulatory Alerts2018-02-06
Added · Updated
Central Bank of Seychelles Circular on Unimpaired Paid-Up Capital for Bureaux de Change
The Central Bank of Seychelles requires all Bureaux de Change to maintain minimum unimpaired paid-up or assigned capital of SCR500,000 for Class A and SCR50,000 for Class B entities. This circular clarifies the computation methodology by mandating that paid-up ordinary shares, non-cumulative perpetual preference shares, share premium, statutory reserves, and retained earnings be aggregated to determine impairment status. Capital is deemed unimpaired when this aggregate sum exceeds the nominal value, whereas any shortfall below that threshold constitutes impairment.
CENTRAL BANK OF SEYCHELLES
P. O. Box 701, Victoria, Seychelles
Telephone: [+248] 428 20 00
Fax: [+248] 432 36 65
E-mail: enquiries@cbs.sc
Ref: FSS/GEN/1
Date: February 2, 2018
To all Bureaux de Change
Unimpaired paid-up capital or assigned capital
As per Regulations 5(1)(a) and 5(2)(a) of the Financial Institutions (Bureau de Change) Regulations, 2008, Bureaux de Change are required to maintain a minimum amount of unimpaired paid-up capital or assigned capital as follows:
- Class A - SCR500,000
- Class B - SCR50,000
The purpose of this circular is to provide clarity on the computation of unimpaired paid-up capital or assigned capital. Specifically, the sum of the following items will determine whether paid-up capital or assigned capital is impaired or unimpaired:
- Paid-up ordinary Shares
- Paid-up non-cumulative perpetual preference shares
- Share premium
- Statutory reserve fund
- Retained earnings/losses as well as unaudited losses
If the computation outcome is above the nominal value of the paid-up capital or assigned capital, then paid-up capital or assigned capital is not impaired. Otherwise, if the computation is below the nominal value of the paid-up capital or assigned capital, then paid-up capital or assigned capital is impaired.
The Central Bank of Seychelles counts on your usual co-operation.
Yours faithfully,
C. Edmond
First Deputy Governor
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