Regulatory Alerts2022-06-29
Added · Updated
MAS Notice FHC-N601 on Capital Funds
MAS Notice FHC-N601 excludes specific reserves from the definition of capital funds for designated financial holding companies under the Financial Holding Companies Act 2013. The excluded items are revaluation reserves, unrealised fair value gains or losses on equity securities held at fair value through other comprehensive income, unrealised fair value gains or losses on debt securities and loans held at fair value through other comprehensive income, and cumulative fair value gains or losses on cashflow hedges of financial instruments measured at amortised cost. This notice takes effect on 1 July 2022.
MAS NOTICE FHC-N601 29 June 2022 NOTICE TO DESIGNATED FINANCIAL HOLDING COMPANIES FINANCIAL HOLDING COMPANIES ACT 2013 CAPITAL FUNDS
- This Notice is issued pursuant to sections 2(1) and 60(1) of the Financial Holding Companies Act 2013 [“the Act”]. Definition
- The expressions used in this Notice shall, except where expressly defined in this Notice or where the context otherwise requires, have the same respective meanings as in the Act. Definition of Capital Funds
- For the purposes of the definition of “capital funds” in section 2(1) of the Act, the following reserves are to be excluded as “capital funds”: (a) revaluation reserves; (b) unrealised fair value gains or losses on equity securities held at fair value through other comprehensive income; (c) unrealised fair value gains or losses on debt securities and loans held at fair value through other comprehensive income; and (d) cumulative fair value gains or losses on cashflow hedges of financial instruments that are measured at amortised cost. Effective Date
- This Notice takes effect on 1 July 2022.
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