PINS Part 4.1 PINS Part 4.1 Application and purpose
Editorial changes (as from 1 January 2015).
PINS 4.1.1 Application of Chapter 4
This Chapter applies to every insurer (other than a QFC captive insurer) incorporated in the QFC.
Amended by QFCRA RM/2015-3 (as from 1st January 2016).
PINS 4.1.2 PINS 4.1.2 [Deleted]
Deleted by QFCRA RM/2011-2 (as from 1st July 2011).
PINS 4.1.2 Guidance1. In assessing the adequacy of an insurer's financial resources, attention must be paid not only to the types of events or problems that it might encounter, but also the quality of the support provided by various types of capital instruments.2. The purpose of this Chapter is to identify those capital instruments that can be included as eligible capital to meet the insurer's minimum capital requirement. In determining the rules governing whether a capital instrument is adequate for supervisory purposes, the Regulatory Authority has identified the following relevant matters, namely the extent to which each instrument:
a. provides a permanent and unrestricted commitment of funds;b. is freely available to absorb losses from business activities;c. does not impose any unavoidable servicing charges against earnings;d. ranks behind the claims of policyholders and other creditors in the event of the winding-up of the insurer.3. As insurers authorised to conduct insurance business in or from the QFC in the legal form of a
branchwill be subject to the regulatory capital requirements applicable in their home jurisdiction, the requirements of this Chapter do not apply to branches. Amended by QFCRA RM/2013-1 and Editorial changes (as from 1st January 2015).