CAPI 8.4.4 Distributions by firm or cell deemed to constitute single long term insurance fund
A firm or a cell that is taken to constitute a single long term insurance fund may only make a distribution by way of dividend or return of capital if—
(a) the dividend or return of capital is a distribution of a surplus following a surplus determination; and
(b) the distribution does not cause the aggregate amount of the dividends and returns of capital made by the firm or the cell since the reference date of the relevant financial condition report to exceed—
(i) if the payment is made within 4 months after that reference date-the amount of the surplus; or
(ii) if the payment is made more than 4 months after that reference date-50% of the amount of the surplus.
Note Surplus determination, month and reference date are defined in the glossary.
|Derived from QFCRA RM/2011-1 (as from 1st July 2011)|