PINS A3.2.3 Assets subject to mortgage or charge

(1) Subject to PINS Rule A3.2.3(2), assets of the insurer that are under a fixed or floating charge, mortgage or other security are subject to an asset risk charge of 100% to the extent of the indebtedness secured on those assets. This would replace the asset risk charge that would otherwise apply to the secured assets.
(2) Where the security supports an insurer's insurance liabilities, the asset risk charge of 100% is applicable only to the amount by which the market value of the charged assets exceeds the insurer's supported liabilities.
Amended by QFCRA RM/2015-3 (as from 1st January 2016).