Own Funds shall consist of the sum of Basic Own Funds and Ancillary Own Funds.
Basic Own Funds shall consist of the following items:
The excess of Admissible Assets over liabilities (surplus), which shall be reduced by the amount of Treasury shares held by the Company.
Subordinated liabilities (group level debt in a holding company with the prior approval of the Authority).
Ancillary Own Funds shall consist of items other than Basic Own Funds which can be called up to absorb losses, with the prior approval of the Authority. Ancillary Own Funds may comprise the following items to the extent that they are not Basic Own Funds items:
Unpaid share capital or initial fund that has not been called up;
Letters of credit and guarantees; and
Any other legally binding commitments receivable by the Company.
In case of a Company with variable contributions, Ancillary Own Funds may also comprise any future claims which that Company may have against its members by way of a right to call for supplementary contribution, within the following twelve (12) months.
Where an Ancillary Own Funds item has been paid in or called up, it shall be treated as an asset and cease to form part of Ancillary Own Funds items.
At least 100% of the Minimum Capital Requirement should be met by the Basic Own Funds.
At least 100% of the Solvency Capital Requirement and Minimum Guarantee Fund should be met by the Own Funds, which is calculated as the Basic Own Funds plus only 50% of the Ancillary Own Funds.