12

Deductions from Capital

12.1

A firm which is not a pure reinsurer must deduct from total capital resources the value of any asset which is not an admissible asset, unless the asset is held to cover linked long-term liabilities under Insurance Company – Risk Management 4.

12.2

A firm must deduct from its capital resources the value of its investments in any affiliated company that is an ancillary services undertaking.

12.3

In relation to each affiliated company that has a Part 4A permission a firm must add to (if positive), at stage J in the capital resources table (Positive adjustments for related undertakings), or deduct from (if negative), at stage L in the capital resources table (Deductions from total capital), its capital resources the value of its shares in that undertaking calculated in accordance with Insurance Companies: Overall Resources and Valuation 8.1.