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  • Tier 3: Ancillary Capital

    • CA-2.1.11

      Tier 3 capital consists of short-term subordinated debt that meets the following conditions:

      (a) It is unsecured, subordinated and fully paid up;
      (b) It has an original maturity of at least two years;
      (c) It is not repayable before the agreed repayment date; and
      (d) It is subject to a lock-in clause which stipulates that neither interest nor principal may be paid (even at maturity) if such payment means that the investment firm licensee's Regulatory Capital would fall below its Regulatory Capital Requirement.
      Amended: January 2007