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  • CA-2.2 CA-2.2 Limits on Components

    • Tier 1: Core Capital

      • CA-2.2.1

        Tier 1 capital must constitute at least half of total Regulatory Capital, i.e. the sum of Tier 2 and Tier 3 capital must not exceed total Tier 1 capital.

    • Tier 2: Supplementary Capital

      • CA-2.2.2

        Long-term subordinated term debt may not comprise more than 50% of Tier 1 (see Paragraph CA-1.1.5A).

        Amended: January 2013

      • CA-2.2.3

        Rule CA-2.1.8(h) sets out the requirements regarding long-term subordinated debt.

        Amended: January 2012

    • Tier 3: Ancillary Capital

      • CA-2.2.4

        Tier 3 capital may only be used to satisfy an investment firm's Position Risk Requirement (PRR). It is limited to 250% of the portion of Tier 1 capital also used to meet the Position Risk Requirement (PRR).

      • CA-2.2.5

        Tier 2 elements may be substituted for Tier 3 up to the Tier 3 limit of 250% (cf. Rule CA-2.2.4), in so far as eligible Tier 2 capital does not exceed total Tier 1 capital, and long-term subordinated debt does not exceed 50% of Tier 1 capital.

      • CA-2.2.6

        Investment firm licensees may hold capital elements in excess of the above limits, but any excess is ignored for the purposes of calculating Regulatory Capital.