GR-3.1.1A
When submitting a request for CBB’s approval for proposed dividend, the request made by the
(a) Be made at a minimum 3 working days before the proposed announcement;
(b) Include a copy of the draft audited or reviewed financial statements for the year to which the request for the proposed dividend pertains to;
(c) Include the intended percentage and amount of proposed dividends;
(d) The impact of proposed dividends on:
(i) The capital adequacy and solvency margin requirements as outlined in Module CA (Capital Adequacy) of Volume 3 CBB Rulebook before and after the proposed dividends;
(ii) The cash flow position and shareholders’ equity level before and after the proposed dividends;
(iii) Stress testing results evidencing that the proposed dividends would not lead to any breach of the capital adequacy and solvency margin requirements as outlined in Module CA (Capital Adequacy) of Volume 3 CBB Rulebook in the last financial year and the next two years under normal and stressed scenarios;
(e) Satisfy the CBB of the adequacy of impairment provisions during the review of the annual/interim financial statements;
(f) Ensure that any unrealised gains arising from assets or liabilities fair value assessment are excluded from net income in the determination of the proposed dividends, given that CBB does not permit distribution of unrealised profit;
(g) Ensure that the amount of realised profits included in the retained earnings as at the year-end is sufficient to cover the proposed dividend amount; and
(h) Ensure that any negative fair value on assets held at amortised cost do not have any material adverse impact on the capital and liquidity positions where such assets may need to be liquidated before maturity to satisfy any financial obligations, including Claims Payments.
Amended: January 2024
Amended: October 2017
Added: April 2009
Amended: October 2017
Added: April 2009