CAPITAL FUNDS
1 Pursuant to Directive 1, issued under Section 24C(3) of the MAS Act, capital funds in the case of a merchant bank whose head office is situated outside Singapore, consists of net head office funds and such other liabilities as the Authority may define.
NET HEAD OFFICE FUNDS
2 "Net Head Office Funds" is defined as the net liability of the Singapore branch to its head office, branches outside Singapore, and the merchant bank's Asian Currency Unit in Singapore, less losses, if any, of the branch including that of the Asian Currency Unit.
SUCH OTHER LIABILITIES
3 Such other liabilities shall mean reserves and profits which appear in the accounts of the branch in Singapore. However, these shall not include any reserves which are due to writing down the value of assets, provision for the depreciation of fixed assets, reserves maintained for specific purposes and shall exclude unrealised fair value gains or losses on revaluation of available-for-sale ("AFS") equity securities, unrealised fair value gains or losses on revaluation on AFS debt securities and AFS loans, and cumulative fair value gains or losses on cashflow hedges of financial instruments that are measured at amortised cost.
[MAS Notice 1001 (Amendment) 2005]
* Notes on History of Amendments
1. MAS Notice 1001 (Amendment) 2005 with effect from 15 June 2005
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