Explanatory Memorandum - Eligible Capital Rules 2011

Summary

This is a short explanatory memorandum accompanying the Bermuda Monetary Authority's proposed Eligible Capital Rules 2011. It explains the background and purpose of the Rules rather than setting out the Rules' detailed text itself.

• Origin: The proposed Rules correspond to proposals in the BMA's Consultation Paper on Eligible Capital (December 2010) and are made pursuant to section 6A of the Insurance Act 1978.
• Purpose: The Rules set out requirements for insurers to hold available statutory capital and surplus equal to or above their minimum margin of solvency and enhanced capital requirement, subject to eligible capital rules.

The document itself is introductory and does not contain the operative rule text, specific thresholds, or compliance deadlines; it summarizes the rationale for rules that would separately govern insurer capital adequacy.

Applies to

insurers