TITLE IU.K. [X1VALUATION AND RISK-BASED CAPITAL REQUIREMENTS (PILLAR I), ENHANCED GOVERNANCE (PILLAR II) AND INCREASED TRANSPARENCY (PILLAR III)]

CHAPTER IVU.K. OWN FUNDS

SECTION 3 U.K. Eligibility of own funds

Subsection 2 U.K. Quantitative limits
Article 82U.K.Eligibility and limits applicable to Tiers 1, 2 and 3

1.As far as compliance with the Solvency Capital Requirement is concerned, the eligible amounts of Tier 2 and Tier 3 items shall be subject to all of the following quantitative limits:

(a)the eligible amount of Tier 1 items shall be at least one half of the Solvency Capital Requirement;

(b)the eligible amount of Tier 3 items shall be less than 15 % of the Solvency Capital Requirement;

(c)the sum of the eligible amounts of Tier 2 and Tier 3 items shall not exceed 50 % of the Solvency Capital Requirement.

2.As far as compliance with the Minimum Capital Requirements is concerned, the eligible amounts of Tier 2 items shall be subject to all of the following quantitative limits:

(a)the eligible amount of Tier 1 items shall be at least 80 % of the Minimum Capital Requirement;

(b)the eligible amounts of Tier 2 items shall not exceed 20 % of the Minimum Capital Requirement.

3.Within the limit referred to in point (a) of paragraph 1 and point (a) of paragraph 2, the sum of the following basic own-fund items shall make up less than 20 % of the total amount of Tier 1 items:

(a)items referred to in point (a)(iii) of Article 69;

(b)items referred to in point (a)(v) of Article 69;

(c)items referred to in point (b) of Article 69;

(d)items that are included in Tier 1 basic own funds under the transitional arrangement set out in Article 308b(9) of Directive 2009/138/EC.