Cap. 376 Art. 5AOwn funds.

(1) Without prejudice to the minimum level of the capital requirements as may be set out in a Financial Institutions Rule, the own funds of a financial institution, other than an account information service provider, shall not fall below the amount of initial capital as may be set out in a Financial Institutions Rule, or the amount of own funds as calculated in accordance with a Financial Institutions Rule issued by the competent authority, whichever is the higher.

(2) Notwithstanding the initial capital requirements, financial institutions providing any of the services listed in the Second or the Third Schedule, except for payment initiation services and account information services, shall hold at all times own funds calculated in accordance with one or more, where applicable, of the methods as may be set out in a Financial Institutions Rule.

(2A) Where a payment institution or an electronic money institution belongs to the same group as another payment institution, electronic money institution, credit institution, investment firm, asset management company or insurance undertaking, or where a payment institution or an electronic money institution carries out activities other than providing payment services or issuing electronic money, as applicable, the multiple use of elements eligible for own funds shall be prohibited.

(2B) In the event that the conditions set out in Article 7 of the CRR are satisfied, the competent authority may choose not to apply sub-article (2) to payment institutions or electronic money institutions that are included in the consolidated supervision of the parent credit institutions pursuant to the CRD.

(3) Where the amount of own funds of a financial institution, other than an account information service provider, falls below the amount established under sub-articles (1) and (2), the competent authority shall require the financial institution to take the necessary measures to restore the level of own funds within such period as the competent authority may determine:

Provided that if the level of own funds of a financial institution, other than an account information service provider, is not restored within the determined period, the competent authority may, in addition to the power to impose an administrative penalty, exercise any of the powers granted to it under the provisions of article 6.