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Appendix B: Central Bank of UAE – Processes and Requirements Form for Financial Institutions Operating in UAE

C 52/2017 STA Effective from 1/12/2022

Summary checklist notification to the Central Bank in relation to a regulatory_capital instrument. In addition, kindly supply the following specific information: the CN1-form and the draft terms and conditions of the instrument. Please note that a submission is incomplete unless all requested information has been supplied.

DocumentationEnter
Stage 1:
Initial Information to the Central Bank		 
Name of the bank 
Reasons for the issuance of the instrument 
Bank to inform the Central Bank from the beginning of the instrument and main features of the capital increase 
Main features of the planned capital Instrument (section 1, 2 and 3 of the Capital Notification Form 1- CN1 Form which is uploaded on the online Central Bank’s portal under Basel tab) 
Capital Planning for 5 years under:
  1. i.Business as usual conditions
  2. ii.Without the Instrument
 
Stress testing results, including results for one scenario in which top 2 credit customers default 
Central Bank- Financial Stability Department stress test results 
Stage 2:
Application Content		Check
The bank must submit the following documents to start the approval process: 
  1. a.A legal opinion of an independent appropriately qualified and experienced lawyer that the terms and conditions are in compliance with the requirements detailed in the Capital Regulations, Standards and Guidance.
 
  1. b.Legal opinion of an independent appropriately qualified and experienced lawyer that the obligations contained in terms and conditions will constitute legal, valid, binding and enforceable obligations.
 
  1. c.Legal opinion of an independent appropriately qualified and experienced lawyer that the Self-Assessment of the issuing bank meets the Conditions and the Capital Regulations.
 
  1. d.Written confirmation from the bank’s external auditor on the accounting treatment of the Instrument
 
  1. e.Fully completed CN1-form signed by the CEO, CFO, Head of Internal Audit, Head of Compliance and Head of Risk
 
  1. f.Detailed terms and conditions that will be part of the prospectus (Note that a comparison of the terms and conditions need to be black-lined if any changes occur)
 
  1. g.Key SPV-related incorporation documents and underlying mudaraba agreement, if applicable.
 
  1. h.Market Conformity Analysis (if the instrument will be privately placed)
 
  1. i.Any other documents requested by the Central Bank, if deemed necessary.