Spring 2014 - Qs 20

a225khana225khan
in OSFI.MCT


I understand old MCT questions are outdated, but can you please explain part a of this question.
Examiners report says, this will increase EquityRsk(MrktRisk) so it will increase CapReq.

But Common shares are also a part of CapitalAvailable(Capital A) so would it also increase Capital Available?

Comments

  • Staff-T1Staff-T1

    Actually this question is still relevant. I don't think so for your question. Capital A is referring to common shares issued by the insurer. This seems like the purchase of common shares purchased in the market

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