KNF issues new dividend regulations

Financial Supervision Authority KNF set rules for several types of companies regarding dividends payouts for 2017’s profit. Insurers will be able to pay out up to 75 percent of its profits when they meet regulatory and solvency ratings. While the cap will be set at 100 percent for extra-solvent insurers who will show an excess surplus of capital even after dividend payment. Solvency requirements were set at the same level as last year. PTE pension funds will be allowed to pay out up to 100 percent of this years’ profits or other elements of own capital if they meet a set of supervisory and solvency criteria. While brokerage houses will be able to spend up to 75 percent of its profits on dividends when they meet a set of capital adequacy and other criteria and increase the payment to 100 percent if they meet additional capital requirements at the end of each quarter of 2017. At last, TFI investment funds could pay up to 75 percent of its profits if the post-payout capital requirement coverage ratio does not fall below 1.5 and 75-100 percent payment for TFI with a post-payout ratio of no less than 2, financial market regulator KNF said.