PRU 3.19.6

(1) In this Section, a reference to a "maximum distributable amount" means the maximum amount that an Authorised Person may distribute in connection with CET1 Capital as specified in Rules 3.19.3 and 3.19.4.
(2) Subject to sub-paragraph (4), an Authorised Person must determine the maximum distributable amount by multiplying the sum specified in (a) by the factor determined under (b):
(a) the total of interim or year-end profits that were not included in CET1 Capital pursuant to Rule 3.10.2 and which have accrued after the most recent distribution of profits and after any of the actions referred to in Rules 3.19.3(b);
(b) where the CET1 Capital of the Authorised Person (which is not used to meet the Capital Requirement, including any Individual Capital Requirement as may be imposed pursuant to Chapter 10) falls:
(i) within the first quartile of the Combined Buffer Requirement, the factor shall be 0;
(ii) within the second quartile of the Combined Buffer Requirement, the factor shall be 0.2;
(iii) within the third quartile of the Combined Buffer Requirement, the factor shall be 0.4;
(iv) within the fourth quartile of the Combined Buffer Requirement, the factor shall be 0.6.
(3) An Authorised Person must calculate the lower and upper bounds of each quartile of the Comibined Buffer requirement as follows:
Lower bound of quartile = (Combined Buffer Requirement / 4) x (Qn – 1);
and
Upper bound of quartile = (Combined Buffer Requirement / 4) x Qn,
where Qn indicates the ordinal number of the quartile concerned.
(4) If an Authorised Person undertakes any action under Rules 3.19.3(b), it must take that into account and reduce the maximum distributable amount accordingly.