s 37 Leverage ratio requirement
37.—(1) The Authority may, from time to time, by notice in writing to any designated financial holding company, or any class of designated financial holding companies, require that its leverage ratio must not be less than a specified amount as calculated in the form and manner determined by the Authority. (2) Any person to whom a notice is issued under subsection (1) shall comply with the notice. (3) Where the Authority issues a notice under subsection (1) to a class of designated financial holding companies, the Authority may specify different minimum amounts of leverage ratios for different companies within that class having regard to the risks arising from the activities of the designated financial holding company and its FHC group, the financial soundness of the designated financial holding company and such other factors as the Authority may consider relevant. (4) Any prescription of, or change in, the minimum amount of leverage ratio under subsection (1) or (3) shall take effect only after the expiration of 30 days’ notice to the designated financial holding company of the Authority’s intention to take such action. (5) Any designated financial holding company which fails to comply with subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part thereof during which the offence continues after conviction. (6) In this section, “leverage ratio” means the ratio of the capital to the exposures of the designated financial holding company, as calculated in the form and manner determined by the Authority.