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shares the value of such shares shall be established on the basis of a valuation approved by the Central Bank.

(5) The total amount of the holdings of a licensed financial institution under paragraph (c) of subsection (4) may not exceed sixty per cent of the capital base of the licensed financial institution. (6) An investment in a company under paragraph (c) of subsection (4) may not exceed five per cent of the shares of that company.

(7) A licensed financial institution shall not outsource any of its functions to any other person without the approval of the Central Bank.

54. (1)

Financial subsidiaries permitted

A licensed financial institution may acquire or establish a subsidiary company with the prior written approval of the Central Bank, where the subsidiary shall be engaged solely in permissible activities as determined by the Central Bank. (2) The investment of a licensed financial institution in a permitted subsidiary shall not exceed ten per cent of the capital base.

(3) The aggregate amount of investment which a licensed financial institution may take in respect of its subsidiaries, shall not exceed twenty-five per cent of its capital base.

(4) In considering the granting of approval under this section, the Central Bank shall take into account: (a) whether the acquisition of the shares is likely to prejudice the: (i) financial condition of the licensed financial institution; (ii) capitalisation of the licensed financial institution; (iii) interest of depositors of the licensed financial institution;

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