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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
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Financial Markets Tribunal
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  Versions
(1 version)
 
Dec 9 2012 onwards

PIB 4.13.19

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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

For an Authorised FirmG to recognise an on-balance sheet NettingG agreement for the purposes of PIB Rule 4.13.17, all of the following conditions must be satisfied:

(1)
(a) both the on-balance sheet ExposureG (asset) and the offsetting on-balance sheet item (liability) are owing between the Authorised FirmG and the same CounterpartyG ;
(b) the Authorised FirmG nets the on-balance sheet ExposureG (asset) and the offsetting on-balance sheet item (liability) in a way that is consistent with its legal rights against the CounterpartyG ;
(c) a legal right of set-off exists;
(d) the agreement between the Authorised FirmG and the CounterpartyG does not contain a Walkaway ClauseG ;
(e) the NettingG provided for in the agreement between the Authorised FirmG and the CounterpartyG is effective and enforceable in the event of default, bankruptcy, liquidation or other similar circumstances affecting either the CounterpartyG or the Authorised FirmG ;
(f) the on-balance sheet ExposureG (asset) and the offsetting on-balance sheet item (liability) are monitored, controlled and managed on a net basis; and
(g) the potential for roll-off ExposureG is monitored and controlled where there is a maturity mismatch; and
(2) it has, in respect of each relevant jurisdiction, a written and reasoned legal opinion which:
(a) has been provided by an external source of legal advice of appropriate professional standing;
(b) confirms that the requirements of (1)(a)-(e) are met for all relevant jurisdictions; and
(c) is kept under review to ensure that it remains correct and up to date in the event of changes to the relevant laws.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]