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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER34/12-19]
PIB App4 Credit Risk
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases

Whole SectionText only Print Print Manager Link

(1 version)
Dec 9 2012 onwards

PIB A4.11.9

Whole Section PDF

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.

An Authorised FirmG may treat as exempt from the Concentration RiskG limits in PIB chapter 4 an ExposureG to a CounterpartyG or CounterpartiesG ConnectedG to the Authorised FirmG if all of the following conditions are met:

(a) the Authorised FirmG has given the DFSAG written notice one month in advance of its intention to use the exemption and explained how it will ensure that it will still meet the Concentration RiskG limits on a continuing basis when using the exemption;
(b) the total amount of the ExposuresG that an Authorised FirmG is treating as exempt under this RuleG does not exceed 50% of the Authorised Firm'sG Capital ResourcesG ;
(c) the Authorised FirmG makes and retains a record that identifies each ExposureG it has treated in this way;
(d) the Authorised FirmG is subject to consolidated supervision;
(e) the CounterpartyG is:
(i) an Authorised FirmG which is the subject of consolidated supervision; or
(ii) a member of the Authorised Firm'sG GroupG which is the subject of consolidated supervision to the satisfaction of the DFSAG ; and
(f) the ExposureG satisfies one or more of conditions (i) to (iii):
(i) it is a loan made by the Authorised FirmG with a maturity of one year or less in the course of the Authorised FirmG carrying on a treasury role for other members of its GroupG ;
(ii) it is a loan to the ParentG of the Authorised FirmG made in the course of a business carried on by the Authorised FirmG of lending to its parent cash that is surplus to the needs of the Authorised FirmG , provided that the amount of that surplus fluctuates regularly; or
(iii) it arises from the Authorised FirmG or a CounterpartyG ConnectedG to the Authorised FirmG operating a central risk management function for ExposuresG arising from DerivativesG contracts.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]