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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Financial Markets Tribunal

Whole SectionText only Print Print Manager Link

(1 version)
Jan 1 2018 onwards

PIB 9.2.8

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.

(1) An Authorised FirmG must prudently manage its collateral positions using a collateral management system.
(2) The Authorised Firm'sG collateral management system must be able to:
(a) distinguish between pledged and unencumbered assets, including during periods of liquidity stress;
(b) take into account the legal entity in which liquid assets reside; and
(c) identify, in a timely manner, the countries where assets are legally recorded and any restrictions imposed on their transfer or liquidation.
(3) An Authorised FirmG must manage its encumbered balance sheet assets within prudent limits to minimise the impact on its liquidity position and funding cost.
(4) For the purposes of (3), the Authorised Firm'sG system supporting the management of encumbered assets must be able to provide information on:
(a) the current and expected level and types of asset encumbrance and related transactions;
(b) the nature of unencumbered assets including amount, location and credit quality;
(c) the capacity for further asset encumbrance, including available unencumbered assets and the potential liquidity that can be generated; and
(d) the expected amount, level and type of additional encumbrance that may result from stress scenarios.
Derived from DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]