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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]
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 2.4 Guidance

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. This section and related PIB section A2.5 in PIB App2 provide Authorised FirmsG with GuidanceG on prudent valuation for positions that are accounted for at fair value, whether they are in the Trading BookG or in the Non-Trading BookG (also known as the banking book).
2. A framework for prudent valuation practices should at a minimum include adequate systems and controls and valuation methodologies. The DFSA'sG expectations in this regard are set out in PIB section A2.5 PIB App2.
3. The GuidanceG is especially important for positions without actual market prices or observable inputs to valuation, as well as less liquid positions which raise supervisory concerns about prudent valuation. The GuidanceG is not intended to require Authorised FirmsG to change valuation procedures for financial reporting purposes.
4. The DFSAG will assess an Authorised Firm'sG valuation procedures for consistency with the GuidanceG . The DFSAG may impose a valuation adjustment if there is a material degree of inconsistency between the Authorised Firm'sG valuation procedures and the GuidanceG .
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]