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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 3.2.2 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. For the purposes of PIB Rule 3.2.2, an Authorised Firm'sG Governing BodyG should assess whether the Capital ResourcesG which are required by the DFSAG as set out in PIBG are adequate in relation to the Authorised Firm'sG specific business. Additional resources should be maintained by the Authorised FirmG where its Governing BodyG has considered that the required Capital ResourcesG do not adequately reflect the nature and risks of the Authorised Firm'sG business.
2. The liabilities referred to in PIB Rule 3.2.2(b) include an Authorised Firm'sG contingent and prospective liabilities, such as liabilities arising from a change in business strategy or claims made against the Authorised FirmG , but not liabilities that might arise from prospective transactions which the Authorised FirmG could avoid, for example by ceasing its operations. Liabilities from prospective transactions refers to the potential liabilities which can be avoided by either adequate risk management, risk transfer or avoiding the transaction completely. This refers to any prospective transaction, for example, lending money to a borrower or entering into a contract for the provision of services by a service provider.
3. An Authorised FirmG subject to the requirements in PIB chapter 10 may be required to meet Individual Capital RequirementsG under those RulesG .
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]