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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 4.4.5 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. The requirements in these RulesG do not prevent arrangements such as EmployeeG loan schemes that allow more favourable and flexible loan terms to EmployeesG of the Authorised FirmG than those available under its normal commercial arrangements. However, such a loan scheme must comply with the requirements set out in these RulesG , which are designed to address conflicts of interest that may arise in the grant, approval or management of such loans. Such conflicts are especially likely to arise where one or more of the EmployeesG concerned are DirectorsG , PartnersG or senior managers.
2. Generally, where an Authorised FirmG has an EmployeeG loan scheme under these RulesG , the DFSAG expects its Governing BodyG to have ensured, before it or its delegate approved that scheme, that the terms, conditions and particularly limits (both at individual and aggregate level) on which credit is to be provided to EmployeesG under the scheme are adequate and effective in addressing the risks arising from such lending. The Authorised FirmG should also be able to demonstrate to the DFSAG that the procedures it has adopted relating to an EmployeeG loan scheme are adequate to address any risks arising from such lending. The DFSAG expects to have access to records relating to lending under an EmployeeG loan scheme upon request or during its supervisory visits. Any significant breach of or deviation from the procedures adopted in relation to an EmployeeG loan scheme may also trigger the reporting requirements to the DFSAG under GEN Rule 11.10.7.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]