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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
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Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
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  Versions
(1 version)
 
Dec 9 2012 onwards

PIB 4.13.10



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.

In addition to the requirements in PIB Rule 4.13.9, where an Authorised FirmG has an ExposureG that is protected by a guarantee or that is counter-guaranteed by a central government or Central BankG , a regional government or local authority or a PSE claims on which are treated as claims on the central government in whose jurisdiction they are established, a MDB or an international organisation to which a 0% risk weight is assigned under PIB section 4.12, an Authorised FirmG may treat the ExposureG as being protected by a direct guarantee from the central government or Central BankG in question, provided the following requirements are complied with:

(a) the counter-guarantee covers all Credit RiskG elements of the ExposureG ;
(b) both the original guarantee and the counter-guarantee comply with all the requirements for guarantees set out in this section, except that the counter-guarantee need not be direct and explicit with respect to the original ExposureG ; and
(c) the Authorised FirmG is able to satisfy the DFSAG that the cover is robust and that nothing in the historical evidence suggests that the coverage of the counter-guarantee is less than effectively equivalent to that of a direct guarantee by the entity in question.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]