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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
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PIB 9.2.1

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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 establish and maintain a Liquidity RiskG policy.
(1A) An Authorised FirmG must ensure the policy is in writing and is approved at least annually by its Governing BodyG .
(1B) The policy must set out the level of Liquidity RiskG the Authorised FirmG is willing to tolerate, which must be in line with its business objectives, strategy and overall risk tolerance.
(2) The policy must include systems and controls for intra-day daily, short-term, medium-term and long-term management of Liquidity RiskG appropriate to the nature, scale and complexity of the activities conducted by the firm.
(3) The systems and controls referred to in (2) must include:
(a) a system for identifying and assessing Liquidity RiskG in accordance with PIB Rule 9.2.4.
(b) a system for the measurement and monitoring of Liquidity RiskG using a robust and consistent method which enables the Authorised FirmG to implement the requirements set out in PIB Rule 9.2.5;
(c) a system for controlling Liquidity RiskG which enables the Authorised FirmG to implement the requirements set out in PIB Rule 9.2.6;
(d) a system for collateral management and asset encumbrance which is able to adequately identify, monitor and manage the risks associated with these activities in accordance with PIB Rule 9.2.8;
(e) a system for adequate allocation of liquidity costs, benefits and risks that meets the requirements set out in PIB Rule 9.2.9; and;
(f) a system to manage intra-day liquidity positions effectively and meet the requirements in PIB Rule 9.2.10.
(4) An Authorised Firm must ensure that it has risk management systems to implement the policy.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
[Amended] DFSA RM148/2014 (Made 1st January 2015). [VER23/01-15]
[Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]