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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]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
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Financial Markets Tribunal
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Dec 9 2012 - Dec 31 2014Jan 1 2015 onwards

PIB 9.2A.6

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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 have a documented Contingency Funding Plan (CFP) that sets out clearly its strategies for addressing liquidity shortfalls in emergency situations.
(2) An Authorised FirmG must ensure that its CFP is in writing and is approved by its Governing BodyG .
(3) The CFP must be commensurate with an Authorised Firm'sG complexity, risk profile and scope of operations and its role in the financial systems in which it operates.
(4) The CFP must:
(a) list the events or circumstances that will lead the Authorised FirmG to put any part of the plan into action;
(b) set out available potential contingency funding sources and the amount of funds an Authorised FirmG estimates can be derived from these sources;
(c) estimate the lead time needed to tap additional funds from each of the contingency sources;
(d) set out the extent to which the plan relies upon:
(i) asset sales, using assets as CollateralG on secured funding (including repurchase agreements), securitising its assets or otherwise reducing its assets;
(ii) modifying the structure of, or increasing, its liabilities; and
(iii) the use of committed facilities; and
(e) contain clear administrative policies and procedures that will enable the Authorised FirmG to manage the implementation of the plan, including:
(i) the roles and responsibilities of senior management, including who has the authority to invoke the CFP;
(ii) the names, location and contact details of members of the team responsible for implementing the plan;
(iii) the details of who is responsible for contact with the Authorised Firm'sG head office (if appropriate), analysts, investors, external auditors, media, significant customers, regulators and others; and
(iv) the mechanisms that enable senior management and the Governing BodyG to receive relevant, accurate, comprehensive, timely and reliable management information.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
[Amended] DFSA RM148/2014 (Made 1st January 2015). [VER23/01-15]