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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 10.2 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. These RulesG are designed to implement key aspects of Pillar 2 of the revised framework of capital adequacy, commonly known as Basel III, published by the Basel Committee on BankingG Supervision.

Internal Risk Assessment ProcessG (IRAPG )

2. An Authorised FirmG in CategoryG 1, 2, 3A, 3B, 3C or 5 is required to carry out an IRAPG . An IRAPG is a comprehensive internal risk evaluation as detailed in PIB section 10.3. More detail on the establishment of an IRAPG and the manner of carrying out an IRAPG assessment is provided in PIB App10.

Internal Capital Adequacy Assessment ProcessG (ICAAPG )

3. An Authorised FirmG in CategoryG 1, 2, 3A or 5 is also required to carry out an ICAAPG as detailed in PIB section 10.4. This process enables such an Authorised FirmG to determine and maintain an adequate amount and quality of capital, relative to its risk profile. More detail on the establishment of an ICAAPG and the manner of carrying out an ICAAPG assessment is provided in PIB App10.

Supervisory Review and Evaluation ProcessG (SREPG )

4. The documented results of IRAPG and ICAAPG assessments are required to be submitted to the DFSAG . The DFSAG then applies a process known as the SREPG as detailed in PIB section 10.5. As part of the SREPG , the DFSAG will evaluate the quality, completeness and consistency of the IRAPG and, where applicable, the ICAAPG of the Authorised FirmG , to form a view on the overall risk profile of the firm and whether the capital held by the firm is sufficient to deal with the risks. More detail concerning the SREPG is provided in PIB App10.
5. Following review of the IRAPG and ICAAPG of an Authorised FirmG , the DFSAG may engage in a dialogue with the firm to evaluate the assessment of risks and where relevant, additional capital which the DFSAG considers that the firm should hold resulting from the IRAPG , ICAAPG or SREPG .

Individual Capital RequirementG (ICR)

6. Upon completing the SREPG , the DFSAG may impose an Individual Capital RequirementG on an Authorised FirmG in CategoryG 1, 2, 3A or 5 as detailed in PIB section 10.6. The ICR may be imposed where the DFSAG concludes that the firm should hold more capital to provide for its overall risks.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]