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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
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
Media Releases
Financial Markets Tribunal

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PIB 9.2.2

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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.

Past version: effective from Dec 9 2012 - Dec 31 2014.
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To view past versions of this module in PDF format, please visit the Archive.

(1) An Authorised FirmG must ensure that its Governing BodyG is responsible for monitoring the nature and level of Liquidity RiskG assumed by the Authorised FirmG and the process used to manage that risk.
(2) Without limiting the operation of (1), the responsibilities of an Authorised Firm'sG Governing BodyG in respect of Liquidity RiskG include:
(a) approving the Authorised Firm'sG Liquidity RiskG strategy;
(b) establishing and maintaining a senior management structure for the management of Liquidity RiskG and for ensuring compliance with the Authorised Firm'sG Risk strategy;
(c) monitoring the Authorised Firm'sG overall Liquidity RiskG profile on a regular basis and being aware of any material changes in the Authorised Firm'sG current or prospective Liquidity RiskG profile; and
(d) ensuring that Liquidity RiskG is adequately identified, assessed, mitigated, controlled and monitored.

Requirements imposed on a CategoryG 2 firm

(3) An Authorised FirmG in CategoryG 2 must:
(a) establish and maintain a senior management structure to manage Liquidity RiskG ;
(b) identify, assess, mitigate, control and monitor Liquidity RiskG ; and
(c) monitor the Authorised Firm'sG overall Liquidity RiskG profile on a regular basis.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]