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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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(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 statement of the Authorised Firm'sG Liquidity RiskG tolerance and strategy;
(b) establishing and maintaining a senior management structure with clearly defined responsibilities and roles for the management of Liquidity RiskG and for ensuring compliance with the Authorised Firm'sG Risk strategy;
(c) ensuring the senior management in (b) and other relevant personnel have the necessary experience to manage Liquidity RiskG ;
(d) 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;
(e) ensuring that Liquidity RiskG is adequately identified, assessed, mitigated, controlled and monitored in accordance with the Authorised Firm'sG Liquidity RiskG tolerance and strategy;
(f) ensuring that the Liquidity RiskG tolerance and strategy is documented; and
(g) ensuring that the Liquidity RiskG tolerance and strategy is reviewed at least annually.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
[Amended] DFSA RM148/2014 (Made 1st January 2015). [VER23/01-15]