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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER34/12-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases

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  • PIB 3.2.2

    An Authorised FirmG that is a Domestic FirmG must:

    (a) have and maintain, at all times, Capital ResourcesG of the kinds and amounts specified in, and calculated in accordance with, the RulesG in PIBG ; and
    (b) ensure that it maintains capital and liquid assets in addition to the requirement in (a) which are adequate in relation to the nature, size and complexity of its business to ensure that there is no significant risk that liabilities cannot be met as they fall due.
    Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 3.2.2 Guidance

      1. For the purposes of PIB Rule 3.2.2, an Authorised Firm'sG Governing BodyG should assess whether the Capital ResourcesG which are required by the DFSAG as set out in PIBG are adequate in relation to the Authorised Firm'sG specific business. Additional resources should be maintained by the Authorised FirmG where its Governing BodyG has considered that the required Capital ResourcesG do not adequately reflect the nature and risks of the Authorised Firm'sG business.
      2. The liabilities referred to in PIB Rule 3.2.2(b) include an Authorised Firm'sG contingent and prospective liabilities, such as liabilities arising from a change in business strategy or claims made against the Authorised FirmG , but not liabilities that might arise from prospective transactions which the Authorised FirmG could avoid, for example by ceasing its operations. Liabilities from prospective transactions refers to the potential liabilities which can be avoided by either adequate risk management, risk transfer or avoiding the transaction completely. This refers to any prospective transaction, for example, lending money to a borrower or entering into a contract for the provision of services by a service provider.
      3. An Authorised FirmG subject to the requirements in PIB chapter 10 may be required to meet Individual Capital RequirementsG under those RulesG .
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]