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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 3.17 Qualifying Holdings Outside the Financial Sector

    • PIB 3.17.1

      (1) Where an Authorised FirmG has a Qualifying HoldingG in an UndertakingG which is not one of the following:
      (a) an UndertakingG that is a Relevant EntityG ; or
      (b) an UndertakingG that carries on activities that are:
      (i) a direct extension of banking;
      (ii) ancillary to banking, or
      (iii) leasing, factoring, the management of unit trusts, the management of data processing services or any other similar activity;
      and the amount of the holding exceeds 15% of the eligible total Capital ResourcesG of the Authorised FirmG , the Authorised FirmG must comply with the requirements in (3).
      (2) The total amount of the Qualifying HoldingsG of an Authorised FirmG in UndertakingsG other than those referred to in (1) that exceeds 60% of its Capital ResourcesG are subject to the requirements in (3).
      (3) An Authorised FirmG must apply the following requirements to Qualifying HoldingsG referred to in (1) and (2):
      (a) a risk weight of 1000% to the following:
      (i) the amount of Qualifying HoldingsG referred to in (1) in excess of 15% of Capital ResourcesG ; and
      (ii) the total amount of Qualifying HoldingsG referred to in (2) in excess of 60% of the Capital ResourcesG of the Authorised FirmG ; and
      (b) must not count Qualifying HoldingsG referred to in (1) and (2) where the amount of those holdings exceeds the percentages of Capital ResourcesG laid down in (1) and (2).
      (4) As an alternative to applying a 1000% risk weight to the amounts in excess of the limits specified in (1) or (2), an Authorised FirmG may deduct those amounts from CET1 Capital.
      (5) SharesG of UndertakingsG to which (1) or (2) do not apply must not be included in calculating the eligible capital limits specified in (1) where any of the following conditions are met:
      (a) those shares are held temporarily during a financial reconstruction or rescue operation,
      (b) the holding of the shares is an underwriting position held for 5 working days or less; or
      (c) those shares are held in the name of the Authorised FirmG on behalf of others.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]