Dubai Financial Services Authority

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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)

Rulebook Modules

Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Module (AML) [VER16/07-19]

Authorised Market Institutions (AMI) [VER18/02-17]

Auditor Module (AUD) [VER3/02-17]

Conduct of Business Module (COB) [VER33/07-19]

Collective Investment Rules (CIR) [VER25/07-19]

Fees Module (FER) [VER20/02-19]

Fund Protocol Rules (FPR) [VER1/02-19]

General Module (GEN) [VER44/07-19]

Glossary Module (GLO) [VER44/07-19]

Islamic Finance Rules (IFR) [VER13/12-18]

Markets Rules (MKT) [VER15/07-19]

Price Stabilisation Module (PRS) [VER7/04-18]

Prudential — Insurance Business Module (PIN) [VER15/01-18]

Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]

PIB 1 Application, Interpretation and Categorisation

PIB 2 General Requirements

PIB 4 Credit Risk

PIB 5 Market Risk

PIB 6 Operational Risk

PIB 7 Interest Rate Risk in the Non-Trading Book

PIB 8 Group Risk

PIB 8.1 Application

Requirements by the DFSA

PIB 8.2 Systems and Controls Requirements

PIB 8.3 Financial Group Capital Requirements and Financial Group Capital Resources

PIB 8.4 Financial Group Concentration Risk Limits

PIB 8.5 Restrictions on Ownership or Control

PIB 9 Liquidity Risk

PIB 10 Supervisory Review and Evaluation Processes

PIB 11 Disclosure Requirements

PIB App1 Categories of Authorised Firms

PIB App2 General Requirements

PIB App3 Capital

PIB App4 Credit Risk

PIB App5 Market Risk

PIB App6 Calculating the Operational Risk Capital Requirement

PIB App7 Not Used

PIB App8 Not Used

PIB App9 Liquidity

PIB App10 Supervisory Review and Evaluation Processes

PIB App11 Public Disclosure Requirements

Recognition (REC) [VER12/01-18]

Representative Office Module (REP) [VER10/04-18]

Takeover Rules Module (TKO) [VER7/02-16]

Sourcebook Modules

Consultation Papers

Policy Statements

DFSA Codes of Practice

Amendments to Legislation

Financial Markets Tribunal

Connected by Complinet

Location: Dubai Financial Services Authority (DFSA) > Rulebook Modules > Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19] > PIB 8 Group Risk > PIB 8.1 Application

PIB 8.1 Application

PIB 8.1.1

(1) This section and PIB section 8.5 apply to an Authorised Firm^G in any Category^G .

(2) Sections PIB 8.2 to PIB 8.4 apply only to an Authorised Firm^G in Category^G 1, 2 or 5.

Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

PIB 8.1.1 Guidance

1. Group^G membership may be a source of both strength and weakness to an Authorised Firm^G . The purpose of Group Risk^G requirements is to ensure that an Authorised Firm^G takes proper account of the risks related to the Authorised Firm's^G membership of a Group^G . The Group Risk^G requirements form a key part of the DFSA's^G overall approach to prudential supervision.

2. PIB section 8.5 imposes important restrictions on the ability of Authorised Firms^G in Category^G 3A, 3B, 3C or 4, and non-regulated Financial Institutions^G , to be a Parent^G of an Authorised Firm^G in Category^G 1 or 5, or of a firm carrying on similar activities outside of the DIFC^G .

Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

Requirements by the DFSA

PIB 8.1.2

(1) The DFSA^G may require an Authorised Firm^G to:
(a) form a Financial Group^G with any other entity within its Group^G ; or

(b) include within its Financial Group^G any other entity within its Group^G ;

where the DFSA^G considers it necessary or desirable to do so in the interests of effective supervision of the Authorised Firm^G .

(2) An Authorised Firm^G may, for the purposes of this section, exclude from its Financial Group^G any entity the inclusion of which would be misleading or inappropriate for the purposes of Financial Group^G supervision, provided the Authorised Firm^G has obtained the DFSA's^G prior written approval.

(3) An Authorised Firm^G must provide to the DFSA^G , if requested, any of the following information in relation to its Group^G or Financial Group^G :
(a) details as to the entities within the Group^G or Financial Group^G ;

(b) the structure of the Group^G or Financial Group^G ; and

(c) the systems and controls in place to manage Group Risk^G .

Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

PIB 8.1.2 Guidance

1. If more than one member of the same Group^G is subject to an obligation to provide information in respect of a position of the Group^G or Financial Group^G , one or more of those Authorised Firms^G may make application to the DFSA^G for an appropriate waiver or modification.

2. For the purposes of PIB Rule 8.1.2, the DFSA^G would consider a range of factors when requiring an Authorised Firm^G to form a Financial Group^G . These factors would include regulatory risk factors, including but not limited to, (direct and indirect) participation, influence or contractual obligations, interconnectedness, intra group exposures, intra group services, regulatory status and legal framework.

Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]