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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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  • Controlling Liquidity Risk

    • PIB 9.2.6

      An Authorised FirmG must ensure that the system referred to in PIB Rule 9.2.1(3)(c):

      (a) enables the Authorised Firm'sG Governing BodyG and senior management to review compliance with limits set in accordance with PIB Rule 9.2.7 and operating procedures; and
      (b) has appropriate approval processes, limits and other mechanisms designed to provide reasonable assurance that the Authorised Firm'sG Liquidity RiskG management processes are adhered to.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
      [Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]

    • PIB 9.2.7

      (1) An Authorised FirmG must hold sufficient liquidity resources and ensure that its Governing BodyG sets appropriate liquidity limits to manage its Liquidity RiskG effectively under both day-to-day and stressed conditions.
      (2) An Authorised FirmG must periodically review and, where appropriate, adjust the limits referred to in (1) when its Liquidity RiskG policy changes.
      (3) An Authorised FirmG must promptly escalate and resolve any policy or limit exceptions according to the processes described in its Liquidity RiskG policy.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
      [Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]

      • PIB 9.2.7 Guidance

        An Authorised FirmG should set limits to control its liquidity risk exposure and vulnerabilities. Limits and corresponding escalation procedures should be reviewed regularly. Limits should be relevant to the business in terms of its location, complexity of activity, nature of products, currencies and markets served. If an Authorised FirmG breaches a liquidity risk limit, it should implement a plan to review its exposure and reduce it to a level that is within the limit.

        [Added] DFSA RM148/2014 (Made 1st January 2015). [VER23/01-15]
        [Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]