Entire Section
IFR 5.4 IFR 5.4 Prudential Requirements
Application and Interpretation
IFR 5.4.1
(1) This section applies when calculatingCredit Risk orMarket Risk in respect ofIslamic Contracts invested in or held by anAuthorised Firm Managing a PSIA , which is anUnrestricted PSIA .(2) In (1), theIslamic Contracts referred to are contracts which are funded by thePSIA .(3) In this section, the term "investing in or holding Islamic Contracts" means investing in or holding as a principal.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]Initial and Ongoing Capital Requirements
IFR 5.4.1 Guidance
1. AnAuthorised Firm undertakingIslamic Financial Business is required to maintain initial and ongoingCapital Requirements in accordance with Rules in part 2 of Chapter 3 of PIB.2. In accordance with Rules in part 3 of chapter 3 of PIB, anAuthorised Firm undertakingIslamic Financial Business is required to ensure that only the eligible components of capital are included in the calculation of capital.3. In accordance with PIB Rule 3.15.9, anAuthorised Firm undertakingIslamic Financial Business is required to exclude fromT2 Capital any amount by which the total of theProfit Equalisation Reserve and theInvestment Risk Reserve exceeds theDisplaced Commercial Risk Capital Requirement .4. For the purpose of calculatingCapital Requirements , anAuthorised Firm undertakingIslamic Financial Business or otherwise investing in or holdingIslamic Contracts should give due importance to the economic substance of the transaction, in addition to the legal form of theIslamic Contracts .Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]Systems and Controls in Relation to PSIAs
IFR 5.4.1 Guidance
The requirements in Rules IFR 5.4.2 and IFR 5.4.3 amplify the requirements in GEN Chapter 5.
Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]IFR 5.4.2
In addition to Rule PIB 3.2.4, PIB 3.2.5, GEN Rule 5.3.1 and this module, an
Authorised Firm Managing a PSIA must ensure that its senior management establishes and maintains systems and controls that ensure that theAuthorised Firm is financially sound and able at all times to satisfy the specific prudential requirements arising out of such business.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]IFR 5.4.3 IFR 5.4.3
(1) In addition to Rules in IFR 5.2.4, anAuthorised Firm Managing a PSIA must set out in a written policy how it proposes to organise and control the activities that arise from such business and ensure that its activities are conducted in accordance with Shari'a.(2) The policy must as a minimum address, where appropriate, the following matters:(a) how the interests of shareholders andPSIA holders are safeguarded;(b) how theAuthorised Firm will limit exposures ofPSIA holders to theAuthorised Firm ;(c) a description of the controls to ensure that the funds of thePSIA are invested in accordance with the investment guidelines agreed in the investment contract;(d) the basis for allocating profits and losses to thePSIA holders;(e) the policy for making provisions and reserves and, in respect ofPSIAs , to whom these provisions and reserves revert in the event of a write-off or recovery;(f) theAuthorised Firm's policy on the prioritisation of investment of own funds and those ofUnrestricted PSIA holders;(g) how liquidity mismatch will be monitored;(h) the basis for allocating expenses toPSIA holders; and(i) how theAuthorised Firm will monitor the value of its assets.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM106/2012 (Made 23rd December 2012). [VER6/12-12][Deleted]
[Deleted] DFSA RM106/2012 (Made 23rd December 2012). [VER6/12-12]Displaced Commercial Risk
IFR 5.4.4 IFR 5.4.4
An
Authorised Firm Managing a PSIA , which is anUnrestricted PSIA , must calculate aDisplaced Commercial Risk Capital Requirement in respect of itsPSIA business.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]IFR 5.4.4 Guidance
1. AnAuthorised Firms Managing a PSIA , on an unrestricted basis is subject to a unique type of risk referred to asDisplaced Commercial Risk . This risk reflects the fact that anAuthorised Firm may be liable to find itself under commercial pressure to pay a rate of return to itsPSIA holders which is sufficient to induce those investors to maintain their funds with theAuthorised Firm , rather than withdrawing them and investing them elsewhere. If this "required" rate of return is higher than that which would be payable under the normal terms of the investment contract, theAuthorised Firm may be under pressure to forgo some of the share of profit which would normally have been attributed to its shareholders (e.g., part of the Mudarib's share). Failure to do this might result in a volume of withdrawals of funds by investors large enough to jeopardise theAuthorised Firm's commercial position (or, in an extreme case, its solvency). Thus, part of the commercial risk attaching to the returns attributable to thePSIA is, in effect, transferred to the shareholders' funds or theAuthorised Firm's own capital. It also reflects situations whereby an investor may be permitted to exit from an asset pool at par while the fair value of such assets may be lower than their carrying amounts and where theAuthorised Firm in certain circumstances may provide for the shortfalls.2. In anUnrestricted PSIA , the account holder authorises theAuthorised Firm to invest the account holder's funds in a manner which theAuthorised Firm deems appropriate without specifying any restrictions as to where, how or for what purpose the funds should be invested, provided that they are Shari'a compliant. Under this arrangement, theAuthorised Firm can commingle the investment account holder's funds with its own funds or with other funds which theAuthorised Firm has the right to use. The investment account holders and theAuthorised Firm generally participate in the returns on the invested funds.3. In aRestricted PSIA , the account holder imposes certain restrictions as to where, how and for what purpose the funds are to be invested. Further, theAuthorised Firm may be restricted from commingling its own funds with the restricted investment account funds for purposes of investment. In addition, there may be other restrictions that the investment account holders may impose. In other words, the funds provided by holders ofRestricted PSIAs are managed by theAuthorised Firm which does not have the right to use or dispose of the investments except within the conditions of the contract.4. AnAuthorised Firms undertakingIslamic Financial Business is also exposed to fiduciary risk which arises where the terms of the contract between theAuthorised Firm and the investor are breached and where theAuthorised Firm does not act in compliance with Shari'a.5. AnAuthorised Firm is required to apply theCapital Requirements specified in chapters PIB 4 and PIB 5 to any other business it carries on.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]IFR 5.4.5
(1) AnAuthorised Firm's Displaced Commercial Risk Capital Requirement is based on 35% of theCRCOM andMarket Risk capital requirement of assets funded byUnrestricted PSIA holders, and is calculated using the following formula:
PSIACOM = [PSIACOMcredit + PSIACOMmarket] × 35%.(2) PSIACOM is theDisplaced Commercial Risk Capital Requirement ;(3) PSIACOMcredit is theCredit Risk capital requirement for assets funded byUnrestricted PSIA holders and is calculated in accordance with Rules in part 3 of chapter 4 of PIB; and(4) PSIACOMmarket is theMarket Risk capital requirement for assets funded byUnrestricted PSIA holders and is calculated in accordance with Rules in PIB chapter 5.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]Credit Risk and Counterparty Risk for Islamic Contracts
IFR 5.4.6
(1) AnAuthorised Firm Managing a PSIA , which is anUnrestricted PSIA , must calculate its PSIAComcredit in relation to allIslamic Contracts financed byUnrestricted PSIAs in the manner prescribed in this section.(2) AnAuthorised Firm must, when undertaking the calculation in (1), apply an appropriate risk weighting for the relevantIslamic Contract .Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]IFR 5.4.7 IFR 5.4.7
(1) In this section:(a) "E" represents theExposure determined by anAuthorised Firm as applicable to anIslamic Contract ; and(b) "CRW represents the risk weighting or capital charge assessed by anAuthorised Firm as appropriate to thatIslamic Contract .(2) Where anIslamic Contract is in theNon-Trading Book , anAuthorised Firm must determine the PSIACOMcredit for that contract by applying the following formula:
E × CRW × 8%.(3) Where anIslamic Contract is in theTrading Book , anAuthorised Firm must determine the PSIACOMcredit for that contract in accordance with the methodology in PIB A4.7 and PIB A4.8 as appropriate.(4) AnAuthorised Firm must calculate its PSIACOMcredit of all contracts by:(a) identifying allIslamic Contracts to which this section applies;(b) valuing the underlying investment or asset of each contract and reducing the value of any such investment or asset in the manner stipulated in Section 4.9 of chapter 4 of PIB, the result of which constitutes E for that contract;(c) determining the risk weighting or capital charge appropriate to each contract, which will constitute the CRW for that contract in accordance with Rules in Sections 4.10, 4.11 and 4.12 of chapter 4 of PIB;(d) applying the respective formula in IFR Rule 5.4.7(2) or (3) to determine of PSIACOMcredit in respect of each contract; and(e) summing the PSIACOMcredit of each contract to determine the PSIACOMcredit applicable to theAuthorised Firm .Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]
[Amended] DFSA RM210/2017 (Made 25 October 2017). [VER12/01-18]IFR 5.4.7 Guidance
1. The DFSA considers that thisGuidance will assist anAuthorised Firm in applying the appropriate risk weighting or capital charge to eachIslamic Contract for the purpose of IFR Rule 5.4.7. Accordingly, the DFSA expects anAuthorised Firm managingPSIAs , which areUnrestricted PSIAs to pay due regard to thisGuidance .2. The Rules in this section and thisGuidance are also relevant to anAuthorised Firm which invests in or holdsIslamic Contracts , when calculatingCRCOM forIslamic Contracts under PIB chapter 4.3. Table 2 contains Guidance on how anAuthorised Firm Managing a PSIA , which is anUnrestricted PSIA should apply risk weightings forIslamic Contracts in respect of calculating relevant E and CRW for its PSIACOMcredit component of the PSIACOM.Table 2
1.
Islamic Contract type2.
Underlying investment or asset3.
CRWBinding Murabaha for the Purchase Orderer (MPO) Asset with an Authorised Firm before purchase by theCounterparty Apply the appropriate percentage from the second column in the table in PIB Rule A4.6.5 Accounts receivable for the contract, i.e. amounts due from the Counterparty less any provision for doubtful debtsCRW in accordance with PIB chapter 4Murabaha and Non-binding Murabaha for the Purchase Orderer (MPO) Accounts receivable for the contract, i.e. amounts due from the Counterparty less any provision for doubtful debtsCRW in accordance with PIB chapter 4Mudaraba and Musharaka Where the underlying investment meets the requirements for inclusion in the Trading Book Market Risk Capital Requirement for the exposure associated with the underlying investment determined in accordance with PIB chapter 5Investment in commercial enterprise to undertake business ventures other than trading activities (or other than those which meet the requirements for inclusion in the Trading Book )CRW of 400% on the exposure Investment in real estate assets and other movable assets, using underlying Ijarah andMurabaha contractsCRW of the lessee for the underlying Ijarah contracts or the CRW of the counterparty of the underlying Murabaha contract, in accordance with PIB App4Ijarah/Ijarah Muntahia Bittamleek Asset with an Authorised Firm available for lease before purchase by theCounterparty — for both contracts with both binding or non-binding promise to leaseApply the appropriate percentage from the second column in the table in PIB Rule A4.6.5 Residential real estate where the lessee has the right to purchase property at the end of the lease and the lessor has a legally enforceable first charge over the property Apply the appropriate percentage in accordance with PIB Rule 4.12.17. Total estimated value of lease receivables for the whole duration of the Ijarah, less any recovery value of the leased asset CRW of Ijarah lessee, in accordance with PIB Section 4.12Full recourse Istisna'a — with or without parallelIstisna'a and limited / non-recourse
Istisna'a with/without parallel Istisna'aNet balance of the work-in-progress CRW of the Istisna'a buyer, in accordance with PIB Section 4.12Total amount receivable from the counterparty, pursuant to contract billings CRW of Istisna'a buyer, in accordance with PIB Section 4.12Salam and parallel Salam Value of the underlying asset receivable for the Salam contractCRW in accordance with PIB Section 4.12 Assets acquired 100% Balance in relevant accounts receivable CRW in accordance with PIB Section 4.12 Kefala The amount of the guarantee CRW in accordance with PIB Section 4.12 Sukuk held in theNon-Trading Book Receivables from the Sukuk structure, including the principal and any returns associated with it, arising from any of the following as underlying contracts:
Salam
Istisna'a
Ijarah
Murabaha
Mudaraba
Musharaka CRW applicable to underlying Ijarah ,Salam orMurabaha contracts, in accordance with PIB Section 4.12
If theSukuk provides recourse to the issuer, CRW applicable to the issuer or CRW applicable to underlying contracts of theSukuk is in accordance with PIB Section 4.12, whichever is higherUsufructs/services CRW applicable to underlying service provider or usufruct owner, in accordance with PIB Section 4.12. If the Sukuk provides recourse to the issuer, CRW applicable to the issuer or CRW applicable to underlying service provider or usufruct owner in accordance with PIB App 4, whichever is higherLeased assets The higher of CRW of the underlying leased assets and that of the issuer Investment agency The higher of CRW of the underlying assets and that of the issuer Muzara'a (share of produce of the land)Musaqa (share of produce of the trees)Mugarasa (share in the land and the trees)100% Mixture of tangible and intangible assets The higher of CRW of the underlying assets and that of the issuer Where the underlying investment meets the requirements for inclusion in the Trading Book Market Risk Capital Requirement for the exposure associated with the underlying investment determined in accordance with PIB chapter 5Bai' Bithaman Ajil Residential and commercial properties
Plant and equipment
Motor vehicles
Shares
LandCRW in accordance with PIB chapter 4 Arboun Where an Authorised Firm has made the purchase depositCRW in accordance with PIB chapter 4 Where an Authorised Firm has received the purchase depositNo CRW is applicable Where the contract would meet the requirements for inclusion in the Trading Book Market Risk Capital Requirement for the exposure associated with the underlying investment determined in accordance with PIB chapter 54. Where anIslamic Contract is not listed in Table 2, anAuthorised Firm should consult with the DFSA, on a case-by-case basis, to determine the:a. contract type and the underlying investments or assets to calculate the E; andb. appropriate risk weighting or the capital charge for such contract to calculate the CRW.5. In some cases, as stipulated in the relevant parts of column 3 of Table 2, the calculation of capital requirement should be carried out as prescribed in PIB Rule A4.6.5 and in accordance with PIB chapter 5.6. In determining the E of aBinding Murabaha for thePurchase Orderer (MPO), as per PIB Rule A4.6.5, E should equal the total acquisition cost of the asset (purchase price and other direct costs) less market value of the asset (net of any haircut) less any security deposit provided.7. In determining the E ofIjarah /Ijarah Munthia Bittamleek contract, as per PIB Rule A4.6.5, E should equal the total acquisition cost of the asset (purchase price and other direct costs) less the market value of the asset (net of any haircut), less anyArboun (earnest money deposit received from the potential lessee).8. In addition to paragraph 7 above, in the case of anIjarah Muntahia Bittamleek contract, the exposure may be reduced by the recovery value of the leased asset, only in cases where there is a reasonable basis to conclude that the leased asset can be repossessed and effectively redeployed as a leased asset to anotherCounterparty . This is important because the asset leased under theIjarah Muntahia Bittamleek contract is usually customised equipment or large pieces of equipment which are integrated with other assets of the lessee and hence are unsuitable for repossession and releasing to another lessee.9. In determining the E of anIstisna'a contract, the exposures arising from such a contract should not be netted off against exposures arising from aParallel Istisna'a contract entered into by anAuthorised Firm for procuring the underlying investment for theIstisna'a contract.10. In determining the E of aSalam contract, the exposures arising from such a contract should not be netted off against exposures arising from aParallel Salam contract entered into by anAuthorised Firm for procuring the underlying asset for theSalam contract.11. Off-balance sheet exposures for import or export financing contracts based onMurabaha , where the underlying goods or shipment are collateralised and insured, should attract a 20% CCF to anAuthorised Firm that issues or confirms the letter of credit.12. WhereMudaraba andMusharaka contracts are used to invest in commercial enterprise to undertake business ventures other than trading activities (or other than those which meet the requirements for inclusion in theTrading Book ), the E is measured as the amount invested in the commercial enterprise less any specific provisions. If there is a guarantee and such guarantor is not connected to the commercial enterprise, then the CRW for the guarantor will be applied for risk weighting for the amount of any such guarantee.13. In addition to the relevantRules prescribed in PIB chapter 4 and PIB App4, anAuthorised Firm may consider the following types of collateral as eligible collateral forCredit Risk management:a.Hamish Jiddiyyah (security deposit) only for agreements to purchase or lease preceded by a binding promise;b.Arboun where earnest money deposit held after a contract is established as collateral to guarantee contract performance; andc. inMudaraba investment in project finance, anAuthorised Firm may use the collateralisation of the progress payments made by the ultimate customers to mitigate the exposures of unsatisfactory performance by theMudarib .14. Where anAuthorised Firm places funds under aMudaraba contract, subject to a Shari'a compliant guarantee from a third party and such a guarantee relates only to theMudaraba capital, the capital amount should be risk-weighted at CRW of the guarantor provided that the CRW of that guarantor is lower than the CRW of theMudarib (as aCounterparty ). Otherwise, the CRW of theMudarib will apply.15. AnAuthorised Firm placing liquid funds with a central bank or another financial institution on a short-termMudaraba basis in order to obtain a return on those funds, may apply the CRW applicable to theMudarib (as aCounterparty ), provided theMudarib effectively treats the liquid funds placement as its liability, although normally such placements are not treated as liabilities of theMudarib .Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]Market Risk
IFR 5.4.8
An
Authorised Firm Managing a PSIA , which is anUnrestricted PSIA , must calculate its PSIACOMmarket in relation to all underlyingIslamic Contracts in the manner prescribed in PIB chapter 5, except as may be provided in Rules IFR 5.4.8 to IFR 5.4.17.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]IFR 5.4.9
An
Authorised Firm must treatSukuk held in itsTrading Book as equity for the purpose of calculating itsEquity Risk Capital Requirement and determine the same in accordance with PIB Rule 5.5.2.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]IFR 5.4.10
Where investments are made using
Musharaka orMudaraba contracts with commodities as the underlying assets, anAuthorised Firm must calculate itsCommodities Risk Capital Requirement in accordance with PIB Rule 5.7.2.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]IFR 5.4.11
An
Authorised Firm which is exposed to the risk of foreign currencies and gold under anyIslamic Contract , must calculate itsForeign Exchange Risk Capital Requirement in accordance with PIB Rule 5.6.2.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]IFR 5.4.12
An
Authorised Firm which is exposed to commodities including precious metals but excluding gold under anyIslamic Contract , must calculate itsCommodities Risk Capital Requirement in accordance with PIB Rule 5.7.2.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]IFR 5.4.13
(1) Commodities held by anAuthorised Firm for selling or leasing when executing aMurabaha , non-binding MPO,Salam orParallel Salam Contract must be included in the calculation of itsCommodities Risk Capital Requirement .(2) Where anAuthorised Firm executesSalam and parallelSalam contracts, the resultant long and short positions may be set off for calculating the net open position, provided that the positions are in the same commodity, regardless of how itsCommodities Risk Capital Requirement is calculated.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]IFR 5.4.14
Where an
Authorised Firm executesMusharaka orMudaraba contracts for investing in entities or investment vehicles that trade in foreign exchange, equities or commodities, it must include the relevant underlying assets in the calculation of itsMarket Risk Capital Requirement in accordance with PIB chapter 5.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]Concentration Risk
IFR 5.4.14 Guidance
1. This section sets specificLarge Exposure limits for assets financed byPSIAs , which areUnrestricted PSIAs . The DFSA uses these limits to provide constraints on the amount ofConcentration Risk to which anAuthorised Firm is subject in respect of itsPSIA holdings. In assessingPSIA Large Exposures, anAuthorised Firms may take advantage of the exemptions and partial exemptions set out in PIB section A4.11.2. AnAuthorised Firm has aLarge Exposure where itsPSIA holders' creditExposure to a singleCounterparty or issuer, or group ofClosely Related orConnected Counterparties , is large in relation to theAuthorised Firm's Tier 1 Capital. WhereExposure to aCounterparty or issuer is large,PSIA holders risk a large loss should theCounterparty default.3.Exposures arising from assets that are financed by anAuthorised Firm's own funds are dealt with in PIB section 4.15.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]
[Amended] DFSA RM294/2021 (Made 24th February 2021). [VER17/04-21]Exposure Limits
IFR 5.4.15 IFR 5.4.15
An
Authorised Firm Managing a PSIA , which is anUnrestricted PSIA , must not have anExposure to aCounterparty or to a group of Closely Related Counterparties or to a group ofConnected Counterparties that exceeds any one of the following percentages of its Tier 1 Capital:(a) 25% if financed by its Tier 1 Capital,Unrestricted PSIAs or a non-PSIA funding source; or(b) 40% if financed by the total of its own Tier 1 Capital,Unrestricted PSIAs and a non-PSIA funding source.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]
[Amended] DFSA RM294/2021 (Made 24th February 2021). [VER17/04-21]IFR 5.4.15 Guidance
In accordance with PIB section 4.15, the aggregate of an
Authorised Firm's Exposure to aCounterparty or to a group of Closely Related Counterparties may not exceed 25% of theAuthorised Firm's Tier 1 Capital. A non-PSIA funding source includes funding from the Authorised Firm’s own capital and capital markets.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]
[Amended] DFSA RM294/2021 (Made 24th February 2021). [VER17/04-21]IFR 5.4.16
The sum of an
Authorised Firm's non-exempt LargeExposures must not exceed 800% of its Tier 1 Capital forExposures funded by theAuthorised Firm's Tier 1 Capital,Unrestricted PSIAs and a non-PSIA funding source.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]
[Amended] DFSA RM294/2021 (Made 24th February 2021). [VER17/04-21]IFR 5.4.17
An
Authorised Firm must:(a) monitor and control itsExposures funded byPSIAs , which areUnrestricted PSIAs , on a daily basis to ensure they remain within the concentration risk limits specified in IFR Rule 5.4.15; and(b) if a breach occurs, notify the DFSA immediately and confirm it in writing.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]