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  • IFR 5.4 IFR 5.4 Prudential Requirements

    • Application and Interpretation

      • IFR 5.4.1

        (1) This section applies when calculating Credit Risk or Market Risk in respect of Islamic Contracts invested in or held by an Authorised Firm Managing a PSIA, which is an Unrestricted PSIA.
        (2) In (1), the Islamic Contracts referred to are contracts which are funded by the PSIA.
        (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. An Authorised Firm undertaking Islamic Financial Business is required to maintain initial and ongoing Capital 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, an Authorised Firm undertaking Islamic 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, an Authorised Firm undertaking Islamic Financial Business is required to exclude from T2 Capital any amount by which the total of the Profit Equalisation Reserve and the Investment Risk Reserve exceeds the Displaced Commercial Risk Capital Requirement.
        4. For the purpose of calculating Capital Requirements, an Authorised Firm undertaking Islamic Financial Business or otherwise investing in or holding Islamic Contracts should give due importance to the economic substance of the transaction, in addition to the legal form of the Islamic 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 the Authorised 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, an Authorised 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 and PSIA holders are safeguarded;
      (b) how the Authorised Firm will limit exposures of PSIA holders to the Authorised Firm;
      (c) a description of the controls to ensure that the funds of the PSIA are invested in accordance with the investment guidelines agreed in the investment contract;
      (d) the basis for allocating profits and losses to the PSIA holders;
      (e) the policy for making provisions and reserves and, in respect of PSIAs, to whom these provisions and reserves revert in the event of a write-off or recovery;
      (f) the Authorised Firm's policy on the prioritisation of investment of own funds and those of Unrestricted PSIA holders;
      (g) how liquidity mismatch will be monitored;
      (h) the basis for allocating expenses to PSIA holders; and
      (i) how the Authorised 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 an Unrestricted PSIA, must calculate a Displaced Commercial Risk Capital Requirement in respect of its PSIA 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. An Authorised Firms Managing a PSIA, on an unrestricted basis is subject to a unique type of risk referred to as Displaced Commercial Risk. This risk reflects the fact that an Authorised Firm may be liable to find itself under commercial pressure to pay a rate of return to its PSIA holders which is sufficient to induce those investors to maintain their funds with the Authorised 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, the Authorised 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 the Authorised Firm's commercial position (or, in an extreme case, its solvency). Thus, part of the commercial risk attaching to the returns attributable to the PSIA is, in effect, transferred to the shareholders' funds or the Authorised 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 the Authorised Firm in certain circumstances may provide for the shortfalls.
          2. In an Unrestricted PSIA, the account holder authorises the Authorised Firm to invest the account holder's funds in a manner which the Authorised 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, the Authorised Firm can commingle the investment account holder's funds with its own funds or with other funds which the Authorised Firm has the right to use. The investment account holders and the Authorised Firm generally participate in the returns on the invested funds.
          3. In a Restricted PSIA, the account holder imposes certain restrictions as to where, how and for what purpose the funds are to be invested. Further, the Authorised 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 of Restricted PSIAs are managed by the Authorised Firm which does not have the right to use or dispose of the investments except within the conditions of the contract.
          4. An Authorised Firms undertaking Islamic Financial Business is also exposed to fiduciary risk which arises where the terms of the contract between the Authorised Firm and the investor are breached and where the Authorised Firm does not act in compliance with Shari'a.
          5. An Authorised Firm is required to apply the Capital 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) An Authorised Firm's Displaced Commercial Risk Capital Requirement is based on 35% of the CRCOM and Market Risk capital requirement of assets funded by Unrestricted PSIA holders, and is calculated using the following formula:

        PSIACOM = [PSIACOMcredit + PSIACOMmarket] × 35%.
        (2) PSIACOM is the Displaced Commercial Risk Capital Requirement;
        (3) PSIACOMcredit is the Credit Risk capital requirement for assets funded by Unrestricted PSIA holders and is calculated in accordance with Rules in part 3 of chapter 4 of PIB; and
        (4) PSIACOMmarket is the Market Risk capital requirement for assets funded by Unrestricted 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) An Authorised Firm Managing a PSIA, which is an Unrestricted PSIA, must calculate its PSIAComcredit in relation to all Islamic Contracts financed by Unrestricted PSIAs in the manner prescribed in this section.
        (2) An Authorised Firm must, when undertaking the calculation in (1), apply an appropriate risk weighting for the relevant Islamic 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 the Exposure determined by an Authorised Firm as applicable to an Islamic Contract; and
        (b) "CRW represents the risk weighting or capital charge assessed by an Authorised Firm as appropriate to that Islamic Contract.
        (2) Where an Islamic Contract is in the Non-Trading Book, an Authorised Firm must determine the PSIACOMcredit for that contract by applying the following formula:
        E × CRW × 8%.
        (3) Where an Islamic Contract is in the Trading Book, an Authorised Firm must determine the PSIACOMcredit for that contract in accordance with the methodology in PIB A4.7 and PIB A4.8 as appropriate.
        (4) An Authorised Firm must calculate its PSIACOMcredit of all contracts by:
        (a) identifying all Islamic 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 the Authorised 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 this Guidance will assist an Authorised Firm in applying the appropriate risk weighting or capital charge to each Islamic Contract for the purpose of IFR Rule 5.4.7. Accordingly, the DFSA expects an Authorised Firm managing PSIAs, which are Unrestricted PSIAs to pay due regard to this Guidance.
          2. The Rules in this section and this Guidance are also relevant to an Authorised Firm which invests in or holds Islamic Contracts, when calculating CRCOM for Islamic Contracts under PIB chapter 4.
          3. Table 2 contains Guidance on how an Authorised Firm Managing a PSIA, which is an Unrestricted PSIA should apply risk weightings for Islamic Contracts in respect of calculating relevant E and CRW for its PSIACOMcredit component of the PSIACOM.

          Table 2

          1.
          Islamic Contract type           		2.
          Underlying investment or asset           		3.
          CRW
          Binding Murabaha for the Purchase Orderer (MPO) Asset with an Authorised Firm before purchase by the Counterparty 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 debts CRW in accordance with PIB chapter 4
          Murabaha 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 debts CRW in accordance with PIB chapter 4
          Mudaraba 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 5
          Investment 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 and Murabaha contracts CRW of the lessee for the underlying Ijarah contracts or the CRW of the counterparty of the underlying Murabaha contract, in accordance with PIB App4
          Ijarah/Ijarah Muntahia Bittamleek Asset with an Authorised Firm available for lease before purchase by the Counterparty — for both contracts with both binding or non-binding promise to lease Apply 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 4.12
          Full recourse Istisna'a — with or without parallel Istisna'a and limited / non-recourse
          Istisna'a with/without parallel Istisna'a           		Net balance of the work-in-progress CRW of the Istisna'a buyer, in accordance with PIB Section 4.12
          Total amount receivable from the counterparty, pursuant to contract billings CRW of Istisna'a buyer, in accordance with PIB Section 4.12
          Salam and parallel Salam Value of the underlying asset receivable for the Salam contract CRW 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 the Non-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 or Murabaha contracts, 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 contracts of the Sukuk is in accordance with PIB Section 4.12, whichever is higher
            Usufructs/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 higher
            Leased 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 5
          Bai' Bithaman Ajil Residential and commercial properties
          Plant and equipment
          Motor vehicles
          Shares
          Land           		CRW in accordance with PIB chapter 4
          Arboun Where an Authorised Firm has made the purchase deposit CRW in accordance with PIB chapter 4
            Where an Authorised Firm has received the purchase deposit No 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 5
          4. Where an Islamic Contract is not listed in Table 2, an Authorised 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; and
          b. 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 a Binding Murabaha for the Purchase 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 of Ijarah / 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 any Arboun (earnest money deposit received from the potential lessee).
          8. In addition to paragraph 7 above, in the case of an Ijarah 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 another Counterparty. This is important because the asset leased under the Ijarah 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 an Istisna'a contract, the exposures arising from such a contract should not be netted off against exposures arising from a Parallel Istisna'a contract entered into by an Authorised Firm for procuring the underlying investment for the Istisna'a contract.
          10. In determining the E of a Salam contract, the exposures arising from such a contract should not be netted off against exposures arising from a Parallel Salam contract entered into by an Authorised Firm for procuring the underlying asset for the Salam contract.
          11. Off-balance sheet exposures for import or export financing contracts based on Murabaha, where the underlying goods or shipment are collateralised and insured, should attract a 20% CCF to an Authorised Firm that issues or confirms the letter of credit.
          12. Where Mudaraba and Musharaka 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 the Trading 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 relevant Rules prescribed in PIB chapter 4 and PIB App4, an Authorised Firm may consider the following types of collateral as eligible collateral for Credit 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; and
          c. in Mudaraba investment in project finance, an Authorised Firm may use the collateralisation of the progress payments made by the ultimate customers to mitigate the exposures of unsatisfactory performance by the Mudarib.
          14. Where an Authorised Firm places funds under a Mudaraba contract, subject to a Shari'a compliant guarantee from a third party and such a guarantee relates only to the Mudaraba 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 the Mudarib (as a Counterparty). Otherwise, the CRW of the Mudarib will apply.
          15. An Authorised Firm placing liquid funds with a central bank or another financial institution on a short-term Mudaraba basis in order to obtain a return on those funds, may apply the CRW applicable to the Mudarib (as a Counterparty), provided the Mudarib effectively treats the liquid funds placement as its liability, although normally such placements are not treated as liabilities of the Mudarib.
          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 an Unrestricted PSIA, must calculate its PSIACOMmarket in relation to all underlying Islamic 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 treat Sukuk held in its Trading Book as equity for the purpose of calculating its Equity 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 or Mudaraba contracts with commodities as the underlying assets, an Authorised Firm must calculate its Commodities 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 any Islamic Contract, must calculate its Foreign 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 any Islamic Contract, must calculate its Commodities 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 an Authorised Firm for selling or leasing when executing a Murabaha, non-binding MPO, Salam or Parallel Salam Contract must be included in the calculation of its Commodities Risk Capital Requirement.
        (2) Where an Authorised Firm executes Salam and parallel Salam 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 its Commodities 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 executes Musharaka or Mudaraba 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 its Market 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 specific Large Exposure limits for assets financed by PSIAs, which are Unrestricted PSIAs. The DFSA uses these limits to provide constraints on the amount of Concentration Risk to which an Authorised Firm is subject in respect of its PSIA holdings. In assessing PSIA Large Exposures, an Authorised Firms may take advantage of the exemptions and partial exemptions set out in PIB section A4.11.
        2. An Authorised Firm has a Large Exposure where its PSIA holders' credit Exposure to a single Counterparty or issuer, or group of Closely Related or Connected Counterparties, is large in relation to the Authorised Firm's Tier 1 Capital. Where Exposure to a Counterparty or issuer is large, PSIA holders risk a large loss should the Counterparty default.
        3. Exposures arising from assets that are financed by an Authorised 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 an Unrestricted PSIA, must not have an Exposure to a Counterparty or to a group of Closely Related Counterparties or to a group of Connected 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 a Counterparty or to a group of Closely Related Counterparties may not exceed 25% of the Authorised 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 Large Exposures must not exceed 800% of its Tier 1 Capital for Exposures funded by the Authorised 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 its Exposures funded by PSIAs, which are Unrestricted 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]