IFR 5.4.15 IFR 5.4.15
Authorised Firm Managing a PSIA, which is an Unrestricted PSIA, must not have an Exposureto a Counterpartyor to a group of Closely Related Counterparties or to a group of Connected Counterpartiesthat exceeds any one of the following percentages of its Tier 1 Capital:(a) 25% if financed by its Tier 1 Capital, Unrestricted PSIAsor a non-PSIA funding source; or(b) 40% if financed by the total of its own Tier 1 Capital, Unrestricted PSIAsand a non-PSIA funding source.
IFR 5.4.15 Guidance
In accordance with PIB section 4.15, the aggregate of an
Authorised Firm's Exposureto a Counterpartyor to a group of Closely Related Counterparties may not exceed 25% of the Authorised Firm'sTier 1 Capital. A non-PSIA funding source includes funding from the Authorised Firm’s own capital and capital markets.
The sum of an
Authorised Firm'snon-exempt Large Exposuresmust not exceed 800% of its Tier 1 Capital for Exposuresfunded by the Authorised Firm'sTier 1 Capital, Unrestricted PSIAsand a non-PSIA funding source.
Authorised Firmmust:(a) monitor and control its Exposuresfunded 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.