Entire Section

  • 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]