Entire Section
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]