Entire Section

  • PIB 3.2.2 PIB 3.2.2

    An Authorised Firm that is a Domestic Firm must:

    (a) have and maintain, at all times, Capital Resources of the kinds and amounts specified in, and calculated in accordance with, the Rules in PIB; and
    (b) ensure that it maintains capital and liquid assets in addition to the requirement in (a) which are adequate in relation to the nature, size and complexity of its business to ensure that there is no significant risk that liabilities cannot be met as they fall due.
    Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 3.2.2 Guidance

      1. For the purposes of PIB Rule 3.2.2, an Authorised Firm's Governing Body should assess whether the Capital Resources which are required by the DFSA as set out in PIB are adequate in relation to the Authorised Firm's specific business. Additional resources should be maintained by the Authorised Firm where its Governing Body has considered that the required Capital Resources do not adequately reflect the nature and risks of the Authorised Firm's business.
      2. The liabilities referred to in PIB Rule 3.2.2(b) include an Authorised Firm's contingent and prospective liabilities, such as liabilities arising from a change in business strategy or claims made against the Authorised Firm, but not liabilities that might arise from prospective transactions which the Authorised Firm could avoid, for example by ceasing its operations. Liabilities from prospective transactions refers to the potential liabilities which can be avoided by either adequate risk management, risk transfer or avoiding the transaction completely. This refers to any prospective transaction, for example, lending money to a borrower or entering into a contract for the provision of services by a service provider.
      3. An Authorised Firm subject to the requirements in PIB chapter 10 may be required to meet Individual Capital Requirements under those Rules.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]