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  • PIB 3.5 PIB 3.5 Capital Requirements for Categories 3B, 3C, 3D and 4

    • PIB 3.5.1

      (1) This section applies to an Authorised Firm in Category 3B, 3C, 3D or 4.
      (2) PIB Rules 3.5.2 and 3.5.3(1) do not apply to an Authorised Firm if the only Financial Service it carries on is Managing a Venture Capital Fund,
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
      [Added] DFSA RMI270/2020 (Made 26th February 2020). [VER36/04-20]
      [Added] DFSA RMI281/2020 (Made 28th October 2020). [VER37/11-20]

    • PIB 3.5.2

      The Capital Requirement for such an Authorised Firm is calculated as the highest of:

      (a) the applicable Base Capital Requirement as set out in PIB section 3.6; 
      (b) the Expenditure Based Capital Minimum as set out in PIB section 3.7; or
      (c) in the case of a Money Services Provider:
      (i) the Stored Value Capital Requirement, if it issues Stored Value;
      (ii) the Transaction Based Capital Requirement, if it provides Payment Services; or
      (iii) the aggregate of the sums referred to in (i) and (ii), if it carries on both activities.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
      [Amended] DFSA RMI270/2020 (Made 26th February 2020). [VER36/04-20]

    • PIB 3.5.3

      (1) An Authorised Firm to which this section applies must, at all times, maintain an amount which exceeds its Expenditure Based Capital Minimum in the form of liquid assets.
      (2) For the purpose of this Rule and PIB 3.5.4, and subject to (3), liquid assets comprise any of the following:
      (a) cash in hand;
      (b) money deposited with a regulated bank or deposit-taker which has a short-term credit rating of A1 or P1 (or equivalent) and above from an ECAI;
      (c) demand deposits with a tenor of 1 year or less with a bank or deposit-taker in (b);
      (d) time deposits with a tenor of 1 year or less which have an option to redeem the deposit at any time. In such cases, the deposit amount eligible to be included as liquid assets must be calculated as net of any costs associated with such early redemption;
      (e) cash receivable from a regulated clearing house and cash deposits with such clearing houses, other than any fees or contributions to guarantee or reserve funds of such clearing houses; or
      (f) any other asset which may be approved by the DFSA as comprising a liquid asset for the purpose of this Rule.
      (3) For the purpose of this Rule and PIB 3.5.4, liquid assets do not include:
      (a) any investment, asset or deposit which has been pledged as security or Collateral for any obligations or liabilities assumed by it or by any other third party; or
      (b) cash held in Client Money or Insurance Money accounts.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
      [Added] DFSA RMI281/2020 (Made 28th October 2020). [VER37/11-20]

    • PIB 3.5.4

      (1) This Rule applies to an Authorised Firm if the only Financial Service it carries on is Managing a Venture Capital Fund.
      (2) The Authorised Firm must ensure that it has and maintains, at all times, liquid assets and access to financial resources which are adequate in relation to the nature, size and complexity of its business to ensure that there is no significant risk that its liabilities cannot be met as they fall due.
      Derived from DFSA RMI281/2020 (Made 28th October 2020). [VER37/11-20]