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  • Institutional Exemption

    • PIB 4.15.10 PIB 4.15.10

      (1) This Rule applies to an Authorised Firm in Category 2 and 3A.

      (2) For Exposures to a Financial Institution, or a group of Connected Counterparties one of which is a Financial Institution, the total amount of an Authorised Firm's Exposures may exceed 25% of its Tier 1 Capital, provided those institutions are Investment Grade (Credit Quality Grades 1 to 3) and subject to the following:

      (a) Exposures to any entities within the group of Connected Counterparties that are not Financial Institutions are limited to 25% of Tier 1 Capital after taking account of Credit Risk mitigation;
      (b) the Exposures must not form part of the Tier 1 Capital of the Counterparty;
      (c) the Counterparty Risk profile must be subject to review on at least an annual basis; and
      (d) Exposures of this nature must not in any case exceed a maximum of US$ 100 million or 100% of Tier 1 Capital, whichever is the lower.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
      [Amended] DFSA RMI293/2021 (Made 24th February 2021). [VER38/04-21]

      • PIB 4.15.10 Guidance

        The DFSA will, in exceptional circumstances, consider an application to waive or modify the limits set out above. In such circumstances the Authorised Firm will have to make a submission to the DFSA as to why its specific circumstances would warrant a relaxation of the limits specified in (d) above.

        Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]