Entire Section

  • PIB 8.1 PIB 8.1 Application

    • PIB 8.1.1 PIB 8.1.1

      (1) This section and PIB section 8.5 apply to an Authorised Firm in any Category.
      (2) Sections PIB 8.2 to PIB 8.4 apply only to an Authorised Firm in Category 1, 2 or 5.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

      • PIB 8.1.1 Guidance

        1. Group membership may be a source of both strength and weakness to an Authorised Firm. The purpose of Group Risk requirements is to ensure that an Authorised Firm takes proper account of the risks related to the Authorised Firm's membership of a Group. The Group Risk requirements form a key part of the DFSA's overall approach to prudential supervision.
        2. PIB section 8.5 imposes important restrictions on the ability of Authorised Firms in Category 3A, 3B, 3C, 3D or 4, and non-regulated Financial Institutions, to be a Parent of an Authorised Firm in Category 1 or 5, or of a firm carrying on similar activities outside of the DIFC.
        Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
        [Added] DFSA RMI270/2020 (Made 26th February 2020). [VER36/04-20]

    • Requirements by the DFSA

      • PIB 8.1.2 PIB 8.1.2

        (1) The DFSA may require an Authorised Firm to:
        (a) form a Financial Group with any other entity within its Group; or
        (b) include within its Financial Group any other entity within its Group;
        where the DFSA considers it necessary or desirable to do so in the interests of effective supervision of the Authorised Firm.
        (2) An Authorised Firm may, for the purposes of this section, exclude from its Financial Group any entity the inclusion of which would be misleading or inappropriate for the purposes of Financial Group supervision, provided the Authorised Firm has obtained the DFSA's prior written approval.
        (3) An Authorised Firm must provide to the DFSA, if requested, any of the following information in relation to its Group or Financial Group:
        (a) details as to the entities within the Group or Financial Group;
        (b) the structure of the Group or Financial Group; and
        (c) the systems and controls in place to manage Group Risk.
        Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

        • PIB 8.1.2 Guidance

          1. If more than one member of the same Group is subject to an obligation to provide information in respect of a position of the Group or Financial Group, one or more of those Authorised Firms may make application to the DFSA for an appropriate waiver or modification.
          2. For the purposes of PIB Rule 8.1.2, the DFSA would consider a range of factors when requiring an Authorised Firm to form a Financial Group. These factors would include regulatory risk factors, including but not limited to, (direct and indirect) participation, influence or contractual obligations, interconnectedness, intra group exposures, intra group services, regulatory status and legal framework.
          Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]