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 Firmin any Category.
PIB 8.1.1 Guidance1.
Groupmembership may be a source of both strength and weakness to an Authorised Firm. The purpose of Group Riskrequirements is to ensure that an Authorised Firmtakes proper account of the risks related to the Authorised Firm'smembership of a Group. The Group Riskrequirements form a key part of the DFSA'soverall approach to prudential supervision.2. PIB section 8.5 imposes important restrictions on the ability of Authorised Firmsin Category3A, 3B, 3C, 3D or 4, and non-regulated Financial Institutions, to be a Parentof an Authorised Firmin Category1 or 5, or of a firm carrying on similar activities outside of the DIFC.
Requirements by the DFSA
PIB 8.1.2 PIB 8.1.2(1) The
DFSAmay require an Authorised Firmto:(a) form a Financial Groupwith any other entity within its Group; or(b) include within its Financial Groupany other entity within its Group;where the DFSAconsiders it necessary or desirable to do so in the interests of effective supervision of the Authorised Firm.(2) An Authorised Firmmay, for the purposes of this section, exclude from its Financial Groupany entity the inclusion of which would be misleading or inappropriate for the purposes of Financial Groupsupervision, provided the Authorised Firmhas obtained the DFSA'sprior written approval.(3) An Authorised Firmmust provide to the DFSA, if requested, any of the following information in relation to its Groupor Financial Group:(a) details as to the entities within the Groupor Financial Group;(b) the structure of the Groupor Financial Group; and(c) the systems and controls in place to manage Group Risk.
PIB 8.1.2 Guidance1. If more than one member of the same
Groupis subject to an obligation to provide information in respect of a position of the Groupor Financial Group, one or more of those Authorised Firmsmay make application to the DFSAfor an appropriate waiver or modification.2. For the purposes of PIB Rule 8.1.2, the DFSAwould consider a range of factors when requiring an Authorised Firmto 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.