PIB 10.3 PIB 10.3 IRAP
This section applies to an
Authorised Firmin Category1, 2, 3A, 3B, 3C, 3D, 4 (if it provides Money Transmission, Account Information Services or Payment Initiation Services) or 5.
PIB 10.3.2(1) An
Authorised Firmmust establish and maintain an IRAPwhich details the processes and procedures by which the firm will identify, assess, aggregate and monitor the risks faced by it.(2) The firm must conduct the IRAPassessment at least annually giving due regard to the Guidancein PIB section A10.1 of PIB App10.(3) The IRAPassessment conducted by the firm pursuant to (2) must be approved by its Governing Bodyand then submitted to the DFSAwithin four months from the end of the firm's financial year.(4) In addition to (2), the firm must conduct an IRAPassessment:(a) whenever there is material change to the business, strategy, nature or scale of the activities of the firm which may have a significant impact on its risk profile or adequacy of its Capital Resourcesor Adjusted Capital Resources, as applicable; or(b) as and when required by the DFSA.(5) An IRAPassessment conducted by the firm pursuant to (4) must be approved by its Governing Bodyand then submitted to the DFSAwithin two months, or such other period as may be specified by the DFSA, from the date of such material change or requirement.
The results of an
IRAPassessment must be documented by the Authorised Firmin writing and include details of:(a) the risks identified;(b) the firm's strategies and plans to deal with those risks;(c) the firm's assessment of the adequacy of its Capital Requirementas calculated under PIBto address all the risks identified by its IRAP;(d) the details of any stress testing and scenario analysis carried out and the resultant impact on the Capital Requirement; and(e) any other relevant information, giving due regard to the Guidancein PIB App10.
Authorised Firmmust retain the records of an IRAPassessment for at least six years.