Entire Section

  • PIB 10.4 PIB 10.4 ICAAP

    • PIB 10.4.1

      This section applies to an Authorised Firm in Category 1, 2, 3A or 5.

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

    • PIB 10.4.2

      (1) An Authorised Firm must implement and maintain an ICAAP which details the processes and procedures by which the firm will assess and maintain adequate Capital Resources in relation to the risks faced by it.
      (2) The firm must conduct an ICAAP assessment at least annually giving due regard to the Guidance in PIB section A10.2 of PIB App10.
      (3) The ICAAP assessment conducted by the firm pursuant to (2) must be approved by its Governing Body and then submitted to the DFSA within four months from the end of the firm's financial year.
      (4) In addition to (2), the firm must conduct an ICAAP assessment:
      (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 Resources or Adjusted Capital Resources, as applicable; or
      (b) as and when required by the DFSA.
      (5) The ICAAP assessment conducted by the firm pursuant to (4) must be approved by its Governing Body and then submitted to the DFSA within two months from the date of such material change or requirement.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 10.4.3

      An Authorised Firm must ensure that an ICAAP assessment is documented in writing and includes details of:

      (a) the calculations and models used in the determination of the level of Capital Requirements which it considers will be adequate to cover all the risks identified by its ICAAP assessment;
      (b) the firm's strategies and plans to ensure availability of the level of capital determined by the ICAAP;
      (c) specifications of any models used in the ICAAP, including the underlying assumptions, parameters, and results of back-testing; and
      (d) any other relevant information, giving due and appropriate regard to the Guidance in PIB App10.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 10.4.4

      An Authorised Firm must retain the records of an ICAAP assessment for at least six years.

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