PIB 10.4 PIB 10.4 ICAAP
This section applies to an
Authorised Firmin Category1, 2, 3A or 5.
PIB 10.4.2(1) An
Authorised Firmmust implement and maintain an ICAAPwhich details the processes and procedures by which the firm will assess and maintain adequate Capital Resourcesin relation to the risks faced by it.(2) The firm must conduct an ICAAPassessment at least annually giving due regard to the Guidancein PIB section A10.2 of PIB App10.(3) The ICAAPassessment 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 ICAAPassessment:(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) The ICAAPassessment conducted by the firm pursuant to (4) must be approved by its Governing Bodyand then submitted to the DFSAwithin two months from the date of such material change or requirement.
Authorised Firmmust ensure that an ICAAPassessment is documented in writing and includes details of:(a) the calculations and models used in the determination of the level of Capital Requirementswhich it considers will be adequate to cover all the risks identified by its ICAAPassessment;(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 Guidancein PIB App10.
Authorised Firmmust retain the records of an ICAAPassessment for at least six years.