Entire Section

  • Prudential Returns Module (PRU-EPRS)

    PRU-EPRS/VER1/12-07PRU-EPRS/VER1/12-07

    • Prudential Returns Module (PRU) [VER4/09-07]

      The Prudential Returns Module was amended by GM5/2007 and replaced by PRU-EPRS [VER1/12-07].

      • PRU 1 PRU 1 Introduction

        • PRU 1.1 PRU 1.1 Application

          • PRU 1.1.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • Guidance

            1. This Sourcebook (PRU) is relevant to a Person to whom PIB or PIN applies.
            2. Chapter 2 contains the forms referred to in PIB.
            3. Chapter 3 contains instructional guidelines in respect of the forms in Chapter 4.
            4. Chapter 4 contains the forms referred to in PIN.
            Derived from DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 1.2 PRU 1.2 Defined terms

          • Guidance

            Defined terms are identified throughout the forms by the capitalisation of the initial letter of a word or each word of a phrase and are defined in the Glossary module (GLO) of the DFSA’s Rulebook. Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

            Derived from DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 1.2.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

      • PRU 2 PRU 2 PIB Forms

        • PRU 2.1 PRU 2.1 Forms PIB 1–100

          Purpose of these forms

          An Authorised Firm must submit the appropriate forms contained in this chapter in accordance with its category as defined in PIB appendix 7 and at the frequency stated in that appendix.

          Notes for completing these forms

          •   All figures must be typed and the declaration (in form PRU PIB10) signed by the person authorised to sign the return in accordance with PIB Rule 1.6.1.
          •   The Authorised Firm's name, licence number and reporting period should be identified on each form.
          •   Unless otherwise agreed with the DFSA, the Authorised Firm or Group's reporting currency must be in US Dollars.
          •   Within the forms 'N' represents the reports for the current period and 'N-1' should contain figures provided in the previous period's reporting statements. For the avoidance of doubt, for a reporting statement that is made on a quarterly basis, 'N-1' will be represent the previous quarter's comparators, whereas for an annual reporting statement, 'N-1' will be the prior year's reporting statement.
          •   Figures that related to expenses, losses or other negative amounts should be entered in brackets '(xxx)'.
          •   Forms must be presented in the English language.
          •   Authorised Firms are reminded that instructional guidelines are provided in form PRU section 2.2 which provides further detail on individual sections and boxes of the forms.
          •   When completed, submit the forms in line with SUP chapter 8. You may send applications by post or hand delivered and addressed to your usual supervisory contact.

          The address for postal submission is:

          DUBAI FINANCIAL SERVICES AUTHORITY
          SUPERVISION DEPARTMENT
          LEVEL 13, THE GATE
          PO BOX 75850
          DUBAI, UAE

          Amended from DFSA GM/2/2007 (Made 5 July 2007). [VER3/08-07]

          • PRU PIB1 PRU PIB1 Balance Sheet

            Please download the Form in PDFPDF format.

            • PRU PIB1 Appendix 1 — Detail of Non-Trading Book Assets

              Please download the Form in PDFPDF format.

            • PRU PIB1 Appendix 2 — Detail of Non-Market Risk in the Trading Book

              Please download the Form in PDFPDF format.

            • PRU PIB1 Appendix 3 — Detail of Market Risk in the Trading Book

              Please download the Form in PDFPDF format.

            • PRU PIB1 Appendix 4 — Calculation of DCR

              Please download the Form in PDFPDF format.

          • PRU PIB2 PRU PIB2 Islamic Business — Balance Sheet

            Please download the Form in PDFPDF format.

            • PRU PIB2 Appendix 1 — Detail of Non-Trading Book Self-Financed Assets

              Please download the Form in PDFPDF format.

            • PRU PIB2 Appendix 2 — Detail of Non-Trading Book Assets Financed by Unrestricted PSIAs

              Please download the Form in PDFPDF format.

            • PRU PIB2 Appendix 3 — Detail of Non-Trading Book Assets Financed by Restricted PSIAs

              Please download the Form in PDFPDF format.

            • PRU PIB2 Appendix 4 — Detail of Non Market Risk in the Trading Book — Self-Financed

              Please download the Form in PDFPDF format.

            • PRU PIB2 Appendix 5 — Detail of Non Market Risk in the Trading Book — PSIAU Financed

              Please download the Form in PDFPDF format.

            • PRU PIB2 Appendix 6 — Detail of Non Market Risk in the Trading Book — PSIAR Financed

              Please download the Form in PDFPDF format.

            • PRU PIB2 Appendix 7 — Detail of Market Risk in the Trading Book

              Please download the Form in PDFPDF format.

            • PRU PIB2 Appendix 8 — Islamic — Calculation of DCR

              Please download the Form in PDFPDF format.

            • PRU PIB2 Appendix 9 — Analysis of Reserves Movement

              Please download the Form in PDFPDF format.

          • PRU PIB3 Profit and Loss Statement

            Please download the Form in PDFPDF format.

          • PRU PIB4 Profit and Loss Statement for Islamic Financial Institutions

            Please download the Form in PDFPDF format.

          • PRU PIB5 Expenditure Based Capital Minimum — Solo

            Please download the Form in PDFPDF format.

          • PRU PIB6 Capital Adequacy Calculation — Solo

            Please download the Form in PDFPDF format.

          • PRU PIB7 PRU PIB7 Large Exposures

            Please download the Form in PDFPDF format.

            • PRU PIB7 Appendix 1 — Detail of Largest 25 Exposures by Contract Type

              Please download the Form in PDFPDF format.

          • PRU PIB8 Liquidity Schedule — Maturity Mismatch

            Please download the Form in PDFPDF format.

          • PRU PIB9 PRU PIB9 Branch Return

            Please download the Form in PDFPDF format.

            • PRU PIB9 Appendix 1 Largest Exposures Undertaken Out of the Branch

              Please download the Form in PDFPDF format.

          • PRU PIB10 Declaration by Authorised Firm

            Please download the Form in PDFPDF format.

          • PRU PIB12 Geographical Distribution of Assets and Liabilities

            Please download the Form in PDFPDF format.

            [Added] DFSA GM4/2007 (Made 13th September 2007). [VER4/09-07]

          • PRU PIB13 Provisions for Impairment

            Please download the Form in PDFPDF format.

            [Added] DFSA GM4/2007 (Made 13th September 2007). [VER4/09-07]

          • PRU PIB14 Exposures in Arrears

            Please download the Form in PDFPDF format.

            [Added] DFSA GM4/2007 (Made 13th September 2007). [VER4/09-07]

          • PRU PIB100 PRU PIB100 Statement of Financial Group Capital Adequacy

            Please download the Form in PDFPDF format.

            [Added] DFSA GM3/2007 (Made 5th July 2007). [VER15/07-07]

            • PRU PIB100 App1 Continuation Sheet

              Please download the Form in PDFPDF format.

              [Added] DFSA GM3/2007 (Made 5 July 2007). [VER15/07-07]

        • PRU 2.2 PRU 2.2 PIB Instructional Guidelines

          Please download the guidelines in PDFPDF format.

          • PRU 2.2.1 Guidance for form PIB1 — Balance Sheet (Conventional Authorised Firms)

            Instructional Guidelines

            Item No. Item Guidance
            1.1.1 Cash and Balances with Central Banks Include, for example, the following amounts:
            •   Notes and coins;
            •   Long positions in Gold bullion (including Tola Bars);
            •   Amounts placed with central banks including funds required to be placed on deposit with central banks and monetary authorities.
            1.1.2 Treasury bills and other eligible bills Treasury bills issued by the national governments or by the Central banks on behalf of the governments. Also include bills issued by other entities, which are eligible for rediscounting with the central bank.
            1.1.3 Money market placements Include deposits at call and other money market placements with banks or other money market participants
            1.2.1 Trading securities Include investments acquired principally for the purpose of selling or repurchasing them in the near term for short-term-profit-taking. This would include but not limited to, debt, equity and hybrid instruments
            1.2.2 Derivative financial instruments Include, but are not limited to, positions representing the following instruments, recorded at fair value:

            Forward and Futures contracts in Currencies, Interest rates and other financial assets
            Forward rate agreements
            Currency and interest rate swaps
            Credit derivatives
            Option contracts on currency, interest rate and other financial assets.

            These derivatives include both the exchange-traded and over-the-counter versions.
            1.2.3 Other financial instruments at fair value through profit and loss Include all financial instruments which are, upon initial recognition, designated by the entity as financial assets to be measured at fair value through profit or loss other than the trading securities included in 1.2.1.
            1.2.4 Investment securities — available for sale Include non-derivative financial assets that are designated as available for sale by the firm or that have not been classified under any of the other categories of investment in section 1.2.
            1.2.5 Investment securities - held to maturity Include non-derivative financial assets with fixed or determinable payments and fixed maturity that the firm has positive intention and ability to hold to maturity.
            1.2.6 Investments in associated undertakings Include investments in entities, including unincorporated entities such as partnerships, over which the firm has significant influence and where the entity in question is neither a subsidiary nor a joint venture operation
            1.3 Loans and advances Amounts arising from, for example:
            •   Revolving credit facilities;
            •   Credit cards outstanding balances;
            •   Housing loans (both variable and fixed rates);
            •   Term loans (both variable and fixed rates);
            •   The book value of assets leased out under finance lease agreements;
            •   Loans made under conditional hire purchase contracts;
            •   Advances purchased by or assigned to the reporting institutions, factoring or similar arrangements
            •   Other loans and advances.

            The amounts reported should be gross of provisions (as specific and general provisions should be reported in the Liabilities section of the balance sheet) and net of interest receivable.
            1.4.1 Murabaha and Istina'a receivables Report here all receivables relating to Murabaha and Istisna'a contracts. Refer to FAS 2 and FAS 10 of AAOIFI respectively.
            1.4.2 Ijarah assets and receivables Include Ijarah assets net of depreciation/ amortisation and Ijarah receivables. Refer to FAS 8 of AAOIFI.
            1.4.3 Mudaraba Financing Capital provided on a Mudaraba basis should be reported here. Refer to FAS 3 of AAOIFI.
            1.4.4 Musharaka Financing Report capital provided on a Musharaka basis. Refer to FAS 4 of AAOIFI. Investment in the share capital of another company should be reported under "Other", Form PIB 1, Item No. 1.4.5.
            1.4.5 Other investments Include any other investments undertaken through Islamic contracts, including Parallel Istisna'a assets (refer FAS 10 of AAOIFI) and capital provided on Salam contracts (refer FAS 7 AAOIFI).
            1.5 Fixed assets Include, for example, the value of the following:
            •   Plant and equipment, the residual value of items leased out under an operating lease (excluding balances relating to named Ijarah assets which should be included separately in Form PIB 1, Item No. 1.4.2);
            •   Own premises being occupied or developed for occupation by the Authorised Firm, property (excluding property acquired / held available for sale which should be included in "Other Assets", Form PIB 1, Item No. 1.7).

            The amounts reported here should be net of accumulated depreciation and amortisation.
            1.6.1 Goodwill Include amounts relating to any purchased goodwill.
            1.6.2 Other intangible assets Items to be included:
            •   Capitalised development costs
            •   Brand names, trademarks and similar rights
            •   Licences and exchange seats which may be held as part of the Authorised Firm's trading requirement.
            1.7 Other assets Assets that have not been included in any of the items above. In particular, positions in short term securities held with the intention of resale, sundry debtors, prepayments and accrued income not identified elsewhere.
            1.9.1 Direct credit substitutes These relate to the financial requirements of counterparty where the risk of loss to the Authorised Firm on the transaction is equivalent to a direct claim on the counterparty. Include here
            •   Guarantees of a financial nature to stand behind the current obligations of customers (e.g. loan guarantees);
            •   Guarantees of leasing operations;
            •   Letters of Credit and Stand-by Letters of Credit to the extent that they do not qualify for inclusion in Item No. 1.9.3 "Trade related contingents" below;
            •   Guarantees of a capital nature such as undertakings given to a non bank financial company which are considered as capital by the appropriate regulatory body. Guarantees given to a company not connected to the reporting institution should be risk weighted at 100% and those for connected companies should be deducted from the reporting institution's capital base.
            •   Acceptances granted and risk participation in bankers' acceptances. Where the reporting institution's own acceptances have been discounted by that institution the nominal value of the bills held should be deducted from the nominal amount of the bills issued under the facility and a corresponding on balance sheet entry made.
            1.9.2 Transaction related contingents These exposures relate to the on-going trading activities of a counterparty where the risk of loss to the reporting institution depends on the likelihood of a future event which is independent of the creditworthiness of the counterparty. They are essentially guarantees that support particular non financial obligations rather than a customer's financial obligations. Include here:
            •   Advance payment guarantees
            •   Performance bonds including bid or tender bonds, warranties and indemnities (indemnities given for lost share certificates or bills of lading and guarantees of the validity of papers rather than of payment under certain conditions should be reported here);
            •   Stand by Letters of Credit relating to a particular contract or to non financial transactions (including arrangements backing, inter alia, subcontractors' and supplier's performance, labour and materials, contracts and construction bids).
            1.9.3 Trade related contingents Report short term self-liquidating trade related items such as documentary letters of credit issued by the reporting institution that are collateralised by the underlying shipment i.e. the credit provides for the reporting institution to retain title to the underlying shipment. L/C's issued without provision for the reporting institution to retain title to the underlying shipment should be reported under direct credit substitutes above.
            1.9.4 Sale and Repurchase Agreements Only report here sale and repurchase agreements where the asset sold is not reported on the balance sheet. Where the asset is off balance sheet, the appropriate counterparty weighting is determined by the issuer of the security and not according to the counterparty with whom the transaction has been undertaken.
            1.9.5 Forward Assets Purchases The appropriate counterparty weighting should be determined by the asset to be purchased and not the counterparty with whom the contract has been entered into. Include commitments for loans and other on balance sheet items with certain drawdown. Exclude foreign currency spot deposits with value date of up to two working dates after trade date.
            1.9.6 Forward Deposits Placed Relates to agreements between two parties whereby one will pay and the other receive an agreed rate of interest on a deposit to be placed by one with the other at some pre-determined rate in the future. The weight should be determined according to the counterparty with whom the deposit will be placed. Exclude foreign currency spot deposits with value date of up to two working dates after trade date.
            1.9.7 Uncalled partly-paid shares and securities Only include here if there is a specific date for a call. If there is no specific date for a call, the item should be included as a long term commitment under PIB 1 Item No. 1.9.10, "Other Commitments".
            1.9.8 NIF's and RUF's Note issuance and revolving underwriting facilities should include the reporting institutions underwriting obligations of any maturity. Where the facility has been drawn down by the borrower and the notes are held by someone other than the Authorised Firm, the underwriting obligation should continue to be reported at the nominal amount.
            1.9.9 Endorsement of Bills These should be reported at the full nominal amount, less any amount for bills which the institution now holds but had previously endorsed. Endorsement of bills not accepted by banks will attract the counterparty risk weighting of the issuer. If it has been endorsed by another bank, a reduced risk weighting applies.
            1.9.10 Other Commitments All other undrawn commitments are reportable here, divided into commitments under and over one year.
            1.9.11 Assets funded by restricted PSIAs The methodology for calculating exposures financed by PSIAs are, in principle, no different to calculating exposures for a reporting institution's self financed assets. All the guidance notes above apply in their entirety unless stated otherwise.
            1.10 Deposits Separately identify deposits due to the financial institutions in PIB 1 Item No. 1.10.1. All other deposits are to be reported in the other deposit section, PIB 1 Item No. 1.10.2.
            1.11 Tax Liability Report all items accrued and payable in respect of the Authorised Firm's current and future tax liabilities.
            1.12 Provisions All specific and general provisions in respect of Loans and Advances and other receivables should be reported here. Exclude provisions against Islamic contracts which should be reported in PIB 1 Item No. 1.14.4 below.
            1.13 Loan Capital and Hybrid Securities Report items such as subordinated loans drawn down by the Authorised Firm.
            1.14 Liabilities arising from Islamic contracts Liabilities arising from Islamic contracts include advances received against Salam contracts (defined in Para 3 and 19 of FAS 7 issued by AAOIFI and Ijarah investment payables (refer to FAS 8 of AAOIFI). Report any provisions against Islamic contracts in item Form PIB 1, Item No. 1.14.4.
            1.15.1 Creditors and other liabilities Report all items not included in any of the above, such as proposed dividends payable, sundry accruals and deferred income etc.
            1.15.2 Derivative financial instruments and other trading liabilities Include, but are not limited to, liabilities arising out of positions representing the following instruments, recorded at fair value:

            Forward and Futures contracts in Currencies, Interest rates and other financial assets
            Forward rate agreements
            Currency and interest rate swaps
            Credit derivatives
            Option contracts on currency, interest rate and other financial assets.

            These derivatives include both the exchange-traded and over-the-counter versions.
            1.17.1 Liabilities relating to Restricted PSIA Enter here the aggregate liabilities arising from the assets of restricted PSIA investment funds.
            1.17.2 Other Enter the aggregate of all other off balance sheet liabilities here
            1.18.1 Ordinary Shares Include in respect of this item the amount of ordinary share capital issued, reported at nominal paid up value. Do not report the unpaid element of partly paid shares or authorised but unissued share capital. Authorised Firms should exclude holdings in their own shares.
            1.18.2 Preference Shares Fixed dividend share capital that ranks above ordinary shares in the event of liquidation. Report the value of the preference shares issued.
            1.18.3 Partnership Capital and other Include here other types of equity which have the same properties of permanent share capital. This could include partnership capital accounts, capital items for unincorporated associations etc.
            1.20 Share premium account Any amounts received by the authorised institution in excess of the nominal paid up value.
            1.21.1 Asset revaluation reserve Enter amounts arising from the revaluation of assets for which it has been necessary to set up this reserve.
            1.21.2 Goodwill and other reserves Enter amounts arising from purchased goodwill or other situations for which it has been necessary to set up this or any other reserve.
            1.21.3 Investment Risk Reserve Prudential category 5 Authorised Firms should include in respect of this item the amount that is appropriated out of the income of investment account holders, after allocating the Mudarib share, in order to meet future losses attributable to investment account holders. Refer also to FAS 11 of AAOIFI.
            1.21.4 Profit Equalisation Reserve Prudential category 5 Authorised Firms should include in respect of this item the amount appropriated out of the Mudaraba income, before allocating the Mudarib share, in order to maintain a certain level of investment returns for investment account holders and to increase owners' equity. Refer also to FAS 11 of AAOIFI.
            1.22 Total Reserves Sum of PIB 1 Item Nos. 1.21.1 + 1.21.2 + 1.21.3 + 1.21.4.
            1.24 Minority Interests Report amounts attributable to minority shareholders from the overall equity figure.
            1.25 Total shareholders' equity Sum of PIB 1 Item Nos. 1.19 + 1.20 + 1.22 - 1.24.
            1.26 Total liabilities and shareholders' equity Sum of PIB 1 Item Nos. 1.16 + 1.25
            1.27 Client Money held or controlled by the Authorised Firm Total of all Client Money, as per COB 9.3, as at the reporting date.
            1.27.1 of which, belonging to Segregated Clients Subset of Item No. 1.27 above.
            The term Segregated Client is defined in COB A5.2.1(2).
            1.28 Total Client Money held in Client Accounts Total of all Client Money held in Client Accounts as at the reporting date.
            The term Client Account is defined in COB A5.4.1.
            1.29 Insurance Monies held or controlled by the Authorised Firm Total of all Insurance Monies, as per COB 14.2, as at the reporting date.
            1.29.1 Of which, segregated Subset of Item No. 1.29 above.
            Insurance Monies segregation is detailed in COB 14.3. Segregated Insurance Monies is the total of all Insurance Monies less that amount affected by COB 14.3.12.
            1.30 Total Insurance Monies held in Insurance Bank Accounts Total balance of all Insurance Monies held in Insurance Bank Accounts as at the reporting date. The term Insurance Bank Account is explained in COB 14.3.

          • PRU 2.2.2 Guidance for Form PIB 1 — Appendix 1 — Detail of risk weighted assets

            Instructional Guidelines

            Authorised Firms are referred to PIB Chapter 4 and PIB Appendix 4 to understand the background to risk weighting assets in the non trading book. In particular, PIB Section A4.3 contains detailed requirements in respect on weighting exposures in the appropriate risk buckets. If an Authorised Firm is uncertain as to where to classify a particular exposure, it should contact DFSA to obtain this clarity. Particular care should be taken for exposures classified in anything other than the 100% risk weighting category.

            Among other things, risk weightings may be reduced on non trading book items by obtaining a guarantee from a third party or a party connected to the Authorised Firm (the "guarantor"). Provided the conditions laid out in Rules PIB A4.3.1 to PIB A4.3.4 are met, the Authorised Firm may opt to use the counterparty weighting of the guarantor where this risk weighting is less than that for the underlying counterparty.

            Item No. Item Guidance
            1.A1.2.3 Mortgage backed securities Investments in mortgage backed securities only attract a 50% rating provided the conditions set out in PIB Rule A4.3.6 are met in its entirety.
            1.A1.4 Assets arising from Islamic contracts In respect of counterparty weightings for exposures in the non trading books, Authorised Firms are referred Rules PIB 3.5.1 to PIB 3.5.5. In particular, attention is drawn to the weightings referred to in table 2 by Islamic contract type. Authorised Firms are reminded that in the event of any doubt in this area, they should contact the DFSA for clarification.
            1.A1.4.5 Other investments Include all other investments arising from Islamic contracts not referred to above.
            1.A1.9 Off balance sheet items Details of Credit Conversion Factors are set out in Rules PIB A4.3.10 to PIB A4.3.14. Authorised Firms are reminded to be cautious in capturing off balance sheet exposures and to refer any matters of uncertainty to DFSA for greater clarification.
            1.A1.9.4 Sale and Repurchase Agreements Attention is drawn to Rules PIB A4.3.15 to PIB A4.3.17 which note that the counterparty weight of a repo agreement is by reference to the issuer of the asset subject to the agreement and not to the counterparty to the repurchase agreement. The weight on a reverse repo is determined as if it were a collateralised loan to a counterparty
            1.A1.9.10 Other commitments Authorised Firms are referred to the detail of Rules PIB A4.4.1 to PIB A4.4.7 in respect of determining the maturity of commitments where they have been renegotiated or are linked commitments.
            1.A1.11 OTC derivative contracts The calculation of the Credit Equivalent Amount is set out in PIB Rule A4.5.12. Authorised Firms are referred to the table in PIB Rule A4.5.14 which sets out the calculation of Potential Future Credit Exposures with details of how to net them set out in PIB Rule A4.9.1.
            1.A.12 CRCOM CRCOM is derived by multiplying the sum of risk weighted assets from the non trading book and exposures arising from OTC derivative contracts in the same book by 8%. The number here is transferred to Form PIB 6, Item No. 6.23.

          • PRU 2.2.3 Guidance for Form PIB 1 — Appendix 2 — Non-market risk in the Trading Book

            Instructional Guidelines

            The details for calculating the exposures on these risks is set out in PIB Section A4.5 which is the Appendix relating to Credit Risk.

            Item No. Item Guidance
            1.A2.2 OTC derivatives For OTC derivatives, attention is drawn to PIB Rule A4.5.3 which states that the maximum weighting is limited to 50%.
            1.A2.3 Repos and Reverse Repos For the counterparty weights on Repos and Reverse Repos, attention is drawn to the Instruction Guidance relating to Form PIB 1, Item No. 1.9.4.
            1.A2.4 Total counterparty risk requirement for non market risk in the trading book The total counterparty risk requirement for non market risk in the trading book ("CPCOM") is the sum of the capital charges arising from Delivery Versus Payment transactions, Free Deliveries, OTC Derivatives, Repos, Reverse Repos and Deferred Settlement Transactions. The figure here should be transferred to Form PIB 6, Item No. 6.32.

          • PRU 2.2.4 Guidance for Form PIB 1 — Appendix 3 — Market Risk in the Trading Book

            Instructional Guidelines

            DFSA acknowledges that even for Authorised Firms with relatively straightforward exposures on the trading books, the underlying calculations for various market risks can be detailed and complex. DFSA requires only the summary numbers to be reported but expects Authorised Firms to maintain detailed audit trails that substantiate the risk requirements. Authorised Firms are also reminded that they should make this information available for review as and when required.

            In the event of any uncertainty, Authorised Firms are advised to contact their supervisor for clarity. Authorised Firms are asked to review the material set out PIB Appendix 5 with care given the multiplicity of methods that can be used to calculate the capital requirement on interest rate risk, equity risk, FX risk, Commodities risk Options Risk and Securities Underwriting Risk.

            Where Authorised Firms intend to use internally developed market risk models for the purposes of valuing positions and calculating capital requirements, particular attention is drawn to PIB Section A5.8 and the qualitative criteria.

            Item No. Item Guidance
            1.A3.1.4,
            1.A3.2.4,
            1.A3.4.4
            1.A3.5.4
            1.A3.6
            Various risk requirements An Authorised Firm's total trading book capital requirement is as defined in PIB Rule 2.8.3. With the exception of the foreign exchange risk requirement, the total risk requirements as calculated for interest rate, equity, Commodities, Options and Securities Underwriting transactions are to be transferred to Form PIB 6 under the section titled Trading Book Capital requirement (Item Nos. 6.33–6.37).
            1.A3.3 Foreign exchange risk requirement The Foreign Exchange risk capital requirement is included in the Form PIB 6 under the Non Trading Book Capital requirement and should be transferred to Item No. 6.24 (PIB Rule 2.8.3 refers).
            1.A3.10 Total trading book capital requirement The total Trading Book Capital requirement here should be transferred to the Form PIB 6, Item No. 6.38.

          • PRU 2.2.5 Guidance for Form PIB 1 — Appendix 4 — Calculation of the DCR

            Instructional Guidelines

            DCR is defined in PIB Section 3.4 and is calculated only in respect of the PSIA funded assets. Whilst the end calculation is relatively straightforward, DFSA acknowledges that the details required to derive the final figure will be extensive depending on the size of the PSIA funded asset base.

            For Authorised Firms providing services through Islamic Windows, DFSA has not asked Authorised Firms to identify in detail the credit and market risks arising from positions in both the trading and non trading book and on and off balance sheet. Instead, Authorised Firms are required to report the numbers in summary form and are reminded that they must make the information available for review as and when required.

            Item No. Item Guidance
            1.A.4.1.1
            1.A.4.1.2
            CPCOM
            CRCOM
            CPCOM and CRCOM are calculated in accordance with Sections PIB 4.3 and PIB 4.4. The risk weightings of the assets in Islamic contracts are derived from PIB Section 3.5 and for all other assets via the appropriate Rules primarily in PIB Chapter 4 and PIB Appendix 4. Refer to previous guidance on Form PIB 1, Appendices 1 and 2 which will be relevant here.
            1.A.4.1.3 Total
            PSIACOM
            Credit
            Total PSIACOM Credit is the sum of CPCOM and CRCOM for PSIA assets.
            1.A.4.2 PSIACOM
            Market
            PSIACOM Market is the sum of the capital charge for the various kinds of market risks arising in the trading book for PSIA assets. Market risks are calculated primarily with reference to PIB Chapter 5 and PIB Appendix 5.
            1.A.4.3 DCR
            calculation
            The number derived for the DCR charge should be carried over to Form PIB 6, Item Nos. 6.28.

          • PRU 2.2.6 Guidance for Form PIB 2 — Balance Sheet — Islamic Financial Institutions

            Instructional Guidelines

            There are effectively three sets of returns for Category 5 institutions. Wherever appropriate, all balance sheet captions need to identify separately if they have arisen from self financed business (including finance from Amanah and demand deposits), from the business provided by utilising the unrestricted assets of PSIA asset providers and from the restricted PSIA business. Whilst AAOIFI permits unrestricted PSIA assets to be commingled with self financed assets for balance sheet reporting purposes, the need to maintain separate records for each asset class is paramount. Restricted PSIA assets and liabilities cannot be commingled with the former and should be reported off balance sheet.

            In the event of any uncertainty, Authorised Firms are required to consult with DFSA to obtain the necessary clarity.

            Item No. Item Guidance
            2.1 Cash and Liquid Assets Include, for example, the following amounts:
            •   Notes and coins;
            •   Deposits at call;
            •   Long positions in Gold bullion (including Tola Bars);
            •   Amounts placed with central banks and other financial institutions including funds required to be placed on deposit with central banks and monetary authorities.
            2.2 Investment Securities Report long term investment securities not held with intent to trade (short term securities are reported in "Other Assets", Item No 2.7 below). Include, for example:
            •   Debt and equity issues by central banks and other financial institutions (Eurobonds, FRNs, Mortgage Backed securities, equity holdings, Sukuks etc.);
            •   Investments in subsidiaries and associated companies;
            •   Investments in the capital of other banks and financial institutions;
            •   Holdings in non financial firms of which the Authorised Firm is a controller (i.e. "Qualifying Holdings").

            Exclude any investments in certain named Islamic contracts which are included below (PIB 2 Item Nos. 2.4.1 to 2.4.7).
            2.3 Loans and Advances Amounts arising from, for example:
            •   Revolving credit facilities;
            •   Credit cards outstanding balances;
            •   Housing loans (both variable and fixed rates);
            •   Term loans (both variable and fixed rates);
            •   The book value of assets leased out under finance lease agreements;
            •   Loans made under conditional hire purchase contracts;
            •   Advances purchased by or assigned to the reporting institutions, factoring or similar arrangements
            •   Other loans and advances.

            The amounts reported should be gross of provisions (as specific and general provisions should be reported in the Liabilities section of the balance Sheet) and net of interest receivable.
            2.4.1 Murabaha and Istisna'a Receivables Report here all receivables relating to Murabaha and Istisna'a contracts. Refer to FAS 2 and FAS 10 of AAOIFI respectively.
            2.4.2 Ijarah assets Include Ijarah assets net of depreciation/ amortisation and Ijarah receivables. Refer to FAS 8 of AAOFI.
            2.4.3 Mudaraba Financing Capital provided on a Mudaraba basis should be reported here. Refer also to FAS 3 of AAOIFI.
            2.4.4 Musharaka Financing Report capital provided on a Musharaka basis. Refer to FAS 4 of AAOIFI. Investment in the Share capital of another company should be reported under "Other", Form PIB 2, Item No. 2.4.7.
            2.4.5 Salam Capital provided on Salam contract should be reported here. Refer to FAS 7 of AAOIFI.
            2.4.6 Parallel Istisna'a Parallel Istisna'a receivables/assets should be reported here. Refer to FAS 10 of AAOFI.
            2.5 Fixed Assets Include, for example, the value of the following:
            •   Plant and equipment, the residual value of items leased out under an operating lease (excluding balances relating to named Ijarah assets which should be included separately in Form PIB 2, Item No. 2.4.2);
            •   Own premises being occupied or developed for occupation by the authorised institution, property (excluding property acquired / held available for sale which should be included in "Other Assets" in Form PIB 2, Item No. 2.7).

            The amounts reported here should be net of accumulated depreciation and amortisation.
            2.6.1 Goodwill Include amounts relating to any purchased goodwill.
            2.6.2 Other intangibles Items to be included:
            •   Capitalised development costs;
            •   Brand names, trademarks and similar rights;
            •   Licences and exchange seats which may be held as part of the Authorised Firm's trading requirement
            2.7 Other Assets Assets that have not been included in any of the items above. In particular, positions in short term securities held with the intention of resale, sundry debtors, prepayments and accrued income not identified elsewhere.
            2.9.1 Direct Credit Substitutes These relate to the financial requirements of a counterparty where the risk of loss to the reporting institution on the transaction is equivalent to a direct claim on the counterparty. Essentially the risk of loss depends on the creditworthiness of the counterparty. Include here:
            •   Guarantees of a financial nature to stand behind the current obligations of customers (e.g. loan guarantees);
            •   Guarantees of leasing operations;
            •   Letters of Credit and Stand-by Letters of Credit to the extent that they do not qualify for inclusion in Item No. 2.9.3 "Trade related contingents" below;
            •   Guarantees of a capital nature such as undertakings given to a non bank financial company which are considered as capital by the appropriate regulatory body. Guarantees given to a company not connected to the reporting institution should be risk weighted at 100% and those for connected companies should be deducted from the reporting institution's capital base.
            •   Acceptances granted and risk participation in bankers' acceptances. Where the reporting institution's own acceptances have been discounted by that institution the nominal value of the bills held should be deducted from the nominal amount of the bills issued under the facility and a corresponding on balance sheet entry made.
            2.9.2 Transaction related Contingents These exposures relate to the on-going trading activities of a counterparty where the risk of loss to the reporting institution depends on the likelihood of a future event which is independent of the creditworthiness of the counterparty. They are essentially guarantees that support particular non financial obligations rather than a customer's financial obligations. Include here:
            •   Advance payment guarantees
            •   Performance bonds including bid or tender bonds, warranties and indemnities (indemnities given for lost share certificates or bills of lading and guarantees of the validity of papers rather than of payment under certain conditions should be reported here);
            •   Stand-by Letters of Credit relating to a particular contract or to non financial transactions (including arrangements backing, inter alia, subcontractors' and supplier's performance, labour and materials, contracts and construction bids).
            2.9.3 Trade related Contingents Report short term self liquidating trade related items such as documentary letters of credit issued by the reporting institution which are to be collateralised by the underlying shipment i.e. the credit provides for the reporting institution to retain title to the underlying shipment. L/C's issued without provision for the reporting institution to retain title to the underlying shipment should be reported under direct credit substitutes above.
            2.9.4 Sale and Repurchase Agreements Only report here sale and repurchase agreements where the asset sold is not reported on the balance sheet. If it is reported on the balance sheet, it should not be reported here but in the relevant on balance sheet section of the return. Where the asset is off balance sheet, the appropriate counterparty weighting is to be determined by the issuer of the security and not according to the counterparty with whom the transaction has been entered into.
            2.9.5 Forward Assets Purchases The appropriate counterparty weighting should be determined by the asset to be purchased and not the counterparty with whom the contract has been entered into. Include commitments for loans and other on balance sheet items with certain drawdown. Exclude foreign currency spot deposits with value date of up to two working dates after trade date.
            2.9.6 Forward Deposits Placed Relates to agreements between two parties whereby one will pay and the other receive an agreed rate of interest on a deposit to be placed by one with the other at some pre determined rate in the future. The weight should be determined according to the counterparty with whom the deposit will be placed. Exclude foreign currency spot deposits with value date of up to two working dates after trade date.
            2.9.7 Uncalled partly-paid shares and securities Only include if there is a specific date for a call. If there is no specific date for a call, the item should be included as a long term commitment under PIB 2 Item No. 2.9.10 "Other Commitments".
            2.9.8 NIF's and RUF's Note issuance and revolving underwriting facilities should include the reporting institutions underwriting obligations of any maturity. Where the facility has been drawn down by the borrower and the notes are held by someone other than the Authorised Firm, the underwriting obligation should continue to be reported at the nominal amount.
            2.9.9 Endorsement of Bills These should be reported at the full nominal amount, less any amount for bills which the institution now holds but had previously endorsed. Endorsement of bills not accepted by banks will attract the counterparty risk weighting of the issuer. If it has been endorsed by another bank, a reduced risk weighting applies.
            2.9.10 Other Commitments All other undrawn commitments are reportable here, divided into commitments under and over one year.
            2.9.11 OTC Derivative Contracts Counterparty risk arising in both the non-trading and trading books should be calculated with reference to the Rules in PIB Section A4.5. Amounts to be reported here are the replacement costs/ NPV of such contracts
            2.10 to 2.18.11 Assets financed by PSIAR The methodology for calculating exposures financed by PSIA assets are, in principle, no different to calculating exposures for a reporting institution's self financed assets. All the guidance notes above apply in their entirety unless stated otherwise.
            2.20 Deposits Separately identify deposits due to clearing houses in PIB 2 Item No. 2.20.1 and other financial institutions in PIB 2 Item No. 2.20.2. All other deposits are to be reported in PIB 2 Item No. 2.20.3, "Other".
            2.21 Tax Liability Report all items accrued and payable in respect of the institution's current and future tax liabilities.
            2.22 Provisions All specific and general provisions in respect of Loans and Advances and other receivables should be reported here.
            2.23.1 and 2.23.2 Liabilities arising from Islamic activities Include advances received against Parallel Salam contracts (defined in Para 3 and 19 of FAS 7 issued by AAOIFI and Ijarah investment payables (refer to FAS 8 of AAOIFI).
            2.23.3 Liabilities relating to PSIAu Enter here the aggregate of all liabilities incurred on behalf of and amounts owed to PSIAu.
            2.23.4 Other Enter all other liabilities incurred in respect of Islamic contracts.
            2.24 Creditors and other Liabilities Report all items not included in any of the above, such as proposed dividends payable, sundry accruals and deferred income etc.
            2.26.1 Liabilities relating to PSIAR Enter here the aggregate liabilities arising from the restricted assets of PSIAR.
            2.26.2 Other Enter the aggregate of all other off-balance sheet liabilities here.
            2.27.1 Ordinary Shares Include the amount of ordinary share capital issued, reported at nominal paid up value. Do not report the unpaid element of partly paid shares or authorised but unissued share capital. Authorised Firms must exclude holdings in their own shares.
            2.27.2 Preference Shares Fixed dividend share capital that ranks above ordinary shares in the event of liquidation. Report the value of the preference shares issued.
            2.27.3 Partnership Capital and other Include here other types of equity which have the same properties of permanent share capital. This could include partnership capital accounts, capital items for unincorporated associations etc.
            2.29 Share premium Account Any amounts received by the authorised institution in excess of the nominal paid up value.
            2.30.1 Asset revaluation reserve Enter amounts arising from the revaluation of assets for which it has been necessary to set up this reserve.
            2.30.2 Investment Risk Reserve Category 5 Authorised Firms should include in respect of this item the amount that is appropriated out of the income of investment account holders, after allocating the Mudarib share, in order to meet future losses attributable to investment account holders. Refer also to FAS 11 of AAOIFI.
            2.30.3 Profit Equalisation reserve Category 5 Authorised Firms should include in respect of this item the amount appropriated out of the Mudaraba income, before allocating the Mudarib share, in order to maintain a certain level of investment returns for investment account holders and to increase owners' equity. Refer also to FAS 11 of AAOIFI.
            2.30.4 Goodwill and other Enter amounts arising from purchased goodwill or other situations for which it has been necessary to set up a goodwill or other reserve.
            2.31 Total Reserves Sum of Item Nos. [2.30.1 + 2.30.2 + 2.30.3 + 2.30.4] above.
            2.33 Minority Interests Report amounts attributable to minority shareholders from the overall equity figure.
            2.34 Total shareholders' equity Sum of PIB 2 Item Nos. 2.28 + 2.29 + 2.31 - 2.33.
            2.35 Total liabilities and shareholders' equity Sum of PIB 2 Item Nos. 2.25 + 2.34.

          • PRU 2.2.7 Guidance for Form PIB 2 — Appendix 1 — Detail of Non-Trading Book Assets (self-financed)

            Instructional Guidelines

            Authorised Firms are referred to PIB Chapter 4 and PIB Appendix 4 to understand the background to risk weighting assets in the non trading book. In particular, PIB Section A4.3 contains detailed requirements in respect of weighting exposures in the appropriate risk buckets. If an Authorised Firm is uncertain as to where to classify a particular exposure, it should contact DFSA to obtain this clarity. Particular care should be taken for exposures classified in anything other than the 100% risk weight category.

            Amongst other things, risk weightings may be reduced on non trading book items by obtaining a guarantee from a third party or a party connected to the Authorised Firm (the "guarantor"). Provided the conditions laid out in PIB A4.3.1 to PIB A4.3.4 are met, the Authorised Firm may opt to use the counterparty weighting of the guarantor where this risk weighting is less than that for the underlying counterparty.

            Only enter exposures relating to self financed assets in PIB 2 Appendix 1.

            Item No. Item Guidance
            2.A1.2.3 Mortgage backed securities Investments in mortgage backed securities only attract a 50% rating provided the conditions set out in PIB Rule A4.3.6 are met in their entirety.
            2.A1.4 Assets arising from Islamic contracts In respect of counterparty weightings for exposures in the non trading books, Authorised Firms are referred Rules PIB 3.5.1 to PIB 3.5.5. In particular, attention is drawn to the weightings referred to in table 2 by Islamic contract type. Authorised Firms are especially reminded that in the event of any doubt in this area, they should contact the DFSA for clarification.
            2.A1.4.7 Other Include all other investments arising from Islamic contracts not referred to above.
            2.A1.9 Off balance sheet items Details of Credit Conversion Factors are set out in Rules PIB A4.3.10 to PIB A4.3.14. Authorised Firms are reminded to be cautious in capturing off balance sheet exposures and to refer any matters of uncertainty to DFSA for greater clarification.
            2.A1.9.4 Sale and repurchase agreements Attention is drawn to Rules PIB A4.3.15 to PIB A4.3.17 which note that the counterparty weight of a repo agreement is by reference to the issuer of the asset subject to the agreement and not to the counterparty to the repurchase agreement. The weight on a reverse repo is determined as if it were a collateralised loan to a counterparty.
            2.A1.9.10 Other commitments Authorised Firms are referred to the detail in Rules PIB A4.4.1 to PIB A4.4.7 in respect of determining the maturity of commitments where they have been renegotiated or are linked commitments.
            2.A1.12 OTC Derivative Contracts The calculation of the Credit Equivalent Amount is set out in PIB Rule A4.5.12. Authorised Firms are referred to the table in PIB A4.5.14 which sets out the calculation of Potential Future Credit Exposures with details of how to net them set out in PIB Rule A4.9.1.
            2.A1.13 CRCOM (self) CRCOM is derived by multiplying the sum of risk weighted assets from the non trading book and exposures arising from OTC derivative contracts in the same book by 8%. The number here is transferred to Form PIB 6, Item No. 6.23.

          • PRU 2.2.8 Guidance for Form PIB 2 — Appendix 2 — Detail of Non-Trading Book Assets (PSIAu)

            Instructional Guidelines

            All the guidance notes in PIB 2 Appendix 1 apply here. Only enter exposures relating to assets of the PSIAu investors.

            Item No. Item Guidance
            2.A2.13 CRCOM (PSIAu) CRCOM is derived by multiplying the sum of risk weighted assets from the non trading book and exposures arising from OTC derivative contracts in the same book by 8%. The number here is transferred to the DCR calculation in Form PIB 2, Appendix 8, Item No. 2.A8.1.2.

          • PRU 2.2.9 Guidance for Form PIB 2 — Appendix 3 — Detail of Non-Trading Book Assets (PSIAR)

            Instructional Guidelines

            All the guidance notes in PIB 2 Appendix 1 apply here. Only enter exposures relating to assets of the PSIAR investors.

            Item No. Item Guidance
            2.A3.13 CRCOM (PSIAR) CRCOM: CRCOM is derived by multiplying the sum of risk weighted assets from the non trading book and exposures arising from OTC derivative contracts in the same book by 8%. The number here is transferred to Form PIB 2, Appendix 8, Item No. 2.A8.1.2 for the DCR calculation.

          • PRU 2.2.10 Guidance for Form PIB 2 — Appendix 4 — Detail of Non-Market Risk in Trading Book (self-financed)

            Instructional Guidelines

            This Appendix relates to calculating the risk weighted capital charge for self financed assets only.

            The details for calculating the exposures on these risks is in fact set out in PIB Section A4.5 which is the Appendix relating to Credit Risk.

            Item No. Item Guidance
            2.A4.2 OTC Derivatives For OTC derivatives, attention is drawn to PIB Rule A4.5.3 which states that the weighting is calculated in accordance with PIB A4.5.3 except that the maximum weighting is limited to 50%.
            2.A4.2.3 and 2.A4.2.4 Repos & reverse repos For the counterparty weights on Repos and Reverse Repos, refer also to the guidance notes relating to Form PIB 2, Item No. 2.9.4.
            2.A4.4 Total capital requirement for non-market risk in the (PSIAu) trading book The total counterparty risk requirement for non market risk in the trading book (also called CPCOM) is the sum of the capital charges arising from Delivery Versus Payment transactions, Free Deliveries, OTC Derivatives, Repos, Reverse Repos and Deferred Settlement Transactions. The figure here should be transferred to Form PIB 6, Item No. 6.32.

          • PRU 2.2.11 Guidance for Form PIB 2 — Appendix 5 — Detail of Non-Market Risk in Trading Book (PSIAu)

            Instructional Guidelines

            All the guidance notes in Form PIB 2, Appendix 4 apply here unless otherwise stated. This Appendix relates to PSIAu assets only

            Item No. Item Guidance
            2.A5.4 Total capital requirement for non-market risk in the (PSIAu) trading book The total CPCOM figure as reported here should be transferred to Form PIB 2, Appendix 8, Item No. 2.A8.1.1.

          • PRU 2.2.12 Guidance for Form PIB 2 — Appendix 6 — Detail of Non-Market Risk in Trading Book (PSIAR)

            Instructional Guidelines

            All the guidance notes in Form PIB 2, Appendix 4 apply here unless otherwise stated. This Appendix relates to PSIAR assets only.

            Item No. Item Guidance
            2.A6.4 Total capital requirement for non-market risk in the (PSIAR) trading book The total CPCOM figure as reported here should be transferred to Form PIB 2, Appendix 8, Item No. 2.A8.1.1.

          • PRU 2.2.13 Guidance for Form PIB 2 — Appendix 7 — Detail of Market Risk in the Trading Book

            Instructional Guidelines

            DFSA acknowledges that even for Authorised Firms with relatively straightforward exposures on the trading books, the underlying calculations for various market risks can be detailed and complex. DFSA requires only the summary numbers to be reported but expects Authorised Firms to maintain detailed audit trails that substantiate the risk requirements and to make this information available for review as and when required.

            In the event of any uncertainty, Authorised Firms are advised to contact their supervisor for clarity. Authorised Firms are asked to review the material set out PIB Appendix 5 with care given the multiplicity of methods that can be used to calculate the capital requirement on interest rate risk, equity risk, FX risk, commodities risk, options risk and securities underwriting risk.

            Where Authorised Firms intend to use internally developed market risk models for the purposes of valuing positions and calculating capital requirements, particular attention is drawn to PIB Section A5.8 and the qualitative criteria.

            Authorised Firms should note that the market risks arising from exposures in respect of self financed, PSIAu and PSIAR assets are required to be entered in this Appendix. Authorised Firms are reminded to take care in transposing totals from this Appendix as they relate to the three different sets of exposures.

            Item No. Item Guidance
            2.A7.1.4
            2.A7.2.4
            2.A7.4.4
            2.A7.5.4
            2.A7.6
            Capital Requirements The total capital requirements for interest rate, equity position risk, Commodities, Options and Securities Underwriting exposures in respect of self financed assets should be transferred to Form PIB 6, Item Nos. 6.33–6.37 respectively. The capital requirements for PSIA funded assets (both unrestricted and restricted), including the Foreign exchange risk requirement should be transferred to Form PIB 2, Appendix 8 for the calculation of the Displaced Commercial Risk Charge.
            2.A7.3 FER capital Requirement The FX risk capital requirement arising from self financed assets should be transferred to Form PIB 6, Item No. 6.24.
            2.A7.10 Total Trading Book Capital Requirement The Total Trading Book Capital Requirement here should be transferred to Form PIB 6, Item No. 6.38 in PIB 6.

          • PRU 2.2.14 Guidance for Form PIB 2 — Appendix 8 — Calculation of the DCR

            Instructional Guidelines

            DCR is defined in PIB Section 3.4. Authorised Firms are referred to that Section to understand why DCR arises and how it is calculated. Authorised Firms are reminded that DCR only applies in respect of PSIA assets for both he restricted and unrestricted categories. This Appendix aggregates totals from the detailed appendices that precede it.

            Item No. Item Guidance
            2.A8.1 PSIACOM Credit PSIACOM Credit comprised CRCOM and CPCOM calculated on PSIA assets.
            2.A8.1.1 CPCOM CPCOM for PSIAu comes from Form PIB 2, Appendix 5, Item No. 2.A5.4 of and for PSIAR from Form PIB 2, Appendix 6, Item No. 2.A6.4.
            2.A8.1.2 CRCOM CRCOM for PSIAu comes from Form PIB 2, Appendix 2, Item No. 2.A2.13 and for PSIAR from Form PIB 2, Appendix 3, Item No. 2.A3.13.
            2.A8.1.3 Total PSIACOM Credit Sum of Item Nos. [2.A8.1.1 + 2.A8.1.2] above.
            2.A8.2 PSIACOM Market The figures for PSIACOM Market are all derived from Form PIB 2, Appendix 7.
            2.A8.3 Calculation of DCR DCR represents (PSIACOM Credit +PSIACOM Market) * 35%. This figure should be transferred to Form PIB 6, Item No. 6.25.

          • PRU 2.2.15 Guidance for Form PIB 2 — Appendix 9 — Detail of changes in Reserves

            Instructional Guidelines

            Item No. Item Guidance
            2.A9.1 Capital invested Report here the total amount of capital invested by unrestricted PSIA account holders (on balance sheet) gross of provisions. Report similar amounts relating to funds provided by restricted PSIA account holders (off balance sheet).
            2.A9.2 Net asset value Report here the net amount after provisions.
            2.A9.3 Percentage for profit equalisation reserve Report the percentage used for allocation to the profit equalisation reserves.
            2.A9.4 Amount of profit equalisation reserve This represents the amount after the net asset value has been multiplied by the percentage of the profit equalisation reserve. Refer to FAS 11 of AAOIFI.
            2.A9.5 Mudarib fee Enter the Mudarib fee which the authorised institution is entitled to receive for undertaking the investment of the funds provided by the PSIA holders. The fee is agreed by the investment account holders and the bank before the implementation of any contract. In case of a loss, the bank is not entitled to any Mudarib fee and the loss is borne by the investment account holders. Refer to FAS 3 of AAOIFI.
            2.A9.6 Net amount after Mudarib fee Enter here the balance after the amount of profit equalisation reserve and the Mudarib fee has been deducted from the net asset value.
            2.A9.7 Percentage of investment risk reserve Enter here the percentage of the investment risk reserve applicable to the net amount after the mudarib fee.
            2.A9.8 Amount of investment risk reserve Enter the amount of the reserve being the product of the balance in Item No. 2.A9.6 multiplied by the percentage in Item No. 2.A9.7 above. Refer to FAS 11 of AAOIFI.
            2.A9.9 Amount attributed to PSIAs This amount is the residual amount allocated to the PSIA account holders after the deduction of the amounts for the profit equalisation reserve, mudarib fee and investment risk reserves.

          • PRU 2.2.16 Guidance for Form PIB 3 — Profit and Loss Statement

            Instructional Guidelines

            Item No. Item Guidance
            3.1 Interest income Include both actually received interest and receivable interest which has accrued but has not yet been received, generated for example by:
            •   Cash and liquid assets
            •   Trading securities
            •   Investment securities
            •   Derivatives in the non-trading book
            •   Loans and advances
            •   Investment / loans to parent entity / loans to associates / joint venture
            •   Other investments
            •   Other interest earning assets
            3.2 Interest expense Include both interest actually paid and interest payable which has accrued but has not yet been paid, linked to, for example:
            •   Deposits;
            •   Other borrowings;
            •   Derivatives in the non-trading book;
            •   Bonds, notes and other borrowings;
            •   Loan capital;
            •   Loan from parent entity;
            •   Loan from associates / joint ventures;

            Other interest bearing liabilities.
            3.4 Income from fees and commissions Include charges made for services provided by the reporting institution, for example the provision of:
            •   Current account facilities;
            •   Corporate advice;
            •   Investment management and trustee services;
            •   Guarantees and indemnities;
            •   Commission on the sale of insurance or travellers cheques;

            Foreign exchange services (if they can be separately identified).
            3.5 Fees and commission expense Include charges for all services rendered to the company by third parties (excluding those which have the character of interest).
            3.8 Net income from trading securities Include all profits or losses (including revaluation profits or losses) other than those arising from the sale of investments in subsidiary or associated companies, trade investments or the amortisation of premiums or discounts on the purchase of fixed maturity investments which are not held for dealing.
            3.9 Net income from investment securities Include net income/(losses) from investments other than the trading securities, such as available for sale and held to maturity investments.
            3.10 Income from Islamic contracts Income derived from any Islamic business undertaken by the Authorised Firm.
            3.11 Other operating income Include under this heading income from any other source (other than extraordinary items), for example:
            •   Revaluations of foreign exchange positions;
            •   Revaluation of any investment in subsidiaries or associates (if equity accounting);
            •   Share of profits from associated companies (if reporting on a consolidated basis);
            •   Profit or loss on the sale of non-trading assets — e.g. premises, equipment, subsidiary and associated companies and trade investments;
            •   Revaluation surpluses/deficits - following normal accounting practice.
            •   Any other source (other than extraordinary items which should be included in PIB 3 Item No. 3.18
            3.12.1 Provisions General Total provisions to cover non-specific bad debt provisions.
            3.12.2 Provisions Specific Total of provisions made against specific exposures.
            3.12.3 Provisions Islamic Those provisions arising from any Islamic business undertaken
            3.12.4 Provisions Other To include, for example, provisions made for taxation or dividends.
            3.13 Staff expenses Include, for example:
            •   Salary costs;
            •   Employer's contribution to any pension scheme;
            •   Costs of staff benefits paid on a per capita basis such as private medical insurance.
            3.14 Depreciation & Amortisation Charges relating, for example, to depreciation / amortisation of property, plant and equipment and other amounts written off in respect of tangible and intangible fixed assets.
            3.15 Other operating expenses Examples of expenses can be as follows:
            •   Occupancy expenses — for example, rates, rent, insurance of building, lighting, heating, maintenance costs and subsidised restaurants;
            •   Equipment;
            •   Other overhead expenses;
            •   All other expenditure not falling into one of the other specific categories.
            3.16 Operating profit from ordinary activities Sum of PIB 3 Item Nos. 3.1 to 3.15. (excluding sub totals at items nos 3.3 and 3.6).
            3.17 Net income from subsidiaries and associated companies Profit / losses received from subsidiaries, joints ventures and other associated undertakings.
            3.18 Profit (loss) from extraordinary Items For example:
            Profit or losses on sale or termination of an operation;
            Profits or losses on disposal of fixed assts.
            3.19 Profit (loss) before tax Sum PIB 3 Item Nos. 3.16 + 3.17 + 3.18.
            3.20 Tax on (profit)/loss Any amount that has been or is expected to be paid in taxation.
            3.21 Profit / (loss) after tax Sum of PIB 3 Item Nos. 3.19 + 3.20.
            3.22 Minority interests For example, when a group has one or more subsidiaries which are only partially owned by the group.
            3.23 Net profit / (loss) The amount of profit / loss that could be distributed to shareholders (or partners) or retained for future use within the company. Sum of PIB 3 Item Nos. 3.21 + 3.22.
            3.24 Dividends and other distributions, declared or paid The amount to be distributed in the current year to shareholders out of the profits of a company.
            3.25 Partners' Drawings, declared or paid The amount to be distributed in the current year to partners out of the profits of a partnership.
            3.26 Other adjustments Any other adjustments that affect the retained profits.
            3.27 Retained profits for the reporting period Profits that have not been paid out as dividends to shareholders or withdrawn by partners but retained for further investment by the company. Sum of PIB 3 Item Nos. 3.23 - 3.24 - 3.25 - 3.26.

          • PRU 2.2.17 Guidance for Form PIB 4 — Profit and Loss — Islamic Financial Institutions

            Instructional Guidelines

            Item No. Item Guidance
            4.1.1 Income from jointly financed accounts Authorised Firms should include in respect of this item income earned on funds from jointly financed investment accounts (i.e. unrestricted PSIAs and self-financed). The income should be gross before allocating to the unrestricted PSIAs and the bank's mudarib fee.
            4.1.2 Allocated to unrestricted account holders Authorised Firms should include in respect of this item the amount allocated from PIB 4 Item No. 4.1.1 above to the unrestricted PSIAs as their share of the income. It should be mostly be a negative number.
            4.1.3 Authorised Firm's Mudarib fee Authorised Firms should include in respect of this item the amount of the Mudarib fee that they are entitled to receive for the management of the unrestricted PSIAs.
            4.1.4 Authorised Firm's other fees Include any amounts owing to the Authorised Firm as fees for managing PSIAR accounts.
            4.1.5 Net income from Jointly Financed Accounts and Mudarib Fees Sum of PIB 4 Item Nos. 4.1.1 + 4.1.2 + 4.1.3 + 4.1.4.
            4.2.1 Authorised Firm's income from its own non-financing activities Authorised Firms should include in respect of this item the income received from non-financing activities (e.g. Murabaha sales) that results from the employment of the Authorised Firm's own funds and current accounts. The income should have been generated from funds that have been employed separately from the PSIA funds.
            4.2.2 Authorised Firm's income from its own financing and investment activities Authorised Firms should include in respect of this item the income received from financing and investment activities that results from the employment of the Authorised Firm's own funds and current accounts. The Bank is solely entitled to profits/ (losses) from these activities.
            4.2.3 Net fees and commission income Authorised Firms should include in respect of this item the income received for services provided such as trade related letters of credit, Corporate advice, Investment management and trustee services, Kefala (guarantees) and indemnities.
            4.2.4 Other operating income Include income from any other source not included in any of the above.
            4.2.5 Total income from Authorised Firm's own funds Sum of PIB 4 Item Nos 4.2.1 + 4.2.2 + 4.2.3 + 4.2.4.
            4.3 Staff costs Include costs such as:
            •   Wages and salaries;
            •   Social security contributions;
            •   Contribution to any pension schemes (employer's share);
            •   Costs of staff benefits paid.
            4.4 Premises and equipment costs Should include rent, property tax, lighting, heating, maintenance costs etc.
            4.5 Depreciation and amortisation Charges relating, for example, to depreciation / amortisation of property, plant and equipment and other amounts written off in respect of tangible and intangible fixed assets.
            4.6 Provision for losses on Islamic contracts Provision for losses on Islamic Contracts: refer to FAS 11 of AAOIFI which requires the inclusion of bad and doubtful Islamic Financing and non financing contracts and investments.
            4.7 Other provisions Include here all other provisions other than for Islamic contracts.
            4.8 Other operating expenses Include all other expenses not included in any of the above.
            4.9 Operating profit from ordinary activities Sum of PIB 4 Item Nos. 4.1.5 + 4.2.5 - 4.3 - 4.4 - 4.5 - 4.6 - 4.7 - 4.8.
            4.10 Net income from subsidiaries and associated companies Report share of profits and losses of from subsidiaries and associated companies.
            4.11 Profit (loss) from extraordinary items For example:
            Profit or losses on sale or termination of an operation;
            Profits or losses on disposal of fixed assts.
            4.12 Profit (loss) before Zakah and tax Sum of PIB 4 Item Nos. 4.9 + 4.10 + 4.11.
            4.13 Zakah Include Zakah amount calculated with reference to FAS 9 of AAOIFI.
            4.14 Tax on profit / loss Any amount that has been or is expected to be paid in taxation.
            4.15 Profit (loss) after Zakah and tax Sum of PIB 4Item Nos. 4.12 - 4.13 - 4.14.
            4.16 Minority interests For example, when a group has one or more subsidiaries which are only partially owned by the group.
            4.17 Net profit / (loss) The amount of profit (loss) that could be distributed to shareholders or retained for future use within the company. Sum of PIB 4 Item Nos. 4.15 - 4.16.
            4.18 Dividends, and other distributions, declared or paid The amount to be distributed in the current year to shareholders out of the profits of a company.
            4.19 Other adjustments Any other adjustments that affect the retained profits.
            4.20 Retained profits for the reporting period Sum of PIB 4 Item Nos. 4.17 - 4.18 - 4.19.

          • PRU 2.2.18 Guidance for Form PIB 5 — Expenditure Based Capital Minimum

            Instructional Guidelines

            An Authorised Firm in Categories 2, 3 or 4 must complete this form in accordance with PIB Section 2.5.

            Item No. Item Guidance
            5.1 Total expenses This figure should correspond to Form PIB 3, Sum of Item Nos. 3.6 + 3.2 + 3.5 + 3.12 + 3.13 + 3.14 + 3.15
            5.2 Staff bonuses All staff bonuses paid during the year except to the extent that they are non-discretionary.
            5.3 Employees' and directors shares in profits All employees' and directors shares in profits except to the extent that they are non-discretionary.
            5.4 Other appropriations of profits All such appropriations except to the extent that they are automatic. As per PIB Rule 2.5.2(2), a management charge should not be treated as an appropriation of profits.
            5.5 Shared commissions payable Those commissions that would no longer be payable if business were to cease.
            5.6 Interest charges in respect of borrowings made to finance the acquisition of realisable investments Interest that is paid in respect of borrowings made to finance the acquisition of the Authorised Firm's realisable investments
            5.7 Interest paid to clients on client money balances Include here interest paid on Client Money balances.
            5.8 Interest paid to counterparties Interest that is payable to counterparties in the Trading Book.
            5.9 Fees, brokerage and other charges An Authorised Firm may exclude commissions shared with third parties other than employees, directors, half commission men or appointed representatives. Fees, brokerage and other charges paid for the purposes of executing, registering or clearing transactions may also be excluded.
            5.10 Foreign exchange losses Losses arising from the translation of foreign currency balances may be excluded.
            5.11 Contributions to charities The contribution that would no longer be paid if business were to cease.
            5.12 Total expenditure PIB 5 Item No. 5.1 less the Sum of PIB 5 Item Nos. 5.2 to 5.11.
            5.13 Fraction applied As set out in PIB Rule 2.5.1 (a), (b) or (c).
            5.14 Expenditure based capital minimum Use the expenditure based capital minimum amount calculated as per the provisions of Rules PIB 2.5.1, PIB 2.5.2 and PIB 2.5.3.

          • PRU 2.2.19 Guidance for Form PIB 6 — Capital Adequacy Calculation

            Instructional Guidelines

            The structure of this reporting form, which applies to all Categories of Authorised Firm, is designed first to calculate the total eligible capital resources after the appropriate amounts have been charged to cover trading and non trading book risks. It takes into account limitations on the use of different types of capital, including Tiers 1 and 2 capital components. Secondly, it provides a snapshot of the institution's capital adequacy at the reporting date by comparing the adjusted capital resources calculated as described above to the total capital requirement.

            Most of this form involves the inputting of numbers that have been provided in other returns and particular care should be taken to ensure that numbers have been transposed correctly.

            Item No. Item Guidance
            6.0 Capital Adequacy See PIB Section 2.6 and Table 2.6.1 for a summary of the components of capital base. PIB Section 2.7 describes each capital component in greater detail. Attention is drawn to Partnership Capital which constitutes the capital accounts of partners when the business is created. It must share the same characteristics as permanent share capital, particularly the fact that it must rank for repayment upon winding up or insolvency after all debts and liabilities have been paid. The deduction for partners drawings is in respect of any excess in drawings over current period profits. Attention is also drawn in respect of PIB Rule 2.7.3 in respect of the limitation on the use of general provisions in Tier 2 capital.
            6.1–6.22 Tier 1 and Tier 2 capital Authorised Firms should note that there are related guidance notes on the capital base for Forms PIB 1 and PIB 2. The guidance there would apply in their entirety to this section of the return.
            6.23 Deduction for excess of reserves This applies only in respect of Category 5 Authorised Firms with regards the Investment Risk and Profit Equalisation Reserves. See PIB Section 2.9.
            6.25 NTB Capital Requirement See PIB Rule 2.8.3 for a definition of the components of non trading book capital. For Category 5 Authorised Firms, the CRCOM and FER are on self financed assets only. These numbers will be derived from Forms PIB1 and PIB 2 for Category 1-4 Authorised Firms and Category 5 Authorised Firms, respectively. The DCR charges are derived from Form PIB 1 Appendix 4 and Form PIB 2 Appendix 8 for Category 1-4 Authorised Firms and Category 5 Authorised Firms, respectively.
            6.30 Capital allocated to the NTB The limitations on the use of capital allocated to the NTB are set out in PIB Section 2.8.
            6.34 TB Capital Requirement This is defined in PIB Rule 2.8.3. For Category 1-4 Authorised Firms, the numbers here are derived from Form PIB 1, Appendices 2 and 3. Also see guidance notes relating to those appendices. For Category 5 Authorised Firms, the capital requirements are in respect of self financed assets only (PSIA assets are subject to a DCR charge). These numbers are derived from Form PIB 2, Appendices 4 and 7.
            6.42 Capital allocated to the TB Note the limitation on the use of Tier 2 capital as referenced to PIB Rule 2.8.2 (b) (iii). Category 1 and 5 Authorised Firms must exclude from Tier 2 trading book capital any excess over 200% of Tier 1 trading book capital. For Category 2-4 Authorised Firms, the appropriate percentage is 250%.
            6.51 Deductions from total capital resources The deductions in respect of connected lending, material holdings and qualifying holdings are defined in Rules PIB 2.7.4, PIB 2.7.5 and PIB 2.7.6, respectively.
            6.59 Capital Requirement The non additive thresholds of capital are set out in PIB Rule 2.3.1. Details of the base capital requirement are further analysed in PIB Section 2.4. The Expenditure Based Capital Requirement definition is set out in PIB Section 2.5 and applies to Categories 2, 3 and 4 Authorised Firms only.
            6.61 Resources less requirement Note that the total of resources over requirement is expected to be positive. In the event of the requirement exceeding resources, Authorised Firms should make immediate contact with DFSA and not wait till the form has been submitted.
            6.62 Risk Asset Ratio Obtained by dividing total capital resources by the risk weighted assets (whether on the trading or non trading books). The risk weighted assets have been reported by Authorised Firms in the preceding Forms PIB 1 and 2. The capital resources are summarised in Form PIB 6.

          • PRU 2.2.20 Guidance for Form PIB 7 — Large Exposures

            Instructional Guidelines

            An Authorised Firm is required to identify and manage its exposures in accordance with PIB Rule 4.5.6 and PIB section A4.8.

            As per the Glossary, an Exposure, whether in an Authorised Firm's Non-Trading Book or Trading Book, or both, to a Counterparty or Group of Closely related Counterparties connected to the Authorised Firm which in the aggregate equals or exceeds 10% of the Authorised Firm's Capital Resources.

            The 20 largest exposures should be listed and, if requested, any other exposure that exceeds 10% of the Authorised Firm's Capital Resources. Only exposures that are non-exempt are required to be reported in the first two tables.

            Item No. Column Item Guidance
            7.1   Capital Resources The capital resources used as the basis for monitoring and controlling large exposures should be calculated in the same way as those used for capital adequacy monitoring, i.e. the sum of allowable Tier 1 and Tier 2 capital less any deductions (as set out in PIB Table 2.6.2) — as per Form PIB6, Item No. 6.58.
            The various percentage amounts should be specified in the relevant sections.
            7.2   Twenty Largest Exposures Include in this table the twenty largest exposures to all types of Counterparty except those that are considered to be exempt.
            Exposures to individual, or groups of closely related, Counterparties should be reported in descending order by size. Exposures to individual Counterparties which constitute a group of closely related Counterparties should be reported as one aggregate exposure.
              A Counterparty The identity of a Counterparty, as defined in the Glossary, in this context will generally be one of the categories as set out in PIB Rule A4.8.6.
              B Connected, Unconnected — Bank, Unconnected — Other, Government The Authorised Firm should clarify here into what category an exposure falls. These are set out in detail in Rules PIB A4.8.7 to PIB A4.8.11 but for the purposes of this form, an Authorised Firm should state whether an Exposure is to:
            (i) a Connected Counterparty;
            (ii) an Unconnected Counterparty or group of Closely Related Counterparties that are predominantly comprised of non-financial businesses;
            (iii) an Unconnected Counterparty or group of Closely Related Counterparties that are predominantly comprised of financial businesses;
            (iv) Central governments and central banks.
              C Amount of non-exempt exposure For exposures arising in the Non-Trading Book the amount at risk should, with certain exceptions detailed below, be reported as the book value of the Authorised Firm's actual or potential claims, contingent liabilities or assets.
            Exposures should be calculated in accordance with IFRS or AAOFI standards.
            For exposures arising in the Trading Book, all positions should be marked-to-market daily. Where a market determined price is not readily available, the Authorised Firm may generate its own mark-to-market valuation. Positions should be valued in accordance with the procedures outlined in the Authorised Firm's trading book policy statement.
            This is set out in more detail in Rules PIB A4.8.13 to PIB A4.8.31.
              D Specific bad debt provision Include here the amount of specific bad debt provision that may have been made against a particular exposure.
              E Reduction by netting, collateral etc. As set out in PIB Rule 4.5.6 (d) (ii), the value of an exposure can be reduced through the following:
            •   Collateral — discussed in more detail in PIB Section 4.6 and PIB Rule A4.8.32
            •   Netting — discussed in more detail in Sections PIB 4.7 and PIB A4.9
            •   Securitisation — discussed in more detail in Sections PIB 4.8 and PIB A4.10
            •   Credit derivatives — discussed in more detail in Sections PIB 4.9 and PIB A4.11.
              F Exposure at reporting date after eligible set-offs Column C less the amounts in Columns D and E.
              G Amount of this exposure financed by own assets or unrestricted PSIAs For Exposures arising out of Islamic business, this column should be used to quantify the amount of the Exposure that is financed by the Authorised Firm's own assets or by unrestricted PSIA assets.
              H Amount of this exposure financed by restricted PSIAs. For Exposures arising out of Islamic business, this column should be used to quantify the amount of the Exposure that is financed by restricted PSIA assets.
            7.3   Detail of exposures to connected counterparties This section comprises the disaggregated detail of all connected lending and exposures should be split into different counterparties within the connected group.
              A Financial or Non-financial company An Authorised Firm should indicate here if the exposure is to a bank or non-bank within its own group.
              B-H As for Item No. 7.2 As detailed above for the table in for Item No. 7.2.
            7.4   Ten Largest Exempt Exposures An Authorised Firm is required to identify its exempt and partially exempt exposures as per Rules PIB 4.5.6 (e) and PIB A4.8.1 to PIB A4.8.4.
              A Reason for exemption The Authorised Firm should specify here under what section of PIB A4.8.1PIB A4.8.4 the Exposure is captured.
              B-H As for Item No.7. 2 As detailed above for the table in for Item No. 7.2.

            Additional detail for Form PIB 7 — Appendix 1 — Largest 25 Exposures arising from Islamic contracts

            Item No. Contract type Guidance
            7A1.1 Musharaka Report all Musharaka contracts currently outstanding that exceed 10% of the Authorised Firm's Capital Resources. Details regarding the following should be included:
            •   Whether the capital has been self financed or provided by PSIA accounts
            •   The amount of capital redeemed during the period such as in the case of a diminishing Musharaka.
            •   Any income or loss declared, any provisions being made to the value of the Musharaka and the net value of the investment.

            FAS 4 of AAOIFI refers.
            7A1.2 Mudaraba Report all Mudaraba financing contracts that would qualify as a Large Exposure. Identify the basis on which the Authorised Firm has provided the financing i.e. whether on a self financed or on a PSIA funds basis. FAS 3 refers.
            7A1.3 Istisna'a/Parallel Istisna'a Report all Istisna'a contracts that would qualify as a Large Exposure. Identify the value of the Parallel Istisna'a and indicate what proportion of the value has been financed by Authorised Firm's own capital and the funds of PSIA account holders. FAS 10 refers.
            7A1.4 Salam/ Parallel Salam Report all Salam contracts and Parallel Salam amounts that would qualify as a Large Exposure. The data is to be split into values financed by Authorised Firm's own capital and the restricted and unrestricted PSIA account holders. FAS 7 refers.
            7A1.5 Ijarah/ Ijarah Muntahia Bittamleek Report all Ijarah assets on the valuation basis set out in FAS 8. Report also, all assets transferred to lessee for consideration or gift including the value of impairment before transfer of legal asset. State total depreciation/ amortisation charge and the net book value. This information is required to be provided for self financed and both forms of PSIA accounts. The data is to be split by the industrial sectors identified in the reporting statement. FAS 8 refers.
            7.A1.6 Murabaha Report here all Murabaha exposures that would qualify as a Large Exposure. Divide exposures into self financed, PSIAR and PSIA unfunded exposures. FAS 2 refers.
            PIB 8 — LIQUIDITY MISMATCH

            As set out in PIB Rule 6.3.3, an Authorised Firm in Category 1 or 5 must use the Maturity Mismatch approach to measure its liquidity. This applies equally to Authorised Firms that have a branch presence in the DIFC as to those that are incorporated.

            In accordance with PIB Rule 6.3.4, an Authorised Firm needs to complete separate returns for a business that is funded by: (i) its own assets; (ii) restricted PSIA assets; and (iii) unrestricted PSIA assets.

            Liquidity reporting in individual currencies
            The return should be completed on the basis of all currencies combined. Currencies should be translated into $ at the closing spot mid price on the reporting date and entered in the relevant time band. However, the DFSA may require institutions to provide management information on positions in individual currencies in the event of difficulties either in the individual institution or with the currency in question.

            Cashflow versus maturity analysis approach
            The policy aim is to ensure that institutions hold sufficient liquid assets to meet their obligations as they fall due and the DFSA has set mismatch guidelines to help secure the policy objective. The Form PIB 8 monitors Authorised Firms' compliance with the limits in two ways: firstly, by including a maturity analysis of known and/or potential cashflows out to six months and secondly, by a maturity analysis of assets and liabilities from 6 months to 5 years.

            Institutions should report both inflows and outflows on the same basis. Therefore, if an institution reports inflows on the cashflow basis out to three months, it should also report outflows on the cashflow basis out to three months.

            Items reported on a cashflow basis should include both interest and principal amounts, together with any other income relating to them. Items reported on a maturity basis should be reported at their value on the institution's books. However, any cashflows arising from these items (e.g. interest payments) within the cashflow reporting period should be included in the relevant cashflow periods. Thus cashflows (e.g. interest payments on a loan) arising from items (however reported) should be entered in the relevant cashflow timebands (i.e. those which the institution reports) when they fall due.

            Provisions
            Items should be reported net of specific provisions. General provisions should not be recorded on this return.

            Residual Maturity
            As set out in PIB Rule A6.2.1, outflows (such as deposits and other liabilities) are to be included according to their earliest possible repayment date. In this context, the earliest repayment date means the first rollover date or the shortest period of notice required to withdraw the funds or to exercise a break clause, where applicable. Inflows (such as loans) are to be entered as occurring on the latest possible repayment date. Purely technical break facilities should be disregarded for fixed term loans. Where the Authorised Firm has loans outstanding at the reporting date under revolving credit lines and has not received notification that they will be redrawn on maturity, the intermediate date should be taken as the maturity date.

            Time bands
            The time band 'Overdue'should be used to record cashflows where assets or other items giving rise to cashflows are non-performing, poorly performing or there is reasonable doubt about the certainty of receipt of inflows of funds pertaining to them. Where an asset or cashflow previously reported as overdue is contractually rescheduled according to a written agreement, institutions should cease to report these items as 'overdue' and report them according to the new agreed dates for repayment.

            The timeband 'Demand (incl next day)' comprises cashflows or asset items due, available or maturing on the next business day after the reporting date. Cashflows arising or assets/liabilities maturing on a non-business day should be reported as taking place on the following business day. Funds callable at one day's notice should be entered as two-day maturity unless notice has been received or given on the reporting date.

            Netting of debts and claims
            All claims and liabilities should be reported gross. Authorised Firms should not net (or offset) claims on counterparties or groups of counterparties against debts owed to those counterparties or groups of counterparties, even where a legal right of set off exists. Where the maturity of the claims and debts falls within the same timeband, the claims and debts will automatically offset each other on the return in the calculation of the mismatch.

            Marketable securities
            An asset is considered to be marketable if it meets the requirements as set out in PIB Section A6.3(2) — essentially, these are assets that could be readily converted into cash where necessary. These assets, outlined in Column A, are reported in rows 8.1.1–8.1.10, Highly liquid / marketable assets. Authorised Firms should enter the full value of the marketable asset concerned in Column B, apply the discount rate as in Column C, and thereby calculate the discounted mark to market value of the asset in Column D. Discounts are applied to reflect that an institution may realise less than the market price quoted for an asset where the institution is seeking to realise assets quickly because of liquidity problems pertaining either to itself, or to general market conditions, or both.

            The Authorised Firm should then allocate the discounted value of the assets to either of Columns G or H determined by the length of the settlement period for the instrument in question. This reflects the length of time it would take for an Authorised Firm to receive the proceeds of any sale. Where the settlement period for items is more than eight days, or where there are other factors which mean that funds would not be received within eight days, were the assets are sold or repo'd today, then the funds should be recorded as receivable Column H 'Over 8 days to 1 month'. Where settlement or other delays mean that funds would not be received within one month, then the items should be recorded in the maturity analysis section of the form.

            Marketable assets maturing at exactly one month should be reported in the cashflow section of the return. Authorised Firms may however include the full value of the asset in the one month timeband and not discount at all during the life of the asset.

            Where assets have a residual maturity of less than one month, the DFSA recognises that it is not relevant to apply automatically a discount to such assets. In general, these assets should be entered as cashflows in the relevant timebands in rows 8.1.12–8.1.25 and no discount will be applied.

            Assets which do not meet the criteria for marketable assets, or which cannot be fitted into the table in PIB Rule A6.3.1(4), are non-marketable assets for the purposes of this return and should be reported in the form according to their residual maturity. This covers for example:
            a. Non-investment grade debt instruments (as rated by a recognised credit agency) issued by a Zone 2 issuer;
            b Non-investment grade debt instruments (as rated by a recognised credit agency) issued by a non-government Zone 1 issuer;
            c. Commercial paper and certificates of deposit that do not meet the definition of marketable assets.

            Authorised Firms should ensure that there is no double counting of cashflows (of principal or interest) arising from holdings of marketable assets on the form.
            Item No. Item Guidance
            8.1 INFLOWS  
              Highly liquid / marketable assets As described in detail above.
            8.1.1 Cash Holdings of notes and coins.
            8.1.2

            8.1.3

            8.1.4
            Cen gov't (Z1) sec — 1 yr or less

            Cen gov't (Z1) sec — 1–5 yrs

            Cen gov't (Z1) sec — over 5 yrs
            Central government (including central government guaranteed) paper and paper eligible for discount at the Central Bank issued a Zone 1 Central Government / another Zone 1 issuer. Both fixed and variable rate securities should be reported. Only record those securities currently in the reporting institution's ownership.
            8.1.5

            8.1.6

            8.1.7
            Non gov't sec — 6 mths or less

            Non gov't sec — 6 mths–5 yrs

            Non gov't sec — over 5 yrs
            Debt instruments that are of investment grade. Only those securities in the reporting institution's ownership, which the institution may freely dispose of at any time with no restrictions, should be recorded. Those assets pledged to another institution or otherwise encumbered should not be included.
            8.1.8 Other cen gov't debt (active) Central government (including central government guaranteed) paper and paper eligible for discount at the Central Bank issued by a Zone 2 Central Government/ another Zone 2 issuer. Include only that debt issued by, or fully guaranteed by, Zone 2 central governments and central banks that is actively traded. Only the debt currently in the reporting institution's ownership should be recorded.
            8.1.9 Highly liquid equities Equities that are eligible for a specific risk weight of 4% or less under the DFSA's Rules regarding the capital requirement for Market Risks and which are currently in the reporting institution's possession.
            8.1.10 Total Sum of Item Nos. 8.1.1–8.1.9, for Columns B, D, G, H and K. With 8.1.10 K being the overall total amount of marketable assets.
            8.1.11 Non-marketable securities Securities which the Authorised Firm holds or will receive, but which it cannot classify as marketable. These should be reported according to the redemption value of the asset or alternatively, where the redemption value is unavailable or not appropriate (e.g. in the case of equities), the book value. Marketable assets maturing within one month reported at their full marked-to-market value, i.e. undiscounted, should also be reported here.
            8.1.12 Inter-bank Inflows arising from placements with other financial institutions. Include the inflows from those entities that would attract a 20% counterparty weighting. Include also that element of committed facilities provided to the Authorised Firm where notification of draw down date has been given. Exclude inflows from any bank entities within the group.
            8.1.13 Intergroup / related Inflows from counterparties connected to the Authorised Firm. Entries should be made in this item rather than any other item in the Wholesale section if any intragroup/connected counterparties are involved.
            8.1.14 Corporate Inflows from non-bank, non-connected corporate counterparties. Initial margins held at clearing houses should be entered here according to their residual maturity. Repayments from leases should also be recorded in this line.
            8.1.15 Govt / public sector — Zone 1 Inflows from central governments, public sector entities, local authorities and central banks in Zone 1 countries.
            8.1.16 Govt / public sector — Zone 2 Inflows from central governments, public sector entities, local authorities and central banks in Zone 2 countries.
            8.1.17 Repos / reverse repos Include any transactions relating to repos and reverse repos. Authorised Firms should also enter any transactions relating to stock borrowing and lending.
            8.1.18 Forward foreign exchange Cashflows relating to forward purchases of foreign currency, where an exchange of principal is effected at the start or maturity of the swap. The amount received should be entered in the appropriate maturity band.
            8.1.19 Forward sales and purchases The cash leg of any forward sales should be treated as an inflow in the timeband corresponding to the date of the forward sale. For forward purchases, where the asset purchased is a marketable asset, the Authorised Firm should report the USD equivalent discounted value of the security purchased at the maturity of the contract. Where the asset purchased is non-marketable, the institution should enter the USD equivalent discounted value of the security at the maturity of the asset.
            8.1.20 Swaps & FRAs For interest rate and currency swaps, enter the receipts of fixed and floating legs in the cashflow section. For FRAs, enter the marked-to-market receipt in the relevant time period. The amount of receipts should be derived from the contract's present value at yields prevailing at the reporting date.
            8.1.21 Commodities Inflows from the sale of commodities held by the Authorised Firm.
            8.1.22 Trade related letters of credit Inflows arising from trade related letters of credit.
            8.1.23 Fees (incl Mudarib) Report here fees, commissions or other income receivable by the Authorised Firm relating to their wholesale business, according to their known date of receipt. Where the date of receipt is unknown, do not report these flows.
            8.1.24 Other funding sources Include here any other funding sources not included elsewhere, according to their cashflows.
            8.1.25 Total wholesale Inflows Sum of Item Nos. 8.1.11–8.1.24, Columns E to J with total in Column K and Columns L to N with total in Column O.
            8.1.26 Total inflows on a cashflow basis

            Total on a maturity basis
            Sum of Item No. 8.1.10, Column K + Item Nos. 8.1.11–8.1.24, Columns E to J, with the total in Column K.

            Sum of Item Nos. 8.1.11–8.1.24, Columns L to N. with the total in Column O.
            8.2 OUTFLOWS  
            8.2.1 Non-marketable securities Include here at residual maturity outflows pertaining to maturing securities or debt instruments, which cannot be classified as marketable. Marketable assets maturing within one month at their full marked-to-market value, i.e. undiscounted should also be reported here.
            8.2.2 Inter-bank Funds Outflows arising from placements with or from, or repayments of loans to or from, banks. Also include the entire outflows to those entities that would attract a 20% counterparty weighting. Exclude from this item loans to, or placements with, or deposits / placements from, bank entities within the group.
            8.2.3 Intergroup / related Outflows of funds to counterparties connected to the reporting institution. Entries should be made in this item rather than any other item in the Wholesale section if any intragroup/connected counterparties are involved.
            8.2.4 Corporate Outflows to non-bank, non-connected, corporate counterparties.
            8.2.5 Govt / public sector — Zone 1 Report funds lent to central governments, public sector entities, local authorities and central banks in Zone 1 countries. Where an Authorised Firm is required to place funds on deposit with central banks and monetary authorities, these should be entered as an outflow in the relevant time band.
            8.2.6 Govt / public sector — Zone 2 Report funds lent to central governments, public sector entities, local authorities and central banks in Zone 2 countries. Where an Authorised Firm is required to place funds on deposit with central banks and monetary authorities, these should be entered as an outflow in the relevant time band.
            8.2.7 Repos / reverse repos Outflows related to repos or reverse repos. Also include any outflows relating to stock borrowing and lending.
            8.2.8 Forward foreign exchange Enter any cashflows relating to forward sales of foreign currency, where an exchange of principal is effected at the start or maturity of the swap. The amount paid should be entered in the appropriate maturity band.
            8.2.9 Forward sales and purchases For forward sales, the sterling (or euro) equivalent discounted value of the security sold should be recorded as an outflow. The cash leg of any forward purchases should be treated as an outflow in the timeband corresponding to the date of the forward purchase.
            8.2.10 Swaps & FRAS For interest rate and currency swaps, enter payments of fixed and floating legs in the cashflow section.
            For FRAs, enter the marked-to-market payment in the relevant time period. The amount paid should be derived from the contract's present value at yields prevailing at the reporting date.
            8.2.11 Commodities Outflows from the purchase of commodities held by the Authorised Firm.
            8.2.12 Trade related letters of credit Outflows arising from trade related letters of credit.
            8.2.13 Dividends, tax & other costs Outflows arising from dividends, tax etc.
            8.2.14 Ijarah asset purchases Outflows for commitments made for the purchase of these assets.
            8.2.15 Other outflows Any outflows relating to payments of dividends and tax, or any other outflows that have not previously been reported elsewhere. Also report any outflows relating to settlement accounts, using the trade date plus the settlement period to determine the appropriate timeband.
            8.2.16 Other off-balance sheet Any outflows relating to off balance sheet items that have not been reported elsewhere.
            8.2.17 Total Wholesale Outflows Sum Item Nos. 8.2.1–8.2.16, Columns E to J with total in Column K and Columns L to N with total in Column O..
            8.2.18 Total Outflows on a Cashflow basis

            Total on a maturity basis
            Sum of Item Nos. 8.2.1–8.2.16, Columns E to J, with the total in Column K.

            Sum of Item Nos. 8.2.1–8.2.16, Columns L to N, with the total in Column O.
            8.3 CALCULATION OF LIQUIDITY MISMATCHES Authorised Firms should monitor compliance with their liquidity mismatch guidelines each business day and should report in this section the mismatch on the reporting date, using the data from the previous parts of the return.
            8.3.1 Type of business Denotes business financed by different sorts of assets.
            8.3.2 Timeband The timebands for which limits are set: Sight to 8 days and Sight to one month.
            8.3.3 Total discounted marketable assets Figure from row Item No. 8.1.10, Column G for S-8 days and Column G plus H for S-1 month.
            8.3.4 Total standard inflows Figure from row 8.1.25, column F plus G for S-8 days and Column F plus G plus H for S-1 month.
            8.3.5 Total standard outflows Figure from row 8.2.17, column F plus G for S-8 days and Column F plus G plus H for S-1 month.
            8.3.6 Total relevant deposits This figure provides the denominator for the mismatch calculation (see Item No. 8.3.7 below):
            •   For conventional Authorised Firms, the figure is obtained from Form PIB 1, Item No. 1.10.
            •   For Islamic Authorised Firms, see next section of the table.
            •   For branches, figure from form PIB 9, item no 9.26.
            8.3.7 Mismatch as a % of total deposits As set out in Rules PIB 6.3.4 and PIB 6.3.5, the mismatch positions should not exceed -15% or -25% for the sight — 8 days and sight — 1 month timebands respectively.

            Additional Guidance for Islamic Contracts:

            8.1 Inflows   All inflows should be taken as occurring at the last possible contractual repayment date. The treatment of inflows for Islamic contracts are as follows and it is for the authorised institution to determine in which of the categories the inflows should be recorded. In the event of any doubt, the institution should contact its regular supervisory contact at DFSA.
                Mudaraba Inflows of capital should be reported at the latest redemption date or as assets maturing at the latest possible redemption date. Profits on Mudaraba should only be reported to the extent that it is being reported at the reporting date.
                Musharaka Capital inflows on a normal Musharaka contract should be entered as occurring on the latest possible termination date and in the case of a diminishing Musharaka at the latest redemption date. Inflows on profits should only be entered if it is being distributed at reporting date.
                Murabaha Receivables Inflows reported should include instalment payments and related accrued profit at the latest possible repayment date (or assets maturing at such a date).
                Ijarah/ Ijarah Muntahia Bittamleek Report all inflows occurring from Ijarah lease rentals at the last possible payment date. Where the lessee has option to purchase the asset either during the duration of the lease or at the end of the contract, the amount to be received should be reported as an inflow at the latest possible exercise date.
                Salam and Parallel Salam Enter the amount of inflows as occurring at the latest possible delivery date. If payments are received in the form of instalments (Parallel Salam), only enter the amount of instalments occurring at their latest possible repayment date (or as an asset maturing at the latest repayment date). Enter commodity flows separately in the line market commodities.
                Istisna'a and Parallel Istisna'a Inflows should be assumed to occur at the latest possible completion date. If repayment is via instalments, inflows should be on the latest instalment date.
            8.2 Outflows   All outflows should be taken as occurring at the earliest possible contractual repayment date. In the case of a Liability, assume the outflows to occur at the earliest possible maturity date. For Islamic contracts, outflows should only be recognised when there is already in existence a defined agreement between the parties for a particular Islamic Contracts. As previously stated, Authorised Firms will be expected to refer to the appropriate AAOIFI FAS pronouncement in respect of Islamic contracts. These include Mudaraba, Musharaka, Murabaha, Salam and Parallel Salam, Istisna'a and Parallel Istisna'a and Ijara or Ijarah Munatahia Bitamleek.
                Salam and Parallel Salam For Salam transactions enter amount of outflows as additional advances committed at the earliest possible drawdown date.
                Istisna'a Outflows on Istisna'a contracts are to be entered as occurring at the earliest possible drawdown date. If drawdown occurs based on percentage completion, the outflows should be assumed to occur at the earliest completion date or as a liability maturing at the earliest completion date.
                Ijarah Commitments made for the purchases of assets for Ijarah purposes should be included as outflows at the earliest date committed for the purchase.
            8.3.6 Total relevant deposits   For self-financed business, Authorised Firms should use the figure from Form PIB 2, Item No. 2.20.
            For business financed through PSIAs, the appropriate figure should be derived from the amounts due (akin to deposits) to PSIA account holders.

          • PRU 2.2.21 Guidance for Form PIB 9 — Branch Return

            Instructional Guidelines

            This return should only be completed by Authorised Firms that operate in or from the DIFC through a branch, rather than incorporated, office.

            Appendix 1 — Large Exposures is not applicable to Category 4 Authorised Firms.

            STATEMENT OF PROFIT AND LOSS

            Item No. Item Guidance
            9.1 Interest income Include both actually received interest and receivable interest which has accrued but has not yet been received, generated for example by:
            •   Cash and liquid assets
            •   Trading securities
            •   Investment securities
            •   Derivatives in the non-trading book
            •   Loans and advances
            •   Investment / loans to parent entity / loans to associates / joint venture
            •   Other investments
            •   Other interest earning assets
            9.2 Interest expense Include both interest actually paid and interest payable which has accrued but has not yet been paid, linked to, for example:
            •   Deposits;
            •   Other borrowings;
            •   Derivatives in the non-trading book;
            •   Bonds, notes and other borrowings;
            •   Loan capital;
            •   Loan from parent entity;
            •   Loan from associates / joint ventures;

            Other interest bearing liabilities.
            9.4 Income from fees and commissions Include charges made for services provided by the reporting institution, for example the provision of:
            •   Current account facilities;
            •   Corporate advice;
            •   Investment management and trustee services;
            •   Guarantees and indemnities;
            •   Commission on the sale of insurance of travellers cheques;

            Foreign exchange services (if they can be separately identified).
            9.5 Fees and commission expense Include charges for all services rendered to the company by third parties (excluding those which have the character of interest).
            9.8 Net income from trading securities Include all profits or losses (including revaluation profits or losses) other than those arising from the sale of investments in subsidiary or associated companies, trade investments or the amortisation of premiums or discounts on the purchase of fixed maturity investments which are not held for dealing.
            9.9 Net income from investment securities Include net income/(losses) from investments other than the trading securities, such as available for sale and held to maturity investments.
            9.10 Income from Islamic contracts Income derived from any Islamic business undertaken by the Authorised Firm.
            9.11 Other operating income Include under this heading income from any other source (other than extraordinary items), for example:
            •   Revaluations of foreign exchange positions;
            •   Revaluation of any investment in subsidiaries or associates (if equity accounting);
            •   Share of profits from associated companies (if reporting on a consolidated basis);
            •   Profit or loss on the sale of non-trading assets — e.g. premises, equipment, subsidiary and associated companies and trade investments;
            •   Revaluation surpluses/deficits - following normal accounting practice.
            9.12.1 Provisions General Total provisions to cover non-specific bad debt provisions.
            9.12.2 Provisions Specific Total of provisions made against specific exposures.
            9.12.3 Provisions Islamic Those provisions arising from any Islamic business undertaken
            9.12.4 Provisions Other To include, for example, provisions made for taxation or dividends.
            9.13 Staff expenses Include, for example:
            •   Salary costs;
            •   Employer's contribution to any pension scheme;
            •   Costs of staff benefits paid on a per capita basis such as private medical insurance.
            9.14 Depreciation & Amortisation Charges relating, for example, to depreciation / amortisation of property, plant and equipment and other amounts written off in respect of tangible and intangible fixed assets.
            9.15 Other operating expenses Examples of expenses can be as follows:
            •   Occupancy expenses — for example, rates, rent, insurance of building, lighting, heating, maintenance costs and subsidised restaurants;
            •   Equipment;
            •   Other overhead expenses;
            •   All other expenditure not falling into one of the other specific categories.

            STATEMENT OF ASSETS

            Item No. Item Guidance
            9.17.1 Cash and Balances with Central Banks Include, for example, the following amounts:
            •   Notes and coins;
            •   Long positions in Gold bullion (including Tola Bars);
            •   Amounts placed with central banks including funds required to be placed on deposit with central banks and monetary authorities.
            9.17.2 Treasury bills and other eligible bills Treasury bills issued by the national governments or by the Central banks on behalf of the governments. Also include bills issued by other entities, which are eligible for rediscounting with the central bank.
            9.17.3 Money market placements Include deposits at call and other money market placements with banks or other money market participants
            9.18.1 Trading securities Include investments acquired principally for the purpose of selling or repurchasing it in the near term for short-term-profit-taking. This would include but not limited to, debt, equity and hybrid instruments
            9.18.2 Derivative financial instruments Include, but are not limited to, positions representing the following instruments, recorded at fair value:

            Forward and Futures contracts in Currencies, Interest rates and other financial assets
            Forward rate agreements
            Currency and interest rate swaps
            Credit derivatives
            Option contracts on currency, interest rate and other financial assets.

            These derivatives include both the exchange-traded and over-the-counter versions.
            9.18.3 Other financial instruments at fair value through profit and loss Include all financial instruments which are, upon initial recognition, designated by the entity as financial assets to be measured at fair value through profit or loss other than the trading securities included in 9.18.1.
            9.18.4 Investment securities — available for sale Include non-derivative financial assets that are designated as available for sale by the firm or that have not been classified under any of the other categories of investment in section 9.18.
            9.18.5 Investment securities - held to maturity Include non-derivative financial assets with fixed or determinable payments and fixed maturity that the firm has positive intention and ability to hold to maturity.
            9.18.6 Investments in associated undertakings Include investments in entities, including unincorporated entities such as partnerships, over which the firm has significant influence and where the entity in question is neither a subsidiary nor a joint venture operation
            9.19 Loans and advances Amounts arising from, for example:
            •   Revolving credit facilities;
            •   Credit cards outstanding balances;
            •   Housing loans (both variable and fixed rates);
            •   Term loans (both variable and fixed rates);
            •   The book value of assets leased out under finance lease agreements;
            •   Loans made under conditional hire purchase contracts;
            •   Advances purchased by or assigned to the reporting institutions, factoring or similar arrangements
            •   Other loans and advances.

            The amounts reported should be gross of provisions (as specific and general provisions should be reported in the Liabilities section of the balance Sheet) and net of interest receivable.
            9.20.1 Murabaha and Istina'a receivables Report here all receivables relating to Murabaha and Istisna'a contracts. Refer to FAS 2 and FAS 10 of AAOIFI respectively.
            9.20.2 Ijarah assets and receivables Include Ijarah assets net of depreciation/ amortisation and Ijarah receivables. Refer to FAS 8 of AAOIFI.
            9.20.3 Mudaraba Financing Capital provided on a Mudaraba basis should be reported here. Refer to FAS 3 of AAOIFI.
            9.20.4 Musharaka Financing Report capital provided on a Musharaka basis. Refer to FAS 4 of AAOIFI. Investment in the share capital of another company should be reported under "Other investments".
            9.20.5 Other investments Include any other investments undertaken through Islamic contracts, including Parallel Istisna'a assets (refer FAS 10 of AAOIFI) and capital provided on Salam contracts (refer FAS 7 AAOIFI).
            9.21 Fixed assets Include, for example, the value of the following:
            •   Plant and equipment, the residual value of items leased out under an operating lease (excluding balances relating to named Ijarah assets which should be included separately in Item No. 9.20.2);
            •   Own premises being occupied or developed for occupation by the Authorised Firm, property (excluding property acquired / held available for sale which should be included in "Other Assets", Item No. 9.23).

            The amounts reported here should be net of accumulated depreciation and amortisation.
            9.22.1 Goodwill Include amounts relating to any purchased goodwill.
            9.22.2 Other intangible assets Items to be included:
            •   Capitalised development costs
            •   Brand names, trademarks and similar rights
            •   Licences and exchange seats which may be held as part of the Authorised Firm's trading requirement.
            9.23 Other assets Assets that have not been included in any of the items above. In particular, positions in short term securities held with the intention of resale, sundry debtors, prepayments and accrued income not identified elsewhere.
            9.25.1 Direct credit substitutes These relate to the financial requirements of counterparty where the risk of loss to the Authorised Firm on the transaction is equivalent to a direct claim on the counterparty. Include here
            •   Guarantees of a financial nature to stand behind the current obligations of customers (e.g. loan guarantees);
            •   Guarantees of leasing operations;
            •   Letters of Credit and Stand-by Letters of Credit to the extent that they do not qualify for inclusion in Item No. 9.25.3 "Trade related contingents" below;
            •   Guarantees of a capital nature such as undertakings given to a non bank financial company which are considered as capital by the appropriate regulatory body. Guarantees given to a company not connected to the reporting institution should be risk weighted at 100% and those for connected companies should be deducted from the reporting institution's capital base.
            •   Acceptances granted and risk participation in bankers' acceptances. Where the reporting institution's own acceptances have been discounted by that institution the nominal value of the bills held should be deducted from the nominal amount of the bills issued under the facility and a corresponding on balance sheet entry made.
            9.25.2 Transaction related Contingents These exposures relate to the on-going trading activities of a counterparty where the risk of loss to the reporting institution depends on the likelihood of a future event which is independent of the creditworthiness of the counterparty. They are essentially guarantees that support particular non financial obligations rather than a customer's financial obligations. Include here:
            •   Advance payment guarantees
            •   Performance bonds including bid or tender bonds, warranties and indemnities (indemnities given for lost share certificates or bills of lading and guarantees of the validity of papers rather than of payment under certain conditions should be reported here);
            •   Stand by Letters of Credit relating to a particular contract or to non financial transactions (including arrangements backing, inter alia, subcontractors' and supplier's performance, labour and materials, contracts and construction bids).
            9.25.3 Trade related Contingents Report short term self-liquidating trade related items such as documentary letters of credit issued by the reporting institution that are collateralised by the underlying shipment i.e. the credit provides for the reporting institution to retain title to the underlying shipment. L/C's issued without provision for the reporting institution to retain title to the underlying shipment should be reported under direct credit substitutes above.
            9.25.4 Sale and Repurchase Agreements Only report here sale and repurchase agreements where the asset sold is not reported on the balance sheet. Where the asset is off balance sheet, the appropriate counterparty weighting is determined by the issuer of the security and not according to the counterparty with whom the transaction has been undertaken.
            9.25.5 Forward Assets Purchases The appropriate counterparty weighting should be determined by the asset to be purchased and not the counterparty with whom the contract has been entered into. Include commitments for loans and other on balance sheet items with certain drawdown. Exclude foreign currency spot deposits with value date of up to two working dates after trade date.
            9.25.6 Forward Deposits Placed Relates to agreements between two parties whereby one will pay and the other receive an agreed rate of interest on a deposit to be placed by one with the other at some pre-determined rate in the future. The weight should be determined according to the counterparty with whom the deposit will be placed. Exclude foreign currency spot deposits with value date of up to two working dates after trade date.
            9.25.7 Uncalled partly-paid shares and securities Only include here if there is a specific date for a call. If there is no specific date for a call, the item should be included as a long term commitment under Item No. 9.25.10, "Other Commitments".
            9.25.8 NIF's and RUF's Note issuance and revolving underwriting facilities should include the reporting institutions underwriting obligations of any maturity. Where the facility has been drawn down by the borrower and the notes are held by someone other than the Authorised Firm, the underwriting obligation should continue to be reported at the nominal amount.
            9.25.9 Endorsement of Bills These should be reported at the full nominal amount, less any amount for bills which the institution now holds but had previously endorsed. Endorsement of bills not accepted by banks will attract the counterparty risk weighting of the issuer. If it has been endorsed by another bank, a reduced risk weighting applies.
            9.25.10 Other Commitments All other undrawn commitments are reportable here, divided into commitments under and over one year.
            9.25.11 Assets funded by restricted PSIAs The methodology for calculating exposures financed by PSIAs are, in principle, no different to calculating exposures for a reporting institution's self financed assets. All the guidance notes above apply in their entirety unless stated otherwise.

            STATEMENT OF TOTAL LIABILITIES

            9.26 Deposits Separately identify deposits due to the financial institutions in Item No. 9.26.1. All other deposits are to be reported in the other deposit section, Item No. 9.26.2.
            9.27 Tax Liability Report all items accrued and payable in respect of the Authorised Firm's current and future tax liabilities.
            9.28 Provisions All specific and general provisions in respect of Loans and Advances and other receivables should be reported here. Exclude provisions against Islamic contracts which should be reported in Item No. 9.30 below.
            9.29 Loan Capital and Hybrid Securities Report items such as subordinated loans drawn down by the Authorised Firm.
            9.30 Liabilities arising from Islamic contracts Liabilities arising from Islamic contracts include advances received against Salam contracts (defined in Para 3 and 19 of FAS 7 issued by AAOIFI and Ijarah investment payables (refer to FAS 8 of AAOIFI).
            9.31.1 Creditors and other Liabilities Report all items not included in any of the above, such as proposed dividends payable, sundry accruals and deferred income etc.
            9.31.2 Derivative financial instruments and other trading liabilities Include, but are not limited to, liabilities arising out of positions representing the following instruments, recorded at fair value:

            Forward and Futures contracts in Currencies, Interest rates and other financial assets
            Forward rate agreements
            Currency and interest rate swaps
            Credit derivatives
            Option contracts on currency, interest rate and other financial assets.

            These derivatives include both the exchange-traded and over-the-counter versions.

            STATEMENT OF LARGE EXPOSURES

            See Guidance for Form PIB 9 — Appendix 1 — Large Exposures — Branch.

          • PRU 2.2.22 Instructional Guidelines — Form PIB 9 — Appendix 1 — Large Exposures — Branch

            Instructional Guidelines

            An Authorised Firm operating through a branch presence is required as part of its general systems and controls obligations, to identify and manage the exposures agreed and undertaken by its operations.

            The 20 largest exposures, in absolute terms, to unconnected counterparties should be listed in the first table and the 10 largest exposures, again in absolute terms, to connected counterparties should be listed in the second table.

            Item No. Column Item Guidance
            9.A1.1   Twenty Largest Exposures (Unconnected) Include in this table the twenty largest exposures to all types of counterparty except those that are connected to the branch. Exposures to individual, or groups of closely related, counterparties should be reported in descending order by size. Exposures to individual counterparties which constitute a group of closely related counterparties should be reported as one aggregate exposure.
              A Counterparty The identity of a Counterparty, as defined in the Glossary, in this context will generally be one of the categories as set out in PIB Rule A4.8.6.
              B Unconnected — Financial, Unconnected — Other, Government The Authorised Firm should clarify here into what category an exposure falls. These are set out in detail in Rules PIB A4.8.7 to PIB A4.8.11 but for the purposes of this form, an Authorised Firm should state whether an Exposure is to:
            (i) an Unconnected counterparty or group of Closely Related Counterparties that are predominantly comprised of financial businesses;
            (ii) an Unconnected counterparty or group of Closely Related Counterparties that are predominantly comprised of non-financial businesses;
            (iii) Central governments and central banks.
              C Amount of exposure at risk For exposures arising in the Non-Trading Book the amount at risk should, with certain exceptions detailed below, be reported as the book value of the Authorised Firm's actual or potential claims, contingent liabilities or assets.
            Exposures should be calculated in accordance with internationally or AAOFI accepted accounting practice.
            For exposures arising in the Trading Book, all positions should be marked-to-market daily. Where a market determined price is not readily available, the Authorised Firm may generate its own mark-to-market valuation. Positions should be valued in accordance with the procedures outlined in the Authorised Firm's trading book policy statement.
            This is set out in more detail in Rules PIB A4.8.13 to PIB A4.8.31.
              D Exposure as a percentage of company's equity The branch should use as the denominator the amount its head office has available as regulatory capital (e.g. financial resources). This is intended to provide DFSA with a guide as to the relative size and importance of the exposure for the financial institution as a whole.
              E Specific bad debt provision Include here the amount of specific bad debt provision that may have been made against a particular exposure.
              F Reduction by netting, collateral etc. As set out in PIB Rule 4.5.6 (d) (ii), the value of an exposure can be reduced through the following:
            •   Collateral — discussed in more detail in PIB Section 4.6 and PIB Rule A4.8.32
            •   Netting — discussed in more detail in Sections PIB 4.7 and PIB A4.9
            •   Securitisation — discussed in more detail in Sections PIB 4.8 and PIB A4.10
            •   Credit derivatives — discussed in more detail in Sections PIB 4.9 and PIB A4.11.
              G Exposure at reporting date after eligible set-offs Column C less the amounts in Columns E and F.
              H Amount of this exposure financed by own assets or unrestricted PSIAs For Exposures arising out of Islamic business, this column should be used to quantify the amount of the Exposure that is financed by the Authorised Firm's own assets or by unrestricted PSIA assets.
              I Amount of this exposure financed by restricted PSIAs. For Exposures arising out of Islamic business, this column should be used to quantify the amount of the Exposure that is financed by restricted PSIA assets.
            9.A1.2   Ten Largest Exposures (Connected) Include in this table the ten largest exposures to connected counterparties i.e. the dis-aggregated detail of all connected lending and exposures should be split into different counterparties within the connected group.
              A - I Bank or non-bank As detailed above for the table in for Item No. 9.A1.1

          • PRU 2.2.23 Instructional guidelines for form PIB 12 — Geographical Distribution of Assets and Liabilities

            Instructional Guidelines

            1 Authorised Firms in prudential categories 1 and 5 are required to complete this form to measure its country risk transfers. All entries should be converted from the relevant currency to dollars at the closing spot mid price on the reporting date.
            2 The information reported covers claims, other exposures, and liabilities booked by the Authorised Firm at the DIFC office and its branches. The level of consolidation for this return should be the same as that for the balance sheet. The positions of the subsidiaries carrying out the Financial Services of Accepting Deposits and Providing Credit are to be consolidated into this return.
            3 The residency of counterparties on both an immediate borrower and ultimate risk basis is to be reported with the corresponding three digit country code provided in the List of Country Codes.
            4 All claims and other exposures are to be reported gross of any provisions for impairment. Accrued interest is to be excluded from all parts of the return. Exclude all gold and silver balances, foreign coin, foreign government or bank notes, net debit or credit items in transit vis-à-vis third parties and amounts reported as insurance-related assets and liabilities.
            5 Claims, other exposures, and liabilities are to be initially classified on a geographical basis according to the mailing address of the counterparty, unless the Authorised Firm is aware that the resident status of the counterparty is different from their mailing address.

            Risk transfers

            6 Information on claims on immediate borrowers that can be reallocated to the country sector where the final risk lies, i.e., the entity of ultimate risk, is to be reported by way of outward and inward risk transfers.
            7 In line with the risk reallocation principle for measuring country exposure recommended by the Basel Committee on Banking Supervision, the country of ultimate risk or where the final risk lies is defined as the country in which the guarantor of a financial claim resides or the country in which the head office of a legally dependent branch is located.
            8 Claims on separately capitalized subsidiaries can only be considered as being guaranteed by the head office if the parent has provided an explicit guarantee. Collateral may be considered as an indicator of where the final risk lies to the extent that it is recognized as a risk mitigant under the Basel Capital Accord. The following is a list of eligible collateral:
            a cash on deposit with the lending bank including certificates of deposit or comparable instruments issued by the lending bank
            b gold
            c debt securities rated by a recognised external credit assessment institution where these are:
            i. rated at least BB- when issued by sovereigns and public sector entities (PSEs) that are treated as sovereigns by the national supervisor;
            ii. rated at least BBB- when issued by other issuers (including banks and securities firms); or
            iii. rated at least A2/P3;
            d debt securities not rated by a recognised external credit assessment institution where these are:
            i. issued by a bank;
            ii. listed on a regulated exchange;
            iii. qualify as senior debt;
            iv. all other rated issues of the same seniority by the issuing bank are rated at least BBB- or A3/P3 by a recognized external credit assessment institution;
            v. the bank holding the securities as collateral has no information to suggest that the issue justifies a rating below BBB- or A3/P3 (as applicable); and
            vi. the supervisor is sufficiently confident about the market liquidity of the security;
            e equities that are included in a main index;
            f equities that are not included in a main index but are listed on a regulated exchange; and
            g Domestic or Foreign Funds where:
            i. a price for the Units is publicly quoted daily; and
            ii. the Fund is limited to investing in the instruments listed in this section
            9 If credit derivatives are used to cover the counterparty risk of financial claims in the banking book, the country of ultimate risk of these positions is defined as the country in which the counterparty to the credit derivative contract resides. However, credit derivatives, such as credit default swaps and total return swaps, that belong to the trading book of the protection buying reporting bank should only be reported under the "Derivatives" category, and all other credit derivatives should be reported as "guarantees" by the protection seller (see guarantees and other unused credit commitments below).

            Reporting of Credit derivatives
            Buy protection Sell protection
            Banking book Risk transfers Guarantees
            Trading book Derivatives Guarantees
            10 In the case of security holdings, such as credit-linked notes and other collateralised debt obligations and asset-backed securities, a "look-through" approach should be adopted and the country of ultimate risk is defined as the country where the debtor of the underlying credit, security or derivative contract resides.
            11 Note that inward and outward risk transfers are used to report transfer of risk from one sector to another sector, even when the country of the immediate borrower and the country of ultimate risk are the same. Where banks are unable to allocate outward risk by country because the protection has been purchased to cover a group, e.g., an industry exposure, banks are to use a reasonable weighted-average allocation formula, eg. weighted-average based on total claims of the group. Amounts involved in such allocations should be insignificant.

            Example:

            12 The following example demonstrates a risk transfer. A borrower in country XXX borrows USD $1 million bank and the repayment of that loan is guaranteed by another entity in country YYY. For purposes of risk transfer, this transaction would be reported as follows:

            Country Code Loans Outward Risk Transfer Inward Risk Transfer
            XXX 1000 1000  
            YYY     1000
            13 The data in line 1 tell us that the bank has a $1 million claim on a borrower located in country XXX, and this claim is guaranteed by a resident of another country. Line 2 data tell us that the residents of country YYY have provided an unconditional credit commitment for the claims the bank has on the residents of another country. Note that the total of the "Outward Risk Transfer" column and the "Inward Risk Transfer" column (columns 3 and 4 in the above example) will be the same.
            14 The following equation illustrates how to derive claims on an ultimate risk basis:
            Total Claims (Immediate Borrower Basis) - Outward Risk Transfer + Inward Risk Transfer = Total Claims (Ultimate Risk Basis)

            Derivatives

            15 Authorised Firms are to provide data on financial claims (i.e., positive market values) resulting from derivative contracts, independent of whether they are booked as on- or off-balance sheet items. The data should be reported on an ultimate risk basis, i.e., the positions should be allocated to the country where the final risk lies. The data would, therefore, mainly comprise forwards, swaps and options relating to foreign exchange, interest rate, equity, commodity and credit derivative contracts. As previously indicated, credit derivatives that are used to cover for the counterparty risk of financial claims in the banking book should be reported as "risk transfers" and not as derivatives.
            16 The following items are common OTC derivative instruments:
            a. Forward contracts: Forward contracts represent agreements for delayed delivery of financial instruments or commodities in which the buyer agrees to purchase and the seller agrees to deliver, at a specified future date, a specified instrument or commodity at a specified price or yield. Forward contracts are not traded on organised exchanges and their contractual terms are not standardised. Forward contracts are to be reported that have been entered into by the reporting bank and are outstanding (i.e., open contracts) as at the reporting date. Contracts are outstanding (i.e., open) until they have been cancelled by acquisition or delivery of the underlying financial instrument or commodity or settled in cash.
            b. Swaps: Swaps are transactions in which two parties agree to exchange payment streams based on a specified notional amount for a specified period.
            c. OTC options: Option contracts convey either the right or the obligation, depending upon whether the reporting institution is the purchaser or the writer, respectively, to buy or sell a financial instrument or commodity at a specified price up to a specified future date. OTC option contracts include all option contracts not traded on an organized exchange. These include: swaptions, i.e., options to enter into a swap contract, and contracts known as caps, floors, collars, and corridors. Options such as call features embedded in loan, securities and other on-balance-sheet assets are not to be included. Sold options are not considered a financial claim and therefore are not to be included under derivatives.

            Guarantees and Other Unused Credit Commitments

            17 Data must be supplied on exposures to the reporting bank via guarantees and unused credit commitments other than guarantees. These are to be reported on an ultimate risk basis, i.e., the positions allocated to the country where the final risk lies. Both types of data should be reported to the extent that they represent the unutilised portion of both binding contractual obligations and any other irrevocable commitments. Performance bonds and other forms of guarantee should only be reported if, in the event of the contingency occurring, the resulting claims would have an impact on total balance sheet claims. A more detailed definition of guarantees and other credit commitments and a non-exhaustive list of typical instruments that qualify as guarantees and other credit commitments is provided below.
            18 "Guarantees" are contingent liabilities arising from an irrevocable obligation to pay to a third-party beneficiary when a client fails to perform some contractual obligation. They include secured, bid and performance bonds, warranties and indemnities, confirmed documentary credits, irrevocable and standby letters of credit, acceptances and endorsements. Guarantees also include the contingent liabilities of the protection seller of credit derivative contracts.
            19 "Other unused credit commitments" are arrangements that irrevocably obligate an institution, at a client's request, to extend credit in the form of loans, participation in loans, lease financing receivables, mortgages, overdrafts or other loan substitutes or commitments to extend credit in the form of the purchase of loans, securities or other assets. Normally commitments involve a written contract or agreement and some form of consideration, such as a commitment fee. This definition is identical to that used in the capital adequacy return. Include customers' liability under acceptances (Assets 13 of the month-end balance sheet). Do not include such items as letters of awareness or intent, comfort letters, or similar documents.

            Specific Guidance

            Item No Item Guidance
            12.1 Country Code For the relevant exposure, enter the country code found on the List of Country Codes.
            Deposits Report deposits with banks or official monetary institutions according to the location of the office where the deposit is held.
            Securities Report short term and long term securities and equities. Short term securities are those with an initial term of less than 1 year.
            Loans Report loans at book value gross of provisions for impairment.
            Distribution of claims by residual term to maturity The maturity should reflect amortisation periods or final maturity dates rather than interest adjustments or rollover dates. Instalment loans should be allocated to the periods in which instalment payments are made. Demand loans should be classified as claims with a maturity of less than one year. Equities should be reported as unallocated.


            Item No Item Guidance
            12.2 Outward Risk Transfer Report the amounts which are guaranteed or assured through some type of commitment by a party in another country or by another sector in the same country.
            Inward Risk Transfer Report the amount of any guarantees and other types of credit commitments made by residents of other countries or by another sector in the same country.
            Total Claims ultimate risk basis Report the total "claims — immediate borrower basis" less "outward risk transfers" plus "inward risk transfers".
            Other Exposures ultimate risk basis Report separate amounts for guarantees, derivatives and other as previously defined.


            Item No Item Guidance
            12.3 Official Monetary Institutions Report deposits payable to official monetary institutions.
            Other Banks Report deposits payable to other banks.
            Other Liabilities Report any other liabilities.

            List of Country Codes

            Country Country Code
            Afghanistan 648
            Albania 515
            Algeria 702
            American Samoa 832
            Andorra 403
            Angola 704
            Anguilla 274
            Antarctica 834
            Antigua and Barbuda 207
            Argentina 303
            Armenia 647
            Aruba 208
            Australia 812
            Austria 437
            Azerbaijan 649
            Bahamas 209
            Bahrain 604
            Bangladesh 650
            Barbados 212
            Belarus 517
            Belgium 406
            Belize 307
            Benin (formerly Dahomey) 724
            Bermuda 215
            Bhutan, Kingdom of 652
            Bolivia 311
            Bosnia-Hercegovina 519
            Botswana 706
            Brazil 315
            British Indian Ocean Territory 710
            British Virgin Islands 218
            Brunei 654
            Bulgaria 521
            Burkina Faso 802
            Burundi 708
            Cambodia 664
            Cameroon Republic 712
            Canada 146
            Cape Verde Islands 714
            Cayman Islands 221
            Central African Republic 716
            Chad 718
            Chile 319
            China, People's Republic of 640
            Christmas Island 840
            Cocos (Keeling) Islands 814
            Colombia 323
            Comoros Islands 720
            Congo, Democratic Republic of (formerly Zaire) 804
            Congo, People's Republic of 722
            Cook Islands 826
            Costa Rica 327
            Côte d'Ivoire 742
            Croatia 525
            Cuba 224
            Cyprus 481
            Czech Republic 526
            Denmark 409
            Djibouti (formerly French Afars & Issas) 730
            Dominica 227
            Dominican Republic 230
            Ecuador 331
            Egypt 608
            El Salvador 335
            Equatorial Guinea 726
            Eritrea 727
            Estonia 529
            Ethiopia 728
            Falkland Islands 233
            Faroe Islands 479
            Fiji 842
            Finland 441
            France 412
            French Guiana 339
            French Polynesia 844
            Gabon 732
            Gambia 734
            Georgia 657
            Germany 415
            Ghana 736
            Gibraltar 485
            Greece 445
            Greenland 480
            Grenada 236
            Guadeloupe 239
            Guam 848
            Guatemala 343
            Guernsey 486
            Guinea 738
            Guinea-Bisseau 740
            Guyana 347
            Haiti 242
            Heard and MacDonald Islands 816
            Honduras 351
            Hong Kong 658
            Hungary 539
            Iceland 449
            India 660
            Indonesia 662
            Iran 610
            Iraq 612
            Ireland 418
            Isle of Man 487
            Israel 614
            Italy 421
            Jamaica 248
            Japan 135
            Jersey 488
            Johnston Island 850
            Jordan, Hashemite Kingdom of 616
            Kazakhstan 665
            Kenya 744
            Kiribati (Canton and Enderbury, Gilbert Island, Phoenix Islands, Line Islands) 846
            Korea, Democratic People's Republic of (north) 642
            Korea, Republic of (south) 666
            Kuwait, State of 618
            Kyrgyzstan 667
            Laos 668
            Latvia 540
            Lebanon 620
            Lesotho 746
            Liberia 748
            Libya, Arab Republic of 622
            Liechtenstein 453
            Lithuania 541
            Luxembourg 424
            Macau 670
            Macedonia 542
            Madagascar (Malagasy Republic) 750
            Malawi 752
            Malaysia 672
            Maldives, Republic of 674
            Mali 754
            Malta 489
            Marshall Islands 872
            Martinique 257
            Mauritania 756
            Mauritius 758
            Mexico 355
            Micronesia 874
            Midway Island 852
            Moldova 543
            Monaco 427
            Mongolia 644
            Montserrat 260
            Morocco 760
            Mozambique 762
            Myanmar (formerly Burma) 656
            Namibia 764
            Nauru 818
            Nepal, Kingdom of 676
            Netherlands 430
            Netherlands Antilles 263
            New Caledonia 854
            New Zealand 824
            Nicaragua 359
            Niger 766
            Nigeria 768
            Niue Island 828
            Norfolk Island 820
            Norway 457
            Oman 626
            Pacific Islands (Trust Territory) 858
            Pakistan 678
            Palau 876
            Palestinian Territory 627
            Panama 363
            Panama Canal Zone 367
            Papua New Guinea 822
            Paraguay 371
            Peru 375
            Philippines 680
            Pitcairn Islands 860
            Poland 545
            Portugal 461
            Puerto Rico 202
            Qatar 628
            Reunion Islands 770
            Romania 551
            Russian Federation 553
            Rwanda 774
            Samoa 870
            San Marino 491
            Sao Tomé and Principe 778
            Saudi Arabia 630
            Senegal 780
            Serbia and Montenegro 554
            Seychelles 782
            Sierra Leone 784
            Sikkim 684
            Singapore 686
            Slovak Republic 552
            Slovenia 555
            Solomon Islands 836
            Somalia 786
            South Africa 701
            Spain 465
            Sri Lanka 688
            St. Helena 776
            St. Kitts-Nevis 272
            St. Lucia 275
            St. Pierre and Miquelon 278
            St. Vincent 281
            Sudan 790
            Suriname 379
            Swaziland 792
            Sweden 469
            Switzerland 473
            Syria 632
            Taiwan 690
            Tajikistan 691
            Tanzania 794
            Thailand 692
            Timor Leste 682
            Togo 796
            Tokelau or Union Islands 830
            Tonga 862
            Trinidad and Tobago 287
            Tunisia 798
            Turkey 477
            Turkmenistan 693
            Turks and Caicos Islands 290
            Tuvalu 838
            U.S. Miscellaneous 864
            U.S. Virgin Islands 205
            Uganda 800
            Ukraine 556
            United Arab Emirates 634
            United Kingdom 124
            United States 110
            Uruguay 383
            Uzbekistan 695
            Vanuatu (formerly New Hebridges) 856
            Vatican 433
            Venezuela 387
            Vietnam 646
            Wake Island 866
            Wallis and Futuna Islands 868
            Western Sahara 788
            Yemen, Republic of 636
            Zambia 806
            Zimbabwe (formerly Rhodesia) 772

          • PRU 2.2.25 Guidance for form PIB 13 — Provisions for Impairment

            Instructional guidelines

            Authorised Firms in category 1 and 5 are required to complete this form. All entries are to be converted from the relevant currency to US dollars at the closing spot mid price on the reporting date.

            Specific Guidance

            Item No Item Guidance
            13.1 Opening Balance Report the provisions as at the end of the previous period.
            13.2 Charge from Profit and Loss The additional provisions that management considers adequate to reduce the recorded investment in the firm's books net of other movements. The amount of provisions should be the same as recorded on the profit and loss statement.
            13.3 Write offs The reduction of provisions due to a write off of the corresponding investment.
            13.4 Recoveries The increase of provisions due to funds recovered from an investment that had previously been written off.
            13.5 Other Include and specify any other credit related adjustments to provisions occurring during the period.
            13.6 Closing Balance Report the provisions as at the end of the current period. This amount should be the opening balance adjusted by the items in 13.2, 13.3, 13.4 and 13.5. (13.1+13.2-13.3+13.4+13.5)

          • PRU 2.2.26 Guidance for form PIB 14 — Exposures in Arrears

            1. Authorised Firms in category 1 and 5 are required to complete this form in respect of its exposures in arrears. All entries are to be converted from the relevant currency to US dollars at the closing spot mid price on the reporting date.
            2. The Amount should be the total of the exposures corresponding to the time in arrears from the day on which the payment for the exposure was due as per the contractually agreed terms. The Amount should be gross of any provisions for impairment.
            3. The number of exposures should be the total number of exposures corresponding to relevant amount.
            4. The provision applied should be the specific provision applied to the relevant amount.

          • PRU 2.2.27 Instructional Guidelines for Form PIB100 — Statement of Financial Group Capital Adequacy.

            Instructional Guidelines

            1. An Authorised Firm that is required to prepare a Financial Group Capital Adequacy Report may use this form to submit that Report. Use of this form is not mandatory.
            2. Where an Authorised Firm chooses to use form PIB100 for its Financial Group Capital Adequacy Report, it must do so in accordance with the instructional guidelines in this section.
            3. An Authorised Firm completing this form must present:
            a. in the header portion of the Form the information required by PIB Rule A7.2.2(2)(a), (b) and (c);
            b. at item 1, the Financial Group Capital Resources;
            c. at item 2, the Financial Group Capital Requirement
            4. An Authorised Firm completing this form must present at item 4:
            a. the names of all Authorised Firms and Financial Institutions in the Financial Group; and
            b. where an entity disclosed at (a) is itself the Parent of a Financial Group, the Financial Group Capital Resources of that group at column 1, and the Financial Group Capital Requirement of that group at column 2.
            5. Where an entity is disclosed in accordance with instructional guideline 5(a) is not the Parent of a Financial Group, the entries at columns 1 and 2 of item 4 must be left blank.
            6. An Authorised Firm completing this form must present at item 5:
            a. the names of all Authorised Firms and Financial Institutions meeting the conditions set out at PIB Rule A7.2.2(2)(i);
            b. in column 1, the Capital Resources or Adjusted Capital Resources as applicable of that entity; and
            c. in column 2, the capital requirement of that entity calculated in accordance with PIB Rule A7.2.2 (4).
            7. Where the space on the form is inadequate for the disclosures required at item 4 or item 5, the Authorised Firm completing the form must attach a continuation sheet in the form of PIB100. Separate continuation sheets must be used for disclosures required at items 4 and 5. Continuation sheets must be sequentially numbered and each continuation sheet must be completed in accordance with the Rules applicable to items 4 and 5.
            8. At each of item 4 and item 5, the Authorised Firm completing the form must indicate whether or not a continuation sheet is attached, and if so the number of such continuation sheets.
            9. Form PIB100 must be signed in accordance with PIB Rule A7.2.2 (4).

      • PRU 3 PRU 3 Instructional Guidelines

        • PRU 3.1 PRU 3.1 PIN 1 — Statement of Financial Position

          • Instructional Guidelines

            1. The 'Statement of Financial Position' provides the DFSA with the necessary information on assets, liabilities and capital to undertake an assessment of an Insurer's financial position and performance and facilitate assessing compliance with the Minimum Capital Requirements.
            2. section PIN 5.3 deals with the recognition and measurement of assets and liabilities on this form.
            3. The instructional guidelines in this section provide instructions as to the completion of specific lines on the form. Instructions that are provided in respect of a particular category of current assets or liabilities are normally applicable also (with the appropriate changes) to the corresponding category of non-current assets or liabilities, and vice versa.
            4. The completion of this form requires Insurers to make estimates, for example, in assigning assets and liabilities as current or non-current. As an example, the settlement date of outstanding claims, particularly IBNR, is often uncertain. An Insurer may make a reasonable estimate of the amount that is expected to be settled within twelve months, and record that amount as a current liability, with the balance being recorded as non-current. A similar approach would be acceptable for the assets representing reinsurance and other recoveries that would not normally become due and receivable until the underlying claim has been settled.
            5. Insurers are required to disclose the amount included in certain totals with respect to parties Related to the Insurer. These disclosures exclude amounts due to or from the Insurer under Contracts of Insurance.
            6. This form is required for each reporting unit in respect of which the Insurer must prepare a Return, except for a DIFC Business Return.
            7. Assets and liabilities must be reported as current or non-current. Current assets and liabilities are those expected to mature or be realised within a twelve-month period from the date as at which the Return is drawn up. Where an asset or a liability includes elements that are current as well as elements that are non-current, the asset or liability must be separated into the current and non-current components, if necessary by means of an estimate.
            Item No. Item Instructional Guidelines
            1. Cash and liquid assets Item 1 on the form includes only cash and liquid assets. Insurers must have regard to the following principles:
            a Item 1.2 includes only deposits available within 24 hours that are used by the Insurer for daily purposes of liquidity and operations. Deposits that form part of the Insurer's investments are reported at item 3 or item 7; and
            b Bank overdrafts must be reported at item 21.3, not netted against item 1 unless there is a legal right of offset.
            2. Receivables Item 2 on the form includes only receivables. In completing this item, Insurers must have regard to the following principles:
            a Receivables must be stated net of any provision for doubtful debt or impairment of asset;
            b Item 2.2 includes items such as subrogation or salvage recoveries in respect of claims that have been paid;
            c Item 2.3 includes instalment premiums on General Insurance contracts that are not yet due for payment. It also includes premiums on General Insurance contracts that have been entered into but not yet recorded. It does not include premiums on Long-term Insurance contracts that are not yet due for payment;
            d Item 2.4 includes amounts due and receivable under reinsurance contracts, including premiums due from cedants and deposits retained by cedants, as well as amounts due from reinsurers in respect of recoveries against claims that have been paid. Where there is a legal right of set-off, an Insurer may report the working balance on an account with a cedant or reinsurer as a net receivable or payable amount. However, if there is no legal right of set-off, amounts must be recorded gross as receivables and payables;
            e Item 2.5 includes amounts in respect of reinsurance and other recoveries in respect of claims that have been incurred but not paid, up to the date to which the Return is drawn up. This includes reinsurance and other recoveries in respect of IBNR. Because of the uncertainty of the outcome of outstanding claims and IBNR, it is necessary to estimate at least a part of this balance. The basis on which the estimate is made must be consistent with the basis of estimation of the related liability, reported at item 18;
            f Reinsurance and other recoveries in respect of claims that have not yet been incurred are reported at item 2.6. It is necessary to estimate this balance. The basis on which the estimate is made must be consistent with the basis of estimation of the related liability, reported at item 19; and
            g Where, in determining the amounts to be reported at item 2.4 or 2.5, an Insurer has made or considered making a provision for doubtful debt in respect of recoveries due or potentially due from a reinsurer, the Insurer must take into account the potential need to make a provision when determining any estimate to be included at item 2.5 or 2.6.

            It is common practice for Insurers to account for their exposures on General Insurance contracts in force by means of an unearned premium provision, an asset representing deferred reinsurance expense and (where necessary) a premium deficiency reserve. Insurers are referred to the instructional guidelines to item 19. An Insurer that uses an unearned premium provision and premium deficiency reserve as a proxy for Premium Liabilities may record its deferred reinsurance expense at item 2.6 (for the current portion) and item 7.6 (for the non-current portion).
            3. Investments An Insurer's current investments are reported at item 3. This item does not include derivatives used to hedge investments reported here. Hedging derivatives are included in item 5. Insurers must have regard to the following principles when completing item 3:
            a Investments that are strategic in nature must be assumed to be noncurrent, and must be reported at item 8 or item 9; and
            b Deposits that are of the nature of security deposits, or retentions under contracts, are not reported at item 3.1 but are reported as receivables.

            Investments that take the form of mudaraba or musharaka contracts must be reported in accordance with their nature. A contract that takes the form of a collective investment, where the Insurer is one of several investors providing capital to a mudarib who then provides the capital to the entrepreneur, should be reported as a collective investment (where it does not fall to be reported as a Profit Sharing Investment Account). Where however, a contract of mudaraba or musharaka is entered into by an Insurer as an investment directly with an entrepreneur, or through a mudarib with the Insurer as sole rab ul mal, the investment should be reported as a contract of mudaraba or musharaka as appropriate.
            4. Deferred Tax assets Deferred tax assets that are current assets are reported at item 4. Insurers must have regard to the following principles when completing item 4:
            a Netting off of deferred tax assets and liabilities is permitted only where both the asset and the liability relate to the same tax to which the Insurer is subject, and are expected to crystallise in the same taxation period; and
            b Amounts that represent refunds due from taxation authorities, that are not contingent on earning future taxable income, are not deferred tax assets but are receivables.
            5. Other Current Assets Item 5 includes current assets that do not fall to be reported under other items. In completing this item, Insurers must have regard to the following principles:
            a Acquisition costs in respect of General Insurance business must not be deferred, as the basis on which the premium liability is determined requires immediate expensing of acquisition costs; and
            b Item 5.2 does not include deferred reinsurance expense, as item 2.6 stands in place of this asset.
            6. Total Current Assets Item 6.1 reports the total of amounts due from, balances with or investments in Related parties that form a part of the total of current assets. This amount excludes amounts due under insurance contracts.
            7. Receivables
            (non current)
            In completing item 7 (non-current receivables) Insurers should have regard to the principles set out in this section for the equivalent categories of current assets.
            8. Investments (other than related entities) In completing item 8 (non-current investments) Insurers should have regard to the principles set out in this section for the equivalent categories of current assets.
            9. Investments in related entities In item 9, investments in Related parties must be recognised and measured in accordance with the principles of chapter PIN 5. PIN Rule 5.7 requires an Insurer to make allowance for any Minimum Capital Requirement or equivalent to which a Subsidiary or Associate is subject in the jurisdiction in which it is incorporated.
            10. Plant and equipment In item 10, an Insurer must exclude any properties of the Insurer, whether or not occupied. Properties must be reported at item 3.6 or 8.6 as appropriate.
            11. Intangible assets In item 11, an Insurer must report intangible assets after deducting any amortisation or impairment charge in respect of those assets.
            12. Deferred tax assets In completing item 12 (non-current deferred tax assets) Insurers should have regard to the principles set out in this section for the equivalent categories of current assets.
            13. Other Assets In completing item 13 (other non-current assets) Insurers should have regard to the principles set out in this section for the equivalent categories of current assets.
            14. Total Non-current assets Item 14.1 reports the total of amounts due from, balances with or investments in Related parties that form a part of the total of current assets. This amount excludes amounts due under insurance contracts.
            15. Total Assets  
            16. Creditors and accruals  
            17. Amounts due on reinsurance contracts Amounts due under reinsurance contracts at item 17 must include premiums payable but not yet due for payment under the terms of reinsurance contracts, and deposits withheld from reinsurers. Other items attributable to reinsurance contracts such as the reinsurer's portion of recoveries and salvage and commissions due to reinsurers must also be included under this item.
            18. Outstanding Claims Provision (including IBNR) Item 18 reports the current portion of the Insurer's provision for outstanding claims. This item must be completed having regard to the following principles:
            a The liability must represent the estimated cost to the Insurer of settling claims which it has incurred at the reporting date but which have not been finalised. The liability is in respect of both direct business and inward reinsurance business and must take into account unpaid claims, unreported claims, adjustments for claims development and the direct and indirect claims settlement costs that the Insurer expects to incur in settling its outstanding claims;
            b In the case of Long-Term Insurance Business, this item must include all claims liabilities in respect of Contracts of Insurance that are no longer included in the calculation of the net policy benefits at item 20;
            c The liability must be stated without deducting reinsurance and other recoveries (these are disclosed as an asset as reinsurance receivables);
            d The requirements for recognition and measurement of this liability are set out in PIN Rule 5.4 and PIN Rule 5.6; and
            e The liability does not include any amounts for catastrophe reserve, equalisation reserve or similar provisions that an Insurer may be required to maintain to satisfy regulatory requirements in a jurisdiction other than the DIFC.
            19. Premium liabilities under General Insurance contracts Item 19, Premium Liability, represents the current portion of the cost of providing insurance service over the unexpired period of general insurance contracts in force at the balance date. This item must be completed having regard to the following principles:
            a The Premium Liability reported is required to cover the value of future claims payments and associated direct and indirect settlement costs arising during the unexpired portion of the contracts in question.
            b Item 19 must be recorded without deducting reinsurance and other recoveries (these are disclosed as an asset as reinsurance receivables); and
            c The requirements for recognition and measurement of this liability are set out in PIN Rule 5.4.

            As stated in the Guidance to PIN Rule 5.4.7, it is common practice for Insurers to account for their exposures on General Insurance contracts in force by means of an unearned premium provision and (where necessary) a premium deficiency reserve. Where the aggregate of the unearned premium provision and the premium deficiency reserve (both gross of reinsurance) can be shown to be not less than the amount of Premium Liability determined in accordance with PIN Rule 5.4, an Insurer may use that aggregate as a proxy for Premium Liability for the purposes of recording items 19 and 29 on this form.
            20. Net policy benefits under Long-Term insurance contracts in force Item 20 represents the net value of future Policy Benefits under Long-Term Insurance contracts that are in force as at the date to which the Return is made up. The amount reported here must be determined in accordance with PIN Rule 5.6.
            21. Borrowings  
            22. Tax liability  
            23. Provisions Item 23, provisions, must be completed having regard to the following principles:
            a A provision must be made at item 23.1 in respect of dividends payable out of past and current year profit, to the extent that profit has been recognised;
            b Employee entitlements at item 23.2 include annual leave, gratuity, accrued allowances, staff housing and loan benefits, healthcare, pension and other employee entitlements; and
            c A provision must be made at item 23.3 in respect of any costs that the Insurer expects to incur as a result of restructuring, including severance, termination and redundancy payments, and integration costs.
            24. Other Liabilities  
            25. Total Current Liabilities Item 25.1 reports the amount of current liabilities representing amounts due to Related parties, other than amounts due under insurance contracts.
            26. Creditors and accruals In completing item 26, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.
            27. Amounts due on reinsurance contracts In completing item 27, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.
            28. Outstanding Claims Provision (including IBNR) In completing item 28, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.
            29. Premium liabilities under General Insurance contracts In completing item 29, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.
            30. Net policy benefits under Long-Term Insurance contracts in force In completing item 30, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.
            31. Borrowings In completing item 31, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.
            32. Tax liability In completing item 32, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.
            33. Provisions In completing item 33, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.
            34. Other Liabilities In completing item 34, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.
            35. Loan capital and hybrid securities Item 35 includes all loan capital and hybrid securities that have been issued by the Insurer and have a residual term to maturity of more than one year. Any loan capital or hybrid securities that have a residual term to maturity of less than one year should be reported as borrowings, at item 21.
            36. Total Non-Current Liabilities Item 36.1 reports the amount of non-current liabilities representing amounts due to Related parties, other than amounts due under insurance contracts and amounts reported at line 35.
            Item 36.2 reports the amount reported at item 35 representing interests of Related parties in loan capital or hybrid securities issued by the Insurer.
            37. Total Liabilities  
            38. Net assets  
            39. Equity In completing item 39, Equity, Insurers must have regard to the following principles:
            a Item 39.7 must be equal to item 38;
            b Hybrid securities and loan capital are reported at item 35, not item 39;
            c Item 3.19 is not used in a Fund Return;
            d Item 39.3 is used only in a Fund Return, to record amounts of capital transferred into the Long-Term Insurance Fund; and
            e Where an Insurer makes use of item 39.6, the Insurer must state in a Supplementary Note the nature of the amount recorded at this item.

            Insurers must record at item 39.8 the amount included at item 39.1 meeting the following descriptions:
            a in the case of a Global Return of an Insurer that is not a Protected Cell Company, the amount of ordinary share capital meeting the description at PIN Rule A3.5.1(d);
            b in the case of a Global Return of an Insurer that is a Protected Cell Company, the amount of ordinary share capital meeting the description at PIN Rule A5.5.1(e); and
            c in the case of a Cell Return, the amount of ordinary share capital meeting the description at PIN Rule A5.10.1(d).

            No amount must be recorded at item 39.8 in the case of a Fund Return.

            An Insurer must provide the following information in a Supplementary Note to this form:
            a any amount included in item 39.7 that is not available to meet the Insurance Liabilities of the Insurer;
            b the amount and details of any guarantees (apart from guarantees arising under Contracts of Insurance) given by the Insurer;
            c the amount and details of any contingent liabilities existing as at the date to which the Return is made up; and
            d where the amount of item 39.4 is not equal to the sum of items 39.4 and 39.5 for the comparative reporting period, a reconciliation of the differences. This applies only when the form forms a part of the Annual Regulatory Return.

            Derived from DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]
            [Amended] DFSA GM2/2007 (Made 5 July 2007). [VER3/08-07]

        • PRU 3.2 PRU 3.2 PIN 2 — Statement of Capital Adequacy

          • Instructional Guidelines

            1. This form summarises the capital adequacy position of the Insurer so far as concerns the reporting unit for which it is prepared (Global, Cell, or Fund).
            2. The same form is used for all types of Return, although in the calculation of the capital requirements applicable to different Insurers and to their Cells and Long-Term Insurance Funds, different terminology is used. The terms on the face of the form need to be replaced with the specific equivalent terms from the relevant section (as set out below in the interpretation table), depending on the nature of the Insurer and the type of Return.
            3. This form lists a number of adjustments to arrive at the figure to be compared to the Minimum Capital Requirement applicable to the reporting unit. The purpose of these adjustments is to remove significant anomalies that may arise due to the flexibility available to Insurers in selecting their accounting bases. Therefore, not all of these adjustments will be applicable to all Insurers. An item must not be added to the base capital figure if it is already included in the base capital figure because of the accounting basis adopted.
            4. The effect of the instructions, in line with the Rules in PIN, on the Return of a Takaful Insurer is to exclude from equity any element of equity that is not available to participate in the surpluses or deficits of the Insurance Business of the Takaful Insurer, either directly or by loan to the Insurance Fund. Loans that have been made from the Owners' Equity to the Insurance Fund are included in base capital without restriction, while amounts that are available for loan are treated as hybrid capital.
            5. This form is required for each reporting unit in respect of which the Insurer must prepare a Return, except for a DIFC Business Return.
            6. Insurers must follow the requirements of PIN chapter 4 when preparing this form.
            Item No. Item Instructional Guidelines
            1. Base capital Item 1, Base capital, represents the starting-point for the calculation of the capital resources of the Insurer to be compared to the Minimum Capital Requirement applicable to the Insurer. This item must be completed having regard to the following principles:
            a Item 1.1, Equity, must be equal to total equity reported at item 39.7 on form 1, less debt-financed equity reported at line 39.8 on form 1;
            b Item 1.2, Owners' Equity, must be equal to the amount of Owners' Equity in a Takaful Insurer that is available for loan to the Insurance Fund. It does not include any amount of loans made from Owners' Equity to the Insurance Fund and not repaid. This item applies only to Takaful Insurers;
            c Any amount recorded at item 1.3.1 must not exceed the amount recorded at item 35.1 on form 1;
            d Any amount recorded at item 1.3.2 must not exceed the amount recorded at item 35.2 on form 1;
            e Item 1.3.3 may only be used by a Takaful Insurer. This item must equal item 1.2; and
            f Item 1.3.4 may not exceed the amount of item 39.7 on form 1.
            2. Adjustments to base capital in accordance with PIN Item 2, Adjustments to base capital in accordance with PIN, must be completed having regard to the following principles:
            a Amounts referred to in item 2.1 must not be reported if those amounts are included at item 1.7;
            b Amounts referred to in item 2.2 must not be reported if those amounts are excluded from item 1.7;
            c Item 2.1.1, minority interests in subsidiaries, applies only where an Insurer excludes from its equity an amount representing minority interests in a controlled entity that is not accounted for as an investment;
            d Item 2.1.2, liability for dividends to be paid in the form of shares, applies only where an Insurer has recorded as a liability a provision for dividends that are to be paid by issuing shares. This item does not apply to a Fund Return;
            e Item 2.2.1 applies to the liability referred to in PIN Rule A3.4.3(a) and equivalent provisions in PIN Rule A5.4.3(a), PIN Rule A5.8.3(a) and PIN Rule A7.4.2(a). This item does not apply to a Fund Return;
            f Item 2.2.2 applies only to a Return of a Takaful Insurer. This item represents amounts of Owners' Equity that are not available for loan to the Insurance Fund or to participate in surpluses or deficits of the Insurance Fund;
            g Item 2.2.3 represents investments of the Insurer or by any Subsidiary of the Insurer in the base capital of the Insurer recorded at item 1.4;
            h Item 2.2.4 represents the amount of any tax on capital gains, that was not recognised as a liability on form 1, and that would be incurred by the Insurer if the investments reported on form were realised at the values shown on that form;
            i Item 2.2.5 must be equal to the amount of any deferred acquisition costs included on form 1, whether as a separate asset or as a reduction from liabilities;
            j Item 2.2.6 must be equal to the sum of items 4.3 and 12.3 on form 1;
            k Item 2.2.7 must be equal to the sum of any asset recorded on form 1 and representing the value of in-force Long-Term Insurance Business;
            l Item 2.2.8 must be equal to the sum of item 11.3 on form 1, and any other intangible assets recorded on form 1 and not otherwise excluded from base capital;
            m Item 2.2.9 applies only to a Return of a Takaful Insurer. This item represents any amount of Zakah or charity fund of a Takaful Insurer that is not otherwise excluded from base capital;
            n Item 2.2.10 is intentionally blank.
            o Item 2.2.11 must be equal to the amount reported at item 10.3 on form 1; and
            p Item 2.2.12 must record the amount of any other assets, not otherwise excluded from base capital, that are not available to meet the Insurance Liabilities of the Insurer recorded on form 1.

            Item 2 would normally be expected to include assets that are subject to mortgages or other charges, or than cannot for some other reason be realised for the benefit of policyholders.
            3. Adjusted Equity Item 3.11 may only be used with the written approval of the DFSA, to record an adjustment to the Minimum Capital Requirement that has been approved in writing by the DFSA.
            4. Hybrid Capital Adjustment Item 4.1, Hybrid Capital Adjustment before DFSA approval, must be calculated as the amount by which the sum of items 1.3.1 to 1.3.4 exceeds 15/85 of the amount arrived at by deducting item 1.2.1 from item 1.1.

            Item 4.2, additional hybrid capital approved by DFSA, may only be used to record additional amounts of hybrid capital that have been approved in writing by the DFSA, in accordance with PIN Rule A3.5.2, PIN Rule A5.5.4, PIN Rule A5.10.4 or PIN Rule A7.5.3. The amount of item 4.2 may not exceed the amount of item 4.1

            Item 4.1 deducts hybrid capital that would normally be inadmissible because it exceeds the prescribed percentage. Item 4.2 reinstates hybrid capital that had been disallowed by item 4.1. Item 4.2 does not show the total amount of admissible hybrid capital, only that portion that exceeds the 15% ceiling.
            5. Adjusted Capital Resources  
            6. Minimum Capital Requirement Item 6, Minimum Capital Requirement sets out the components of the Minimum Capital Requirement applicable to the reporting unit of the Insurer in respect of which the Return is completed. For each reporting unit, the components must be calculated in accordance with the chapter applicable to that reporting unit. The terms used in this item must be interpreted in accordance with section 3.16.
            7. Absolute minimum requirement applicable to reporting unit Item 7, Absolute minimum requirement applicable to reporting unit, must be interpreted in accordance with the interpretation table below.
            8. Applicable result  
            9. Capital adequacy result  
            7. For the purposes of this form, the meaning that must be given to each of the terms set out in the leftmost column of the interpretation table below for each type of Return is contained in the column headed by that type of Return.
            8. Where a term does not apply to a type of Return, this is denoted by the characters 'N/A' and this item must be left blank on the form.
            Meaning of term for each type of Return
            Item No. Term used in form Global Return (all Insurers except Protected Cell Companies) Global Return (Protected Cell Companies) Cell Return Fund Return
            1. Base capital Base capital as defined in PIN Rule A3.3.1 Base non-cellular capital as defined in PIN Rule A5.3.1 Base cellular capital as defined in PIN Rule A5.7.1 Base fund capital as defined in PIN Rule A7.3.2
            3. Adjusted equity AE as defined in PIN Rule A3.2.1 ANE as defined in PIN Rule A5.2.1 ACE as defined in PIN Rule A5.6.1 AFE as defined in PIN Rule A7.2.1
            4. Hybrid Capital Adjustment HCA as defined in PIN Rule A3.2.1 HNCA as defined in PIN Rule A5.2.1 HCCA as defined in PIN Rule A5.6.1 FHCA as defined in PIN Rule A7.2.1
            5. Adjusted Capital Resources ACR as defined in PIN Rule A3.2.1 ANCR as defined in PIN Rule A5.2.1 ACCR as defined in PIN Rule A5.6.1 AFCR as defined in PIN Rule A7.2.1
            6. Minimum Capital Requirement MCR as defined in PIN Rule A4.2.1 MSCR as defined in PIN Rule A6.2.2 MSCR as defined in PIN Rule A6.2.2 MFCR as defined in PIN Rule A8.2.1
            6.1 Default risk component DRC as defined in PIN Rule A4.2.1 DRC as defined in PIN Rule A6.2.2 DRC as defined in PIN Rule A6.2.2 DRC as defined in PIN Rule A8.2.1
            6.2 Investment volatility risk component IVRC as defined in PIN Rule A4.2.1 IVRC as defined in PIN Rule A6.2.2 IVRC as defined in PIN Rule A6.2.2 IVRC as defined in PIN Rule A8.2.1
            6.3 Off-balance sheet asset risk component OARC as defined in PIN Rule A4.2.1 OARC as defined in PIN Rule A6.2.2 OARC as defined in PIN Rule A6.2.2 OARC as defined in PIN Rule A8.2.1
            6.4 Off-balance sheet liability risk component OLRC as defined in PIN Rule A4.2.1 OLRC as defined in PIN Rule A6.2.2 OLRC as defined in PIN Rule A6.2.2 OLRC as defined in PIN Rule A8.2.1
            6.5 Concentration risk component CRC as defined in PIN Rule A4.2.1 CRC as defined in PIN Rule A6.2.2 CRC as defined in PIN Rule A6.2.2 CRC as defined in PIN Rule A8.2.1
            6.6 Size factor adjustment SFAC as defined in PIN Rule A4.2.1 SFAC as defined in PIN Rule A6.2.2 SFAC as defined in PIN Rule A6.2.2 SFAC as defined in PIN Rule A8.2.1
            6.7 Underwriting risk component URC as defined in PIN Rule A4.2.1 N/A URC as defined in PIN Rule A6.2.2 N/A
            6.8 Reserving risk component RRC as defined in PIN Rule A4.2.1 N/A RRC as defined in PIN Rule A6.2.2 N/A
            6.9 Long-Term Insurance risk component LIRC as defined in PIN Rule A4.2.1 N/A LIRC as defined in PIN Rule A6.2.2 LIRC as defined in PIN Rule A8.2.1
            6.10 Asset management risk component AMRC as defined in PIN Rule A4.2.1 AMRC as defined in PIN Rule A6.2.2 AMRC as defined in PIN Rule A6.2.2 AMRC as defined in PIN Rule A8.2.1
            7. Absolute minimum requirement applicable to reporting unit The amount set out in PIN Rule A4.2.3, applicable to the Insurer The amount set out in PIN Rule A6.2.4 or, if higher, the MSCR as defined in PIN Rule A6.2.2 plus any amount that must be added to that amount pursuant to PIN Rule A6.2.6 The amount set out in PIN Rule A6.2.5 The amount set out in PIN Rule A8.2.3

            Derived from DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]
            [Amended] DFSA GM2/2007 (Made 5 July 2007). [VER3/08-07]

        • PRU 3.3 PRU 3.3 PIN 3 — Statement of Financial Performance

          • Instructional Guidelines

            1. This form summarises the financial performance of the Insurer.
            2. This form is required for each reporting unit in respect of which the Insurer must prepare a Return, except for a DIFC Business Return.
            3. This form must agree with other forms in the Return (where those forms are prepared for the same reporting unit) in the following respects:
            a. Item 1.1 must agree to form 4 item 9 column 5;
            b. Item 1.2 must agree to form 4 item 28 column 5;
            c. Item 2.1 must agree to form 4 item 19 column 5;
            d. Item 2.2 must agree to form 4 item 37 column 5;
            e. Item 4.1 must agree to form 5 item 9 column 5;
            f. Item 4.2 must agree to form 5 item 28 column 5;
            g. Item 5.1 must agree to form 5 item 19 column 5;
            h. Item 5.2 must agree to form 5 item 37 column 5;
            i. Item 10.1 must equal the sum of items 9 and 28 in column 5 on form 8;
            j. Item 10.2 must equal the sum of items 19 and 37 in column 5 on form 8;
            k. Item 13.1 must equal item 7 minus item 6.3 on form 7; and
            l. Item 13.2 must agree to form 7 item 6.3.
            4. An Insurer must present at item 7 the amount of the movement in the period reported on in the balance of Insurance Liabilities.
            5. An Insurer must present at item 8 the amount of the movement in the period reported on in the balance of reinsurance and other recoveries in respect of Insurance Liabilities.
            6. Insurance Liabilities are reported gross of reinsurance and other recoveries. Reinsurance and other recoveries that are recorded in respect of Insurance Liabilities are reported as assets. An increase in Insurance Liabilities is reported on form 3 as an expense. In the same manner, an increase in the reinsurance and other recoveries in respect of Insurance Liabilities is recorded as revenue.
            7. The other expenses disclosed at item 10.4 must be only those attributable to a Long-Term Insurance Fund. Expenses that are not so attributable are disclosed at item 10.5. By virtue of PIN Rule 3.5.5, expenses that do not relate to the Insurer’s Long-Term Insurance Business may not be attributed to a Long-Term Insurance Fund.
            8. An Insurer must present the following information in a Supplementary Note to this form:
            a. the amount if any included in item 11.2 that represents other operating income receivable from Related parties, and a description of the nature of that income;
            b. the amount if any included in item 13.3 that represents investment expenses payable to Related parties; and
            c. where item 18 does not agree to form 1 item 39.5, a reconciliation showing the differences between the two figures.
            Derived from DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]
            [Amended] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU 3.4 PRU 3.4 PIN 4 — Statement of Premium Revenue and Reinsurance Expenses

          • Instructional Guidelines

            1. This form is required for each reporting unit in respect of which the Insurer must prepare an Annual Regulatory Return, except for the Global Return of an Insurer that is a Protected Cell Company.
            2. A Protected Cell Company is prevented by COB from carrying on Insurance Business other than through a Cell. Because this form would always be blank for such a company in its Global Return, there is no need for it to submit the form or to complete a Supplementary Note to explain its absence.
            3. An Insurer must record premiums and reinsurance premiums relating to its Insurance Business on this form as follows:
            a. An Insurer that is carrying on General Insurance Business must complete part I of this form.
            b. An Insurer that is carrying on Long-Term Insurance Business must complete part II of this form.
            c. Subject to d. an Insurer that is carrying on Long-Term Insurance Business and General Insurance Business of Class 1 or Class 2 may elect either to record the General Insurance Business in part I of this form, or to include that business in Class I on part II of this form. An Insurer may not, between successive Returns, change its election without the written approval of the DFSA.
            d. A DIFC Incorporated Insurer undertaking Direct Long-Term Insurance business and General Insurance Business of Class 1 or Class 2 that is Direct business must record that General Insurance Business as Direct Long-Term Insurance Business in Class I.
            4. At items 1 to 8 and items 21 to 27, against each Class of Business, and for each type of insurance contract as set out in columns 1 to 4, an Insurer must record its Gross Written Premium for the reporting period in respect of that Class of Business and for that type of insurance contract.
            5. At items 11 to 18 and items 30 to 36, against each Class of Business, and for each type of insurance contract as set out in columns 1 to 4, an Insurer must record the reinsurance premium ceded in respect of each Class of Business and each type of insurance contract. Reinsurance premiums recorded as ceded must be gross of any commissions or brokerage, and must be recognised on a basis consistent with the recognition of Gross Written Premium on this form.
            6. Reinsurance premiums ceded must be analysed between columns 1 and 4 on the basis of the underlying insurance contracts that they are protecting, not on the basis of the reinsurance contracts themselves. Where reinsurance arrangements protect more than one type of business (for example both direct and facultative business) or more than one Class of Business, the Insurer must make a reasonable allocation of the reinsurance premiums between the types or Classes of Business covered.
            7. An Insurer must disclose the aggregate amount of its insurance and reinsurance transactions with its Related parties as follows:
            a. at item 10, the amount of Gross Written Premium accepted from Related parties that has been included in the total at item 9;
            b. at item 20, the amount of reinsurance premium ceded to Related parties that has been included in the total at item 19;
            c. at item 29, the amount of Gross Written Premium accepted from Related parties that has been included in the total at item 28; and
            d. at item 38, the amount of reinsurance premium ceded to Related parties that has been included in the total at item 37.

            Derived from DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]
            [Amended] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU 3.5 PRU 3.5 PIN5 — Statement of Claims and Reinsurance and other Recoveries

          • Instructional Guidelines

            1. This form is required for each reporting unit in respect of which the Insurer must prepare an Annual Regulatory Return, except for the Global Return of an Insurer that is a Protected Cell Company.
            2. A Protected Cell Company is prevented by COB from carrying on Insurance Business other than through a Cell. Because this form would always be blank for such a company in its Global Return, there is no need for it to submit the form or to complete a Supplementary Note to explain its absence.
            3. An Insurer must record claims paid and reinsurance and other recoveries in respect of claims paid relating to its Insurance Business on this form as follows:
            a. An Insurer that is carrying on General Insurance Business must complete part I of this form.
            b. An Insurer that is carrying on Long-Term Insurance Business must complete part II of this form.
            c. An Insurer that is carrying on Long-Term Insurance Business and General Insurance Business of Class 1 or Class 2 must record the General Insurance Business in a manner consistent with that adopted in respect of form 4 or determined in accordance with the instructional guidelines 3c under section 3.4.
            d. A DIFC Incorporated Insurer that carries on Direct Long-Term Insurance Business must complete part III of this form in addition to any other part that this rule requires it to complete. Part III of this form is completed in respect of Direct Long-Term Insurance Business only.
            4. At items 1 to 8 and items 21 to 27, against each Class of Business, and for each type of insurance contract as set out in columns 1 to 4, an Insurer must record its gross claims paid for the reporting period in respect of that Class of Business and for that type of insurance contract.
            5. For the purposes of this form, the amount of claims paid includes expenses incurred by the Insurer in the settlement of the claims.
            6. At items 11 to 18 and items 30 to 36, against each Class of Business, and for each type of insurance contract as set out in columns 1 to 4, an Insurer must record the reinsurance and other recoveries receivable in respect of claims paid, in respect of each Class of Business and each type of insurance contract.
            7. Reinsurance recoveries must be analysed between columns 1 and 4 on the basis of the underlying insurance contracts that they relate to, not on the basis of the reinsurance contracts themselves. Where the nature of the reinsurance contract is such that the Insurer cannot identify individual claims benefiting from the recoveries (for example, in the case of an aggregate excess of loss contract, or a stop loss contract) the Insurer must make a reasonable allocation of the recoveries across the types and Classes of Business that have benefit of the reinsurance contracts.
            8. An Insurer must disclose the aggregate amount of its insurance and reinsurance transactions with its related parties as follows:
            a. At item 10, the amount of gross claims paid to Related parties that has been included in the total at item 9;
            b. At item 20, the amount of reinsurance and other recoveries receivable from Related parties that has been included in the total at item 19;
            c. At item 29, the amount of gross claims paid to Related parties that has been included in the total at item 28; and
            d. At item 38, the amount of reinsurance and other recoveries receivable from Related parties that has been included in the total at item 37.
            9. An Insurer required to complete part III must record at items 39 to 45, against each Class of Business, and for each type of claim as set out in columns 1 to 4, the Insurer’s gross claims paid for the reporting period in respect of that Class of Business and for that type of claim.
            10. An Insurer required to complete part III must record, for each type of claim as set out in columns 1 to 4, at item 47 the amount of gross claims paid to Related parties that has been included in the total at item 46.
            11. For the purposes of this form, the amount of claims paid includes expenses incurred by the Insurer in the settlement of the claims.
            12. At items 48 to 54, against each Class of Business, and for each type of claim as set out in columns 1 to 4, an Insurer required to complete part III must record the reinsurance and other recoveries receivable in respect of claims paid, in respect of each Class of Business and each type of insurance contract.
            13. An Insurer required to complete part III must record, for each type of claim as set out in columns 1 to 4, at item 56 the amount of reinsurance and other recoveries receivable from Related parties that has been included in the total at item 55.
            14. Column 5 in part III of the form must equal column 1 in part II of the form as follows:
            a column 5, items 39 to 45 must equal column 1, items 21 to 27 respectively;
            b column 5 item 47 must equal column 1 item 29;
            c column 5, items 48 to 54 must equal column 1, items 30 to 36 respectively; and
            d column 5 item 56 must equal column 1 item 38.
            15. Part III of the form is completed only by DIFC Incorporated Insurers that undertake Direct Long-Term Insurance Business. This part provides an analysis of the information provided in column 1 of part II.

            Derived from DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]
            [Amended] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU 3.6 PRU 3.6 PIN6 — Statement of Movements in Insurance Provisions

          • Instructional Guidelines

            1. This form is required for each reporting unit in respect of which the Insurer prepares an Annual Regulatory Return, or a part of an Annual Regulatory Return, in respect of General Insurance Business.
            2. A Protected Cell Company is prevented by COB from carrying on Insurance Business other than through a Cell. Because this form would always be blank for such a company in its Global Return, and it is exempted from the requirement to complete other forms relating to General Insurance Business, there is no need for it to submit the form, or to complete a Supplementary Note to explain its absence.
            3. A Global Return of an Insurer that does not carry on General Insurance Business, or a Cell Return, Fund Return or DIFC Business Return of such an Insurer, also omits this form, without the need for a Supplementary Note to explain its absence. However, if an Insurer that carries on Long-Term Insurance Business together with Class 1 or Class 2 General Insurance Business elects to report that Class 1 or Class 2 business as General Insurance Business for the purposes of form 4 or form 5, it must also complete this form in respect of that business.
            4. An Insurer must record separately, in parts I to IV and parts V to VIII respectively of this form, the information required in respect of claims outstanding (including IBNR) gross of reinsurance and other recoveries, and reinsurance and other recoveries in respect of those claims outstanding. This information must be presented for each Class of Business.
            5. Reinsurance recoveries must be analysed between parts V to VIII on the basis of the underlying insurance contracts that they relate to, not on the basis of the reinsurance contracts themselves. Where the nature of the reinsurance contract is such that the Insurer cannot identify individual claims benefiting from the recoveries (for example, in the case of an aggregate excess of loss contract, or a stop loss contract) the Insurer must make a reasonable allocation of the recoveries across the types and Classes of Business that have benefit of the reinsurance contracts.

            Parts I, II, III and IV:

            6. PIN chapter 5 requires an Insurer to record its Insurance Liabilities on a discounted basis. A liability for an outstanding claim increases between the beginning and end of a reporting period, because the amount of discount applied at the later is less. The expense represented by this increase is referred to in the form as release of discount.

            Parts I, II, III and IV must be prepared on the following basis:

            a. At column 1 in each part, the Insurer must record the amount of claims outstanding (including IBNR), at the end of the reporting period and in respect of claims incurred during the reporting period;
            b. At column 2 in each part, the Insurer must record the amount of claims outstanding (including IBNR), at the beginning of the reporting period and in respect of claims incurred during the previous reporting period;
            c. At column 3 in each part, the Insurer must record the amount of the movement during the reporting period in the provision for claims outstanding (including IBNR), in respect of claims incurred during the previous reporting period, that arises from those claims being one year closer to settlement;
            d. At column 4 in each part, the Insurer must record the amount of claims paid during the reporting period, in respect of claims incurred during the previous reporting period;
            e. At column 5 in each part, the Insurer must record the amount of other movements in the provision for claims outstanding (including IBNR), in respect of claims incurred during the previous reporting period;
            f. At column 7 in each part, the Insurer must record the amount of claims outstanding (including IBNR), at the beginning of the reporting period and in respect of claims incurred before the beginning of the previous reporting period;
            g. At column 8 in each part, the Insurer must record the amount of the movement during the reporting period in the provision for claims outstanding (including IBNR), in respect of claims incurred before the beginning of the previous reporting period, that arises from those claims being one year closer to settlement;
            h. At column 9 in each part, the Insurer must record the amount of claims paid during the reporting period, in respect of claims incurred before the beginning of the previous reporting period; and
            i. At column 10 in each part, the Insurer must record the amount of other movements in the provision for claims outstanding (including IBNR), in respect of claims incurred before the beginning of the previous reporting period.

            Parts V, VI, VII and VIII

            7. chapter PIN 5 requires an Insurer to record its Insurance Liabilities and associated assets on a discounted basis. The asset representing reinsurance and other recoveries against outstanding claims increases between the beginning and end of a reporting period, because the amount of discount applied at the later is less. The revenue represented by this increase is referred to in the form as release of discount.

            Parts V, VI, VII and VIII must be prepared on the following basis:

            a. At column 1 in each part, the Insurer must record the amount of the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), at the end of the reporting period and in respect of claims incurred during the reporting period;
            b. At column 2 in each part, the Insurer must record the amount of the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), at the beginning of the reporting period and in respect of claims incurred during the previous reporting period;
            c. At column 3 in each part, the Insurer must record the amount of the movement during the reporting period in the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), in respect of claims incurred during the previous reporting period, that arises from those recoveries being one year closer to settlement;
            d. At column 4 in each part, the Insurer must record the amount of recoveries received during the reporting period, in respect of claims incurred during the previous reporting period;
            e. At column 5 in each part, the Insurer must record the amount of other movements in the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), in respect of claims incurred during the previous reporting period;
            f. At column 7 in each part, the Insurer must record the amount of the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), at the beginning of the reporting period and in respect of claims incurred before the beginning of the previous reporting period;
            g. At column 8 in each part, the Insurer must record the amount of the movement during the reporting period in the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), in respect of claims incurred before the beginning of the previous reporting period, that arises from those claims being one year closer to settlement;
            h. At column 9 in each part, the Insurer must record the amount of reinsurance and other recoveries received during the reporting period, in respect of claims incurred before the beginning of the previous reporting period; and
            i. At column 10 in each part, the Insurer must record the amount of other movements in the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), in respect of claims incurred before the beginning of the previous reporting period.
            8. The aggregate of items 9, 18, 27 and 36 in column 12 of this form must together equal the sum on form 1 of items 18 and 28, except in the case of a Return that does not include form 1.
            9. The aggregate of items 45, 54, 63 and 72 in column 12 of this form must together equal the sum on form 1 of items 2.5 and 7.5, except in the case of a Return that does not include form 1.
            10. An Insurer must present, as a Supplementary Note to this form, the following information:
            a the assumed inflation and discount rates, expressed as an annualised percentage, used by the Insurer in determining the amounts reported on this form, distinguishing between the rates assumed for the periods:
            i. up to two calendar years after the end of the reporting period;
            ii. more than two and up to five calendar years after the end of the reporting period; and
            iii. more than five calendar years after the end of the reporting period;
            b the basis on which those assumed inflation and discount rates were determined; and
            c the estimated weighted average term to settlement of:
            i. claims incurred in the reporting period;
            ii. claims incurred in the previous reporting period; and
            iii. claims incurred in earlier reporting periods.

            Derived from DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]
            [Amended] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU 3.7 PRU 3.7 PIN 7 — Statement of Investment Income

          • Instructional Guidelines

            This form is required for each reporting unit in respect of which the Insurer must prepare an Annual Regulatory Return, except for a DIFC Business Return.

            Item No. Item Instructional Guidelines
            1. Interest receivable The Insurer must disclose at item 1 interest receivable, measured on an accruals basis, on securities and loans bearing a fixed or variable rate of interest. This item should include interest receivable on cumulative preference shares
            2. Dividends receivable The Insurer must disclose at item 2 dividends receivable on equity Securities
            3. Rental income receivable The Insurer must disclose at item 3 rental income receivable, on an accruals basis, for the use of real property
            4. Income under investment contracts of mudaraba and musharaka The Insurer must disclose at item 4 income receivable, on an accruals basis, under investment contracts of mudaraba and musharaka other than Profit Sharing Investment Accounts or contracts of the nature of collective investments;
            Item 4 should include income receivable under contracts of mudaraba and musharaka where the nature of the investment is that the Insurer provides capital to the counterparty either directly or through a mudarib, but not in the form of a Profit Sharing Investment Account (PSIA), mutual fund or other collective investment. Collective investments including PSIAs are disclosed at item 5
            5. Income from collective investments The Insurer must disclose at item 5 income receivable, on an accruals basis, from collective investments, including mutual funds, Profit Sharing Investment Accounts and contracts taking the form of collective investments;

            Item 5 should include income receivable under contracts that by their nature are collective investments, where the Insurer stands as one of several rab ul mal providing capital to a mudarib who in turn invests that capital. The rab ul mal may receive a Sukuk or certificate which may be transferable. Investments in Profit Sharing Investment Accounts will normally be disclosed here.
            6. Changes in value in invested assets The Insurer must disclose at item 6 the aggregate amount of changes in value in its invested assets. Where the aggregate amount of changes in value for either of item 6.1 or 6.2 represents a reduction in value, the Insurer must record that item as a negative figure
            7. Other investment income The Insurer must disclose at item 7 the aggregate amount of any investment income that does not fall into any of items 1 to 5. Where an Insurer uses this item, it must provide details of the item in question in a Supplementary Note to this form.

            Item 7 will normally be used only by Insurers with income on investments that do not readily fall into any of the categories described in this Rule. An Insurer reporting an amount under this item will normally be expected to provide sufficient information to explain to the DFSA the nature of the investment and the nature of the income arising from it.
            8. Total investment income  

            Derived from DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.8 PRU 3.8 PIN 8 — Statement of Acquisition Expenses

          • Instructional Guidelines

            1. This form is required for each reporting unit in respect of which the Insurer must prepare an Annual Regulatory Return, except for the Global Return of an Insurer that is a Protected Cell Company.
            2. A Protected Cell Company is prevented by COB from carrying on Insurance Business other than through a Cell. Because this form would always be blank for such a company in its Global Return, there is no need for it to submit the form or to complete a Supplementary Note to explain its absence.
            3. An Insurer must record acquisition expenses relating to its Insurance Business on this form as follows:
            a. An Insurer that is carrying on General Insurance Business must complete part I of this form;
            b. An Insurer that is carrying on Long-Term Insurance Business must complete part II of this form;
            c. An Insurer that is carrying on Long-Term Insurance Business and General Insurance Business of Class 1 or Class 2 must record that business consistently with the election made pursuant to form 5;
            d. A DIFC Incorporated Insurer that carries on Direct Long-Term Insurance Business must complete part III of this form in addition to any other part that this rule requires it to complete. Part III of this form is completed in respect of Direct Long-Term Insurance Business only; and
            e. Commissions receivable by Insurers from their reinsurers (often referred to as exchange commissions, overriders or ceded acquisition costs) must not be netted against acquisition costs disclosed on this form but must be recorded as income on form 3 at item 11.1.
            4. Part III only of this form provides additional disclosures in respect of expenses recovered from reinsurers, in the case of Direct Long-Term Insurance Business. Those disclosures are not limited to commissions.
            5. At items 1 to 8 and items 21 to 27, against each Class of Business, and for each type of insurance contract as set out in columns 1 to 4, an Insurer must record commissions and brokerage payable by it for the reporting period in respect of that Class of Business and for that type of insurance contract.
            6. At items 11 to 18 and items 30 to 36, against each Class of Business, and for each type of insurance contract as set out in columns 1 to 4, an Insurer must record acquisition expenses other than commission and brokerage payable by it in respect of each Class of Business and each type of insurance contract.
            7. An Insurer must disclose the aggregate amount of acquisition costs payable to related parties as follows:
            a. at item 10, the amount of commissions and brokerage payable to Related parties that has been included in the total at item 9;
            b. at item 20, the amount of other acquisition expenses payable to related parties that has been included in the total at item 19;
            c. at item 29, the amount of commissions and brokerage payable to related parties that has been included in the total at item 28; and
            d. at item 38, the amount of other acquisition expenses payable to related parties that has been included in the total at item 37.
            8. An Insurer required to complete part III must record at items 39 to 45, against each Class of Business, and for each type of expense as set out in columns 1 to 4, the Insurer’s commission and management expenses paid for the reporting period in respect of that Class of Business and for that type of expense.
            9. At item 47, an Insurer required to complete part III must record the amount of each type of expense as set out in columns 1 to 4 and included in item 46 that is payable to Related parties.
            10. At item 48, an Insurer required to complete part III must record the amount of each type of expense as set out in columns 1 to 4 and included in item 46 that is recoverable from reinsurers.
            11. At item 49, an Insurer required to complete part III must record the amount of each type of expense as set out in columns 1 to 4 and included in item 46 that is recoverable from Related parties. Where amounts are disclosed here that are not included in item 48, particulars of the recovery must be disclosed in a Supplementary Note.
            12. Column 1, items 39 to 45 must equal column 1, items 21 to 27 respectively and column 1 item 47 must equal column 1 item 29.
            13. Column 2, items 39 to 45 must equal column 1, items 30 to 36 respectively and column 2 item 47 must equal column 1 line 38.
            14. An Insurer must present by way of Supplementary Note a reconciliation between the sum of item 46 column 3 and item 46 column 4, and item 10.4 in the current year column of Form PIN3.
            15. An Insurer must present by way of Supplementary Note a description of the method by which management expenses have been allocated between columns 2, 3 and 4 of part III.
            16. This part of the form is completed only by DIFC Incorporated Insurers that undertake Direct Long-Term Insurance Business. This part provides an analysis of the information provided in column 1 of part II, with additional information on management expenses not disclosed elsewhere on this form.
            17. In allocating management expenses between columns 2, 3 and 4, Insurers should follow generally accepted practice in the life insurance industry. Costs that are not attributable to the Direct Long-Term Insurance Business will not be included on this form as by virtue of PIN Rule 3.5.5 they may not be paid out of the Long-Term Insurance Fund. In general, an Insurer should observe the following principles when making the allocation:
            a. Acquisition costs include those incurred in writing new business or amendments to existing business, such as underwriting, issue of contracts, and setting up policy records. Expenses attributable to the sales and marketing organisation also fall within this heading.
            b. Maintenance costs include those incurred in maintaining the business, for example the cost of issuing periodic reports to policyholders and investment management expenses.
            c. Costs of a non-recurring nature should be recorded as ‘other’. Costs of this nature include the costs of establishing an operation or developing new systems.
            18. The Supplementary Note required by instructional guideline 14 in this section should provide particulars of reconciling items. Where the only difference between the two figures is management expenses attributable to Long-Term Insurance Business other than Direct, no further explanation is required.

            Derived from DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]
            [Amended] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU 3.9 PRU 3.9 PIN9 — Reconciliation to Financial Statements

          • Instructional Guidelines

            1. This form is required only for an Insurer's Global Return. This form is not subject to audit.
            2. The purpose of this for is to provide a reconciliation between the net assets of the Insurer as recorded on form 1 and the net assets of the Insurer as recorded in its financial statements prepared under relevant companies legislation for the same reporting period.
            3. Where an Insurer's financial statements prepared under relevant companies legislation are not available at the time of lodgement of the Annual Regulatory Return, the Insurer will be expected to complete this form based on the draft financial position of the Insurer as at the end of the reporting period. Where the financial statements are subsequently provided to the DFSA as permitted by PIN Rule 6.5.7, the Insurer should consider whether it is necessary to draw the attention of the DFSA to any significant changes between the draft financial statements on which this form was based and the financial statements subsequently provided.
            4. An Insurer must disclose the amounts making up the difference between the Insurer's net assets reported at item 39.7 on form 1 and the Insurer's net assets (or equivalent designation) reported on the balance sheet, statement of financial position or equivalent document (referred to in this section as the 'statutory balance sheet') forming part of the financial statements that the Insurer is required to complete under the Companies Law 2004 (or equivalent legislation in jurisdictions other than the DIFC), made up as at the same date as the information contained in form 1.
            Item No. Item Instructional Guidelines
            1. Net assets according to Form 1 item 39.7 Item 1 must agree to form 1 item 39.7.
            2. Differences between item 1 and Net Assets according to Financial Statements Differences constituting differences in recognition of assets and liabilities must be disclosed at item 2.1. Where an asset is recognised in the statutory balance sheet but not in form 1, the item must be disclosed as a positive amount, and vice versa. Where a liability is recognised in the statutory balance sheet but not in form 1, the item must be disclosed as a negative amount, and vice versa.

            Differences constituting differences in valuation of assets and liabilities that are recognised in both the statutory balance sheet and form 1 must be disclosed at item 2.2. Where an asset is valued at more in the statutory balance sheet than in form 1, the item must be disclosed as a positive amount, and vice versa. Where a liability is valued at more in the statutory balance sheet than in form 1, the item must be disclosed as a negative amount, and vice versa.

            The information presented at items 2.1 and 2.2 must include:
            a. the amount of each material difference; and
            b. a description of each material difference.
            3. Net Assets according to Financial Statements Item 3 must agree to the amount of net assets (or equivalent designation) in the Insurer's statutory balance sheet.
            5. Where this form does not contain sufficient space for the presentation of the information required by this section, the Insurer must present a Supplementary Note containing that information.
            6. Presenting a Supplementary Note does not relieve an Insurer from the obligation to prepare the form. However it will be acceptable for an Insurer to include on the form a reference to the Supplementary Note containing the information required to be presented, together with the aggregate amount covered in that Supplementary Note.

            Derived from DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.10 PRU 3.10 PIN10 — Summary Statement to Operations

          • Instructional Guidelines

            1. This form is required only for a DIFC Business Return.
            2. The Summary statement of operations provides the DFSA with quarterly information on the operations of a DIFC Branch of an Insurer that is not incorporated in the DIFC.
            3. The instructional guidelines in this section provide instructions as to the completion of specific lines on the form. The instructions are similar to those applicable to corresponding items on forms 1 and 3, which are not applicable to DIFC Business Returns.
            4. On this form, reinsurance premiums and reinsurance recoveries refer to amounts ceded and recovered in respect of insurance contracts entered into as part of the Insurer's DIFC Insurance Business, regardless of where the reinsurance premiums and reinsurance recoveries are payable or receivable.
            Item No. Item Instructional Guidelines
            1. Gross Written Premiums An Insurer must present at item 1 the amount of its Gross Written Premium in respect of its business conducted in the DIFC.
            2. Reinsurance Premiums Ceded An Insurer must present at item 2 the amount of reinsurance premium ceded in respect of insurance contracts whose Gross Written Premium is recorded at item 1.
            3. Net written premiums  
            4. Claims paid An Insurer must present at item 4 the amount of claims paid in respect of its business conducted in the DIFC.
            5. Reinsurance and other recoveries received An Insurer must present at item 5 the amount of reinsurance and other recoveries receivable in respect of claims recorded at item 4.
            6. Net claims paid  
            7. Movements in Insurance Liabilities (gross) An Insurer must present at item 7 the amount of the movement in the period reported on in the balance of Insurance Liabilities.
            8. Movements in recoveries against Insurance Liabilities An Insurer must present at item 8 the amount of the movement in the period reported on in the balance of reinsurance and other recoveries in respect of Insurance Liabilities.

            Insurance Liabilities are reported gross of reinsurance and other recoveries. Reinsurance and other recoveries that are recorded in respect of Insurance Liabilities are reported as assets. An increase in Insurance Liabilities is reported on form 10 as an expense. In the same manner, an increase in the reinsurance and other recoveries in respect of Insurance Liabilities is recorded as revenue.
            9. Net movement in provisions  
            10. Expenses  
            11. Other operating revenue Where an Insurer reports any amount at item 11.2, the Insurer must present in a Supplementary Note the amount of any such income receivable from Related parties, and a description of the nature of that income.
            12. Operating income  
            13. Outstanding Claims Provision (including IBNR) Item 13 reports the Insurer's provision for outstanding claims. This item must be completed having regard to the following principles:
            a The liability must represent the estimated cost to the Insurer of settling claims which it has incurred at the reporting date but which have not been finalised. The liability is in respect of both direct business and inward reinsurance business and must take into account unpaid claims, unreported claims, adjustments for claims development and the direct and indirect claims settlement costs that the Insurer expects to incur in settling its outstanding claims;
            b In the case of Long-Term Insurance Business, this item must include all claims liabilities in respect of Contracts of Insurance that are no longer included in the calculation of the net policy benefits at item 17;
            c The liability must be stated without deducting reinsurance and other recoveries (these are disclosed as an asset as reinsurance receivables);
            d The requirements for recognition and measurement of this liability are set out in PIN Rule 5.4 and PIN Rule 5.6; and
            e The liability does not include any amounts for catastrophe reserve, equalisation reserve or similar provisions that an Insurer may be required to maintain to satisfy regulatory requirements in a jurisdiction other than the DIFC.
            14. Expected reinsurance and other recoveries in respect of item 13 Item 14 includes amounts in respect of reinsurance and other recoveries in respect of claims that have been incurred but not paid, up to the date to which the Return is drawn up. This includes reinsurance and other recoveries in respect of IBNR. Because of the uncertainty of the outcome of outstanding claims and IBNR, it is necessary to estimate at least a part of this balance. The basis on which the estimate is made must be consistent with the basis of estimation of the related liability, reported at item 13.

            Where, in determining the amount to be reported at item 14, an Insurer has made or considered making a provision for doubtful debt in respect of recoveries due or potentially due from a reinsurer, the Insurer must take into account the potential need to make a provision when determining any estimate to be included at item 14 or 16.

            It is common practice for Insurers to account for their exposures on General Insurance contracts in force by means of an unearned premium provision, an asset representing deferred reinsurance expense and (where necessary) a premium deficiency reserve. Insurers are referred to the instructional guidelines to item 15. An Insurer that uses an unearned premium provision and premium deficiency reserve as a proxy for Premium Liabilities may record its deferred reinsurance expense at item 16.
            15. Premium liabilities under General Insurance contracts Item 15, Premium Liability, represents the current portion of the cost of providing insurance service over the unexpired period of general insurance contracts in force at the balance date. This item must be completed having regard to the following principles:
            a The Premium Liability reported is required to cover the value of future claims payments and associated direct and indirect settlement costs arising during the unexpired portion of the contracts in question;
            b Item 15 must be recorded without deducting reinsurance and other recoveries (these are disclosed as an asset as reinsurance receivables); and
            c The requirements for recognition and measurement of this liability are set out in PIN Rule 5.4.

            As stated in the Guidance to PIN Rule 5.4.7, it is common practice for Insurers to account for their exposures on General Insurance contracts in force by means of an unearned premium provision and (where necessary) a premium deficiency reserve. Where the aggregate of the unearned premium provision and the premium deficiency reserve (both gross of reinsurance) can be shown to be not less than the amount of Premium Liability determined in accordance with PIN section 5.4, an Insurer may use that aggregate as a proxy for Premium Liability for the purposes of recording item 15 on this form.
            16. Expected reinsurance and other recoveries in respect of item 15 Reinsurance and other recoveries in respect of claims that have not yet been incurred are reported at item 16. It is necessary to estimate this balance. The basis on which the estimate is made must be consistent with the basis of estimation of the related liability, reported at item 15.
            17. Net policy benefits under Long-Term insurance contracts in force Item 17 represents the net value of future Policy Benefits under Long-Term Insurance contracts that are in force as at the date to which the Return is made up. The amount reported here must be determined in accordance with PIN section 5.6.

            Derived from DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]
            [Amended] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU 3.11 PRU 3.11 PIN11 — Reconciliation of Direct to Total Long-Term Insurance Business

          • Instructional Guidelines

            1. This form is required only for a DIFC Incorporated Insurer that undertakes Direct Long-Term Insurance Business.
            2. This form requires an Insurer that undertakes Direct Long-Term Insurance Business to identify (in summary form) the assets and liabilities that are attributable to that business, and the amount of the Minimum Capital Requirement that is attributable to the business.
            3. The Rules in this section provide instructions as to the completion of specific lines on the form. The instructions are similar to those applicable to corresponding items on forms 1 and 2.
            4. The disclosures at item 1 in column 1 must be consistent with the disclosures made on form PRU PIN14 and form PRU PIN15. Form PRU PIN14 and form PRU PIN15 identify assets that are held to cover liabilities under Direct Long-Term Insurance Business. It would not be appropriate for an Insurer to disclose on form PRU PIN11 assets that were less, either by type or in the aggregate, than the total amount of assets of each type and in the aggregate, that are asserted on form PRU PIN14 and form PRU PIN15 to be held to meet liabilities under Direct Long-Term Insurance contracts and the Minimum Capital Requirement in respect of Direct Long-Term Insurance Business. The assets disclosed on form PRU PIN11 may on the other hand exceed the total amount of assets asserted on form PRU PIN14 and form PRU PIN15 to be held to meet liabilities under Direct Long-Term Insurance contracts and the Minimum Capital Requirement in respect of Direct Long-Term Insurance Business.
            5. An Insurer must present at items 1 and 2 in column 1 the amounts of its assets and liabilities that are attributable to its Direct Long-Term Insurance Business and that are otherwise attributable, respectively.
            6. An Insurer must present at item 3 in column 1 the amounts of the components of its Minimum Capital Requirement that are attributable to its Direct Long-Term Insurance Business and that are otherwise attributable, respectively.
            7. Column 3 of this form must agree to the current year column of form PRU PIN1 or of form PRU PIN2, as follows:
            a. item 1.1 must agree to item 1.4 in the current year column of form PRU PIN1;
            b. item 1.2 must agree to the sum of items 2.9 and 7.9 in the current year column of form PRU PIN1;
            c. item 1.3 must agree to the sum of items 3.12, 8.12 and 9.7 in the current year column of form PRU PIN1;
            d. item 1.4 must agree to item 10.3 in the current year column of form PRU PIN1;
            e. item 1.5 must agree to item 11.3 in the current year column of form PRU PIN1;
            f. item 1.6 must agree to the sum of items 4.3 and 12.3 in the current year column of form PRU PIN1;
            g. item 1.7 must agree to the sum of items 5.5 and 13.5 in the current year column of form PRU PIN1;
            h. item 2.1 must agree to the sum of items 16 and 26 in the current year column of form PRU PIN1;
            i. item 2.2 must agree to the sum of items 17 and 27 in the current year column of form PRU PIN1;
            j. item 2.3 must agree to the sum of items 18, 19, 28 and 29 in the current year column of form PRU PIN1;
            k. item 2.4 must agree to the sum of items 20 and 30 in the current year column of form PRU PIN1;
            l. item 2.5 must agree to the sum of items 21 and 31 in the current year column of form PRU PIN1;
            m. item 2.6 must agree to the sum of items 22 and 32 in the current year column of form PRU PIN1;
            n. item 2.7 must agree to the sum of items 23 and 33 in the current year column of form PRU PIN1;
            o. item 2.8 must agree to the sum of items 24 and 34 in the current year column of form PRU PIN1; and
            p. items 3.1 to 3.11 must agree to items 6.1 to 6.11 respectively in the current year column of form PRU PIN2.

            [Added] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU PIN 3.12 PRU PIN 3.12 PIN12 — Statement of Direct Long-Term Insurance Business

          • Instructional Guidelines

            1. This form is required only for a DIFC Incorporated Insurer that undertakes Direct Long-Term Insurance Business, and is completed in respect only of Direct Long-Term Insurance Business.
            2. When this form is presented as part of a Quarterly Regulatory Return, part III is not required to be completed.
            3. This form provides the DFSA with quarterly and annual information on the makeup of Direct Long-Term Insurance premiums accounted for by a DIFC Incorporated Insurer, and new business underwritten, during the reporting period. When presented as part of the Annual Regulatory Return, it also provides information on persistency
            4. Because this part of the form is required only in the case of an Annual Regulatory Return, the reporting periods covered in part III will only ever be financial years. The form will disclose the persistency rate (the contracts remaining in force expressed as a percentage of those written, less those terminating naturally) for the most recent financial year at the end of twelve months, and the three financial years beforehand at the end of, respectively, twenty-four, thirty-six and forty-eight months.
            5. Normally in part III, the disclosure in column 1 for the previous financial year will be equal to that for the then current year in the previous year’s Return, and in a similar fashion the disclosure in column 1 for the year before the previous financial year will be equal to that for previous financial year, in the previous year’s Return, and so on. This may not be the case if a portfolio of policies in force is acquired or disposed of by the Insurer. Where this occurs, the figures for contracts affected should be adjusted as though the contracts acquired had been affected by the Insurer at the time they were first affected, and the contracts disposed of had never been affected by the Insurer. Where this is the case, the provision of particulars in a Supplementary Note will assist the DFSA’s understanding
            6. On this form, reinsurance is classified according to the underlying premiums accepted by the Insurer, not on the basis of the form of the reinsurance contract. Thus, a reinsurance of a regular premium policy is classified in column 1 or 3, regardless of the form of the reinsurance contract
            7. On this form:
            a ‘regular premiums’ means premiums payable at regular intervals during the term of the contract;
            b ‘single premiums’ means premiums that are not regular premiums. An additional premium payable on an existing regular premium contract is not a regular premium unless it constitutes one in a series of regular premiums;
            c ‘new business’ means premiums on new contracts of insurance effected during the reporting period, together with additional premiums paid on existing contracts where those additional premiums have the characteristic of new business rather than representing a payment due on the original contract; and
            d ‘new policyholders/fund members’ means policyholders who have effected a new contract of insurance during the reporting year or (in the case of Class VII business) persons who have joined a pension fund that is the subject of a contract of insurance in that Class, during the reporting year.
            8. On this form, items 28 to 51 must be presented in whole numbers, not rounded, and with no decimal place.
            9. An Insurer must present at items 1 to 7, for each Class of Business, analysed across columns 1 to 4 between participating business and non-participating business and between regular premium business and single premium business, the gross Direct Long-Term Insurance Business premiums that it has accounted for in the reporting period.
            10. An Insurer must present at item 9 the total amount included in item 8 that represents premiums receivable from Related parties of the Insurer, for each of columns 1 to 4.
            11. An Insurer must present at items 10 to 16, for each Class of Business, the reinsurance premiums that it has accounted for as ceded in the reporting period, in respect of the premiums reported at items 1 to 7. Items 10 to 16 must be analysed across columns 1 to 4 according to the type of the underlying premium, namely participating and non-participating, and regular premium and single premium.
            12. An Insurer must present at item 18 the total amount included in item 17 that represents reinsurance premiums ceded to Related parties of the Insurer, for each of columns 1 to 4.
            13. Where an Insurer is required to complete this form, Column 5 of this form for items 1 to 18 must agree to column 1 of form PRU PIN4 for items 21 to 38 respectively.
            14. An Insurer must present at items 19 to 26, for each Class of Business, analysed across columns 1 to 4 between participating business and non-participating business and between regular premium business and single premium business, the gross Direct Long-Term Insurance new business premiums that it has accounted for in the reporting period. For the purposes of this disclosure, Class I is separated into two items: item 19 being annuities, and item 20 being Class I other than annuities.
            15. An Insurer must present at items 28 to 35, for each Class of Business, analysed across columns 1 to 4 between participating business and non-participating business and between regular premium business and single premium business, the new policyholders/fund members that it recorded in the reporting period. For the purposes of this disclosure, Class I is separated into two items: item 19 being annuities, and item 20 being Class I other than annuities.
            16. An Insurer must present at item 37 for the reporting period and items 38, 39 and 40 respectively for the previous reporting period and the two immediately prior to that (in each case, the ‘reporting year in question’), the following information in respect of participating long-term contracts of insurance:
            a in column 1, the number of Direct Long-Term Insurance contracts effected during the reporting period in question;
            b in column 2, the number of contracts effected during the reporting period in question that have, during the period from their inception up to the reporting date, terminated through expiry of the contract term, through occurrence of the insured event, or otherwise through an event contemplated in the policy document other than lapse, surrender or cancellation;
            c in column 3, the number of contracts effected during the reporting period that have, during the period from their inception up to the reporting date, terminated through lapse, surrender, or cancellation or otherwise through an event not contemplated in the policy document;
            d in column 4, the number of contracts (calculated as the figure in column 1 less the sum of the two figures in columns 2 and 3) remaining in force on the reporting date; and
            e in column 5, the persistency rate, calculated as the figure in column 4 divided by the figure in column 1 less the figure in column 2, expressed as a percentage.
            17. An Insurer must present at item 42 for the reporting period and items 43, 44 and 45 respectively for the previous reporting period and the two immediately prior to that (in each case, the ‘reporting year in question’), the information set out in instructional guideline 16(a) to (c), in respect of linked long-term contracts of insurance.
            18. An Insurer must present at item 47 for the reporting period and items 48, 49 and 50 respectively for the previous reporting period and the two immediately prior to that (in each case, the ‘reporting year in question’), the information set out in instructional guideline 16(a) to (c), in respect of longterm contracts of insurance not already included in the disclosures under participating or linked long term contracts.
            19. No figure is required to be presented in column 5 at item 41, item 46 or item 51.

            [Added] DFSA GM2/2007 (Made 5 July 2007). [VER3/08-07]

        • PRU PIN 3.13 PRU PIN 3.13 PIN13 — Statement of Direct Long-Term Insurance Policy Liabilities

          • Instructional Guidelines

            1. This form is required only for an Annual Regulatory Return prepared by a DIFC Incorporated Insurer conducting Direct-Long-Term Insurance Business, and is required only in respect of that Direct Long-Term Insurance Business.
            2. This form, which is prepared only by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business, provides the DFSA with an analysis of the breakdown of gross insurance liabilities in respect of those liabilities, and reinsurance recoverable in their respect.
            3. An Insurer must present at items 1 to 7, for each Class of Business, the gross Direct Long-Term Insurance Business policy liabilities as at the reporting date, analysed across columns 1 to 4 as follows:
            a. in column 1, the amount in respect of participating business Direct Long-Term Insurance contracts, in respect of benefits that have vested in the policyholders;
            b. in column 2, the amount in respect of participating business Direct Long-Term Insurance contracts, in respect of benefits that have not vested in the policyholders;
            c. in column 3, the amount in respect of all other Direct Long-Term Insurance Contracts; and
            d. in column 4, the amount of any additional provisions made by the insurer, that form part of gross policy liabilities but do not fall within columns 1 to 3.
            4. Vested benefits are those to which policyholders are collectively or individually entitled as a result of a guarantee in the insurance contract, and include bonuses that have been declared or allotted, The Rules in PIN5 on valuation of assets and liabilities require an Insurer also to make provision for benefits that are discretionary, for example bonuses that are expected to be declared in the future. The provision in respect of these items will be included at Column 2.
            5. An Insurer must present at item 9, for each of columns 1 to 4, the amount of the figure at item 8 that relates to liabilities in respect of parties that are Related to the Insurer.
            6. In practice, a valuation of Insurance Liabilities may include provisions that are not readily attributable to particular insurance contracts. Where this is the case, such provisions should be shown in column 4. The Actuary’s Report prepared under section PIN 7.3 includes commentary on additional provisions. Insurers should ensure that disclosure on this form is consistent with the description in the Actuary’s Report. A reconciliation may be provided in a Supplementary Note to this form.
            7. An Insurer must present at items 10 to 16, for each Class of Business, the amount of gross Direct Long-Term Insurance Business policy liabilities as at the reporting date that is recoverable under reinsurance arrangements, analysed across columns 1 to 4 in the same manner as items 1 to 7.
            8. An Insurer must present at item 18, for each of columns 1 to 4, the amount of the figure at item 17 that relates to amounts recoverable from parties that are Related to the Insurer.

            [Added] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU PIN 3.14 PRU PIN 3.14 PIN14 — Statement of assets covering linked Direct Long-Term Insurance Liabilities

          • Instructional Guidelines

            1. This form is required only for an Annual Regulatory Return prepared by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business of Class III, and is required only in respect of that Class of its Direct Long-Term Insurance Business.
            2. This form, which is prepared only by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business of Class III, provides the DFSA with information on the assets held to cover policy liabilities under insurance contracts of that Class.
            3. On this form, a reference to assets held to cover linked contract liabilities means assets that:
            a. are held by the Insurer with the intention of meeting liabilities under Class III contracts of insurance effected by it;
            b. are not reported by the Insurer on Form PRU PIN15; and
            c. so far as concerns linked benefits that are vested in policyholders, are the assets to which the contract is linked under the terms of the contract or assets that are closely equivalent to those assets, or, where the contract is linked to an index, are the assets on which that index is based or assets closely equivalent to those assets.
            4. An Insurer must present at items 1.1 to 4.3 the amount of its assets disclosed on Form PRU PIN1 that are held to cover linked contract liabilities under Direct Long-Term Insurance Business of Class III. The instructional guidelines at section 3.1 apply to the completion of this form where an item on this form has the same description as an item on Form PRU PIN1, except that no distinction is made on this form between current and non-current assets.
            5. An Insurer must present at item 4.4 the amount of any assets not falling within items 1.1 to 4.3 that are held to cover linked contract liabilities under Direct Long-Term Insurance Business of Class III. Where an Insurer includes an amount at this item, particulars of the asset must be included in a Supplementary Note, including a description of how that asset is disclosed on Form PRU PIN1.
            6. An Insurer must disclose at item 5.1 the amount of assets included in item 5 that represent amounts due from, balances with or investments in Related parties, other than amounts due under insurance contracts
            7. The amount at item 5 in column 1 must be not less than the amount on Form PRU PIN13 of item 3 column 5 less item 13 column 5.

            [Added] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU PIN 3.15 PRU PIN 3.15 PIN15 — Statement of assets covering non-linked Direct Long-Term Insurance Liabilities and Minimum Capital Requirement

          • Instructional Guidelines

            1. This form is required only for an Annual Regulatory Return prepared by a DIFC Incorporated Insurer conducting Direct-Long-Term Insurance Business and is required only in respect of that business.
            2. This form, which is prepared only by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business, provides the DFSA with information on the assets held to cover policy liabilities under insurance contracts other than Class III, and assets held to cover the Minimum Capital Requirement. This form also provides the DFSA with information on the yields of those assets, to assist in interpretation of the Actuary’s Report.
            3. On this form, a reference in part I to assets held to cover participating contract liabilities, in part II to assets held to cover non-participating contract liabilities and in part III to assets held to cover the Minimum Capital Requirement means assets that:
            a. in the case of assets held to cover participating or non-participating contract liabilities, are held by the Insurer with the intention of meeting those liabilities under contracts of insurance effected by it, and in the opinion of the Directors, formed on reasonable grounds, are appropriate assets for that purpose; and
            b. are not reported by the Insurer on Form PRU PIN14 or in any other part of this form.
            4. An Insurer must present at items 1.1 to 4.3 in column 1 the amount of its assets disclosed on Form PRU PIN1 that are held to cover contract liabilities under participating Direct Long-Term Insurance Business. The instructional guidelines at section 3.1 apply to the completion of this form where an item on this form has the same description as an item on Form PRU PIN1, except that no distinction is made on this form between current and non-current assets.
            5. An Insurer must present at item 4.4 in column 1 the amount of any assets not falling within items 1.1 to 4.3 that are held to cover contract liabilities under participating Direct Long-Term Insurance Business. Where an Insurer includes an amount at this item, particulars of the asset must be included in a Supplementary Note, including a description of how that asset is disclosed on Form PRU PIN1.
            6. An Insurer must disclose at item 5.1 in column 1 the amount of assets included in item 5 that represent amounts due from, balances with or investments in Related parties, other than amounts due under insurance contracts.
            7. The amount at item 5 in column 1 must be not less than the amount on Form PRU PIN13 of the sum of item 8 in columns 1 and 2 less the sum of item 17 in columns 1 and 2, together with any element of the amount in column 4 that relates to participating business.
            8. An Insurer must present at items 6.1 to 9.3 in column 1 the amount of its assets disclosed on Form PRU PIN1 that are held to cover contract liabilities under non-participating Direct Long-Term Insurance Business other than Class III. The Rules at section 3.5 apply to the completion of this form where an item on this form has the same description as an item on Form PRU PIN1, except that no distinction is made on this form between current and non-current assets.
            9. An Insurer must present at item 9.4 in column 1 the amount of any assets not falling within items 6.1 to 9.3 that are held to cover contract liabilities under non-participating Direct Long-Term Insurance Business other than Class III. Where an Insurer includes an amount at this item, particulars of the asset must be included in a Supplementary Note, including a description of how that asset is disclosed on Form PIN1.
            10. An Insurer must disclose at item 10.1 in column 1 the amount of assets included in item 10 that represent amounts due from, balances with or investments in Related parties, other than amounts due under insurance contracts.
            11. The amount at item 10 in column 1 must be not less than the amount on Form PRU PIN13 in column 3 of item 8 after deducting item 3, less item 17 after deducting item 12, together with any element of the amount in column 4 that relates to non-participating business other than Class III.
            12. An Insurer must present at items 11.1 to 15.3 in column 1 the amount of its assets disclosed on Form PRU PIN1 that are held to cover the Minimum Capital Requirement in respect of Direct Long- Term Insurance Business. The Rules at section 3.5 apply to the completion of this form where an item on this form has the same description as an item on Form PRU PIN1, except that no distinction is made on this form between current and non-current assets.
            13. An Insurer must present at item 15.4 in column 1 the amount of any assets not falling within items 11.1 to 15.3 that are held to cover the Minimum Capital Requirement in respect of Direct Long- Term Insurance Business. Where an Insurer includes an amount at this item, particulars of the asset must be included in a Supplementary Note, including a description of how that asset is disclosed on Form PRU PIN1.
            14. An Insurer must disclose at item 15.1 in column 1 the amount of assets included in item 15 that represent amounts due from, balances with or investments in Related parties, other than amounts due under insurance contracts.
            15. For each item on this Form for which an Insurer is required to disclose an amount in column 1, the Insurer must disclose in column 2 the lower of the two following figures, expressed as a percentage:
            a. the actual annual yield achieved on the assets disclosed under that item, in the reporting period; and
            b. the annual yield expected to be achieved on the assets disclosed under that item, in the year following the reporting date.
            16. Where the figure in column 1 is derived as the result of a mathematical calculation expressed on the face of the Form. The amount to be disclosed in column 2 is not the sum of the values in column 2 for the items specified in the mathematical calculation expressed on the face of the form, but the yield in accordance with instrumental guideline 17 on the assets disclosed at the item in question in column 1.

            [Added] DFSA GM2/2007 (Made 5 July 2007). [VER3/08-07]

        • PRU PIN 3.16 PRU PIN 3.16 PIN16 — Calculation of Direct Long-Term Insurance element of Long- Term Insurance Component

          • Instructional Guidelines

            1. This form is required only for an Annual Regulatory Return prepared by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business, and is required only in respect of that business.
            2. This form, which is prepared only by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business, provides an Insurer with a working schedule for the calculation of the element of the Long-Term Insurance Risk Component that is attributable to its Direct Long-Term Insurance Business, and permits the DFSA to assess the compliance of that calculation with the Rules in PIN A4.12.
            3. On this Form, where an item is shaded in a column, no entry is made for that item in that column.
            4. In items 1 to 7.3 the Insurer must show, for each Class of Business, or for each sub-division of a Class of Business as shown on the face of the form:
            a. at columns 1 and 2, the amount of the Long-Term Insurance Liability, gross and net of reinsurance respectively;
            b. at column 4, expressed as a percentage, the reinsurance ratio calculated as the amount in column 2 divided by that in column 1, except that if the result is less than 85%, the figure shall be 85%; and
            c. at column 5, the amount determined by multiplying the amount in column 1 with the two percentages in columns 3 and 4.
            5. The amount in item 8 of column 1 must agree to form PRU PIN13 column 5 item 8 and the amount in item 8 of column 2 to form PRU PIN13 column 5 item 8 less item 17.
            6. At items 9 to 12 the Insurer must show, for all Direct Long-Term Insurance Business, according to the extent of death risk borne by the Insurer as shown on the face of the form:
            a. at columns 1 and 2, the amount of capital at risk, gross and net of reinsurance respectively, where capital at risk has the meaning given in PIN Rule A4.12.2(c);
            b. at column 4, expressed as a percentage, the reinsurance ratio calculated as the amount in column 2 divided by that in column 1, except that if the result is less than 50%, the figure shall be 50%; and
            c. at column 5, the amount determined by multiplying the amount in column 1 with the two percentages in columns 3 and 4.
            7. At item 14 the Insurer must show:
            a. at column 1, the amount of net administrative expenses incurred in the reporting period in respect of linked Direct Long-Term Insurance business where the Insurer bears no investment risk and expenses are not fixed for a period of more than five years; and
            b. at column 5, the amount determined by multiplying the amount in column 1 with the percentage in column 3.
            8. At item 15.1 the Insurer must show:
            a. at column 1, the amount of gross premiums in the reporting period in respect of Class IV as shown on form PRU PIN12 item 4 column 5, multiplied by 18% so far as concerns the amount up to $50 million and by 16% so far as concerns any amount in excess of $50 million;
            b. at column 3, expressed as a percentage, the amount determined by dividing the amount of form PRU PIN12 item 4 column 5 less item 13 column five, by the amount of form PRU PIN12 item 4 column 5, except that if the result of this calculation is less than 50% the figure shall be 50%.
            9. At item 15.2 the Insurer must show:
            a. at column 1, the amount of gross claims incurred in the reporting period in respect of Class IV, multiplied by 26% so far as concerns the amount up to $35 million and by 23% so far as concerns any amount in excess of $35 million; where
            b. at column 3, expressed as a percentage, the amount determined by dividing the gross claims incurred minus claims recovered, by the gross claims incurred, except that if the result of this calculation is less than 50% the figure shall be 50%.
            c. ‘gross claims incurred’ means the amount of gross claims paid at form PRU PIN5 item 42 column 5 plus the amount, if any, in respect of Direct Long Term Insurance Business of Class IV included at item 18 or 28 of column 1 of form PRU PIN1 and less any such amount included at those items of column 2 of that form: and
            d. ‘claims recovered’ means the amount of reinsurance and other recoveries in respect of paid claims at form PRU PIN5 item 51 column 5 plus the amount, if any, in respect of Direct Long Term Insurance Business of Class IV included at item 2.2, 2.4, 7.2 or 7.4 of column 1 of form PRU PIN1 and less any such amount included at those items of column 2 of that form.
            10. At item 17 the Insurer must show:
            a. at column 1, the amount of assets attributable to the Insurer’s Direct Long Term Insurance Business of Class V; and
            b. at column 5, the amount determined by multiplying the amount in column 1 with the percentage in column 3.
            11. The amount at item 18 must equal the amount at form PRU PIN11 item 3.9 column.

            [Added] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU PIN 3.17 PRU PIN 3.17 PIN17 — Statement of Financial Group Capital Adequacy

          • Instructional Guidelines

            1. An Authorised Firm that is required to prepare a Financial Group Capital Adequacy Report may use this form to submit that Report. Use of this form is not mandatory.
            2. Where an Authorised Firm chooses to use form PRU PIN17 for its Financial Group Capital Adequacy Report, it must do so in accordance with the instructional guidelines in this section.
            3. An Authorised Firm completing this form must present:
            a. in the header portion of the Form the information required by PIN Rule 6.6.2(2)(a), (b) and (c);
            b. at item 1, the Financial Group Capital Resources;
            c. at item 2, the Financial Group Capital Requirement
            4. An Authorised Firm completing this form must present at item 4:
            a. the names of all Authorised Firms and Financial Institutions in the Financial Group; and
            b. where an entity disclosed at (a) is itself the Parent of a Financial Group, the Financial Group Capital Resources of that group at column 1, and the Financial Group Capital Resources Requirement of that group at column 2.
            5. Where an entity is disclosed in accordance with instructional guideline 5(a) is not the Parent of a Financial Group, the entries at columns 1 and 2 of item 4 must be left blank.
            6. An Authorised Firm completing this form must present at item 5:
            a. the names of all Authorised Firms and Financial Institutions meeting the conditions set out at PIN Rule 6.6.2(2)(i);
            b. in column 1, the Capital Resources or Adjusted Capital Resources as applicable of that entity; and
            c. in column 2, the capital requirement of that entity calculated in accordance with PIN Rule 8.3.3.
            7. Where the space on the form is inadequate for the disclosures required at item 4 or item 5, the Authorised Firm completing the form must attach a continuation sheet in the form of PRU PIN17. Separate continuation sheets must be used for disclosures required at items 4 and 5. Continuation sheets must be sequentially numbered and each continuation sheet must be completed in accordance with the Rules applicable to items 4 and 5.
            8. At each of item 4 and item 5, the Authorised Firm completing the form must indicate whether or not a continuation sheet is attached, and if so the number of such continuation sheets.
            9. Form PRU PIN17 must be signed in accordance with PIN Rule 6.6.2(4).

            [Added] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

      • PRU 3 PRU 3 Deleted

        [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.1 PRU 3.1 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.1.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.1.2 PRU 3.1.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.2 PRU 3.2 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.2.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.2.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.2.3 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.2.4 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.2.5 PRU 3.2.5 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.2.6 PRU 3.2.6 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.3 PRU 3.3 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.3.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.3.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.3.3 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.3.4 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.3.5 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.3.6 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.4 PRU 3.4 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.4.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.4.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.4.3 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.4.4 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.4.5 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.4.6 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.4.7 PRU 3.4.7 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.4.8 PRU 3.4.8 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.5 PRU 3.5 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.3 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.4 PRU 3.5.4 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.5 PRU 3.5.5 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.6 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.7 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.8 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.9 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.10 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.11 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.12 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.13 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.14 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.15 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.16 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.17 PRU 3.5.17 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.18 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.19 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.20 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.21 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.22 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.23 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.24 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.25 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.26 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.27 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.5.28 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.6 PRU 3.6 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.6.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.6.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.6.3 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.6.4 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.6.5 PRU 3.6.5 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.6.6 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.6.7 PRU 3.6.7 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.6.8 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.6.9 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.6.10 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.7 PRU 3.7 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.7.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.7.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.7.3 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.7.4 PRU 3.7.4 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.7.5 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.8 PRU 3.8 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.8.1 PRU 3.8.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.8.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.8.3 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.8.4 PRU 3.8.4 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.8.5 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.9 PRU 3.9 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.9.1 PRU 3.9.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.9.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.9.3 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.9.4 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.9.5 PRU 3.9.5 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.9.6 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.10 PRU 3.10 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.10.1 PRU 3.10.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.10.2 PRU 3.10.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.10.3 PRU 3.10.3 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.10.4 PRU 3.10.4 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.10.5 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.10.6 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.10.7 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.11 PRU 3.11 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.11.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.11.2 PRU 3.11.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.12 PRU 3.12 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.12.1 PRU 3.12.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.12.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.12.3 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.12.4 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.12.5 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.13 PRU 3.13 Deleted

          [Deleted] DFSA RM44/2007 (Made 1 June 2007). [VER2/06-07]

          • PRU 3.13.1 PRU 3.13.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.13.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.13.3 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.13.4 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.13.5 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.13.6 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.13.7 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.13.8 PRU 3.13.8 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.14 PRU 3.14 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.14.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.14.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.14.3 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.14.4 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.14.5 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.14.6 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.14.7 PRU 3.14.7 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.14.8 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.14.9 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.14.10 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.14.11 PRU 3.14.11 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.14.12 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.14.13 PRU 3.14.13 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.14.14 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.15 PRU 3.15 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.15.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.15.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.15.3 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.15.4 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

        • PRU 3.16 PRU 3.16 Deleted

          [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.16.1 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

          • PRU 3.16.2 Deleted

            [Deleted] DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]

      • PRU 4 PRU 4 PIN Forms

        Forms PRU PIN1–17

        Purpose of these forms

        An Insurer is required to submit the appropriate forms contained in this chapter in accordance with PIN App10 and PRU chapter 3.

        Notes for completing these forms

        •   All figures must by typed.
        •   The Authorised Firm's name, licence number and reporting period must be identified on each form.
        •   Unless otherwise agreed with the DFSA, the Authorised Firm or Financial Group's reporting currency must be US Dollars.
        •   Authorised Firms are reminded that Instructional guidelines are provided in chapter 3.
        •   When completed, submit the forms in line with SUP chapter 8. You may send applications by post or hand delivered and addressed to your usual supervisory contact.

        The address for postal submission is:

        DUBAI FINANCIAL SERVICES AUTHORITY
        SUPERVISION DEPARTMENT
        LEVEL 13, THE GATE
        PO BOX 75850
        DUBAI, UAE

        Amended from DFSA RM44/2007 (Made 1 June 2007). [VER2/06-07]
        Amended from DFSA GM/2/2007 (Made 5 July 2007). [VER3/08-07]

        • PRU PIN1 Statement of Financial Position

          Please download the Form in PDFPDF format.

        • PRU PIN2 Statement of Calculation of Capital Adequacy

          Please download the Form in PDFPDF format.

        • PRU PIN3 Statement of Financial Performance

          Please download the Form in PDFPDF format.

        • PRU PIN4 Statement of Premiums and Reinsurance Expense

          Please download the Form in PDFPDF format.

        • PRU PIN5 Statement of Claims and Reinsurance and other Recoveries

          Please download the Form in PDFPDF format.

        • PRU PIN6 Statement of Movement in Insurance Provisions

          Please download the Form in PDFPDF format.

        • PRU PIN7 Statement of Investment Income

          Please download the Form in PDFPDF format.

        • PRU PIN8 Statement of Acquisition Expenses

          Please download the Form in PDFPDF format.

        • PRU PIN9 Reconciliation of Financial Statements

          Please download the Form in PDFPDF format.

        • PRU PIN10 Summary Statement of Operations

          Please download the Form in PDFPDF format.

        • PRU PIN11 Reconciliation of Direct to Total Long-Term Insurance Business

          Please download the form in PDFPDF format.

          [Added] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU PIN12 Statement of Direct Long-Term Insurance Business

          Please download the form in PDFPDF format.

          [Added] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU PIN13 Statement of Direct Long-Term Insurance Policy Liabilities

          Please download the form in PDFPDF format.

          [Added] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU PIN14 Statement of assets covering linked Direct Long-Term Insurance Liabilities.

          Please download the form in PDFPDF format.

          [Added] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU PIN15 Statement of assets covering non-linked Direct Long-Term Insurance Liabilities and Minimum Capital Requirement.

          Please download the form in PDFPDF format.

          [Added] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU PIN16 Calculation of Direct Long-Term Insurance element of Long- Term Insurance Component

          Please download the form in PDFPDF format.

          [Added] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

        • PRU PIN17 Statement of Financial Group Capital Adequacy.

          Please download the form in PDFPDF format.

          Please download Appendix 1: Continuation Sheet in PDFPDF format.

          [Added] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]

    • Prudential Returns Module (PRU-EPRS) [VER4/03-15]

      Click herehere to view PDF.

      • Introduction

        Application

        Guidance

        1. This Sourcebook (PRU) is relevant to a Person to whom PIB or PIN applies.
        2. PRU-EPRS Chapter 1 contains instructional guidelines in respect of the forms in PRU-EPRS Chapter 2.
        3. PRU-EPRS Chapter 2 contains the forms referred to in PIB.
        4. PRU-EPRS Chapter 3 contains instructional guidelines in respect of the forms in PRU-EPRS Chapter 4.
        5. PRU-EPRS Chapter 4 contains the forms referred to in PIN.

        Defined terms

        Guidance

        1. Defined terms are identified throughout the forms by the capitalisation of the initial letter of a word or each word of a phrase and are defined in the Glossary module (GLO) of the DFSA's Rulebook. Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning. Within this module the term EPRS has the meaning of the DFSA's electronic prudential reporting system.
        2. Notwithstanding the use of capitalisation for identifying defined terms, capitalisation is also used when reference is made to sections and items in the forms by quoting the title of the section or the name of the item. Take note that some of these words or phases are not also defined terms and, therefore, will not be defined in GLO, PIB or PIN.
        Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

      • PRU-EPRS 1 PRU-EPRS 1 Instructional Guidelines

        • PRU-EPRS 1.1 PRU-EPRS 1.1 Instructional Guidelines — Form B10 — Balance Sheet

          Purpose

          Form B10The Balance sheet is intended to reflect the financial position of an Authorised Firm at the end of the reporting period.

          Applicability

          This form is applicable to Authorised Firms categorised under prudential categories 1, 2, 3A, 3B, 3C and 4. This form is not applicable to Authorised Firms operating through a Branch in the DIFC and Authorised Firms managing Unrestricted PSIAs. Instead, Authorised Firms managing Unrestricted PSIAs should use form B20 and Branches should use form B90 along with the respective appendices.

          Content

          The form is designed to capture information pertaining to the Authorised Firm's on-balance sheet and off-balance sheet assets, liabilities and shareholders' equity at a given point in time.

          Structure of the form in EPRS

          B10 is presented as a single form.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.1 Instructional Guidelines

            Item / Section No. Item / Section Instructional Guidelines
            On Balance sheet items
            B100_0110 Cash in hand & Gold bullion Include, for example, the following amounts:
            •  Notes and coins; and
            •  Long positions in Gold bullion (including Tola Bars).
            B100_0120 Balances with the Central Banks Amounts placed with central banks including funds required to be placed on deposit with central banks and monetary authorities.
            B100_0130 Money market placements Include Deposits on call and other money market placements with banks or other money market participants.
            B100_0140 Treasury bills and other eligible bills Treasury bills issued by national governments or by Central Banks on behalf of governments. Also include bills issued by other entities, which are eligible for rediscounting with the central bank.
            B100_0211 Derivative financial instruments The assets reported here should include, but are not limited to, positions representing the following instruments, recorded at fair value:
            •  Forward and Futures contracts in currencies, interest rates and other financial assets;
            •  Forward rate agreements;
            •  Currency and interest rate swaps;
            •  Credit Derivatives; and
            •  Option contracts on currency, interest rate and other financial assets.
            These Derivatives should include both the exchange-traded and over-the-counter versions.

            Derivatives held for hedging purposes should be included under section B100_030T.
            B100_0212 Other Financial instruments (held for trading) Include investments acquired principally for the purpose of selling or repurchasing them in the near term for short-term-profit-taking. This would include, but not be limited to, debt, equity and hybrid instruments.
            B100_0220 Other financial instruments — Designated at fair value through profit and loss Include all financial instruments which are, upon initial recognition, designated by the entity as financial assets to be measured at fair value through profit or loss other than the trading securities included in B100_0211 and B100_0212.
            B100_0230 Available-for-sale Include non-Derivative financial assets that are designated as available for sale by the firm or that have not been classified under any of the other categories of investments.
            B100_024011 01.2.5 Held-to-maturity Include non-Derivative financial assets with fixed or determinable payments and fixed maturities that the firm has a positive intention and ability to hold to maturity.
            B100_0310 and B100_0320 Derivatives — Hedge accounting -Fair value hedges -Cash flow hedges Include all the Derivative instruments held for the purposes of hedging. Derivatives held for trading should be accounted for under B100_0211.
            B100_040T Loans and advances Under this section include the amounts arising from, for example:
            •  Revolving credit facilities;
            •  Credit card outstanding balances;
            •  Housing loans (both variable and fixed rates);
            •  Term loans (both variable and fixed rates);
            •  The book value of assets leased out under finance lease agreements;
            •  Loans made under conditional hire purchase contracts;
            •  Advances purchased by or assigned to the reporting institutions, factoring or similar arrangements; and
            •  Other loans and advances.
            The items listed above are indicative examples and are notexhaustive universe of items to be reported under this item.

            The amounts reported should be gross of provisions (as specific and general provisions should be reported in the Liabilities section of the balance sheet) and net of interest receivable.
            B100_0510 Murabaha and Istisna'a receivables Report here all receivables relating to Murabaha and Istisna'a contracts. Refer to FAS 2 and FAS 10 of AAOIFI respectively.
            B100_0520 Ijarah assets and receivables Include Ijarah assets net of depreciation/amortisation and Ijarah receivables. Refer to FAS 8 of AAOIFI.
            B100_0530 Mudaraba Financing Financing provided on a Mudaraba basis should be reported here. Refer to FAS 3 of AAOIFI.
            B100_0540 Musharaka Financing Report financing provided on a Musharaka basis. Refer to FAS 4 of AAOIFI. Investment in the Share capital of another company should be reported under "Other investments", under B100_0550.
            B100_0550 Other investments Include any other investments undertaken through Islamic Contracts, including Parallel Istisna'a assets (refer FAS 10 of AAOIFI) and capital provided on Salam contracts (refer FAS 7 AAOIFI).
            B100_0700 Fixed assets Include, for example, the value of the following:
            •  Plant and equipment, the residual value of items leased out under an operating lease (excluding balances relating to named Ijarah assets which should be included separately under B100_0520); and
            •  Own premises being occupied or developed for occupation by the Authorised Firm, property (excluding property acquired / held available for sale which should be included in "Other Assets", B100_0920).
            The amounts reported here should be net of accumulated depreciation and amortisation.
            B100_ 0810 Goodwill Include amounts relating to any purchased goodwill.
            B100_0820 Other intangible assets Included, for example:
            •  Capitalised development costs;
            •  Brand names, trademarks and similar rights; and
            •  Licences and exchange seats which may be held as part of the Authorised Firm's trading requirement.
            Off Balance sheet items
            B100_1010 Direct credit substitutes These relate to the financial requirements imposed by a Counterparty where the risk of loss to the Authorised Firm on the Transaction is equivalent to that arising from a direct claim on the Counterparty. The indicative examples of items to be Included here are
            •  Guarantees of a financial nature to stand behind the current obligations of Clients (e.g. loan guarantees);
            •  Guarantees of leasing operations;
            •  Letters of credit and Stand-by letters of credit to the extent that they do not qualify for inclusion in item B100_1030 "Trade related contingents" below;
            •  Guarantees of a capital nature such as undertakings given to a non-bank financial company which are considered as capital by the appropriate regulatory body. Guarantees given to a company not connected to the reporting institution should be risk weighted at 100% and those for connected companies should be deducted from the reporting institution's capital base; and
            •  Acceptances granted and risk participation in bankers' acceptances. Where the Authorised Firm's own acceptances have been discounted by that institution the nominal value of the bills held should be deducted from the nominal amount of the bills issued under the facility and a corresponding on-balance sheet entry made.
            B100_1020 Transaction related contingents These Exposures relate to the on-going trading activities of a Counterparty where the risk of loss to the Authorised Firm depends on the likelihood of a future event which is independent of the creditworthiness of the Counterparty. They are essentially guarantees that support particular non financial obligations rather than a Client's financial obligations. Include here:
            •  Advance payment guarantees; and
            •  Performance bonds including bid or tender bonds, warranties and indemnities (indemnities given for lost Share certificates or bills of lading and guarantees of the validity of papers rather than of payment under certain conditions should be reported here);
            Stand-by letters of credit relating to a particular contract or to non-financial Transactions (including arrangements backing, inter alia, subcontractors' and supplier's performance, labour and materials, contracts and construction tenders / bids).
            B100_1030 Trade related contingents Report short term self-liquidating trade related items such as documentary letters of credit issued by the Authorised Firm that are collateralised by the underlying shipment i.e. the credit provides for the Authorised Firm to retain title to the underlying shipment. letters of credit issued without provision for the Authorised Firm to retain title to the underlying shipment should be reported under direct credit substitutes above.
            B100_1040 Sale and Repurchase Agreements In this item, report only the sale and repurchase agreements where the asset sold is not reported on the balance sheet. Where the asset is off-balance sheet, the appropriate Counterparty weighting is determined by the issuer of the security and not according to the Counterparty with whom the Transaction has been undertaken.
            B100_1050 Forward Assets Purchases The appropriate Counterparty weighting should be determined by the asset to be purchased and not the Counterparty with whom the contract has been entered into. Include commitments for loans and other on-balance sheet items with definitive drawdown schedules. Exclude foreign currency spot Deposits with value date of up to two business days after trade date.
            B100_1060 Forward Deposits Placed Relates to agreements between two parties whereby one will pay and the other receive an agreed rate of interest on a Deposit to be placed by one with the other at some pre-determined rate in the future. Exclude foreign currency spot Deposits with value date of up to two business days after trade date.
            B100_1070 Uncalled partly- paid shares and securities Include under this item calls with specific dates. If there is no specific date for a call, the item should be included as a long term commitment under item no. B100_1122 "Other Commitments".
            B100_1080 NIF's and RUF's Note issuance and revolving underwriting facilities should include the Authorised Firm's underwriting obligations of any maturity. Where the facility has been drawn down by the borrower and the notes are held by someone other than the Authorised Firm, the underwriting obligation should continue to be reported at the nominal amount.
            B100_1090 Endorsement of Bills These should be reported at the full nominal amount, less any amount for bills which the Authorised Firm currently holds but had previously endorsed.
            B100_1111 & B100 1122 Other commitments All other undrawn commitments are to be reported here, divided into commitments of maturity under and over one year.
            B100_1110 Assets funded by restricted PSIAs Total amount of assets managed under Restricted PSIA by the Authorised Firm.
            B100_210T Deposits In this section, identify and report Deposits due to banks and Financial Institutions in item no B100_2110. All other Deposits are to be reported as Deposits due to other Clients — item no B100_2120.
            B100_2310 Provisions for bad and doubtful debts All specific and general provisions in respect of all assets, including loans and advances and other receivables should be reported under this section. Exclude provisions against Islamic Contracts which should be reported in item no B100_2640.
            B100_2400 Derivative financial instruments — held for trading The indicative examples of liabilities to be reported under this item include, but are not limited to, liabilities arising out of positions representing the following instruments, recorded at fair value:
            •  Forward and Futures contracts in currencies, interest rates and other financial assets;
            •  Forward rate agreements;
            •  Currency and interest rate swaps;
            •  Credit Derivatives; and
            •  Option contracts on currency, interest rate and other financial assets.
            The term includes both exchange-traded and over-the-counter Derivatives. Also include under this item other trading liabilities.
            B100_260T Liabilities arising from Islamic Contracts Liabilities arising from Islamic Contracts include advances received against Salam contracts (defined in Para 3 and 19 of FAS 7 issued by AAOIFI and Ijarah investment payables (refer to FAS 8 of AAOIFI). Report any provisions against Islamic Contracts in item B100_2640.
            B100_3100 Liabilities relating to Restricted PSIA Include under this section, off-balance sheet liabilities related to restricted PSIA investments.
            B100_4110 Ordinary Shares Include in respect of this item the amount of ordinary Share capital issued, reported at nominal paid up value. Do not report the unpaid element of partly paid Shares or authorised but unissued Share capital. Authorised Firms should exclude holdings in their own Shares.
            B100_4120 Preference Shares Report the value of the preference Shares issued, which rank above ordinary Shares in the event of liquidation.
            B100_4130 Partnership Capital and other Include here other types of equity which have the same properties of permanent Share capital. This could include partnership capital accounts, capital items for unincorporated associations etc.
            B100_4200 Share premium account Any amounts received by the Authorised Firm in excess of the nominal paid up value.
            B100_4310 Asset revaluation reserve Include in this item, reserves arising from the revaluation of assets for which it has been necessary to set up this reserve.
            B100_4320 Goodwill reserve Include reserves arising from purchased goodwill or other situations for which it has been necessary to set up this or any other reserve.
            B100_4330 Investment Risk reserve Prudential category 5 Authorised Firms should include in respect of this item the amount that is appropriated out of the income of investment account holders, after allocating the Mudarib share, in order to meet future losses attributable to investment account holders. Refer also to FAS 11 of AAOIFI.
            B100_4340 Profit Equalisation Reserve Prudential category 5 Authorised Firms should include in respect of this item the amount appropriated out of the Mudaraba income, before allocating the Mudarib share, in order to maintain a certain level of investment returns for investment account holders and to increase owners' equity. Refer also to FAS 11 of AAOIFI.
            B100_4350 General Reserve Include here all the reserves which have not been reported under any of the above categories in the section "Reserves" — B100_430T.
            B100_430T Total Reserves This is calculated by EPRS and is calculated by adding the items. B100_4310 + B100_4320 + B100_4330 + B100_4340+ B100_4350.
            B100_4500 Minority Interests Report amounts attributable to minority shareholders from the overall equity figure.
            B100_400T Total shareholders' equity This is calculated by EPRS as the sum of items B100_430T, B100_410T, B100_4200 and B100_4400 less B100_4500.
            B100_500T Total liabilities and shareholders' equity This is calculated by the EPRS as the sum of items B100_200T and B100_400T.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.2 PRU-EPRS 1.2 Instructional Guidelines — Form B10 — Appendix 1 — Details of Non-Trading Book Assets

          Purpose

          Form B10A1 is intended to capture the information regarding the calculation of risk weighted assets ("RWA") in the Non-Trading Book of an Authorised Firm.

          Applicability

          This form is applicable to Authorised Firms which are Domestic Firms, and are categorised under prudential categories 1, 2, and 3A. This form is not applicable to Authorised Firms operating through a Branch in the DIFC.

          Content

          The form is designed to capture the details regarding the risk weighted assets on the Non-Trading Book of an Authorised Firm and calculate the applicable capital charge.

          Structure of the form in EPRS

          B10A1 consists of following three linked forms

          On Balance Sheet items RWA;
          Off Balance sheet items RWA; and
          • Securitisation Exposures RWA.

          Accordingly, all on-balance sheet items should be analysed in the first linked form, off balance sheet items in the second linked form, and Securitisation Exposures in the third linked form.

          The main form has the links to the three linked forms and also displays the total RWA calculated by each of the linked forms. The main form also calculates the total Non-Trading Book Risk Weighted Asset (NTB RWA) and the CRCOM applicable to the Authorised Firm.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.2 Instructional Guidelines

            1. In order to complete this Form Authorised Firms should refer to the detailed Rules and guidance set out in PIB Chapter 4 and Appendix 4 to understand the rationale behind risk weighting of assets in the NTB and the relevant Rules for risk weighting.
            2. Form B10A1 is a simple form requiring the Authorised Firm to report its total on-balance sheet Exposures 'E' into each of the Credit Risk Weight % buckets. The Form will automatically calculate the RWA. Firms should complete the categorisation of Credit Risk Exposures in accordance with PIB 4.10 before reporting the total Exposures 'E' in the second column of the Form.
            3. PIB Section A4.10 contains detailed Rules on classifying Credit Risk Exposures ("CR Exposures") and section 4.12 contains detailed Rules for the application of Risk Weights for each category of CR Exposure. If an Authorised Firm is uncertain as to where to classify a particular Exposure, it should contact the DFSA for guidance.
            4. Detailed guidance is provided at PIB section 4.9 in order to calculate the value of E to be reported in this Form. E should be reported net of any individual impairment and incorporating any changes required to incorporate the effect of acceptable Credit Risk mitigations as set out in PIB section 4.13.
            5. On-balance sheet items Form: Analyse each of the on-balance sheet items and classify them into various risk weight categories as per the applicable PIB Rules referred above. The applicable risk weight categories are listed for each of the asset groups at PIB 4.12. The total value of assets classified into a particular risk weight category should be entered in the second column — titled "Exposure - E", against the respective risk weight percentages.
            6. Off-balance sheet items Form: The second linked form which deals with off-balance sheet items provides for entry of the aggregate amount of off-balance sheet items classified into categories representing a specific Credit Conversion Factor ("CCF"). Each CCF is dealt with in a separate table. All the off-balance sheet items should be analysed and classified on the basis of the CCF applicable to them in accordance with PIB A4.2. These are then analysed and classified into the various risk weights as per the Rules in PIB Section 4.12 and in line with the guidance provided above. The aggregate Non-Trading Book amount for that particular CCF is then classified in to those pertaining to different risk weight categories. The RWA is calculated automatically by the form.
            7. Securitisation Exposure Form – this form has two further linked forms. The first Form sets out details of the Securitisation Exposures ("SE"). Details of the calculation of SE are set out in detail in PIB 4.8.4. Authorised Firms are required to report total Exposures (SE) in the second column corresponding to the appropriate risk weight as determined by PIB section 4.14.
            8. The second linked form calculates the RWA for securitisations with early amortisation provisions. This form has purposely been left in free form as the Authorised Firm will be required to manually calculate both its investors interest and the applicable RWA. The applicable Rules for the calculation of these provisions are set out at PIB section 4.14.51.
            9. Capital charge on the Non-Trading Book assets (i.e. CRCOM) is derived by multiplying the sum of risk weighted assets from the Non-Trading Book by 10%. The main form of B10A1 indicates the total Non-Trading Book risk weighted assets and the resultant CRCOM. CRCOM thus calculated is used in Form B60 for the purposes of calculating capital adequacy.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.3 PRU-EPRS 1.3 Instructional Guidelines — Form B10 — Appendix 2 — Details of Counterparty Risk Exposures

          Purpose

          Form B10A2 is intended to capture the details regarding the Counterparty Risk of an Authorised Firm.

          Applicability

          This form is applicable to Authorised Firms which are Domestic Firms, and are categorised under prudential categories 1, 2, and 3A. This form is not applicable to Authorised Firms operating through a Branch in the DIFC.

          Content

          The form is designed to capture the data on Counterparty Risk Exposures arising from Unsettled Transactions, OTC Derivative trades, Securities Financing Transactions and Deferred Settlement Transactions included in the trading and Non-Trading Book of an Authorised Firm. The form enables the calculation of amount at risk, weighted amount and the applicable Capital Requirement for Counterparty Risk.

          Structure of the form in EPRS

          B10A2 consists of four linked forms covering the main sections of this form dealing with "Counterparty Risk on Unsettled Transactions RWA", "OTC Derivatives RWA”, ”Securities Financing Transactions RWA" and "Deferred Settlement Transactions RWA". In each of the linked forms, “Exposure” and other information required are to be provided in the respective columns and the weighted amounts are calculated as per the applicable Risk Weight and multiplier, where it applies. The total Risk Weighted Assets for Counterparty Risk reported in the linked forms will be displayed as a result on the main form.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.3 Instructional Guidelines

            1. The details for calculating the Exposures on these risks are set out in PIB Sections A4.6 — A4.8 of the DFSA Rulebook.

            2. The total Capital Requirement for Counterparty Risk is the sum of the capital charges arising from Unsettled Transactions, OTC Derivatives, securities financing transactions, deferred settlement transactions. The total Capital Requirement for Counterparty Risk calculated in this Appendix will be summed up with the Capital Requirement calculated in appendix B10A1 and reflected under the Risk Based Capital Requirement in Form B60.

            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.4 PRU-EPRS 1.4 Instructional Guidelines — Form B10 — Appendix 3 — Market Risk in the Trading Book

          Purpose

          Form B10A3 is intended to capture information on capital charges applicable to market risk Exposures in the Trading Book of an Authorised Firm.

          Applicability

          This form is applicable to Authorised Firms which are Domestic Firms categorised under prudential categories 1 and 2. This form is not applicable to the Authorised Firms operating through a Branch in the DIFC, Islamic Financial Institutions IFIs and Authorised Firms managing PSIAs.

          Content

          The form is designed to enable Authorised Firms to report the capital charges applicable to the various elements of market risk Exposures in their Trading Book and the resultant capital charge for market risk i.e. Market Risk Capital Requirement.

          Structure of the form in EPRS

          B10A3 is presented as a single form in the EPRS.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.4 Instructional Guidelines

            Item No. Item Instructional Guidelines
            B103_1100, B103_1200, B103_1400, B103_1500, B103_1600 B103_1700 Various components of Market Risk Capital Requirement Detailed Rules and Guidance in respect of the Market Risk Capital Requirement and each of its components are contained in chapter 5 of the PIB module.

            Total of Market Risk Capital Requirement reflected in this form is transferred to form B60 and shown in B600_2630 – Market Risk Capital Requirement.

            The DFSA acknowledges that even for Authorised Firms with relatively straightforward Exposures on the trading books, the underlying calculations for various market risks can be detailed and complex. The DFSA requires Authorised Firms to report only the summary capital charge for various elements of market risk recognised in the Rules under PIB Chapter 5 of the DFSA Rulebook. However, the DFSA expects Authorised Firms to maintain detailed audit trails that substantiate the capital charges reported in this form. Authorised Firms are also reminded that they should make this information available for review as and when required.

            In the event of any uncertainty, Authorised Firms are advised to contact their supervisor for clarity. Authorised Firms are expected to review the material set out Appendix 5 of the PIB module with care given the multiplicity of methods that can be used to calculate the capital requirement on Interest Rate Risk, Equity Risk, FX Risk, Commodities Risk, Options Risk, Securities Underwriting Risk and Collective Investment Fund Risk.

            Where Authorised Firms intend to use internally developed market risk models for the purposes of valuing positions and calculating capital requirements, particular attention is drawn to PIB Section A5.9 and the qualitative criteria.

            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.5 PRU-EPRS 1.5 Instructional Guidelines — Form B10 — Appendix 4 — Calculation of the DCR

          Purpose

          Form B10A4 is intended to reflect the data on different elements of an Authorised Firm's Displaced Commercial Risk (DCR) Capital Requirement.

          Applicability

          This form is applicable to Authorised Firms falling under prudential category 5. Note that the DCR only applies in respect of Unrestricted PSIA accounts.

          Content

          The form is designed to capture the credit and market risk capital requirements pertaining to the assets of both restricted and Unrestricted PSIA accounts and calculate the Displaced Commercial Risk capital charge in respect of the PSIAs managed by an Authorised Firm as per applicable PIB Rules.

          Structure of the form in EPRS

          The form does no allow any manual data entry. The values required for completion of this form are directly sourced from the detailed appendices relating to CRCOM, Counterparty Risk Capital Requirement and Market Risk Capital Requirement pertaining to the restricted and Unrestricted PSIA businesses (Appendices B20A2, B20A3, B20A5, B20A6 and B20A7 respectively) that precede this form. So, Authorised Firms are advised to complete the appendices referred above before attempting to complete this form.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.5 Instructional Guidelines

            DCR is defined in Chapter 5 of IFR Module. Authorised Firms are advised to refer to that Module to understand why DCR arises and how it is calculated. Authorised Firms are reminded that DCR only applies in respect of Unrestricted PSIA assets. As noted earlier, this Appendix aggregates totals from the detailed appendices that precede this form.

            Item No. Item Instructional Guidelines
            B104_010T PSIACOM Credit PSIACOM Credit comprised CRCOM and CPCOM calculated on PSIA assets. It is the sum of item nos. [B104_0110 and B104_0120] below.
            B104_0110 CPCOM CPCOM for PSIAU comes from Form B20A5.
            B104_0120 CRCOM CRCOM for PSIAU comes from Form B20A2.
            B104_ 025T PSIACOM Market The figures for PSIACOM Market are all derived from Form B20A7.
            B104_000T Calculation of DCR DCR represents (PSIACOM Credit +PSIACOM Market) * 35%. This figure is transferred to Form B60, item no. B104_000T.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.6 PRU-EPRS 1.6 Instructional Guidelines — Form B20 — Balance Sheet — Islamic Financial Institutions

          Purpose

          Form B20 — Balance sheet is intended to capture the financial position of an Islamic Financial Institution ("IFI") at the end of the reporting period.

          Applicability

          This form is applicable to Authorised Firms categorised under prudential category 5.

          Content

          The form is designed to capture information pertaining to the Authorised Firm's on-balance sheet and off-balance sheet assets, liabilities and shareholders' equity at a given point in time. The form enables reporting of assets and liabilities pertaining to the Restricted and Unrestricted PSIA accounts separately, apart from presenting the balance sheet of the IFI.

          Structure of the form in EPRS

          The form is split into two linked forms. The first linked form is intended to capture information pertaining to assets and liabilities on the Authorised Firm's own balance sheet which are its self-financed business and the assets and liabilities of Unrestricted PSIAs managed by the Authorised Firm. The second linked form is designed to capture information pertaining to the assets of Restricted PSIAs managed by the Authorised Firm.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.6 Instructional Guidelines

            The form enables effectively three sets of returns on balance sheet information for Authorised Firms using this form. Whilst AAOIFI permits Unrestricted PSIA assets to be commingled with self financed assets for balance sheet reporting purposes, the need to maintain separate records for each asset class is paramount. Restricted PSIA assets and liabilities cannot be commingled with the former and should be reported off balance sheet. In the event of any uncertainty, Authorised Firms are required to consult with the DFSA to obtain the necessary clarity.

            Item No Item Instructional Guidelines
            B100_0110 Cash in hand & Gold bullion Include, for example, the following amounts:
            •  Notes and coins; and
            •  Long positions in Gold bullion (including Tola Bars).
            B100_0120 Balances with the Central Banks Amounts placed with central banks including funds required to be placed on Deposit with central banks and monetary authorities.
            B100_0130 Money market placements Include Deposits at call and other money market placements with banks or other money market participants.
            B100_0140 Treasury bills and other eligible bills Treasury bills issued by the national governments or by the Central banks on behalf of the governments. Also include bills issued by other entities, which are eligible for rediscounting with the central bank.
            B100_0211 Derivative financial instruments The assets reported here should include, but are not limited to, positions representing the following instruments, recorded at fair value:
            •  Forward and Futures contracts in currencies, interest rates and other financial assets;
            •  Forward rate agreements;
            •  Currency and interest rate swaps;
            •  Credit Derivatives; and
            •  Option contracts on currency, interest rate and other financial assets.
            These Derivatives include both the exchange-traded and over-the-counter versions. Derivatives held for hedging purposes should be included under section B100_030T.
            B100_0212 Other financial instruments (held for trading) Include investments acquired principally for the purpose of selling or repurchasing them in the near term for short-term-profit-taking. This would include but not limited to, debt, equity and hybrid instruments
            B100_0220 Other financial instruments designated at fair value through profit and loss Include all financial instruments which are, upon initial recognition, designated by the entity as financial assets to be measured at fair value through profit or loss other than the trading securities included in B100_0211 and B100_0212.
            B100_0230 Available-for-sale Include non-Derivative financial assets that are designated as available for sale by the firm or that have not been classified under any of the other categories of investments.
            B100_0240 Held-to-maturity Include non-Derivative financial assets with fixed or determinable payments and fixed maturity that the firm has positive intention and ability to hold to maturity.
            B100_040T Loans and advances Under this section include the amounts arising from, for example:
            •  Revolving credit facilities;
            •  Credit cards outstanding balances;
            •  Housing loans (both variable and fixed rates);
            •  Term loans (both variable and fixed rates);
            •  The book value of assets leased out under finance lease agreements;
            •  Loans made under conditional hire purchase contracts;
            •  Advances purchased by or assigned to the reporting institutions, factoring or similar arrangements; and
            •  Other loans and advances.
            The items listed above are indicative examples and are not exhaustive universe of items to be reported under this item.

            The amounts reported should be gross of provisions (as specific and general provisions should be reported in the liabilities section of the balance sheet) and net of interest receivable.
            B100_0510 Murabaha and Istisna'a receivables Report here all receivables relating to Murabaha and Istisna'a contracts. Refer to FAS 2 and FAS 10 of AAOIFI respectively.
            B100_0520 Ijarah assets and receivables Include Ijarah assets net of depreciation / amortisation and Ijarah receivables. Refer to FAS 8 of AAOIFI.
            B100_0530 Mudaraba Financing Financing provided on a Mudaraba basis should be reported here. Refer to FAS 3 of AAOIFI.
            B100_0540 Musharaka Financing Report financing provided on a Musharaka basis. Refer to FAS 4 of AAOIFI. Investment in the Share capital of another company should be reported under "Other investments", under B100_0550.
            B200_0550 Salam Financing provided on Salam contract should be reported here. Refer to FAS 7 of AAOIFI.
            B200_0560 Parallel Istisna'a Parallel Istisna'a receivables / assets should be reported here. Refer to FAS 10 of AAOFI.
            B100_0550 Other investments Include any other investments undertaken through Islamic Contracts, including Parallel Istisna'a assets (refer FAS 10 of AAOIFI) and capital provided on Salam contracts (refer FAS 7 AAOIFI).
            B100_0700 Fixed assets Include, for example, the value of the following:
            •  Plant and equipment, the residual value of items leased out under an operating lease (excluding balances relating to named Ijarah assets which should be included separately under B100_0520); and
            •  Own premises being occupied or developed for occupation by the Authorised Firm, and property (excluding property acquired / held available for sale which should be included in "Other Assets", B100_0920).
            The amounts reported here should be net of accumulated depreciation and amortisation.
            B100_0810 Goodwill Include amounts relating to any purchased goodwill.
            B100_0820 Other intangible assets Include, for example:
            •  Capitalised development costs;
            •  Brand names, trademarks and similar rights; and
            •  Licences and exchange seats which may be held as part of the Authorised Firm's trading requirement.
            Off Balance sheet items
            B100_1010 Direct credit substitutes These relate to the financial requirements of Counterparty where the risk of loss to the Authorised Firm on the Transaction is equivalent to that arising from a direct claim on the Counterparty. The indicative examples of items to be Included here are
            •  Guarantees of a financial nature to stand behind the current obligations of Clients (e.g. loan guarantees);
            •  Guarantees of leasing operations;
            •  Letters of credit and Stand-by letters of credit to the extent that they do not qualify for inclusion in item B100_1030 "Trade related contingents" below;
            •  Guarantees of a capital nature such as undertakings given to a non-bank financial company which are considered as capital by the appropriate regulatory body. Guarantees given to a company not connected to the reporting institution should be risk weighted at 100% and those for connected companies should be deducted from the reporting institution's capital base; and
            •  Acceptances granted and risk participation in bankers' acceptances. Where the Authorised Firm's own acceptances have been discounted by that institution the nominal value of the bills held should be deducted from the nominal amount of the bills issued under the facility and a corresponding on-balance sheet entry made.
            B100_1020 Transaction related contingents These Exposures relate to the on-going trading activities of a Counterparty where the risk of loss to the Authorised Firm depends on the likelihood of a future event which is independent of the creditworthiness of the Counterparty. They are essentially guarantees that support particular non financial obligations rather than a Client's financial obligations. Include here:
            •  Advance payment guarantees; and
            •  Performance bonds including bid or tender bonds, warranties and indemnities (indemnities given for lost Share certificates or bills of lading and guarantees of the validity of papers rather than of payment under certain conditions should be reported here).
            Stand-by letters of credit relating to a particular contract or to non-financial transactions (including arrangements backing, inter alia, subcontractors' and supplier's performance, labour and materials, contracts and construction tenders / bids).
            B100_1030 Trade related contingents Report short term self-liquidating trade-related items such as documentary letters of credit issued by the Authorised Firm that are collateralised by the underlying shipment i.e. the credit provides for the Authorised Firm to retain title to the underlying shipment. letters of credit issued without provision for the Authorised Firm to retain title to the underlying shipment should be reported under direct credit substitutes above.
            B100_1040 Sale and Repurchase Agreements In this item, report only the sale and repurchase agreements where the asset sold is not reported on the balance sheet. Where the asset is off-balance sheet, the appropriate Counterparty weighting is determined by the issuer of the security and not according to the Counterparty with whom the Transaction has been undertaken.
            B100_1050 Forward Assets Purchases The appropriate Counterparty weighting should be determined by the asset to be purchased and not the Counterparty with whom the contract has been entered into. Include commitments for loans and other on-balance sheet items with definitive drawdown schedules. Exclude foreign currency spot Deposits with value date of up to two business days after trade date.
            B100_1060 Forward Deposits Placed Relates to agreements between two parties whereby one will pay and the other receive an agreed rate of interest on a Deposit to be placed by one with the other at some pre-determined rate in the future. Exclude foreign currency spot Deposits with value date of up to two business days after trade date.
            B100_1070 Uncalled partly-paid shares and securities Only include here if there is a specific date for a call. If there is no specific date for a call, the item should be included as a long term commitment under item no. B100_1122 "Other Commitments".
            B100_1080 NIF's and RUF's Note issuance and revolving underwriting facilities should include the Authorised Firm's underwriting obligations of any maturity. Where the facility has been drawn down by the borrower and the notes are held by someone other than the Authorised Firm, the underwriting obligation should continue to be reported at the nominal amount.
            B100_1090 Endorsement of Bills These should be reported at the full nominal amount, less any amount for bills which the Authorised Firm currently holds but had previously endorsed.
            B100_1111 & B100_1122 Other Commitments All other undrawn commitments are reportable here, divided into commitments under and over one year.
            B100_000T

            to

            B100_100T
            Assets funded by restricted PSIAs The methodology for calculating Exposures financed by PSIAs are, in principle, no different to calculating Exposures for a reporting institution's self-financed assets. All the Instructional Guidelines above apply in their entirety unless stated otherwise.
            B100_210T Deposits In this section, identify and report Deposits due to banks and Financial Institutions in item no B100_2110. All other Deposits are to be reported as Deposits due to other Clients — item no B100_2120.
            B100_230T Provisions All specific and general provisions in respect of all assets, including loans and advances and other receivables should be reported under this section. Exclude provisions against Islamic Contracts which should be reported in item no B100_2640.
            B100_260T Liabilities arising from Islamic Contracts Liabilities arising from Islamic Contracts include advances received against Salam contracts (defined in Para 3 and 19 of FAS 7 issued by AAOIFI and Ijarah investment payables (refer to FAS 8 of AAOIFI). Report any provisions against Islamic Contracts in item B100_2640.
            Off balance sheet liabilities Liabilities relating to Restricted PSIA Include under this section, off-balance sheet liabilities related to restricted PSIA investments.
            B100_4110 Ordinary Shares Include in respect of this item the amount of ordinary Share capital issued, reported at nominal paid up value. Do not report the unpaid element of partly paid shares or authorised but unissued Share capital. Authorised Firms should exclude holdings in their own shares.
            B100_4120 Preference Shares Report the value of the preference shares issued, which rank above ordinary shares in the event of liquidation.
            B100_4130 Partnership Capital and other Include here other types of equity which have the same properties of permanent Share capital. This could include partnership capital accounts, capital items for unincorporated associations etc.
            B100_4200 Share premium account Any amounts received by the Authorised Firm in excess of the nominal paid up value.
            B100_4310 Asset revaluation reserve Include in this item, reserves arising from the revaluation of assets for which it has been necessary to set up this reserve.
            B100_4320 Goodwill reserve Include reserves arising from purchased goodwill or other situations for which it has been necessary to set up this or any other reserve.
            B100_4330 Investment Risk reserve Prudential category 5 Authorised Firms should include in respect of this item the amount that is appropriated out of the income of investment account holders, after allocating the Mudarib share, in order to meet future losses attributable to investment account holders. Refer also to FAS 11 of AAOIFI.
            B100_4340 Profit Equalisation reserve Category 5 Authorised Firms should include in respect of this item the amount appropriated out of the Mudaraba income, before allocating the Mudarib share, in order to maintain a certain level of investment returns for investment account holders and to increase owners' equity. Refer also to FAS 11 of AAOIFI.
            B100_430T Total Reserves This is calculated by the EPRS and is calculated by adding the items. B100_4310 + B100_4320 + B100_4330 + B100_4340+ B100_4350.
            B100_4500 Minority Interests Report amounts attributable to minority shareholders from the overall equity figure.
            B100_400T Total shareholders' equity This is calculated by the EPRS as the sum of items B100_430T, B100_410T, B100_4200 and B100_4400 less B100_4500.
            B100_500T Total liabilities and shareholders' equity This is calculated by the EPRS as the sum of items B100_200T and B100_400T.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.7 PRU-EPRS 1.7 Instructional Guidelines — Form B20 — Appendix 1 — Details of Non-Trading Book Assets — self-financed

          Purpose

          Form B20A1 is intended to capture the details regarding the calculation of risk weighted assets in respect of the self-financed assets in the Non-Trading Book ("NTB") of an Authorised Firm.

          Applicability

          This form is applicable to Authorised Firms which are Domestic Firms and are categorised under prudential category 5. It is also applicable to Authorised Firms which are Domestic Firms classified under prudential category 1 and involved in managing PSIAs within an Islamic Window.

          Content

          The form is designed to capture the details regarding the risk weighted assets on the Non-Trading Book and the applicable capital charge.

          Structure of the form in EPRS

          B20A1 consists of following three linked forms

          On Balance Sheet items RWA;

          Off Balance sheet items RWA; and

          • Securitisation Exposures RWA.

          Accordingly, all on balance sheet items should be analysed in the first linked form, off balance sheet items in the second linked form, and securitisation Exposures in the third linked form.

          The main form has the links to the three linked forms and also displays the total RWA calculated by each of the linked forms. The main form also calculates the total Non-Trading Book Risk Weighted Asset (NTB RWA) and the CRCOM applicable to the Authorised Firm.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.7 Instructional Guidelines

            In order to complete this form

            1. Authorised Firms should refer to the detailed Rules and guidance set out in PIB Chapter 4 and Appendix 4 to understand the rationale behind risk weighting of assets in the NTB and the relevant Rules for risk weighting.
            2. Form B10A1 is a simple form requiring the Authorised Firm to report its total on-balance sheet Exposures 'E' into each of the Credit Risk Weight % buckets. The form will automatically calculate the RWA. Firms should complete the categorisation of Credit Risk Exposures in accordance with PIB 4.10 before reporting the total Exposures 'E' in the second column of the form.
            3. PIB Section A4.10 contains detailed Rules on classifying Credit Risk Exposures ("CR Exposures") and Section 4.12 contains detailed Rules for the application of Risk Weights for each category of CR Exposure. If an Authorised Firm is uncertain as to where to classify a particular Exposure, it should contact the DFSA to obtain this clarity.
            4. Detailed guidance is provided at PIB section 4.9 in order to calculate the value of E to be reported in this form. E should be reported net of any individual impairment and incorporating any changes required to incorporate the effect of acceptable Credit Risk mitigations as set out in PIB section 4.13.
            5. On balance sheet items form: Analyse each of the on-balance sheet items and classify them into various risk weight categories as per applicable PIB Rules referred to above. The applicable risk weight categories are listed for each of the asset groups in PIB 4.12. The total value of assets classified into a particular risk weight category should be entered in the second column — titled "Exposure - E", against the respective risk weight percentages.
            6. Off-balance sheet items form: The second linked form which deals with off-balance sheet items provides for entry of the aggregate amount of off-balance sheet items classified into categories representing a specific Credit Conversion Factor ("CCF"). Each CCF is dealt with in a separate table. All the off-balance sheet items should be analysed and classified on the basis of the CCF applicable to them in accordance with PIBA4.2. These are then analysed and classified into various risk weights as per Rules in PIB Section 4.12 and in line with the guidance provided above. The aggregate NTB amount for that particular CCF is then classified in to those pertaining to different risk weight categories. The RWA is calculated automatically by the form.
            7. Securitisation Exposure form — this form has two further linked forms. The first form sets out details of the Securitisation Exposures ("SE"). Details of the calculation of SE are set out in detail in PIB 4.8.4. Authorised Firms are required to report total SE in the 'Exposure —E' column corresponding to the appropriate risk weight as determined by PIB section 4.14.
            8. The second linked form calculates the RWA for securitisations with early amortisation provisions. This form has purposely been left in free form as the Authorised Firm will be required to manually calculate both its investors interest and the applicable RWA. The applicable Rules for the calculation of these provisions are set out at PIB section 4.14.51.
            9. Capital Requirement for Non-Trading Book Assets (i.e. CRCOM) is derived by multiplying the sum of Risk Weighted Assets from the NTB by 10%. The main form of B10A1 indicates the total Non-Trading Book risk weighted assets and the resultant CRCOM. CRCOM thus calculated is used in Form B60 for the purposes of calculating capital adequacy.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.8 PRU-EPRS 1.8 Instructional Guidelines — Form B20 — Appendix 2 — Details of Non-Trading Book Assets — PSIA Unrestricted ("PSIAU ").

          Purpose

          Form B20A2 is intended to capture the details regarding the calculation of risk weighted assets in respect of the PSIAU assets in the Non-Trading Book of an Authorised Firm.

          Applicability

          This form is applicable to Authorised Firms which are Domestic Firms and are categorised under prudential category 5. It is also applicable to Authorised Firms which are Domestic Firms classified under prudential category 1 and involved in managing PSIAs within an Islamic Window.

          Content

          The form is designed to capture the details regarding the risk weighted assets on the Non-Trading Book and the applicable capital charge which is essential for calculation of the DCR capital requirement.

          Structure of the form in EPRS

          This form is identical to the form B20A1 in EPRS.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.8 Instructional Guidelines

            1. All the Instructional Guidelines provided for form B20A1 are applicable to this form also. However, this form is meant only for Exposures relating to assets funded by PSIAU investments.
            2. Note that the Capital Requirement for Non-Trading Bool assets figure as calculated in this form is transferred to Form B20A8, item no B104_0120.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.9 PRU-EPRS 1.9 Instructional Guidelines — Form B20 — Appendix 3 — Details of Non-Trading Book Assets — PSIA Restricted ("PSIAR")

          Purpose

          Form B20A3 is intended to capture the details regarding the calculation of risk weighted assets in respect of the PSIAR assets in the Non-Trading Book of an Authorised Firm.

          Applicability

          This form is applicable to Authorised Firms which are Domestic Firms and are categorised under prudential category 5. It is also applicable to Authorised Firms which are Domestic Firms classified under prudential category 1 who are managing PSIAs within an Islamic Window.

          Content

          The form is designed to capture the details regarding the risk weighted assets on the Non-Trading Book and the applicable capital charge which is essential for calculation of the DCR capital requirement.

          Structure of the form in EPRS

          This form is identical to the form B20A1 in EPRS.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.9 Instructional Guidelines

            1. All the Instructional Guidelines provided for form B20A1 are applicable to this form also. However, this form is meant only for Exposures relating to assets funded by the PSIAR investments.
            2. Note that the Capital Requirement for Non-Trading Book Assets figure as calculated in this form is transferred to Form B20A8, item no B104_0120.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.10 PRU-EPRS 1.10 Instructional Guidelines — Form B20 — Appendix 4 — Details of Counterparty Risk Exposures — Self-financed

          Purpose

          Form B20A4 is intended to capture the details regarding Counterparty Risk Exposures of an Authorised Firm, particularly those arising from Exposures self-financed by the firm.

          Applicability

          This form is applicable to Authorised Firms which are Domestic Firms and are categorised under prudential category 5. It is also applicable to Authorised Firms which are Domestic Firms classified under prudential category 1 and involved in managing PSIAs within an Islamic Window.

          Content

          The form is designed to capture the data on Counterparty Risk Exposures arising from Unsettled Transactions, OTC Derivative trades, securities financing transactions and deferred settlement transactions included in the Trading Book and Non-Trading Book of an Authorised Firm. The form enables the calculation of amount at risk, weighted amount and the applicable Capital Requirement for Counterparty Risk.

          Structure of the form in EPRS

          B20A4 consists of four linked forms covering the four main sections of this form dealing with "Counterparty Risk on Unsettled Transactions RWA", "OTC Derivatives RWA", Securities Financing Transactions RWA and "Deferred Settlement Transactions RWA". In each of the linked forms, the amount of "Exposure" and other information required are to be provided in the respective columns and the weighted amounts are calculated as per the applicable risk weights and multiplier where it applies. The total Risk Weighted Assets for Counterparty Risk reported in the linked forms will be displayed as a result on the main form.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.10 Instructional Guidelines

            1. This form is restricted to calculating the risk weighted capital charge for self financed assets only. The details for calculating the Exposures on these risks are set out in PIB Sections A4.6 — A4.8 of the DFSA Rulebook.
            2. The total Capital Requirement for Counterparty Risk is the sum of the capital charges arising from Unsettled Transactions, OTC Derivatives, Securities Financing Transactions, Deferred Settlement Transactions. The total Capital Requirement for Counterparty Risk calculated in this Appendix will be summed up with the Capital Requirement calculated in appendix B10A1 and reflected under the Risk Based Capital Requirement in Form B60.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.11 PRU-EPRS 1.11 Instructional Guidelines — Form B20 — Appendix 5 — Details of Counterparty Risk Exposures – PSIA Unrestricted ("PSIAU")

          Purpose

          Form B20A5 is intended to capture the details regarding the Counterparty Risk Exposures of an Authorised Firm, particularly those arising from Exposures funded by the PSIAU funds.

          Applicability

          This form is applicable to Authorised Firms which are Domestic Firms and are categorised under prudential category 5. It is also applicable to Authorised Firms which are Domestic Firms classified under prudential category 1 and involved in managing PSIAs within an Islamic Window.

          Content & Structure of the form in EPRS

          This form is identical to the form B20A4 in respect of its content and structure in EPRS.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.11 Instructional Guidelines

            All the Instructional Guidelines provided for form B20A4 are applicable to this form also. However, this form is meant only for Exposures relating to assets funded by the PSIAU investments. Note that the Capital Requirement for Counterparty Risk figure as calculated in this form is transferred to Form B20A8, item no B104_0110.

            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.12 PRU-EPRS 1.12 Instructional Guidelines — Form B20 — Appendix 6 — Details of Counterparty Risk Exposures - PSIA Restricted ("PSIAR")

          Purpose

          Form B20A6 is intended to capture the details regarding the Counterparty Risk Exposures of an Authorised Firm, particularly those arising from Exposures funded by the PSIAR.

          Applicability

          This form is applicable to Authorised Firms which are Domestic Firms and are categorised under prudential category 5. It is also applicable to Authorised Firms which are Domestic Firms classified under prudential category 1 and involved in managing PSIAs within an Islamic Window.

          Content & Structure of the form in EPRS

          This form is identical to the form B20A4 in respect of its content and structure in EPRS.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.12 Instructional Guidelines

            All the Instructional Guidelines provided for form B20A4 are applicable to this form also. However, this form is meant only for Exposures relating to assets funded by the PSIAR investments. Note that the Capital Requirement for Counterparty Risk figure as calculated in this form is transferred to Form B20A8, item no B104_0110.

            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.13 PRU-EPRS 1.13 Instructional Guidelines — Form B20 — Appendix 7 — Details of Market Risk in the Trading Book

          Purpose

          Form B20A7 is intended to capture the details regarding the market risk in the Trading Book of an Authorised Firm.

          Applicability

          This form is applicable to Authorised Firms which are Domestic Firms and are categorised under prudential category 5. It is also applicable to Authorised Firms which are Domestic Firms classified under prudential category 1 and involved in managing PSIAs within an Islamic Window.

          Content

          The form is designed to enable Authorised Firms to report the capital charges applicable to the various elements of market risk Exposures in their Trading Book and the resultant capital charge for market risk.

          Structure of the form in EPRS

          The form is split into two linked forms namely, "Interest Rate Risk Capital Requirement" and "All Other Risks".

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.13 Instructional Guidelines

            1. The first linked form ("Interest Rate Risk Capital Requirement") enables the calculation of the Specific Risk component of Interest Rate Risk Capital Requirement. Note that the relevant amounts have to be entered in respect of self financed, PSIA Unrestricted and PSIA Restricted businesses, separately in the respective columns provided.
            2. In the second linked ("All Other Risk") form summary amounts of all other components of market risk capital requirement such as total Interest Rate Risk, Equity Risk, Foreign Exchange Risk, Commodities Risk, Options Risk, Securities Underwriting Risk and Collective Investment Fund Risk are required to be entered. The relevant amounts should be provided for self financed, PSIA Unrestricted and PSIA Restricted business separately in the respective columns provided.
            3. Authorised Firms are asked to review the Rules set out PIB Appendix 5 with care given the multiplicity of methods that can be used to calculate the capital requirement on Interest Rate Risk, Equity Risk, FX Risk, Commodities Risk, Options Risk, Securities Underwriting Risk and Collective Investment Fund Risk.
            4. The DFSA acknowledges that even for Authorised Firms with relatively straightforward Exposures on the trading books, the underlying calculations for various market risks can be detailed and complex. The DFSA requires only the summary numbers to be reported but expects Authorised Firms to maintain detailed audit trails that substantiate the risk requirements. Authorised Firms are also reminded that they should make this information available for review as and when required.
            5. In the event of any uncertainty, Authorised Firms are advised to contact their supervisor for clarity.
            6. Where Authorised Firms intend to use internally developed market risk models for the purposes of valuing positions and calculating capital requirements as per PIB Section 5.11, particular attention is drawn to PIB Section A5.9 including and the qualitative criteria.
            Item No. Item Instructional Guidelines
            B103_1100, B103_1200, B103_1400, B103_1500, B103_1600, B103_1700 Various components of Market Risk Capital Requirements Detailed Rules and Guidance in respect of the Market Risk Capital Requirement and each of its components are contained in PIB Chapter 5.

            Total of Market Risk Capital Requirement reflected in this form is transferred to form B60 and shown in B600_2630 – Market Risk Capital Requirement.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.14 PRU-EPRS 1.14 Instructional Guidelines — Form B20 — Appendix 8 — Calculation of the Displaced Commercial Risk ("DCR")

          Purpose

          Form B20A8 is intended to capture the details regarding the Displaced Commercial Risk charge.

          Applicability

          This form is applicable to Authorised Firms categorised under prudential category 5. Note that the DCR only applies in respect of Unrestricted PSIA.

          Content

          The form is designed to capture the details regarding the Displaced Commercial Risk charge in respect of Islamic Finance Business.

          Structure of the form in EPRS

          The form does not allow any manual data entry. The values in this form are directly transferred by EPRS from the detailed forms relating to the calculation of CRCOM, CPCOM and MRCOM in respect of PSIAU businesses (Appendices B20A2, B20A3, B20A5, B20A6 and B20A7 respectively) that precede it. So, Authorised Firms are advised to complete the appendices referred above before attempting to complete this form.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.14 Instructional Guidelines

            DCR is defined in Chapter 5 of IFR Module. Authorised Firms are advised to refer to that Section to understand why DCR arises and how it is calculated. Authorised Firms are reminded that DCR only applies in respect of Unrestricted PSIA assets. As noted earlier, this Appendix aggregates totals from the detailed appendices that precede this form.

            Item No. Item Instructional Guidelines
            B104_010T PSIACOM Credit PSIACOM Credit is comprised of CRCOM and CPCOM and is calculated on PSIA assets. It is the sum of item nos. [B104_0110 and B104_0120] below.
            B104_0110 CPCOM CPCOM for PSIAU comes from Form B20A5.
            B104_0120 CRCOM CRCOM for PSIAU comes from Form B20A2.
            B104_025T PSIACOM Market The figures for PSIACOM Market are all derived from Form B20A7.
            B104_000T Calculation of DCR DCR represents (PSIACOM Credit +PSIACOM Market) * 35%. This figure is transferred to Form B60, item no B104_000T.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.15 PRU-EPRS 1.15 Instructional Guidelines — Form B20 — Appendix 9 — Analysis of Reserves Movement

          Purpose

          Form B20A9 is intended to capture the details regarding the changes in the reserves pertaining to the Islamic Finance Business.

          Applicability

          This form is applicable to Authorised Firms categorised under prudential category 5. Note that the DCR only applies in respect of PSIA assets for unrestricted categories.

          Content

          The form is designed to capture the details regarding the details regarding the changes in the reserves pertaining to the Islamic Finance Business. The form provides two separate columns for data to be input in respect PSIA Unrestricted businesses.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.15 Instructional Guidelines

            Item No. Item Instructional Guidelines
            B290_1010 Capital invested Report here the total amount of capital invested by PSIAU account holders (on balance sheet) gross of provisions.
            B290_1020 Net asset value Report here the net amount after provisions.
            B290_1030 Percentage for profit equalisation reserve Report the percentage used for allocation to the profit equalisation reserves.
            B290_1040 Amount of profit equalisation reserve This represents the amount after the net asset value has been multiplied by the percentage of the profit equalisation reserve.
            B290_1050 Mudarib fee Report here the Mudarib fee which the Authorised Firm is entitled to receive for undertaking the investment of the funds provided by the PSIA holders. The fee is agreed by the investment account holders and the bank before the implementation of any contract. In case of a loss, the bank is not entitled to any Mudarib fee and the loss is borne by the investment account holders.
            B290_1060 Net amount after Mudarib fee Report here the balance after the amount of profit equalisation reserve and the Mudarib fee has been deducted from the net asset value.
            B290_1070 Percentage of investment risk reserve Report here the percentage of the investment risk reserve applicable to the net amount after the Mudarib fee.
            B290_1080 Amount of investment risk reserve Report under this item the amount of the reserve being the product of the balance in Item B290_1060 multiplied by the percentage in item B290_1070 above.
            B290_ 1090 Amount attributed to PSIAs This amount is the residual amount allocated to the PSIA account holders after the deduction of the amounts for the profit equalisation reserve, Mudarib fee and investment risk reserves.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.16 PRU-EPRS 1.16 Instructional Guidelines — Form B30 — Income Statement

          Purpose

          Form B30 — Profit and Loss Statement is intended to capture the results of operations of an Authorised Firm during the reporting period.

          Applicability

          This form is applicable to Authorised Firms categorised under prudential categories 1, 2, 3A, 3B, 3C and 4. This form is not applicable to Islamic Financial Institutions ("IFI") in prudential category 5 and Authorised Firms operating through a Branch in the DIFC. Instead, IFIs and Branches should use the forms B40 and B90 respectively.

          Content

          The form is designed to capture information pertaining to the Authorised Firm's income, expenses and profit for the reporting period.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.16 Instructional Guidelines

            1. All figures relating to income statement items in any of the quarterly returns should correspond to the current reporting period (quarter) and not cumulative or year-to-date amounts.
            2. The instructional guidelines below are regarding certain specific data elements in the form:
            Item No. Item Instructional Guidelines
            B300_1100 Interest income Include both actually received interest and receivable interest which has accrued but has not yet been received, generated for example by:
            •  Cash and liquid assets;
            •  Trading securities;
            •  Investment securities;
            •  Derivatives in the non-trading book;
            •  Loans and advances;
            •  Investment / loans to parent entity / loans to associates / joint venture;
            •  Other investments; and
            •  Other interest earning assets.
            B300_1200 Interest expense Include both interest actually paid and interest payable which has accrued but has not yet been paid, linked to, for example:
            •  Deposits;
            •  Other borrowings;
            •  Derivatives in the non-trading book;
            •  Bonds, notes and other borrowings;
            •  Loan capital;
            •  Loan from parent entity;
            •  Loan from associates / joint ventures; and
              Other interest bearing liabilities.
            B300_2100 Income from fees and commissions Include income received and income receivable but has been accrued for services provided by the Authorised Firm, for example the provision of:
            •  Current account facilities;
            •  Corporate advice;
            •  Investment management and trustee services;
            •  Guarantees and indemnities;
            •  Commission on the sale of insurance or travellers cheques; and
              Foreign exchange services (if they can be separately identified).
            B300_2200 Fees and commission expense Include revenue generated for all services rendered to the company by third parties (excluding those which have the character of interest).
            B300_3200 Net income from trading securities Include all profits or losses (including revaluation profits or losses) other than those arising from the sale of investments in subsidiary or associated companies, trade investments or the amortisation of premiums or discounts on the purchase of fixed maturity investments which are not held for dealing.
            B300_3300 Net income from investment securities Include net income / (losses) from investments other than the trading securities, such as available for sale and held to maturity investments.
            B300_3400 Income from Islamic Contracts Income derived from any Islamic contracts in which the Authorised Firm has invested in.
            B300_3500 Other operating income Include under this heading income from any other source (other than extraordinary items), for example:
            •  Revaluations of foreign exchange positions;
            •  Revaluation of any investment in subsidiaries or associates (if equity accounting);
            •  Share of profits from associated companies (if reporting on a consolidated basis);
            •  Profit or loss on the sale of non-trading assets — e.g. premises, equipment, subsidiary and associated companies and trade investments;
            •  Revaluation surpluses / deficits — following normal accounting practice; and
            •  Any other source (other than extraordinary items)
            B300_3610 General provisions Report here the general provisions recorded by the Authorised Firm to reflect the overall level of credit losses expected in respect of the Authorised Firm's Exposures.
            B300_3620 Specific provisions This item includes total provisions made to cover losses foreseen in respect of specific Exposures.
            B300_3630 Provisions for Islamic Contracts Include here provisions arising from any Islamic business undertaken
            B300_3650 Other To include, for example, provisions made for taxation or dividends.
            B300_3700 Staff expenses Include, for example:
            •  Salary costs;
            •  Employer's contribution to any pension scheme; and
            •  Costs of staff benefits paid on a per capita basis such as private medical insurance.
            B300_3800 Depreciation & Amortisation Charges relating, for example, to depreciation / amortisation of property, plant and equipment and other amounts written off in respect of tangible and intangible fixed assets.
            B300_3900 Other operating expenses Examples of expenses can be as follows:
            •  Occupancy expenses — for example, rates, rent, insurance of building, lighting, heating, maintenance costs and subsidised restaurants;
            •  Equipment;
            •  Other overhead expenses; and
            •  All other expenditure not falling into one of the other specific categories.
            B300_300T Operating profit from ordinary activities This item is calculated by EPRS and is calculated as the sum of B30 item nos. B300_1100 to B300_3900. (excluding sub totals at items nos B300_100T and B300_200T).
            B300_4100 Net income from subsidiaries and associated companies Profit / losses received from subsidiaries, joints ventures and other associated undertakings.
            B300_4200 Profit (loss) from extraordinary Items For example:

            Profit or losses on sale or termination of an operation; and

            Profits or losses on disposal of fixed assets.
            B300_400T Profit (loss) before tax This item is calculated by EPRS and is calculated as the sum of B30 item nos. B300_300T, B300_4100 and B300_4200.
            B300_5100 Tax on (profit) / loss Any amount that has been or is expected to be paid in taxation.
            B300_500T Profit / (loss) after tax This item is calculated by EPRS and is calculated as the sum of B30 item nos. B300_400T and B300_5100.
            B300_600T Net profit / (loss) The amount of profit / loss that could be distributed to shareholders (or partners) or retained for future use within the company.

            This is calculated by EPRS as the sum of B30 item nos B300_500T and B300_6100.
            B300_7100 Dividends and other distributions, declared or paid The amount to be distributed in the current year to shareholders out of the profits of a company.
            B300_7200 Partners' drawings, declared or paid The amount to be distributed in the current year to partners out of the profits of a partnership.
            B300_7300 Other adjustments Any other adjustments that affect the retained profits.
            B300_700T Retained profits for the reporting period Profits that have not been paid out as dividends to shareholders or withdrawn by partners but retained for further investment by the company.

            This is calculated by EPRS as the sum of B30 item nos B300_600T, B300_7100, B300_7200 and B300_7300.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.17 PRU-EPRS 1.17 Instructional Guidelines — Form B40 — Income Statement -Islamic Financial Institutions

          Purpose

          Form B40 — Profit and Loss Statement is intended to capture the results of operations of an Islamic Financial Institution during the reporting period.

          Applicability

          This form is applicable to Authorised Firms categorised under prudential category 5.

          Content

          The form is designed to capture information pertaining to an Islamic Financial Institution's income, expenses and profit for the reporting period.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.17 Instructional Guidelines

            1. All figures relating to income statement items in any of the quarterly returns should correspond to the current reporting period (quarter) and not cumulative or year-to-date amounts.
            2. The instructional guidelines below are regarding certain specific data elements in the form:
            Item No. Item Instructional Guidelines
            B400_1010 Income from jointly financed accounts Authorised Firms should include in respect of this item income earned on funds from jointly financed investment accounts (i.e. Unrestricted PSIAs and self-financed). The income should be gross before allocating to the Unrestricted PSIAs and the bank's Mudarib fee.
            B400_1020 Allocated to unrestricted account holders (before Mudarib fee) Authorised Firms should include in respect of this item the amount allocated from B40 item no. B400_1010 above to the Unrestricted PSIAs as their share of the income. Note that this number should be entered as positive amount.
            B400_1030 Authorised Firm's Mudarib fee from managing jointly financed accounts Authorised Firms should include in respect of this item the amount of the Mudarib fee that they are entitled to receive for the management of the Unrestricted PSIAs.
            B400_1040 Authorised Firm's fees from managing other (restricted) accounts Include any amounts owing to the Authorised Firm as fees for managing PSIAR accounts.
            B400_2010 Authorised Firm's income from its own non-financing activities Authorised Firms should include in respect of this item the income received from non-financing activities (e.g. Murabaha sales) that result from the employment of the Authorised Firm's own funds and current accounts. The income should have been generated from funds that have been employed separately from the PSIA funds.
            B400_2020 Authorised Firm's income from its own financing and investment activities Authorised Firms should include in respect of this item the income received from financing and investment activities that results from the employment of the Authorised Firm's own funds and current accounts. The Bank is solely entitled to profits/ (losses) from these activities.
            B400_2030 Net fees and commission income Authorised Firms should include in respect of this item the income received for services provided such as trade related letters of credit, corporate advice, investment management and trustee services, Kefala (guarantees) and indemnities.
            B400_2040 Other operating income Include income from any other source not included in any of the above.
            B300_3700 Staff expenses Include costs such as:
            •  Wages and salaries;
            •  Social security contributions;
            •  Contribution to any pension schemes (employer's share); and
            •  Costs of staff benefits paid.
            B400_3040 Premises and equipment costs Should include rent, property tax, lighting, heating, maintenance costs etc.
            B300_3800 Depreciation and amortisation Charges relating, for example, to depreciation / amortisation of property, plant and equipment and other amounts written off in respect of tangible and intangible fixed assets.
            B400_3060 Provision for losses on Islamic Contracts Provision for losses on Islamic Contracts: refer to FAS 11 of AAOIFI which requires the inclusion of bad and doubtful Islamic financing and non-financing contracts and investments.
            B400_3070 Other provisions Include here all other provisions other than for Islamic Contracts.
            B300_3900 Other operating expenses Include all other expenses not included in any of the above.
            B300_4100 Net income from subsidiaries and associated companies Report share of profits and losses of from subsidiaries and associated companies.
            B300_4200 Profit (loss) from extraordinary items For example:

            Profit or losses on sale or termination of an operation; and

            Profits or losses on disposal of fixed assets.
            B400_3130 Zakah Include Zakah amount calculated with reference to FAS 9 of AAOIFI.
            B300_5100 Tax on profit / loss Any amount that has been or is expected to be paid in taxation.
            B300_7100 Dividends, and other distributions, declared or paid The amount to be distributed in the current year to shareholders out of the profits of a company.
            B300_7300 Other adjustments Any other adjustments that affect the retained profits.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.18 PRU-EPRS 1.18 Instructional Guidelines — Form B50 — Expenditure Based Capital Minimum

          Purpose

          Form B50 — Expenditure Based Capital Minimum form is intended to capture the level of actual expenses incurred by an Authorised Firm during the reporting period. The information in this form is used to assess the continued relevance of an Authorised Firm's Expenditure Based Capital Minimum, in light of the actual level of expenses being incurred.

          Applicability

          This form is applicable to an Authorised Firm in Categories 2, 3A, 3B, 3C or 4.

          Content

          The form is designed to capture the information pertaining to an Authorised Firm's actual expenses for the reporting period along with the deductions allowed as per PIB Rule 3.7.3.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.18 Instructional Guidelines

            An Authorised Firm in Categories 2, 3A, 3B, 3C or 4 is drawn attention to the PIB section 3.7 which explains the calculation of Expenditure Based Capital Minimum. A thorough understanding of this section is a must for completing this form accurately.

            Item No. Item Instructional Guidelines
            B500_1100 Total expenses This figure should correspond to Form B30, sum of item nos. B300_1200, B300_2200, B300_3700, B300_3800 and B300_3900.
            Deductions from total expenses (refer PIB Rule 3.7.3).

            Note that the deductions should be entered as positive amounts. EPRS is configured to deduct the amount in the relevant calculations.
            Item No. Item Instructional Guidelines
            B500_1200 Staff bonuses All staff bonuses paid during the year except to the extent that they are non-discretionary.
            B500_1300 Employees' and directors shares in profits All employees' and directors shares in profits except to the extent that they are non-discretionary.
            B500_1400 Other appropriations of profits All such appropriations except to the extent that they are automatic. As per PIB Rule 3.7.3(2), a management charge should not be treated as an appropriation of profits.
            B500_1500 Shared commissions payable Those commissions that would no longer be payable if business were to cease.
            B500_1900 Fees, brokerage and other charges An Authorised Firm may exclude fees, brokerage and other charges paid to clearing houses, exchanges and intermediate brokers for the purposes of executing, registering or clearing transactions.
            B500_2000 Foreign exchange losses Losses arising from the translation of foreign currency balances may be excluded.
            B500_2100 Contributions to charities The contribution that would no longer be paid if business were to cease.
            B500_2200 Prepayments Any expenses for which pre-payments or advances have already been made to the respective claimant (e.g. pre-paid rent, pre-paid communication charges etc.). Deduct only to the extent it pertains to total expenses included in B500_1100.
            B500_100T Total expenditure This line item need not be completed manually, it is calculated by EPRS.

            Total Expenditure = B500_1100 minus the sum of items in B500_1200 to B500_2200.
            B500_3000 Fraction applied The applicable fractions depending on the nature of an Authorised Firm's activities are set out in PIB Rule 3.7.2.
            B500_300T Expenditure based capital minimum (based on actual expenses) This is automaticallycalculated by EPRS as follows:

            B500_100T multiplied by 4 to annualise in the case of quarterly returns or by 1 in the case of annual returns and then applying the fraction in cell B500_3000 on the annualised amount.
            B500_4000 Expenditure based capital minimum (as notified to the firm) In this cell input the Expenditure Based Capital Minimum amount calculated as per the provisions of PIB section 3.7.

            In particular, note that the amount in this cell should not be arrived at by applying the fraction in B500_3000 to the total expenses in cell B500_100T.

            This cell should not be left blank as this is linked to one of the validations in EPRS (refer to the validation page).
            B500_5000 Total of liquid assets in accordance with PIB Rule 3.5.3 In this cell, enter the amount of liquid assets held in accordance with PIB Rule 3.5.3.

            An Authorised Firm in Category 3B, 3C and 4 to which Expenditure Based Capital Minimum section applies should, at all times, maintain an amount which exceeds its Expenditure Based Capital Minimum in the form of liquid assets (PIB Rule 3.5.3).

            PIB Rule 3.5.3 (2) and (3) describe what constitutes liquid assets.
            B500_6000 Liquid assets - EBCM (should be positive). This is calculated by EPRS. In accordance with PIB Rule 3.5.3, for an Authorised Firm in Category 3B, 3C and 4, the amount of liquid assets held should not be less than its Expenditure Based Capital Minimum (as notified to the firm) in line item B500_4000.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.19 PRU-EPRS 1.19 Instructional Guidelines — Form B60 — Capital Adequacy Schedule

          Purpose

          Form B60 — Capital Adequacy Calculation is intended to calculate the Capital Resources and the Capital Requirements of an Authorised Firm in order to arrive at the overall capital adequacy position of the Authorised Firm.

          Applicability

          This form is applicable to all Categories of Authorised Firm domiciled in the DIFC (i.e. Domestic Firms). Accordingly, this form is not applicable to Authorised Firms operating through a Branch in the DIFC.

          Content

          The structure of this reporting form, which applies to all Categories of Authorised Firm, is designed first to calculate the total eligible capital resources after the appropriate amounts have been charged to cover Trading and Non Trading Book risks. It takes into account limitations on the use of different types of capital. Secondly, it provides a snapshot of the institution's capital adequacy at the reporting date by comparing the adjusted capital resources calculated as described above to the total capital requirement.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.19 Instructional Guidelines

            Item No. Item Instructional Guidelines
            B600_2110 Elements of Common Equity Tier 1 ("CET1") Capital CET1 Capital consists of the sum of the capital elements set out in PIB Rule 3.13.2 and section 3.16.
            B600_2120 Adjustments to / Deductions from CET1 Capital Adjustments to and deductions from CET1 Capital are explained in PIB Rule 3.13.5 and 13.13.7 to 3.13.19.
            B600_2210 Elements of Additional Tier 1 ("AT1") Capital Section 3.14 of the PIB module contains Rules regarding AT1 Capital.

            Elements of AT1 Capital are explained in PIB 3.14.3.
            B600_2220 Deductions from AT1 Capital Deductions from AT1 Capital are set out in PIB Rule 3.14.4 to 3.14.8.
            B600_2310 Elements of Tier 2 ("T2") Capital Section 3.15 of the PIB module contains the Rules regarding Tier 2 Capital.

            Elements of T2 Capital are explained in PIB Rules 3.15.2 - 3.15.3.
            B600_2320 Deductions from T2 Capital Deductions from T2 Capital are set out under PIB Rules 3.15.4 to 3.15.9.
            B600_2400 Base Capital Requirement ("BCR") PIB section 3.6 contains Rules regarding BCR.
            B600_2500 Expenditure Based Capital Requirement ("EBCM") Rules regarding EBCM are set out in section 3.7 of the PIB module.
            B600_2610 Credit and Counterparty Risk Capital Requirement Credit and Counterparty Risk Capital Requirement is derived from calculations in forms B10A1 and B10A2. Rules relating to calculation of Credit and Counterparty Risk Capital Requirement are set out in Chapter 4 of the PIB module.
            B600_2620 Displaced Commercial Risk Displaced Commercial Risk requirement is calculated in accordance with chapter 5 of the IFR Module. DCR is applicable to Authorised Firms managing Unrestricted PSIAs.
            B600_2630 Market Risk Capital Requirement Market Risk Capital Requirement is derived from the calculations in form B10A3.
            B600_2640 Operational Risk Capital Requirement Operational Risk Capital Requirement is applicable to Authorised Firms in Prudential Category 1, 2, 3A and 5. Operational Risk Capital Requirement is calculated in accordance with Rules in PIB section 6.11 and App6.
            Capital Conservation Buffer ("CCB") - 25% of Capital Requirement Rules relating to Capital Conservation Buffer are set out in section 3.9 of the PIB module. Capital Conservation Buffer applies to an Authorised Firm in Category 1,2,3A or 5. Where, pursuant to PIB section 3.3 or 3.4, the Risk Capital Requirement forms an Authorised Firm's Capital Requirement, then the firm is subject to a Capital Conservation Buffer requirement. The Capital Conservation Buffer requirement is equivalent to 25% of an Authorised Firm's Risk Capital Requirement and should constitute only CET1 Capital. In EPRS, this figure is system calculated in accordance with the above criteria.
            Individual Capital Requirement ("ICR") ICR applies to an Authorised Firm in Category 1, 2, 3A or 5. The DFSA may, in accordance with PIB section 10.6, at any time by written notice to an Authorised Firm:
            (a) impose an Individual Capital Requirement; or
            (b) vary or withdraw an Individual Capital Requirement.
            An Authorised Firm is required to input values in this cell only if the DFSA has imposed ICR on it. Otherwise, it should be left blank.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.20 PRU-EPRS 1.20 Instructional Guidelines — Form B70 — Large Exposures Schedule

          Purpose

          Form B70 is intended to capture the information regarding the Large Exposures of an Authorised Firm.

          Applicability

          This form is applicable to Authorised Firms categorised under prudential categories 1, 2, 3A and 5. This form is not applicable to Authorised Firms operating through a Branch in the DIFC. Instead, the Branches should use the form B90A1.

          Content

          The form is designed to capture information regarding the

          20 Largest Exposures,
          Details of Exposures to Connected Counterparties and
          10 Largest Exempt Exposures of an Authorised Firm.

          Further details are sought in respect of these Exposures such as type of Counterparties, provisioning amount etc which are explained under the Instructional Guidelines section below.

          Structure of the form in EPRS

          In EPRS the form is split into two parts namely, Part I — Capital Resources and Part II — Exposures.

          Values in Part I — Capital Resources are calculated by EPRS based on the data in form B60 - Capital Adequacy Calculation.

          PART II — Exposures is a linked form and all the information regarding Large Exposures have to be entered in this form.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.20 Instructional Guidelines

            1. An Authorised Firm is required to identify and manage its Exposures in accordance with PIB Rule 4.15.
            2. An Exposure, whether in an Authorised Firm's Non-Trading Book or Trading Book, or both, to a Counterparty or Group of Closely Related Counterparties connected to the Authorised Firm which in the aggregate equals or exceeds 10% of the Authorised Firm's Capital Resources should be reported on this form.
            3. The 20 largest Exposures should be listed and, if requested, any other Exposure that exceeds 10% of the Authorised Firm's Capital Resources. Only Exposures that are non-exempt are required to be reported in the first two tables. Any exemptions or Exposures excluded should be reported in the third table.
            Item Instructional Guidelines
            Capital Resources The Capital Resources used as the basis for monitoring and controlling large Exposures should be calculated in the same way as those used for capital adequacy monitoring in Form B60.

            The values in this section are calculated by EPRS based on the values in form B60- Capital Adequacy Calculation.
            Column Instructional Guidelines
            Twenty Largest Exposures Include in this table the twenty largest Exposures to all types of Counterparty except those that are considered to be exempt (which are reported in table 3 below).

            Exposures to individual, or groups of Closely Related, Counterparties should be reported in descending order by size. Exposures to individual Counterparties which constitute a group of Closely Related Counterparties should be reported as one aggregate Exposure.
            Counterparty The identity of a Counterparty, as defined in the Glossary, in this context will generally be one of the categories as set out in PIB Rule A4.11.4.
            Connected, Unconnected — Bank, Unconnected — Other, Government The Authorised Firm should clarify here into what category an Exposure falls. These are set out in detail in Rules PIB A4.11.4 to PIB A4.11.28 but for the purposes of this form, an Authorised Firm should state whether an Exposure is to:
            i. a Connected Counterparty;
            ii. an unconnected Counterparty or group of Closely Related Counterparties that are predominantly comprised of non-financial businesses;
            iii. an unconnected Counterparty or group of Closely Related Counterparties that are predominantly comprised of financial businesses; or
            iv. Central governments and central banks.
            Amount of non-exempt Exposure For Exposures arising in the Non-Trading Book the amount at risk should, with certain exceptions detailed below, be reported as the book value of the Authorised Firm's actual or potential claims, contingent liabilities or assets.

            Exposures should be calculated in accordance with IFRS or AAOFI standards.

            For Exposures arising in the Trading Book, all positions should be marked-to-market daily. Where a market determined price is not readily available, the Authorised Firm may generate its own mark-to-market valuation. Positions should be valued in accordance with the procedures outlined in the Authorised Firm's trading book policy statement.

            This is set out in more detail in Rules 2.4 and A4.11.10 to 4.11.28.
            Specific bad debt provision Include here the amount of specific bad debt provision that may have been made against a particular Exposure.
            Reduction by netting, collateral etc. As set out in PIB Rule 4.15.3(f) the value of an Exposure can be reduced through Credit Risk Mitigation as set out in section 4.13.
            Exposure at reporting date after eligible set-offs Amounts in column "Amount at risk at reporting date" less the amounts in Columns "Specific bad debt provision" and "Reduction by netting collateral and other off-sets".
            Amount of this Exposure financed by own assets or Unrestricted PSIAs For Exposures arising out of Islamic business, this column should be used to quantify the amount of the Exposure that is financed by the Authorised Firm's own assets or by Unrestricted PSIA assets.
            Amount of this Exposure financed by restricted PSIAs. For Exposures arising out of Islamic business, this column should be used to quantify the amount of the Exposure that is financed by restricted PSIA assets.
            Table 2
            Exposures to Connected Counterparties This section comprises the disaggregated detail of all connected lending and Exposures should be split into different Counterparties within the connected group.
            Financial or Non-financial company An Authorised Firm should indicate here if the Exposure is to a bank or non-bank within its own Group.
            Table 3
            Ten Largest Exempt Exposures An Authorised Firm is required to identify its exempt Exposures as per PIB Rules A4.11.1. Firms should also include Exposures subject to the institutional exemption as set out in PIB 4.15.10.
            Reason for exemption The Authorised Firm should specify here under what section of A4.11.1 — the Exposure is captured.

            Additional detail for Form B70A1 — Appendix 1 — Largest 25 Exposures arising from Islamic Contracts

            Content

            The form is intended to capture information regarding the Authorised Firms largest 25 Exposures arising from Islamic Contracts.

            Structure of the form in EPRS

            In EPRS the form is split into five linked forms namely, Part I — Musharaka, Part II — Mudaraba, Part III — Istisna'a and Salam Contracts, Part IV — Ijarah and Part V — Murabaha Receivables. These are explained further in the following table.

            Instructional Guidelines

            Item No. Contract type Instructional Guidelines
            Part I Musharaka Report all Musharaka contracts currently outstanding that exceed 10% of the Authorised Firm's Capital Resources. Details regarding the following should be included:
            •  Whether the capital has been self-financed or provided by PSIA accounts;
            •  The amount of capital redeemed during the period such as in the case of a diminishing Musharaka; and
            •  Any income or loss declared, any provisions being made to the value of the Musharaka and the net value of the investment.
            Part II Mudaraba Report all Mudaraba financing contracts that would qualify as a Large Exposure. Identify the basis on which the Authorised Firm has provided the financing i.e. whether on a self-financed or on a PSIA funds basis. Refer to FAS 3.
            Part III Istisna'a/ Parallel Istisna'a Report all Istisna'a contracts that would qualify as a Large Exposure. Identify the value of the Parallel Istisna'a and indicate what proportion of the value has been financed by Authorised Firm's own capital and the funds of PSIA account holders. Refer to FAS 10.
            Part III Salam/ Parallel Salam Report all Salam contracts and Parallel Salam amounts that would qualify as a Large Exposure. The data is to be split into values financed by Authorised Firm's own capital and the restricted and Unrestricted PSIA account holders. Refer to FAS 7.
            Part IV Ijarah / Ijarah Muntahia Bittamleek Report all Ijarah assets on the valuation basis set out in FAS 8. Report also, all assets transferred to the lessee for consideration or gift including the value of impairment before transfer of a legal asset. State total depreciation / amortisation charge and the net book value. This information is required to be provided for self-financed and both forms of PSIAs. The data is to be split by the industrial sectors identified in the reporting statement. Refer to FAS 8.
            Part V Murabaha Report here all Murabaha Exposures that would qualify as a Large Exposure. Divide Exposures into self-financed, PSIAR and PSIA unfunded Exposures. Refer to FAS 2.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.21 PRU-EPRS 1.21 Instructional Guidelines — Form B80 — Liquidity Schedule — Maturity Mismatch

          Purpose

          Form B80 is intended to capture the information regarding the Liquidity Risk position of an Authorised Firm.

          Applicability

          This form is applicable to Authorised Firms falling under prudential categories 1 and 5.

          Content

          The form is designed to capture information regarding the cash inflows and outflows and the overall liquidity position of an Authorised Firm.

          Structure of the form in EPRS

          In EPRS the form is split into two linked forms namely, Part I — Inflows and Outflows and Part II — Calculation of Maturity Mismatches.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.21 Instructional Guidelines

            1. As set out in PIB Rule 9.3.3, an Authorised Firm in Category 1 or 5 should use the Maturity Mismatch approach to measure its liquidity. This applies equally to Authorised Firms that have a Branch presence in the DIFC as to those that are incorporated here.
            2. In accordance with PIB Rule 9.3.4, an Authorised Firm needs to complete separate returns for a business that is funded by:
            i. PSIAU's; and
            ii. Deposits.

            Liquidity reporting in individual currencies

            3. The return should be completed on the basis of all currencies combined. Currencies should be translated into $ at the closing spot mid price on the reporting date and entered in the relevant time band. However, the DFSA may require institutions to provide management information on positions in individual currencies in the event of difficulties either in the individual institution or with the currency in question.

            Cashflow versus maturity analysis approach

            4. The policy aim here is to ensure that institutions hold sufficient liquid assets to meet their obligations as they fall due and the DFSA has set mismatch guidelines to help secure the policy objective. The Form B80 monitors Authorised Firms' compliance with the limits in two ways: first, by including a maturity analysis of known and/or potential cashflows out to six months and secondly, by a maturity analysis of assets and liabilities from 6 months to 5 years.
            5. Institutions should report both inflows and outflows on the same basis. Therefore, if an institution reports inflows on the cashflow basis out to three months, it should also report outflows on the cashflow basis out to three months.
            6. Items reported on a cashflow basis should include both interest and principal amounts, together with any other income relating to them. Items reported on a maturity basis should be reported at their value on the institution's books. However, any cashflows arising from these items (e.g. interest payments) within the cashflow reporting period should be included in the relevant cashflow periods. Thus cashflows (e.g. interest payments on a loan) arising from items (however reported) should be entered in the relevant cashflow timebands (i.e. those which the institution reports) when they fall due.

            Provisions

            7. Items should be reported net of specific provisions.

            Residual Maturity

            8. As set out in PIB Rule A9.2.1, outflows (such as Deposits and other liabilities) are to be included according to their earliest possible repayment date. In this context, the earliest repayment date means the first rollover date or the shortest period of notice required to withdraw the funds or to exercise a break clause, where applicable. Inflows (such as loans) are to be entered as occurring on the latest possible repayment date. Purely technical break facilities should be disregarded for fixed term loans. Where the Authorised Firm has loans outstanding at the reporting date under revolving credit lines and has not received notification that they will be redrawn on maturity, the intermediate date should be taken as the maturity date.

            Time bands

            9. The time band 'Overdue' should be used to record cash flows where assets or other items giving rise to cash flows are non-performing, poorly performing or there is reasonable doubt about the certainty of receipt of inflows of funds pertaining to them. Where an asset or cash flow previously reported as overdue is contractually rescheduled according to a written agreement, institutions should cease to report these items as 'overdue' and report them according to the new agreed dates for repayment.
            10. The time band 'Demand (including next day)' comprises cash flows or asset items due, available or maturing on the next business day after the reporting date. Cash flows arising or assets / liabilities maturing on a non-business day should be reported as taking place on the following business day. Funds callable at one day's notice should be entered as two-day maturity unless notice has been received or given on the reporting date.

            Netting of debts and claims

            11. All claims and liabilities should be reported gross. Authorised Firms should not net (or offset) claims on Counterparties or groups of Counterparties against debts owed to those Counterparties or groups of Counterparties, even where a legal right of set off exists. Where the maturity of the claims and debts falls within the same time band, the claims and debts will automatically offset each other on the return in the calculation of the mismatch.

            Marketable securities

            12. An asset is considered to be marketable if it meets the requirements as set out in PIB Section A9.3.1(2) — essentially, these are assets that could be readily converted into cash where necessary. These assets are reported under the section 'Highly liquid / marketable assets'. Authorised Firms should enter the full value of the marketable asset concerned in Column 'Marked to market' against the applicable discount rate in Column 'Discount currency'. The discounted value is then calculated by EPRS. Discounts are applied to reflect that an institution may realise less than the market price quoted for an asset where the institution is seeking to realise assets quickly because of liquidity problems pertaining either to the firm itself, or to general market conditions, or both.
            13. The Authorised Firm should then allocate the discounted value of the assets to either of Columns '8 days & under' or 'Over 8 days to 1 month' determined by the length of the settlement period for the instrument in question. This reflects the length of time it would take for an Authorised Firm to receive the proceeds of any sale. Where the settlement period for items is more than eight days, or where there are other factors which mean that funds would not be received within eight days, where the assets are sold or repo'd today, then the funds should be recorded as receivable in Column 'Over 8 days to 1 month'. Where settlement or other delays mean that funds would not be received within one month, then the items should be recorded in the maturity analysis section of the form.
            14. Marketable assets maturing at exactly one month should be reported in the cash flow section of the return. Authorised Firms may however include the full value of the asset in the one month time band and not discount at all during the life of the asset.
            15. Where assets have a residual maturity of less than one month, the DFSA recognises that it is not relevant to apply automatically a discount to such assets. In general, these assets should be entered as cashflows in the relevant timebands in rows under 'Wholesale' section of the form and no discount will be applied.
            16. Assets which do not meet the criteria to be marketable assets, or which do not otherwise qualify for inclusion in the table in PIB Rule A9.3.1(4), are non-marketable assets for the purposes of this return and should be reported in the form according to their residual maturity. This covers for example:
            a. Non-investment grade debt instruments with a Credit Quality Grade ("CQG") of 4 or higher; and
            b. Commercial paper and certificates of deposit that do not meet the definition of marketable assets.
            17. Authorised Firms should ensure that there is no double counting of cash flows (of principal or interest) arising from holdings of marketable assets on the form.
            Item Instructional Guidelines
            INFLOWS  
            Highly liquid / marketable assets As described above.
            Cash Holdings of notes and coins.
            Central gov't sec — 1 yr or less

            Central gov't sec — 1 — 5 yrs

            Central gov't sec -over 5 yrs
            Central government (including central government guaranteed) paper and paper eligible for discount at the Central Bank with CQG 1, 2 or 3. Both fixed and variable rate securities should be reported. Only record those securities currently in the reporting institution's ownership.
            Non gov't sec — 6 mths or less

            Non gov't sec — 6 mths — 5 yrs

            Non gov't sec — over 5 yrs
            Debt instruments with CQG 1, 2 or 3. Only those securities in the reporting institution's ownership, which the institution may freely dispose of at any time with no restrictions, should be recorded. Those assets pledged to another institution or otherwise encumbered should not be included.
            Other cen gov't debt (active) Central government (including central government guaranteed) paper and paper eligible for discount at the Central Bank with CQG of 4, 5 or 6. Include only that debt issued by, or fully guaranteed by, central governments and central banks with CQG's of 4, 5 or 6 that is actively traded. Only the debt currently in the reporting institution's ownership should be recorded.
            Highly liquid equities Equities that are eligible for a specific risk weight of 4% or less under the DFSA's Rules regarding the capital requirement for Market Risks and which are currently in the reporting institution's possession.
            Non-marketable securities Securities which the Authorised Firm holds or will receive, but which it cannot classify as marketable. These should be reported according to the redemption value of the asset or alternatively, where the redemption value is unavailable or not appropriate (e.g. in the case of equities), the book value. Marketable assets maturing within one month reported at their full marked-to-market value, i.e. undiscounted, should also be reported here.
            Inter-bank Inflows arising from placements with other Financial Institutions. Include that element of committed facilities provided to the Authorised Firm where notification of draw down date has been given. Exclude inflows from any bank entities within the Group.
            Intergroup / related Inflows from Counterparties connected to the Authorised Firm. Entries should be made in this item rather than any other item in the Wholesale section if any intragroup / connected Counterparties are involved.
            Corporate Inflows from non-bank, non-connected corporate Counterparties. Initial margins held at clearing houses should be entered here according to their residual maturity. Repayments from leases should also be recorded in this line.
            Govt / public sector Inflows from central governments, public sector entities, local authorities and central banks with CQGs of 1, 2 or 3.
            Govt / public sector Inflows from central governments, public sector entities, local authorities and central banks with CQGs of 1, 2 or 3.
            Repos / reverse repos Include any Transactions relating to repos and reverse repos. Authorised Firms should also enter any Transactions relating to stock borrowing and lending.
            Forward foreign exchange Cashflows relating to forward purchases of foreign currency, where an exchange of principal is effected at the start or maturity of the swap. The amount received should be entered in the appropriate maturity band.
            Forward sales and purchases The cash leg of any forward sales should be treated as an inflow in the timeband corresponding to the date of the forward sale. For forward purchases, where the asset purchased is a marketable asset, the Authorised Firm should report the USD equivalent discounted value of the security purchased at the maturity of the contract. Where the asset purchased is non-marketable, the institution should enter the USD equivalent discounted value of the security at the maturity of the asset.
            Swaps & FRAs For interest rate and currency swaps, enter the receipts of fixed and floating legs in the cashflow section.

            For FRAs, enter the marked-to-market receipt in the relevant time period. The amount of receipts should be derived from the contract's present value at yields prevailing at the reporting date.
            Commodities Inflows from the sale of commodities held by the Authorised Firm.
            Trade related letters of credit Inflows arising from trade related letters of credit.
            Fees (incl Mudarib) Report here fees, commissions or other income receivable by the Authorised Firm relating to its wholesale business, according to its known date of receipt. Where the date of receipt is unknown, do not report these flows.
            Other funding sources Include here any other funding sources not included elsewhere, according to their cashflows.
            OUTFLOWS  
            Non-marketable securities Include here at residual maturity outflows pertaining to maturing securities or debt instruments, which cannot be classified as marketable. Marketable assets maturing within one month at their full marked-to-market value, i.e. undiscounted should also be reported here.
            Inter-bank Funds Outflows arising from placements with or from, or repayments of loans to or from, banks. Exclude from this item loans to, or placements with, or Deposits / placements from, bank entities within the Group.
            Intergroup / related Outflows of funds to Counterparties connected to the reporting institution. Entries should be made in this item rather than any other item in the Wholesale section if any intragroup - connected Counterparties are involved.
            Corporate Outflows to non-bank, non-connected, corporate Counterparties.
            Govt / public sector Report funds lent to central governments, public sector entities, local authorities and central banks with CQGs of 1 , 2 or 3. Where an Authorised Firm is required to place funds on deposit with central banks and monetary authorities, these should be entered as an outflow in the relevant time band.
            Govt / public sector Report funds lent to central governments, public sector entities, local authorities and central banks with CGQs of 4 or higher. Where an Authorised Firm is required to place funds on deposit with central banks and monetary authorities, these should be entered as an outflow in the relevant time band.
            Repos / reverse repos Outflows related to repos or reverse repos. Also include any outflows relating to stock borrowing and lending.
            Forward foreign exchange Enter any cashflows relating to forward sales of foreign currency, where an exchange of principal is effected at the start or maturity of the swap. The amount paid should be entered in the appropriate maturity band.
            Forward sales and purchases For forward sales, the sterling (or euro) equivalent discounted value of the security sold should be recorded as an outflow. The cash leg of any forward purchases should be treated as an outflow in the timeband corresponding to the date of the forward purchase.
            Swaps & FRAS For interest rate and currency swaps, enter payments of fixed and floating legs in the cashflow section.

            For FRAs, enter the marked-to-market payment in the relevant time period. The amount paid should be derived from the contract's present value at yields prevailing at the reporting date.
            Commodities Outflows from the purchase of commodities held by the Authorised Firm.
            Trade related letters of credit Outflows arising from trade related letters of credit.
            Dividends, tax & other costs Outflows arising from dividends, tax etc.
            Ijarah asset purchases Outflows for commitments made for the purchase of these assets.
            Other outflows Any outflows relating to payments of dividends and tax, or any other outflows that have not previously been reported elsewhere. Also report any outflows relating to settlement accounts, using the trade date plus the settlement period to determine the appropriate timeband.
            Other off-balance sheet Any outflows relating to off balance sheet items that have not been reported elsewhere.
            CALCULATION OF LIQUIDITY MISMATCHES Authorised Firms should monitor compliance with their liquidity mismatch guidelines each business day and should report in this section the mismatch on the reporting date, using the data from the previous parts of the return.
            Type of business Denotes business financed by different sorts of assets.
            Timeband The timebands for which limits are set: Sight to 8 days and sight to one month.
            Total discounted marketable assets Figure from row "Total" for "High Liquid / Marketable Assets" section Column "8 days & Under" for S-8 days and Columns "8 days & Under" and "Over 8 days to 1 month" for S-1 month.
            Total standard inflows Figure from row "Total Wholesale Inflows", columns "Demand" and "8 days & Under" for S-8 days and Columns "Demand", "8 days & Under" and "Over 8 days to 1 month" for S-1 month.
            Total standard outflows Figure from row "Total Wholesale Outflows", columns "Demand" and "8 days & Under" for S-8 days and Columns "Demand", "8 days & Under" and "Over 8 days to 1 month" for S-1 month.
            Total relevant Deposits This figure provides the denominator for the mismatch calculation
            •  For conventional Authorised Firms, the figure is obtained from Form B10, item B100_210T;
            •  For Islamic Authorised Firms, see next section of the table;and
            •  For Branches, figure from form B90, item B900_610T.
            Mismatch as a % of total deposits As set out in Rule 9.3.4, the mismatch positions should not exceed -15% or -25% for the sight — 8 days and sight — 1 month timebands respectively.

            Additional Instructional Guidelines for Islamic Contracts

            Inflows   All inflows should be taken as occurring at the last possible contractual repayment date. The treatment of inflows for Islamic Contracts are as follows and it is for the Authorised Firm to determine in which of the categories the inflows should be recorded. In the event of any doubt, the institution should contact its regular supervisory contact at the DFSA.
              Mudaraba Inflows of capital should be reported at the latest redemption date or as assets maturing at the latest possible redemption date. Profits on Mudaraba should only be reported to the extent that it is being reported at the reporting date.
              Musharaka Capital inflows on a normal Musharaka contract should be entered as occurring on the latest possible termination date and in the case of a diminishing Musharaka at the latest redemption date. Inflows on profits should only be entered if it is being distributed at reporting date.
              Murabaha Receivables Inflows reported should include instalment payments and related accrued profit at the latest possible repayment date (or assets maturing at such a date).
              Ijarah/ Ijarah Muntahia Bittamleek Report all inflows occurring from Ijarah lease rentals at the last possible payment date. Where the lessee has option to purchase the asset either during the duration of the lease or at the end of the contract, the amount to be received should be reported as an inflow at the latest possible exercise date.
              Salam and Parallel Salam Enter the amount of inflows as occurring at the latest possible delivery date. If payments are received in the form of instalments (Parallel Salam), only enter the amount of instalments occurring at their latest possible repayment date (or as an asset maturing at the latest repayment date). Enter commodity flows separately in the line market commodities.
              Istisna'a and Parallel Istisna'a Inflows should be assumed to occur at the latest possible completion date. If repayment is via instalments, inflows should be on the latest instalment date.
            Outflows   All outflows should be taken as occurring at the earliest possible contractual repayment date. In the case of a liability, assume the outflows to occur at the earliest possible maturity date. For Islamic Contracts, outflows should only be recognised when there is already in existence a defined agreement between the parties for a particular Islamic Contracts. As previously stated, Authorised Firms will be expected to refer to the appropriate AAOIFI FAS pronouncement in respect of Islamic Contracts. These include Mudaraba, Musharaka, Murabaha, Salam and Parallel Salam, Istisna'a and Parallel Istisna'a and Ijara or Ijarah Munatahia Bitamleek.
              Salam and Parallel Salam For Salam transactions enter amount of outflows as additional advances committed at the earliest possible drawdown date.
              Istisna'a Outflows on Istisna'a contracts are to be entered as occurring at the earliest possible drawdown date. If drawdown occurs based on percentage completion, the outflows should be assumed to occur at the earliest completion date or as a liability maturing at the earliest completion date.
              Ijarah Commitments made for the purchases of assets for Ijarah purposes should be included as outflows at the earliest date committed for the purchase.
            Total relevant Deposits   For self-financed business, Authorised Firms should use the figure from Form B20, item B100_210T.

            For business financed through PSIAs, the appropriate figure should be derived from the amounts due (akin to Deposits) to PSIAU account holders.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.22 PRU-EPRS 1.22 Instructional Guidelines — Form B90 — Branch Return

          Purpose

          Form B90 is intended to capture the financial position and the results of operations of an Authorised Firm for the reporting period.

          Applicability

          This form is applicable to Authorised Firms operating through a Branch in the DIFC.

          Content

          The form is designed to capture information pertaining to the Authorised Firm's income, expenses assets and liabilities.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.22 Instructional Guidelines

            1. All figures relating to income statement items in any of the quarterly returns should correspond to the current reporting period (quarter) and not cumulative or year-to-date amounts.
            2. The instructional guidelines below are regarding certain specific data elements in the form.
            3. As noted earlier, this return should only be completed by Authorised Firms that operate in or from the DIFC through a Branch.

            Statement of Profit and Loss

            Item No. Item Instructional Guidelines
            B900_1010 Interest income Include both actually received interest and receivable interest which has accrued but has not yet been received, generated for example by:
            •  Cash and liquid assets;
            •  Trading securities;
            •  Investment securities;
            •  Derivatives in the non-trading book;
            •  Loans and advances;
            •  Investment / loans to parent entity / loans to associates / joint venture;
            •  Other investments; and
            •  Other interest earning assets
            B900_1020 Interest expense Include both interest actually paid and interest payable which has accrued but has not yet been paid, linked to, for example:
            •  Deposits;
            •  Other borrowings;
            •  Derivatives in the non-trading book;
            •  Bonds, notes and other borrowings;
            •  Loan capital;
            •  Loan from parent entity;
            •  Loan from associates / joint ventures;
            •  Other interest bearing liabilities.
            B900_2010 Fee and commission income Include charges made for services provided by the reporting institution, for example the provision of:
            •  Current account facilities;
            •  Corporate advice;
            •  Investment management and trustee services;
            •  Guarantees and indemnities;
            •  Commission on the sale of insurance of travellers cheques; and
            •  Foreign exchange services (if they can be separately identified).
            B900_2020 Fees and commission expense Include charges for all services rendered to the company by third parties (excluding those which have the character of interest).
            B900_3200 Net income from trading securities Include all profits or losses (including revaluation profits or losses) other than those arising from the sale of investments in subsidiary or associated companies, trade investments or the amortisation of premiums or discounts on the purchase of fixed maturity investments which are not held for dealing.
            B900_3300 Net income from investment securities Include net income / (losses) from investments other than the trading securities, such as available for sale and held to maturity investments.
            B900_3400 Income from Islamic Contracts Income derived from any Islamic business undertaken by the Authorised Firm.
            B900_3500 Other operating income Include under this heading income from any other source (other than extraordinary items), for example:
            •  Revaluations of foreign exchange positions;
            •  Revaluation of any investment in subsidiaries or associates (if equity accounting);
            •  Share of profits from associated companies (if reporting on a consolidated basis);
            •  Profit or loss on the sale of non-trading assets — e.g. premises, equipment, subsidiary and associated companies and trade investments; and
            •  Revaluation surpluses / deficits — following normal accounting practice.
            B900_3610 General provisions Total provisions to cover non-specific bad debt provisions.
            B900_3620 Specific provisions Total of provisions made against specific Exposures.
            B900_3640 Provisions for Islamic Contracts Those provisions arising from any Islamic business undertaken
            B900_3650 Other To include, for example, provisions made for taxation or dividends.
            B900_3700 Staff expenses Include, for example:
            •  Salary costs;
            •  Employer's contribution to any pension scheme; and
            •  Costs of staff benefits paid on a per capita basis such as private medical insurance.
            B900_3800 Depreciation & Amortisation Charges relating, for example, to depreciation / amortisation of property, plant and equipment and other amounts written off in respect of tangible and intangible fixed assets.
            B900_3900 Other operating expenses Examples of expenses can be as follows:
            •  Occupancy expenses — for example, rates, rent, insurance of building, lighting, heating, maintenance costs and subsidised restaurants;
            •  Equipment;
            •  Other overhead expenses; and
            •  All other expenditure not falling into one of the other specific categories.

            Statement of Assets

            Item No. Item Instructional Guidelines
            B900_4110 and B900_4120 Cash and Balances with Central Banks Include, for example, the following amounts:
            •  Notes and coins;
            •  Long positions in Gold bullion (including Tola Bars); and
            •  Amounts placed with central banks including funds required to be placed on deposit with central banks and monetary authorities.
            B900_4140 Treasury bills and other eligible bills Treasury bills issued by the national governments or by the Central banks on behalf of the governments. Also include bills issued by other entities, which are eligible for rediscounting with the central bank.
            B900_4130 Money market placements Include Deposits at call and other money market placements with banks or other money market participants
            B900_4210 Trading securities Include investments acquired principally for the purpose of selling or repurchasing it in the near term for short-term-profit-taking. This would include but not limited to, debt, equity and hybrid instruments
            B900_4211 Derivative financial instruments Include, for example, positions representing the following instruments, recorded at fair value:
            •  Forward and Futures contracts in Currencies, Interest rates and other financial assets;
            •  Forward rate agreements;
            •  Currency and interest rate swaps;
            •  Credit Derivatives; and
            •  Option contracts on currency, interest rate and other financial assets.

            These Derivatives include both the exchange-traded and over-the-counter versions.
            B900_4220 Designated at fair value through profit & Loss Include all financial instruments which are, upon initial recognition, designated by the entity as financial assets to be measured at fair value through profit or loss other than the trading securities included in B900_4210.
            B900_4230 Investment securities — available for sale Include non-Derivative financial assets that are designated as available for sale by the firm or that have not been classified under any of the other categories of investment in section B900_420T.
            B900_4240 Investment securities — held to maturity Include non-Derivative financial assets with fixed or determinable payments and fixed maturity that the firm has positive intention and ability to hold to maturity.
            B900_4810 Investments in associates, subsidiaries and JVs Include investments in entities, including unincorporated entities such as partnerships, over which the firm has significant influence and where the entity in question is neither a subsidiary nor a joint venture operation
            B900_4410 and B900_4420 Loans and advances Amounts arising from, for example:
            •  Revolving credit facilities;
            •  Credit cards outstanding balances;
            •  Housing loans (both variable and fixed rates);
            •  Term loans (both variable and fixed rates);
            •  The book value of assets leased out under finance lease agreements;
            •  Loans made under conditional hire purchase contracts;
            •  Advances purchased by or assigned to the reporting institutions, factoring or similar arrangements; and
            •  Other loans and advances.
            The items listed above are indicative examples and are not exhaustive universe of items to be reported under this item.

            The amounts reported should be gross of provisions (as specific and general provisions should be reported in the Liabilities section of the balance Sheet) and net of interest receivable.
            B900_4510 Murabaha and Istina'a receivables Report here all receivables relating to Murabaha and Istisna'a contracts. Refer to FAS 2 and FAS 10 of AAOIFI respectively.
            B900_4520 Ijarah assets and receivables Include Ijarah assets net of depreciation / amortisation and Ijarah receivables. Refer to FAS 8 of AAOIFI.
            B900_4530 Mudaraba Financing Capital provided on a Mudaraba basis should be reported here. Refer to FAS 3 of AAOIFI.
            B900_4540 Musharaka Financing Report capital provided on a Musharaka basis. Refer to FAS 4 of AAOIFI. Investment in the Share capital of another company should be reported under "Other investments".
            B900_4550 Other investments Include any other investments undertaken through Islamic Contracts, including Parallel Istisna'a assets (refer FAS 10 of AAOIFI) and capital provided on Salam contracts (refer FAS 7 AAOIFI).
            B900_4820 Fixed assets Include, for example, the value of the following:
            •  Plant and equipment, the residual value of items leased out under an operating lease (excluding balances relating to named Ijarah assets which should be included separately in item B900_4520); and
            •  Own premises being occupied or developed for occupation by the Authorised Firm, property (excluding property acquired / held available for sale which should be included in "Other Assets", item B900_4720).
            The amounts reported here should be net of accumulated depreciation and amortisation.
            B900_4610 Goodwill Include amounts relating to any purchased goodwill.
            B900_4620 Other intangible assets Items to be included:
            •  Capitalised development costs
            •  Brand names, trademarks and similar rights
            •  Licences and exchange seats which may be held as part of the Authorised Firm's trading requirement.
            B900_4720 Other assets Assets that have not been included in any of the items above. In particular, positions in short term securities held with the intention of resale, sundry debtors, prepayments and accrued income not identified elsewhere.
            B900_5010 Direct credit substitutes These relate to the financial requirements of Counterparty where the risk of loss to the Authorised Firm on the Transaction is equivalent to a direct claim on the Counterparty. Include here
            •  Guarantees of a financial nature to stand behind the current obligations of Clients (e.g. loan guarantees);
            •  Guarantees of leasing operations;
            •  Letters of credit and Stand-by letters of credit to the extent that they do not qualify for inclusion in item no. B900_5030 "Trade related contingents" below;
            •  Guarantees of a capital nature such as undertakings given to a non bank financial company which are considered as capital by the appropriate regulatory body. Guarantees given to a company not connected to the reporting institution should be risk weighted at 100% and those for connected companies should be deducted from the reporting institution's capital base; and
            •  Acceptances granted and risk participation in bankers' acceptances. Where the reporting institution's own acceptances have been discounted by that institution the nominal value of the bills held should be deducted from the nominal amount of the bills issued under the facility and a corresponding on balance sheet entry made.
            B900_5020 Transaction related contingents These Exposures relate to the on-going trading activities of a Counterparty where the risk of loss to the reporting institution depends on the likelihood of a future event which is independent of the creditworthiness of the Counterparty. They are essentially guarantees that support particular non financial obligations rather than a Client's financial obligations. Include here:
            •  Advance payment guarantees
            •  Performance bonds including bid or tender bonds, warranties and indemnities (indemnities given for lost Share certificates or bills of lading and guarantees of the validity of papers rather than of payment under certain conditions should be reported here);
            •  Stand by letters of credit relating to a particular contract or to non financial transactions (including arrangements backing, inter alia, subcontractors' and supplier's performance, labour and materials, contracts and bids).
            B900_5030 Trade related Contingents Report short term self-liquidating trade related items such as documentary letters of credit issued by the reporting institution that are collateralised by the underlying shipment i.e. the credit provides for the reporting institution to retain title to the underlying shipment. letters of credit issued without provision for the reporting institution to retain title to the underlying shipment should be reported under direct credit substitutes above.
            B900_5040 Sale and Repurchase Agreements Only report here sale and repurchase agreements where the asset sold is not reported on the balance sheet. Where the asset is off balance sheet, the appropriate Counterparty weighting is determined by the issuer of the security and not according to the Counterparty with whom the Transaction has been undertaken.
            B900_5050 Forward Assets Purchases The appropriate Counterparty weighting should be determined by the asset to be purchased and not the Counterparty with whom the contract has been entered into. Include commitments for loans and other on balance sheet items with certain drawdown. Exclude foreign currency spot Deposits with value date of up to two working dates after trade date.
            B900_5060 Forward Deposits Placed Relates to agreements between two parties whereby one will pay and the other receive an agreed rate of interest on a Deposit to be placed by one with the other at some pre-determined rate in the future. The weight should be determined according to the Counterparty with whom the Deposit will be placed. Exclude foreign currency spot Deposits with value date of up to two working dates after trade date.
            B900_5070 Uncalled partly- paid shares and securities Only include here if there is a specific date for a call. If there is no specific date for a call, the item should be included as a long term commitment under item no. B900_510T, "Other Commitments".
            B900_5080 NIF's and RUF's Note issuance and revolving underwriting facilities should include the reporting institutions underwriting obligations of any maturity. Where the facility has been drawn down by the borrower and the notes are held by someone other than the Authorised Firm, the underwriting obligation should continue to be reported at the nominal amount.
            B900_5090 Endorsement of Bills These should be reported at the full nominal amount, less any amount for bills which the institution now holds but had previously endorsed. Endorsement of bills not accepted by banks will attract the Counterparty risk weighting of the issuer. If it has been endorsed by another bank, a reduced risk weighting applies.
            B900_510T Other Commitments All other undrawn commitments are reportable here, divided into commitments under and over one year.
            B900_5210 Assets funded by restricted PSIAs Total amount of assets managed under Restricted PSIA by the Authorised Firm.

            Statement of Total Liabilities

            B900_610T Deposits Separately identify deposits due to the Financial Institutions in item B900_6002. All other deposits are to be reported in the other deposit section, item B900_6004.
            B900_630T Total Provisions All specific and general provisions in respect of loans and Advances and other receivables should be reported here. Exclude provisions against Islamic Contracts which should be reported in item no B900_6640.
            B900_660T Liabilities arising from Islamic Contracts Liabilities arising from Islamic Contracts include advances received against Salam contracts (defined in Para 3 and 19 of FAS 7 issued by AAOIFI and Ijarah investment payables (refer to FAS 8 of AAOIFI).
            B900_6010 and B900_6020 Creditors and other Liabilities Report all items not included in any of the above, such as proposed dividends payable, sundry accruals and deferred income etc.
            B900_6400 Derivative financial instruments — held for trading Include liabilities arising out of positions representing the following instruments, recorded at fair value:
            •  Forward and Futures contracts in Currencies, Interest rates and other financial assets;
            •  Forward rate agreements;
            •  Currency and interest rate swaps;
            •  Credit Derivatives; and
            •  Option contracts on currency, interest rate and other financial assets.

            These Derivatives include both the exchange-traded and over-the-counter versions.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.23 PRU-EPRS 1.23 Instructional Guidelines — Form B90 — Appendix 1 — Large Exposures — Branch

          Purpose

          Form B90A1 is intended to capture the information regarding the Large Exposures undertaken out of the Branch by an Authorised Firm.

          Applicability

          This form is applicable to Authorised Firms operating through a Branch in the DIFC in prudential category 1, 2, 3A and 5.

          Content

          The form is designed to capture information pertaining to the Authorised Firm's 20 Largest Exposures to Unconnected Counterparties and 10 Largest Exposures to Connected Counterparties. Further details are sought in respect of these Exposures such as type of Counterparties, provisioning amount etc which are explained under the Instructional Guidelines section below.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.23 Instructional Guidelines

            1. An Authorised Firm operating through a Branch presence is required as part of its general systems and controls obligations, to identify and manage the Exposures agreed and undertaken by its operations.
            2. The 20 largest Exposures, in absolute terms, to unconnected Counterparties should be listed in the first table and the 10 largest Exposures, again in absolute terms, to Connected Counterparties should be listed in the second table.
            Item Instructional Guidelines
            Twenty Largest Exposures (Unconnected) Include in this table the twenty largest Exposures to all types of Counterparty except those that are connected to the Branch.
            Exposures to individual, or groups of Closely Related Counterparties should be reported in descending order by size. Exposures to individual counterparties which constitute a group of Closely Related Counterparties should be reported as one aggregate Exposure.
            Counterparty The identity of a Counterparty, as defined in the Glossary, in this context will generally be one of the categories as set out in PIB Rule A4.11.4.
            Unconnected — Financial, Unconnected — Other, Government The Authorised Firm should clarify here into what category an Exposure falls. These are set out in detail in Rules PIB A4.11.4 to PIB A4.11.28 but for the purposes of this form, an Authorised Firm should state whether an Exposure is to:
            i. an Unconnected Counterparty or group of Closely Related Counterparties that are predominantly comprised of financial businesses;
            ii. an Unconnected Counterparty or group of Closely Related Counterparties that are predominantly comprised of non-financial businesses;
            iii. Central governments and central banks.
            Amount of Exposure at risk For Exposures arising in the Non-Trading Book the amount at risk should, with certain exceptions detailed below, be reported as the book value of the Authorised Firm's actual or potential claims, contingent liabilities or assets.

            Exposures should be calculated in accordance with internationally or AAOFI accepted accounting practice.

            For Exposures arising in the Trading Book, all positions should be marked-to-market daily.

            Where a market determined price is not readily available, the Authorised Firm may generate its own mark-to-market valuation. Positions should be valued in accordance with the procedures outlined in the Authorised Firm's trading book policy statement.

            This is set out in more detail in Rules PIB 2.4 and PIB A4.11.10 to PIB A4.11.28.
            Exposure as a percentage of company's equity The Branch should use as the denominator the amount its head office has available as regulatory capital (e.g. financial resources). This is intended to provide the DFSA with a guide as to the relative size and importance of the Exposure for the Authorised Firm as a whole.
            Specific bad debt provision Include here the amount of specific bad debt provision that may have been made against a particular Exposure.
            Reduction by netting, collateral etc. As set out in PIB Rule 4.15.3 (f), the value of an Exposure can be reduced through Credit risk Mitigation as set out in section 4.13.
            Exposure at reporting date after eligible set-offs Column "Amount of Exposure at risk" less the amounts in Columns "Specific bad debt provision" and "Reduction by netting, collateral & other set-offs".
            Amount of this Exposure financed by own assets or Unrestricted PSIAs For Exposures arising out of Islamic business, this column should be used to quantify the amount of the Exposure that is financed by the Authorised Firm's own assets or by Unrestricted PSIA assets.
            Amount of this Exposure financed by restricted PSIAs. For Exposures arising out of Islamic business, this column should be used to quantify the amount of the Exposure that is financed by restricted PSIA assets.
            Ten Largest

            Exposures

            (connected)
            Include in this table the ten largest Exposures to Connected Counterparties i.e. the dis-aggregated detail of all connected lending and Exposures should be split into different Counterparties within the connected group.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.24 PRU-EPRS 1.24 Instructional Guidelines — Form B120 — Geographical Distribution of Assets and Liabilities

          Purpose

          Form B120 is intended to capture the information regarding geographical distribution of assets and liabilities of an Authorised Firm at the end of the reporting period.

          Applicability

          This form is applicable to Authorised Firms categorised under prudential categories 1, 2, 3A, 3B, 3C5.

          Content

          The information reported covers claims, other Exposures, and liabilities booked by the Authorised Firm at the DIFC office and its branches. The level of consolidation for this return should be the same as that for the balance sheet. The positions of the subsidiaries carrying out the Financial Services of Accepting Deposits and Providing Credit are to be consolidated into this return.

          Structure of the form in EPRS

          The form is split into three linked forms, namely, Part I — Claims Immediate Borrower Basis, Part II — Other and Part III — Liabilities.

          In Part I — Claims Immediate Borrower Basis information regarding all the claims and other Exposures are to be entered.

          In the second linked form (Part II — Other) mainly the information regarding the risk transfers i.e. claims on immediate borrowers that can be reallocated to the country sector where the final risk lies, i.e., the entity of ultimate risk is to be reported by way of outward and inward risk transfers.

          The third linked form (Part III — Liabilities) captures the information regarding the geographical distribution of various liabilities of an Authorised Firm.

          Note: A comprehensive list of countries has been provided within the EPRS system. Therefore, for providing country wise breakdown of the amounts right click on the row 'Country Code' in each of the linked forms and select the necessary countries from the list that would appear.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.24 Instructional Guidelines

            1. The residency of Counterparties on both an immediate borrower and ultimate risk basis is to be reported.
            2. All claims and other Exposures are to be reported gross of any provisions for impairment. Accrued interest is to be excluded from all parts of the return. Exclude all gold and silver balances, foreign coin, foreign government or bank notes, net debit or credit items in transit vis-à-vis third parties and amounts reported as insurance-related assets and liabilities.
            3. Claims, other Exposures, and liabilities are to be initially classified on a geographical basis according to the mailing address of the Counterparty, unless the Authorised Firm is aware that the residential status of the Counterparty is different from their mailing address.

            Risk transfers

            4. Information on claims on immediate borrowers that can be reallocated to the country sector where the final risk lies, i.e., the entity of ultimate risk, is to be reported by way of outward and inward risk transfers.
            5. In line with the risk reallocation principle for measuring country Exposure recommended by the Basel Committee on Banking Supervision, the country of ultimate risk or where the final risk lies is defined as the country in which the guarantor of a financial claim resides or the country in which the head office of a legally dependent branch is located.
            6. Claims on separately capitalized subsidiaries can only be considered as being guaranteed by the head office if the parent has provided an explicit guarantee. Collateral may be considered as an indicator of where the final risk lies to the extent that it is recognized as a risk mitigant under the Basel Capital Accord. The following is a list of eligible collateral:
            a. cash on deposit with the lending bank including certificates of deposit or comparable instruments issued by the lending bank;
            b. gold;
            c. debt securities rated by a recognised external credit assessment institution where these are:
            i. rated at least BB- when issued by sovereigns and public sector entities ("PSEs") that are treated as sovereigns by the national supervisor;
            ii. rated at least BBB- when issued by other issuers (including banks and securities firms); or
            iii. rated at least A2 / P3;
            d. debt securities not rated by a recognised external credit assessment institution where these are:
            i. issued by a bank;
            ii. listed on a regulated exchange;
            iii. qualify as senior debt;
            iv. all other rated issues of the same seniority by the issuing bank are rated at least BBB- or A3 / P3 by a recognized external credit assessment institution;
            v. the bank holding the securities as collateral has no information to suggest that the issue justifies a rating below BBB- or A3 / P3 (as applicable); and
            vi. the supervisor is sufficiently confident about the market liquidity of the security;
            e. equities that are included in a main index;
            f. equities that are not included in a main index but are listed on a regulated exchange; and
            g. Domestic or Foreign Funds where:
            i. a price for the Units is publicly quoted daily; and
            ii. the Fund is limited to investing in the instruments listed in this section.
            7. If credit Derivatives are used to cover the Counterparty risk of financial claims in the banking book, the country of ultimate risk of these positions is defined as the country in which the Counterparty to the credit derivative contract resides. However, credit Derivatives, such as credit default swaps and total return swaps, that belong to the trading book of the protection buying reporting bank should only be reported under the "Derivatives" category, and all other credit Derivatives should be reported as "guarantees" by the protection seller (see guarantees and other unused credit commitments below).

            Reporting of Credit Derivatives

            Buy protection Sell protection
            Banking book Risk transfers Guarantees
            Trading book Derivatives Guarantees
            8. In the case of security holdings, such as credit-linked notes and other collateralised debt obligations and asset-backed securities, a "look-through" approach should be adopted and the country of ultimate risk is defined as the country where the debtor of the underlying credit, security or Derivative contract resides.
            9. Note that inward and outward risk transfers are used to report transfer of risk from one sector to another sector, even when the country of the immediate borrower and the country of ultimate risk are the same. Where banks are unable to allocate outward risk by country because the protection has been purchased to cover a group, e.g., an industry Exposure, banks are to use a reasonable weighted-average allocation formula, eg. weighted-average based on total claims of the group. Amounts involved in such allocations should be insignificant.

            Example

            10. The following example demonstrates a risk transfer. A borrower in country XXX borrows USD $1 million from a bank and the repayment of that loan is guaranteed by another entity in country YYY. For the purposes of risk transfer, this Transaction would be reported as follows:
            Country Name Loans Outward Risk Transfer Inward Risk Transfer
            XXX 1000 1000  
            YYY     1000
            11. The data in line 1 tell us that the bank has a $1 million claim on a borrower located in country XXX, and this claim is guaranteed by a resident of another country. Line 2 data tell us that the residents of country YYY have provided an unconditional credit commitment for the claims the bank has on the residents of another country. Note that the total of the "Outward Risk Transfer" column and the "Inward Risk Transfer" column (columns 3 and 4 in the above example) will be the same.
            12. The following equation illustrates how to derive claims on an ultimate risk basis:

            Total Claims (Immediate Borrower Basis) - Outward Risk Transfer + Inward Risk Transfer = Total Claims (Ultimate Risk Basis)

            Derivatives

            13. Authorised Firms are to provide data on financial claims (i.e., positive market values) resulting from Derivative contracts, independent of whether they are booked as on- or off-balance sheet items. The data should be reported on an ultimate risk basis, i.e., the positions should be allocated to the country where the final risk lies. The data would, therefore, mainly comprise forwards, swaps and options relating to foreign exchange, interest rate, equity, commodity and credit Derivative contracts. As previously indicated, credit Derivatives that are used to cover for the Counterparty risk of financial claims in the banking book should be reported as "risk transfers" and not as Derivatives.
            14. The following items are common OTC Derivative instruments:

            Forward contracts

            15. Forward contracts represent agreements for delayed delivery of financial instruments or commodities in which the buyer agrees to purchase and the seller agrees to deliver, at a specified future date, a specified instrument or commodity at a specified price or yield. Forward contracts are not traded on organised exchanges and their contractual terms are not standardised. Forward contracts that are to be reported are those that have been entered into by the reporting bank and are outstanding (i.e., open contracts) as at the reporting date. Contracts are outstanding (i.e., open) until they have been cancelled by acquisition or delivery of the underlying financial instrument or commodity or settled in cash.

            Swaps

            16. Swaps are Transactions in which two parties agree to exchange payment streams based on a specified notional amount for a specified period.

            OTC options

            17. Option contracts convey either the right or the obligation, depending upon whether the reporting institution is the purchaser or the writer, respectively, to buy or sell a financial instrument or commodity at a specified price up to a specified future date. OTC option contracts include all option contracts not traded on an organized exchange. These include: swaptions, i.e., options to enter into a swap contract, and contracts known as caps, floors, collars, and corridors. Options such as call features embedded in loan, securities and other on-balance-sheet assets are not to be included. Sold options are not considered a financial claim and therefore are not to be included under Derivatives.

            Guarantees and Other Unused Credit Commitments

            18. Data should be supplied on Exposures to the reporting bank via guarantees and unused credit commitments other than guarantees. These are to be reported on an ultimate risk basis, i.e., the positions allocated to the country where the final risk lies. Both types of data should be reported to the extent that they represent the unutilised portion of both binding contractual obligations and any other irrevocable commitments. Performance bonds and other forms of guarantee should only be reported if, in the event of the contingency occurring, the resulting claims would have an impact on total balance sheet claims.
            19. "Guarantees" are contingent liabilities arising from an irrevocable obligation to pay to a third-party beneficiary when a Client fails to perform some contractual obligation. They include secured, bid and performance bonds, warranties and indemnities, confirmed documentary credits, irrevocable and standby letters of credit, acceptances and endorsements. Guarantees also include the contingent liabilities of the protection seller of credit Derivative contracts.
            20. "Other unused credit commitments" are arrangements that irrevocably obligate an institution, at a Client's request, to extend credit in the form of loans, participation in loans, lease financing receivables, mortgages, overdrafts or other loan substitutes or commitments to extend credit in the form of the purchase of loans, securities or other assets. Normally commitments involve a written contract or agreement and some form of consideration, such as a commitment fee.

            Specific Guidance

            First linked form — Part I — Claims — Immediate Borrower Basis

            Item Instructional Guidelines
            Country Code For the relevant Exposure, enter the country code found on the List of Country Codes.
            Deposits Report Deposits with banks or official monetary institutions according to the location of the office where the Deposit is held.
            Securities Report short term and long term securities and equities. Short term securities are those with an initial term of less than 1 year.
            Loans Report loans at book value gross of provisions for impairment.
            Distribution of claims by residual term to maturity The maturity should reflect amortisation periods or final maturity dates rather than interest adjustments or rollover dates. Instalment loans should be allocated to the periods in which instalment payments are made. Demand loans should be classified as claims with a maturity of less than one year. Equities should be reported as unallocated.

            Second linked form — Part II — Other

            Item Instructional Guidelines
            Outward Risk Transfer Report the amounts which are guaranteed or assured through some type of commitment by a party in another country or by another sector in the same country.
            Inward Risk Transfer Report the amount of any guarantees and other types of credit commitments made by residents of other countries or by another sector in the same country.
            Total Claims ultimate risk basis Report the total "claims — immediate borrower basis" less "outward risk transfers" plus "inward risk transfers".
            Other Exposures ultimate risk basis Report separate amounts for guarantees, Derivatives and other as previously defined.

            Third linked form — Part III — Liabilities

            Item Instructional Guidelines
            Official Monetary Institutions Report Deposits payable to official monetary institutions.
            Other Banks Report Deposits payable to other banks.
            Other Liabilities Report any other liabilities.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.25 PRU-EPRS 1.25 Instructional Guidelines — Form B130 — Provisions for Impairment

          Purpose

          Form B130 is intended to capture the information regarding the provisions for impairment of assets of an Authorised Firm.

          Applicability

          This form is applicable to Authorised Firms categorised under prudential categories 1 and 5.

          Content

          The information reported covers movement in the specific and general provisions in respect of various categories of assets such as mortgage loans, non-mortgage loans, Deposits with the Financial Institutions, Securities and Off-Balance sheet items.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.25 Instructional Guidelines

            All figures relating to income statement items, other expense accounts, volumes, activity levels, number of accounts or units sold/traded and any other data relating to amounts invested / deposited except outstanding balances in any of the quarterly returns should correspond to the current reporting period (quarter) and not cumulative or year-to-date amounts.

            Item Instructional Guidelines
            Opening Balance Report the provisions as at the end of the previous period.
            Charge from Profit and Loss The additional provisions that management considers adequate to reduce the recorded investment in the firm's books net of other movements. The amount of provisions should be the same as recorded on the profit and loss statement.
            Write offs The reduction of provisions due to a write off of the corresponding investment.
            Recoveries The increase of provisions due to funds recovered from an investment that had previously been written off.
            Other Include and specify any other credit related adjustments to provisions occurring during the period.
            Closing Balance This item is calculated by EPRS as the opening balance adjusted by the items in 'Charge from P&L", 'Write offs, 'Recoveries' and 'Other adjustments'
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.26 PRU-EPRS 1.26 Instructional Guidelines — Form B140 — Exposures in Arrears

          Purpose

          Form B140 is intended to capture information regarding the Exposures / Assets in arrears or past due.

          Applicability

          This form is applicable to Authorised Firms categorised under prudential categories 1 and 5.

          Content

          The information reported covers amount of Exposure broken down into different time brackets such as Exposures overdue for less than 30 days, between 30 and 59 days etc, in respect of various categories of assets / Exposures such as mortgage loans, non-mortgage loans, Deposits with the Financial Institutions, Securities and off — balance sheet items.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.26 Instructional Guidelines

            1. All figures relating to income statement items, other expense accounts, volumes, activity levels, number of accounts or units sold / traded and any other data relating to amounts invested / deposited except outstanding balances in any of the quarterly returns should correspond to the current reporting period (quarter) and not cumulative or year-to-date amounts.
            2. The amount should be the total of the Exposures corresponding to the time in arrears from the day on which the payment for the Exposure was due as per the contractually agreed terms. The amount should be gross of any provisions for impairment.
            3. The number of Exposures should be the total number of Exposures corresponding to relevant amount.
            4. The provision applied should be the specific provision applied to the relevant amount.
            5. Authorised Firms in category 1 and 5 are required to complete this form in respect of its Exposures in arrears.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.27 PRU-EPRS 1.27 Instructional Guidelines — Form B150 — Investment Activity Schedule

          Purpose

          Form B150 — Investment Activity is intended to capture the details of the investments held by an Authorised Firm on its own account, i.e. on its own balance sheet at the end of the reporting period.

          Applicability

          This form is applicable to all Authorised Firms irrespective of their prudential category, including Islamic Financial Institutions ("IFI") and Authorised Firms operating a Branch in the DIFC.

          Content

          The form is designed to capture information pertaining to the investments carried on an Authorised Firm's balance sheet. Specifically the form captures the detailed breakdown of investments across different classes of financial instruments, the geographical and sectoral distribution of investments. The form also seeks to obtain the composition of investments in terms of currency of denomination across three main currency categories — USD, UAE Dirham and Other Currencies.

          Authorised firms are required to report the investments made to deploy their capital funds, even though they are not carrying on the activity of investing as part of their main business. However, investments held by an Authorised Firm as part of its Client Assets should not be included in this form.

          Bear in mind the following general factors while using the guidelines given below to complete the form.

          (a) Authorised firms are expected to determine the classification of their investments for reporting on the basis of the economic import of the investment and its risk-return profile rather than on the basis of specific nomenclature for the Transaction / product involved.
          (b) In cases where the investments are made in special-purpose vehicles or structured products, the nature and characteristics of the underlying assets or cash-flow streams should be considered while determining its sectoral and geographical classification.
          (c) Although the investments have to disclosed across three different currency bases, the reporting amounts will always be in US Dollars. Consequently, the value of the investments classified under UAE Dirham and Other Currencies need to be translated into US Dollars, using relevant exchange rates and reported in the respective columns.
          (d) The total investments in each part of the form need to be the same as in the other parts and should equal the total investments reported in form B10 — Statement of Financial Position.

          Structure of the form in EPRS

          B150 is a single form with three main parts. The first part involves splitting the investments across different types of instruments. The total investments will automatically be reflected in item # B150_100T. The details of investments made using Derivatives are to be disclosed in the next part.

          Subsequent parts of the form require an Authorised Firm to classify its investments across two different dimensions — the geographical distribution of investments and the sectoral distribution. Sectoral distribution involves classifying investments in terms of the Investment sector.

          Every category of investments resulting from the classifications referred to above are required to be disclosed in three broad classes of currency of denomination — US Dollar, UAE Dirham and other currencies. The form provides three columns to report the three different currency bases for every category of investment.

          Authorised Firm is required to ensure that the total investments reported in each of the three main parts are equal to each other. The total investments should also be equal to the amount of total investments reported on the applicable statement of financial position, Form B10, Form B20 or Form B90.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.27 Instructional Guidelines

            1. Part I: Classification of investments by asset class: The different asset classes and the underlying asset categories are described in the title column which render them self explanatory, except for the following specific points.
            2. B150_1110 — Government Securities: Include debt securities with original maturity of 366 days or less, issued by sovereign governments or issuers of sovereign risk. These securities can be denominated in any currency.
            3. B150_1120 — Government Bonds: Include debt securities with original maturity of more than 366 days, issued by sovereign governments or issuers of sovereign risk. These securities can be denominated in any currency.
            4. B150_1130 — Sub-Sovereign Debt: Include debt securities issued by emirate / state / provincial governments, municipal authorities, agencies of the government which carry do not represent sovereign risk. These securities can be denominated in any currency.
            5. B150_1140 — Issuance by Public sector enterprises: Include debt securities issued by corporate entities which are wholly or majority owned by federal / state governments.
            6. B150_1150 to B150_1195: These items are self-explanatory.
            7. B150_1210 to B150_1230: These items in the section titled 'Hybrid debt & preferential shares' are intended to capture data on amount of investments made in all forms of hybrid debt and quasi-equity instruments. These typically include, but are not limited to, convertible bonds, preference shares etc.
            8. B150_1310 to B150_2500: These items in the sections titled 'Equity, Other Assets & Derivatives' are self-explanatory, except for B150_1420 — Stakes in Special Purpose Vehicles ("SPVs"). Include investments made in SPVs including but not limited to those used for cash-flow securitisations, asset securitisations, project financing, structured credit Transactions and for ship / aircraft financing.
            9. B150_3100 to B150_500T: These items in the sections titled geographic distribution, sectoral distribution and currency denomination of investments are self-explanatory, except for those indicated below.
            10. B150_4230 — Others: Include all investments made where the Investments do not lend themselves to be classified under any of the sectors listed under this section.
            11. B150_500T — This row titled 'Total Investments based on currency denomination' leads to a linked form. To reach the linked form, right-click on the green cell in the fourth column titled "Total" and choose "Linked Form" in the pop-up box.
            12. The linked form provides for addition of any currencies which the Authorised Firm wishes to use for reporting its investments. To add currencies, click the icon in the first column on the left which opens a dialogue box listing the entire universe of currencies. User will choose the currencies on which reporting is required to be done by clicking on the code numbers for the currency listed in the dialogue box. On completing the selection of all the currencies required, the user clicks OK button at the bottom of the window. This will bring the user back to the linked form where all the chosen currencies are listed. The user can then report all the investments against the selected currencies.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.28 PRU-EPRS 1.28 Instructional Guidelines — Form B160 — Credit Activity Schedule

          Purpose

          Form B160This form is designed to capture the details of the credit activity of Authorised Firms carried out by way of business, on both dimensions of outstanding credit at the end of the reporting period and fresh credit delivery during the reporting period.

          Applicability

          This form is applicable to Authorised Firms licensed to carry out the financial service of Providing Credit. Such authorised firms are likely to be included in prudential categories 1 & 5. This includes Authorised Firms operating as a Branch in the DIFC and Islamic Financial Institutions ("IFI") in prudential category 5.

          Content

          The form is intended to capture information pertaining to the outstanding credit carried on the Authorised Firm's balance sheet and the amount of fresh credit delivered by the firm. Specifically the form captures the detailed breakdown of credit across:

          (a) different types of borrowers (referred to as counterparties in the form);
          (b) by product category;
          (c) by domicile of the borrower;
          (d) maturity of the credit Exposure;
          (e) the sector in which the borrower(s) operate; and
          (f) by the currency of denomination of the credit.

          The form also seeks to collect information on the types of unfunded or off-balance sheet credit Exposures and on the currency distribution of the credit activity.

          Authorised Firms are required to report all Exposures, with a risk-reward profile similar to that of credit in this form. Although the list of typical credit products is provided in the second section of the form, all Exposures resembling credit, like lease, hire purchase etc should also be included as part of the information reported in this form. For the sake of consistency, the instructions provided herein uses the term "Credit" to refer to all types of lending, including but not limited to loans, advances, mortgages, structured credit, revolving credit, self-liquidating short-term credit, lease, hire purchase etc.

          Authorised firms are required to report all the credit activity in USD equivalent, including the amounts they report in respect of the credit activity denominated in different currencies. In the last section of the form collecting data on credit activity across different currencies, firms are also required to categorise the credit provided between Group companies & related Counterparties, banks & Financial Institutions and other Clients.

          Structure of the form in EPRS

          B160 is a single form with two main parts. The first part has six sections, each of which involves classifying total credit activity across one of the dimensions referred to above. The second part is in a linked form which seeks classification of credit activity in terms of the currency in which credit is provided. In respect of every category of credit resulting from the classifications referred above, Authorised Firms are required to disclose total outstanding credit and total credit provided in the reporting period. The total outstanding credit classified under each section should be the same and should equal the total credit reported in form B10, form B20 or form B90, whichever is applicable.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.28 Instructional Guidelines

            1. All figures relating to income statement items, other expense accounts, volumes, activity levels, number of accounts or units sold / traded and any other data relating to amounts invested / deposited except outstanding balances in any of the quarterly returns should correspond to the current reporting period (quarter) and not cumulative or year-to-date amounts.
            2. Part I: Classification of credit by type of borrower or Counterparty: The different types of borrowers for which data is to be reported are listed in the title column which render them self explanatory, except for the following specific points.
            3. B160_1010 — Credit to Sovereign Governments and Central Banks: Include credit to sovereign governments, central banks or issuers of sovereign risk. This will include all reserve requirements maintained with central banks.
            4. B160_1020 — Credit to sub-sovereign entities: Include credit to emirate / state / provincial governments, municipal authorities, agencies of the government which do not represent sovereign risk.
            5. B160_1030 — Credit to Public sector enterprises: Include credit (loans and advances of all types) provided to corporate entities which are wholly or majority owned by federal / state governments.
            6. B160_1040 to B160_2110: These items are self-explanatory.
            7. B160_2120 — Loans collateralised by other assets: Include lease and hire purchase Exposures, wherein the underlying equipment or assets provide cover for the credit.
            8. B160_3010 to B160_3090 — Geographical distribution of credit: The classification in this section is intended to be mutually exclusive. For example, reporting of credit to borrowers domiciled in the GCC, B160_3040 should not include the credit to borrowers in the DIFC or those in the UAE, because they are reported in the previous three items. Similarly, credit reported in B160_3050 should not include the credit reported in B160_3040 and the previous items.
            9. B160_4010 to B160_6030: These items in the sections addressing classification by maturity, sectoral distribution, unfunded credit and currency denomination of credit are self-explanatory.
            10. B160_5130 — Others: Include all credits made where the borrowers do not lend themselves to be classified under any of the sectors listed under this section.
            11. B160_700T — This row titled 'Total Credits based on currency denomination' leads to a linked form. To reach the linked form, right-click on the green cells in either of the two columns on the right and choose 'Linked Form' in the pop-up box.
            12. The linked form provides for addition of any currencies which the user wishes to use for reporting its credits. To add currencies, click the icon in the first column on the left which opens a dialogue box listing the entire universe of currencies. User will choose the currencies on which reporting is required to be done by clicking on the code numbers for the currency listed in the dialogue box. The currencies thus chosen can be seen on the right hand side window. On completing the selection of all the currencies required, the user clicks OK button at the bottom of the window. This will bring the user back to the linked form where all the chosen currencies are listed. The user can then report all the credits against the selected currencies.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.29 PRU-EPRS 1.29 Instructional Guidelines — Form B170 — Acceptance of Deposits Schedule

          Purpose

          Form B170 — Acceptance of Deposits is designed to capture the details of the Deposit taking activity of Authorised Firms carried out by way of business, on both dimensions of outstanding amount at the end of the reporting period and fresh Deposit inflows during the reporting period.

          Applicability

          This form is applicable to Authorised Firms in the prudential category 1, which are licensed to carry out the financial service of Accepting Deposits. This includes Authorised Firms operating as a Branch in the DIFC.

          Content

          The form is intended to capture information pertaining to the outstanding amount of Deposits owed by and reported on the Authorised Firm's balance sheet and the amount of Deposits raised by the firm during the reporting period. Specifically the form captures the detailed break-up of Deposits across:

          (a) different types of depositors;
          (b) type of Deposits;
          (c) geographic diversification of the depositor;
          (d) maturity of the Deposits; and
          (e) Currency denomination of Deposits.

          The form also seeks to collect the data composition of Deposits as described above, except for the distribution across currencies, in terms of USD Deposits and Deposits raised in other currencies separately. Authorised firms are required to report all data on Deposits in USD equivalent, including the data on Deposits raised in other currencies.

          Authorised Firms are required to report all Deposits which meet the definition provided in Appendix 1 of the GEN module of the DFSA Rulebook. Authorised Firms involved in managing PSIA accounts for its Clients need not report the amounts involved in such PSIA accounts in this form.

          Structure of the form in EPRS

          B170 has a main form with a linked form, wherein the main form has four sections, each of which involves classifying total Deposits across one of the dimensions referred above. The linked form seeks classification of Deposits accepted in terms of the currency in which they are denominated. In respect of every category of Deposits resulting from the classifications referred above, Authorised Firms are required to disclose total outstanding Deposits at the end of the reporting period and the total Deposits raised during the reporting period. The total outstanding Deposits reported under each section should be the same and should equal total Deposits reported in form B10, form B20 or form B90, whichever is applicable.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.29 Instructional Guidelines

            1. All figures relating to income statement items, other expense accounts, volumes, activity levels, number of accounts or units sold / traded and any other data relating to amounts invested / deposited except outstanding balances in any of the quarterly returns should correspond to the current reporting period (quarter) and not cumulative or year-to-date amounts.
            2. Section I: Classification of Deposits by type of depositor: The different types of depositors for which data is to be reported are listed in the title column which render them self explanatory, except for the following specific points.
            3. B170_1010 — Individuals: This refers to all the individual depositors who have made the Deposits on their own name. Include also Deposits made by personal investment vehicles of individual investors which usually, but are not limited to take the form of trusts, investment companies etc.
            4. B170_1050 — Sovereign, sub-sovereign entities and PSEs: Include Deposits raised from sovereign governments, emirate / state / provincial governments, municipal authorities, agencies of the government which do not represent sovereign risk. Also include Deposits accepted from corporate entities which are wholly or majority owned by federal / state governments.
            5. B170_3010 to B160_3060 — Geographical distribution of depositors: The classification in this section is intended to be mutually exclusive. For example, reporting of Deposits from the MENA, B170_3020 should not include the Deposits raised from the GCC, because it is reported in the previous item.
            6. B170_500T — This row titled 'Total (currency)' leads to a linked form. To reach the linked form, right-click on the green cell in the right-most column of this row and choose 'Linked Form' in the pop-up box.
            7. The linked form provides for addition of any currencies which the user wishes to use for reporting Deposits. To add currencies, click the icon in the first column on the left which opens a dialogue box listing the entire universe of currencies. User will choose the currencies on which reporting is required to be done by clicking on the code numbers for the currency listed in the dialogue box. The currencies thus chosen can be seen on the right hand side window. On completing the selection of all the currencies required, the user clicks OK button at the bottom of the window. This will bring the user back to the linked form where all the chosen currencies are listed. The user can then report the data regarding Deposits against the selected currencies.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.30 PRU-EPRS 1.30 Instructional Guidelines — Form B180 — Wealth Management Activity

          Purpose

          Form B180This form is designed to capture the data regarding wealth management activity of Authorised Firms, including both the business arising out of accounts booked in the DIFC and accounts booked elsewhere.

          Applicability

          This form is applicable to Authorised Firms licensed to undertake Managing Assets, managing a PSIA (restricted), Advising on Financial Products or Credit or Arrange Transactions in Investments or Credit. Authorised Firms operating as a Branch in the DIFC.

          Content

          The form is intended to capture information pertaining to the number of Clients, net new assets during the reporting period and the total assets under management of the Authorised Firm. The form captures the composition of these data for both accounts booked in the DIFC and for accounts booked elsewhere. The form seeks classification of the data across discretionary and non-discretionary investment accounts as well as across domicile of the Clients. The form also seeks to collect information on the booking destination of the accounts (for any accounts that are not booked in the DIFC).

          Authorised firms are required to report all data on assets under management in USD equivalent, including the assets denominated in other currencies. Authorised Firms are required to report all accounts of their Clients, including accounts booked other than in the DIFC for which the firm provides only investment advisory or arranging services

          Authorised Firms involved in managing PSIA accounts for its customers are required to include the data on such PSIA accounts as part of the data on discretionary accounts — item B180_1010.

          Structure of the form in EPRS

          B180 consisting of three sections. The first section seeks the composition of data between discretionary and non-discretionary accounts, while the second section seeks classification of the data across broad geographical segments of the Client base. The third section seeks the data on accounts booked other than in the DIFC, to be classified across the different booking centres where such accounts are booked.

          The first three columns pertain to accounts booked in the DIFC and seek data on number of accounts, net new assets added during the reporting period and the total assets under management on the reporting date. The next three columns seek the same data on accounts booked in centres other than in the DIFC.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.30 Instructional Guidelines

            1. All figures relating to income statement items, other expense accounts, volumes, activity levels, number of accounts or units sold / traded and any other data relating to amounts invested / deposited except outstanding balances in any of the quarterly returns should correspond to the current reporting period (quarter) and not cumulative or year-to-date amounts.
            2. Second section on domicile of Clients: The classification in this section is intended to be mutually exclusive. For example, information on accounts of Clients domiciled in the GCC & MENA, B180_2030 should not include the accounts of customers domiciled in the UAE or in the DIFC, because they are reported in the previous two items. Similarly, data reported in B180_2020 should not include the accounts reported in B180_2010. Otherwise, the data being sought in all the three sections of this form are self-explanatory given the description provided in the title column.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.31 PRU-EPRS 1.31 Instructional Guidelines — Form B190 — Asset Management, Custody & Trust services

          Purpose

          Form B190 — This form is designed to capture data regarding asset management , custody and trust service activities, covering both the business arising out of services provided in the DIFC and services arranged from the DIFC.

          Applicability

          This form is applicable to Authorised Firms licensed to undertake Managing Assets, managing a PSIA (restricted), Providing Trust Services, Providing or Arranging Custody, Advising on Financial Products or Credit or Arranging Credit or Deals in Investments. This includes Authorised Firms operating as a Branch in the DIFC.

          Content

          The form is intended to capture information pertaining to the number of Clients, net new assets during the reporting period and the total assets under management of the Authorised Firm across asset management, custody and trust services activity. The form seeks to capture the data in respect of services provided in the DIFC as well as services arranged from the DIFC. The form also requires classification of the data across different types of fund structures and Client segments.

          Structure of the form in EPRS

          Form B190 comprises three sections, seeking data about asset management, custody and trust services activity. The information is sought in respect of services provided in the DIFC as well as services arranged from the DIFC.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.31 Instructional Guidelines

            1. All figures relating to income statement items, expense accounts, volumes, activity levels, number of accounts or units sold / traded and any other data relating to amounts invested / deposited except outstanding balances in any of the quarterly returns should correspond to the current reporting period (quarter) and not cumulative or year-to-date amounts.
            2. Authorised firms are required to report all data on assets under management in USD equivalent, including the assets denominated in other currencies. Authorised Firms are required to report all accounts of their Clients, including accounts booked other than in the DIFC for which the firm provides only advisory or arranging services. Authorised Firms involved in managing PSIA (restricted) accounts for their Clients are required to include the data on such PSIA accounts in this form.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.32 PRU-EPRS 1.32 Instructional Guidelines — Form B200 — Brokerage Activity

          Purpose

          Form B200 — This form is designed to capture the data on the brokerage business of Authorised Firms, including both the business arising out of execution of Client orders as well as arranging of order executions with other market intermediaries.

          Applicability

          This form is applicable to Authorised Firms licensed to Deal in Investments as an Agent, Deal in Investments on a matched principal basis or Arrange Transactions in Investments or Credit. This includes Authorised Firms operating as a Branch in the DIFC.

          Content

          The form is intended to capture information pertaining to the number of Clients, number of trades, volume of units traded and the value of the Transactions over the reporting period. The form captures the composition of these data for both execution business as well as the data relating to the business of arranging for execution with other market intermediaries. The data required to be reported in respect of execution business is limited to the accounts booked by the Authorised Firm as part of its DIFC operations. Consequently, only Authorised Firms licensed to Deal in Investments as Agent are expected to report data on this activity. Authorised Firms are required to report data relating to all accounts of their Clients, including accounts booked other than in the DIFC for which the firm only arranges trades.

          Structure of the form in EPRS

          B200 is a form which has three sections. The first section seeks data on trades executed by the Authorised Firm as part of its DIFC operations, across the different product / market categories. The second section seeks data on arranging of trades across the same mix of products / markets as in the first section. The third section of the form (brokerage by customer type) is in a linked form, which seeks data on classification of brokerage Clients by type of Clients and by the domicile of Clients.

          In the linked form which has the third section, the required data for execution business booked in each Client category segment is to be reported on the first three columns and the data on arranging of trades is to be reported on the fourth to sixth columns.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.32 Instructional Guidelines

            1. All figures relating to income statement items, expense accounts, volumes, activity levels, number of accounts or units sold / traded and any other data relating to amounts invested / deposited except outstanding balances in any of the quarterly returns should correspond to the current reporting period (quarter) and not cumulative or year-to-date amounts.
            2. The data being sought in all the three sections of this form are self explanatory given the description provided in the title column, except for the following specific points.
            3. B200_3100: Include all High Net Worth Individuals and any of the personal investment vehicles, like trusts, investment companies etc. used by such Clients to manage their wealth.
            4. B200_3300: Include all Professional Clients and Counterparties who are not identified as a separate category in this section of the form. This would include, but is not limited to, pension funds, private investment / holding companies, corporate entities, insurers and their insurance funds / cells, etc.
            5. B200_3400: Include Collective Investment Funds ("CIFs") of all types — irrespective of whether they are recognised by the Collective Investment Law or Rules of the DFSA.
            6. Third section on domicile of Clients: The classification in this section is intended to be mutually exclusive. For example, information on accounts of Clients domiciled in the GCC & MENA, B200_4300 should not include the accounts of Clients domiciled in the UAE or in the DIFC, because they are reported in the previous two items. Similarly, data reported in B200_4200 should not include the accounts reported in B200_4100.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.33 PRU-EPRS 1.33 Instructional Guidelines — Form B210 — Outward Remittances

          Purpose

          Form B210 — This form is designed to capture the data on outward remittances made by Authorised Firms, which include remittances made to entities located outside the UAE.

          Applicability

          This form is applicable to Authorised Firms carrying out banking business. This involves Authorised Firms licensed to undertake Accepting Deposits and Providing Credit and Authorised Firms classified under prudential category 5 and licensed to manage PSIAs. This includes Authorised Firms operating as a Branch in the DIFC.

          Content

          The form is intended to capture information pertaining to the remittances made to a specified set of countries / regions and to the rest of world over the reporting period. The form seeks the data on remittances classified according to the purpose of the remittance. Authorised Firms are required to report data relating to all remittances made by them, both on their own account and those made for the benefit of their Clients or on the instructions of their Clients.

          Structure of the form in EPRS

          B210 is a single form which seeks data on outward remittances made to the different countries / regions listed in the columns. The data is to be provided across different purposes for which the remittances are made.

          The form has two sections — first section B30_010 relates to trade related to remittances and the second section which relates to non-trade related remittances.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.33 Instructional Guidelines

            1. The data being sought in the form are self explanatory given the description provided in the title column, except for the following specific point.
            2. B30_010: Include all the trade related remittances, including but not limited to payments on behalf of Clients for all trade finance Transactions, payments to suppliers / sellers domiciled outside the UAE, payments to banks located outside providing the trade credit for such deals.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.34 PRU-EPRS 1.34 Instructional Guidelines — Form B220 — Inward Remittances

          Purpose

          Form B220 — This form is designed to capture the data on inward remittances received by Authorised Firms, which include remittances made to Clients located inside the UAE.

          Applicability

          This form is applicable to Authorised Firms carrying out banking business. This involves Authorised Firms licensed to undertake Accepting Deposits and Providing Credit and Authorised Firms classified under prudential category 5 and licensed to manage PSIAs. This includes Authorised Firms operating as a Branch in the DIFC.

          Content

          The form is intended to capture information pertaining to the remittances received from a specified set of countries / regions and from the rest of world over the reporting period. The form seeks the data on remittances classified according to the purpose of the remittance. Authorised Firms are required to report data relating to all remittances received by them, both for their own account and those received on their Client accounts.

          Structure of the form in EPRS

          B220 is a single form which seeks data on inward remittances received from the different countries / regions listed in the columns. The data is to be provided across different purposes for which the remittances are made.

          The form has two sections — first section B30_010 relates to trade related to remittances and the second section which relates to non-trade related remittances.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.34 Instructional Guidelines

            1. The data being sought in the form are self explanatory given the description provided in the title column, except for the following specific points.
            2. B30_010: Include all the trade related remittances, including but not limited to receipts on behalf of Clients for all trade finance Transactions, receipts for their exports or provision of goods or services to their Clients located outside the UAE, receipts from banks located outside providing the trade credit for such deals.
            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
            [Amended] [VER2/04-13]

        • PRU-EPRS 1.35 PRU-EPRS 1.35 Instructional Guidelines — Form B230 — Domestic Fund Activity

          Purpose

          Form B230This form is designed to capture the data regarding all types of Collective Investment Funds ("CIF") being operated by Authorised Firms. This scope of this form is restricted to CIFs classified as Domestic Funds as per the CI Laws and the Rules in the CIR module of the DFSA Rulebook.

          Applicability

          This form is applicable to Authorised Firms licensed to operate Collective Investment Funds ("CIFs") registered in the DIFC. This includes Authorised Firms operating as a Branch in the DIFC.

          Content

          The form is intended to capture information pertaining to the number of CIFs and the assets under management for each type of CIF. The form seeks data relating to CIFs classified as per the type of fund, whether they are public or private funds and by type of investment vehicle used by the CIF. The total number of funds and the total assets under management reported should be the same for the three broad categories. Authorised firms are required to report all data on assets under management in USD equivalent, including the assets denominated in other currencies.

          Structure of the form in EPRS

          B230 is a single form which has three sections. The first section seeks the classification of CIFs between public and private funds. The second section seeks classification of the data across types of funds based on the asset classes, strategies or investment structures. The third section seeks the data classified as per the investment vehicle of the CIFs.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.35 Instructional Guidelines

            The data being sought in all the three sections of this form are self explanatory given the description provided in the title column.

            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 1.36 PRU-EPRS 1.36 Instructional Guidelines — Form B240 — Balances due from and due to Head Office, Own Branches & Other Banks

          Purpose

          Form B240 — This form is designed to capture the data on outstanding balances which are due from and due to banks. This data would include outstanding balances with the head office or other branches of the same bank and outstanding balances with other banks.

          Applicability

          This form is applicable to Authorised Firms carrying out banking business. This involves Authorised Firms licensed to undertake Accepting Deposits and Providing Credit and Authorised Firms classified under prudential category 5 and licensed to manage PSIAs. This includes Authorised Firms operating as a Branch in the DIFC.

          Content

          The form is intended to capture information pertaining to the outstanding balances with other banks or with respect to its head office or with other branches / sister entities of the bank. The form seeks the data on outstanding balances classified across a specified set of countries / regions and from the rest of world over the reporting period.

          Structure of the form in EPRS

          B240 is a single form which seeks data on balances due to and due from other banks and from / to the head office classified across the different countries / regions listed in the rows.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.36 Instructional Guidelines

            The data being sought in the form are self explanatory given the description provided in the title column, except for the following specific points.

            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 1.37 PRU-EPRS 1.37 Instructional Guidelines- Form B260 — Acting as a Trustee of a Fund and Fund Administration Activity

          Purpose

          Form B260 is designed to capture the data pertaining to acting as a trustee of Collective Investment Funds ("CIF") and fund administration activity. The scope of this form includes all CIFs for which the services referred above are being provided irrespective of whether the CIFs are recognised or registered with the DFSA.

          Applicability

          This form is applicable to Authorised Firms licensed to act as a trustee to a CIF and to Authorised Firms licensed to provide fund administration services to CIFs or to other investment vehicles. These include Authorised Firms operating as a Branch in the DIFC. The Authorised Firms need to complete only the sections of the form which is/are applicable to them.

          Content

          The form is intended to capture information pertaining to the number of CIFs and the net asset value of the CIFs for which these services are being provided for each type of CIF. The form seeks the data referred above across funds categories — based on their public / private status and based on the domicile of the CIFs involved. Authorised firms are required to report all data on net asset value of funds in USD equivalent, including the net asset values of funds denominated in other currencies.

          Structure of the form in EPRS

          B260 is a single form which has two main sections. The first section seeks data pertaining to acting as a Trustee and the second section seeks data on fund administration activity. Both the main sections are similar in arrangement and both of them have two sub-sections.

          The first sub-section — By Type of Funds requires data on number of funds and total net asset value of those funds classified as per their public / private status. The second sub-section — Domicile of Foreign Funds requires the same data classified as per the jurisdiction where the funds are domiciled.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.37 Instructional Guidelines

            The data being sought in all the three sections of this form are self explanatory given the description provided in the title column.

            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 1.38 PRU-EPRS 1.38 Instructional Guidelines- Form B270 — Related Party Transactions

          Purpose

          Form B270 is designed to capture the data pertaining to all the assets and liabilities of an Authorised Firm which involve a Related Person or a Connected Counterparty to the Authorised Firm. The scope of this form includes all Authorised Firms falling under the Rules of the PIB module of the DFSA Rulebook.

          Applicability

          This form is applicable to all Authorised Firms classified under any of the prudential categories 1 to 5 as per the PIB module of the DFSA Rulebook. These include Authorised Firms operating as a Branch in the DIFC.

          Content

          The form is intended to capture information pertaining to assets and liabilities of the Authorised Firm which are owed by or owed to a Related Person or to a Connected Counterparty. The form is structured to seek the data on all the assets and liabilities of the Authorised Firm, split in to assets and liabilities pertaining to Related Person & Group companies and those pertaining to other Counterparties. Authorised firms are required to report all data in USD equivalent.

          Structure of the form in EPRS

          B270 is a single form which has two main sections. The first section seeks data pertaining to assets and the second section on liabilities. The data being sought is restricted to broad categories of assets and liabilities consistent with the purpose of the form in identifying the extent of Related Party Transactions in the overall business of the Authorised Firm.

          In both sections, the data is required to be split-up between related party Exposures and those relating to other parties in the two columns along with the total of the two classes in the right-most column.

          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
          [Amended] [VER2/04-13]

          • PRU-EPRS 1.38 Instructional Guidelines

            The data being sought in this form are self explanatory given the description provided in the title column.

            Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 1.39 PRU-EPRS 1.39 Instructional Guidelines — Internal Risk Assessment Process (IRAP) and Internal Capital Adequacy Assessment Process (ICAAP)

          1. The DFSA has issued detailed rules and guidance regarding its approach to Supervisory Review and Evaluation Processes (SREP) in PIB Chapter 10 and Appendix 10. As part of this framework, an Authorised Firm (Firm) in PIB Category 1, 2, 3A, 3B, 3C or 5 is required to provide an up-todate IRAP and, if applicable, an ICAAP, to the DFSA annually (within 4 months of the Firms' Financial year end).
          2. The DFSA is providing the following suggested template which can be used as guidance for this submission. While the use of this template is not mandatory, the submitted document should address the elements contained in the template. Before submission to the DFSA the document must be reviewed and approved by the Firm's Governing Body. The level of detail in the IRAP and ICAAP document will vary based on the size and complexity of the Firm. Supplementary information such as policies, risk management frameworks and processes can be referred to by way of appendices.
          3. The overarching approach comprises of three steps as set out in PIB Chapter 10. Not all of the steps are applicable to all Firms. The application of the sections is set out in PIB 10.1 and is summarised below:
          a. IRAP must be completed by a Firm in PIB Category 1, 2, 3A, 3B, 3C and 5;
          b. ICAAP must also be completed by a Firm in PIB Category 1, 2, 3A and 5; and
          c. SREP will apply to both a Firm completing an IRAP and ICAAP.
          4. Following submission of the IRAP and ICAAP, the DFSA will conduct a SREP to review and evaluate the assessments carried out by a Firm under its IRAP and ICAAP. Following this review, the DFSA may engage with a Firm to discuss specific aspects or the Firm's risk profile in certain areas. For a Firm required to complete the ICAAP, this may also include the DFSA imposing an ICR on the Firm after the SREP review. The SREP will be structured to provide consistency of treatment to all Firms, taking into consideration risk profile, business strategy and management. The SREP does not constitute a parallel or secondary IRAP or ICAAP, rather its purpose is to review and evaluate the completeness and consistency of IRAP and ICAAP of a Firm.
          5. Fundamentally, the SREP process aims to develop a meaningful and detailed assessment by a Firm of its own risks, and foster a meaningful interaction and dialogue between the DFSA and Firms to enhance understanding and consider any remedial actions that may be required to reduce a firms risk profile and meet prudential requirements on an on-going basis.
          Suggested Format for IRAP and ICAAP assessments Applicable for IRAP Applicable for ICAAP
          1. Executive Summary
          2. Background
          3. Structure and Governance
          4. Statement of Risk Appetite
          5. Internal Risk Assessment Process
          6. Capital planning  
          7. Liquidity Planning  
          8. Stress testing and scenario analysis
          9. Integration, review and Approval


          1. Executive Summary

          The Executive Summary should provide an overview of the IRAP and ICAAP methodology and the results. It should include:

          a. a brief overview of the Firms business strategy and risk appetite;
          b. commentary on the most material risks faced by the Firm, why the level of risk is acceptable and whether mitigating actions are planned or in progress;
          c. an assessment of the adequacy of the Firm's risk management processes including governance framework;
          d. a summary of the financial position of the Firm, balance sheet structure and projected profitability;
          e. an assessment of whether the Firm considers its capital and financial resources as adequate given the size and complexity of its business; and
          f. a summary of the main findings of the ICAAP analysis (where applicable), and whether the Firm has adequate Capital Resources over its planning horizon;
          2. Background

          This section should provide a high level overview of the process the Firm has taken when conducting its IRAP (and if applicable it's ICAAP). It should include a brief description of the review, challenge and approval process of the IRAP, and if applicable, the ICAAP.

          It should include details of the Firm's risk management framework together with the business planning and capital management process utilised in the assessment. It should also provide details covering relevant policies and systems used by the Firm to identify, manage, and monitor its risks according to its risk appetite.

          3. Structure and Governance

          This section should include information regarding the following:

          a. updated group structure (legal and operational);
          b. internal organisation including staffing, reporting lines, Governing Body, and operational committees;
          c. details of oversight from other group control functions;
          d. background on key senior management and Directors;
          e. summary of financial products and business lines in operation, including a breakdown of profitability by business line; and
          f. details of the internal audit framework and audit work conducted during the period. This should also outline key audit findings and management actions taken.
          4. Statement of Risk Appetite

          This section should provide a high level overview of the Firm's risk appetite. It should also set out the frequency of review of the risk appetite by senior management and the Governing Body.

          The DFSA appreciates that risk appetite will vary significantly between Firms considering the nature, scale and complexity of their business, including the nature of the Licence permissions. For example, Firms undertaking balance sheet risks will have materially different risk appetites than Firms engaging in advisory or pure brokerage business. Risk appetite may also vary across business lines and across risk types. Nevertheless, all Firms should set a risk appetite to provide a cornerstone for the Firm's risk management framework and business strategy.

          5. Internal Risk Assessment Process (IRAP)

          This section should provide a concise description of the Firm's risk identification process and outline how the Firm identifies material risk areas. While we have highlighted certain key risks below Firms should consider all specific risks applicable to their business.

          Key risks which should be considered as part of an IRAP include:

          a. Credit Risk;
          b. Market Risk;
          c. Operational Risk;
          d. Interest rate risk in the non-trading book;
          e. Concentration Risk;
          f. Funding risk;
          g. Liquidity risk;
          h. Business/Strategic risk;
          i. Reputation risk;
          j. Conduct of business risk;
          k. Money Laundering risk;
          l. Sanctions risks;
          m. Regulatory risks;
          n. Displaced Commercial Risk (where a firm conducts Islamic Financial Business involving a Profit Sharing Investment Account); and
          o. Any other risks identified.

          Not all risk factors will have a quantifiable financial capital charge but these should nonetheless be considered with regards to appropriate mitigations and management actions to minimise any potential implications. For example, conduct and AML risks may lead to significant regulatory or other fines and penalties; and consequently will require appropriate systems and controls.

          The Firm can utilise a separate appendix to provide further detail on the Firm's risk assessment and quantification methodology, including:

          a. the Firm's definition of each of the key risks listed above and any others considered key based on the Firm's risk profile;
          b. how the Firm determines the materiality of each key risk;
          c. the Firm's business plan and strategy to deal with such risks
          d. a description of how each material risk is then quantified for capital allocation purpose, including detailed methodology to specify data, assumptions and calculations; and
          e. details of any stress testing and scenario analysis conducted to determine impact results on capital requirement.

          At a minimum, the DFSA expects a Firm in PIB Category 1, 2 or 5 to provide a Pillar II capital allocation to cover IRRBB, Liquidity and Credit Concentration Risk.

          6. Capital planning

          This section should outline the Firms capital needs, anticipated capital expenditures, desired capital level and external capital sources and must be in line with the Firms desired strategic objectives and business plan. It should include the analysis conducted on the Firm's capital position and whether it is appropriate for the nature, scale and complexity of the business, including the refection of the perceived risks in section 5 above.

          This section should include:

          a. the Firm's “baseline” capital forecasts (at least quarterly, based on the annual business plan);
          b. a 3-year summary forecast capital position, particular focus should be made on the next 12 month period; and
          c. a description of the Firm's capital planning and management process, including an outline of how ICAAP is incorporated into this process.

          The Firm should also include in this analysis details of the implications of DFSA or other capital requirements. For example the analysis should include:

          a. the Firm's assessment as to how it will maintain a capital “cushion” in order to meet regulatory capital requirements; and
          b. explicit disclosure of the Firm's capital targets and other regulatory obligations being introduced.

          Where relevant, Financial Group ICAAP considerations will typically take into account the risks to which the Firm is exposed due to its membership of a broader corporate group. Examples to be considered include:

          a. contagion, Counterparty Risk, reputational risk and risks related to operational dependencies such as shared functions and systems; and
          b. an assessment of the level of Group resources to consider transferability of capital intergroup and stress testing availability of such capital under a range of market conditions.
          7. Liquidity Planning

          This section should summarise how Liquidity Risk is managed (as distinct from any capital set aside to cover losses incurred in a liquidity stress). In particular, it would set out the key assumptions and conclusions from stress testing of cash flows undertaken to manage the risk.

          It would generally be helpful for the ICAAP to include as appendices the following, where relevant:

          a. an organisation chart that covers liquidity and funding risk management delegated authorities and reporting lines within the firm;
          b. asset-liability committee (ALCO) papers and samples of management information used day to day in Treasury operations;
          c. liquidity and funding policy documentation including limit breach policy documentation;
          d. internal audit reports relating to Treasury departments (if applicable);
          e. liquidity stress testing documentation;
          f. an explanation of intra-group liquidity arrangements, especially if operating in several countries. This is particularly important for Firms operating as subsidiaries and should include any restrictions on the ability of the Group to provide liquidity to the DIFC Firm;
          g. number, scale and timeline of commitments whether formal or informal towards:
          i. off-balance sheet financing vehicles or other exposures;
          ii. market counterparties (including margin or collateral obligations); or
          iii. towards clients;
          h. analysis of sources of liquidity, including details of specific funding risks or market liquidity risks; and
          i. detailed contingency funding plans.

          Any material impact of Liquidity Risk on capital such as scenarios relating to ratings downgrades or material increases in cost of a liquidity stress should be included in the stress and scenario testing outlined in the next section.

          8. Stress & Scenario testing

          This is a key element of the IRAP and ICAAP assessments and should focus on the assumptions utilised realistically to stress test a Firm's financial position. The DFSA does not stipulate specific stress test criteria or scenarios given the broad nature of business models in operation and scale and complexity of Firms. However, the following are suggested guidelines to be utilised:

          Using the “baseline” projections, the Firm should use stress-tests to consider how it would perform under stressed conditions. This section should:

          a. set out the stress tests undertaken and the rationale for their choice;
          b. summarise the methodology and assumptions used in each scenario tested;
          c. summarise how the Firm would manage its business and capital so as to ensure that minimum regulatory requirements are met at all times;
          d. where mitigating actions are relied upon, provide the results of the stress tests on both gross and net of controls, and credible management action basis; and
          e. provide explicit disclosure of the linkage between the stress and scenario testing done as part of ICAAP and the Firm's stress testing programme.

          Management actions following the stress tests should be outlined, with consideration to:

          a. quantitative impact of those actions;
          b. sensitivity analysis/testing of management actions; and
          c. justification of why these mitigating actions are plausible.

          At a minimum, the DFSA expects each Firm to include the following stress tests in its ICAAP analysis:

          a. a standardised (200 basis points) interest rate shock (a single factor test);
          b. downturn in its credit quality or an equivalent credit stress scenario which is relevant to the Firm's business lines (a single factor test); and
          c. a scenario that in management's view would most likely cause a breach of DFSA target capital levels (a reverse engineered scenario test).

          For Firms without material Credit Risk, ensure that suitable tests are completed to reflect other relevant risks such as operational or reputation risk. For example, a Firm undertaking asset management services could run a stress test assuming a 30% loss of AuM or the loss of its largest client.

          9. Integration, Review and Approval

          This section should include information regarding:

          a. the role of the Governing Body in approving the conceptual design of the IRAP and where applicable ICAAP. This should include reference to its scope, methodologies and objectives;
          b. the review by the Governing Body and senior management and other control functions such as risk management, compliance and internal audit;
          c. how the review has been used by the Firm and how it is embedded in the decision making, business planning and risk management processes;
          d. how results have been integrated into risk limit setting and monitoring;
          e. any significant changes made in the current process as compared to previous IRAP/ICAAP processes; and
          f. a list of all the relevant documents and policies used in the preparation, review, approval and implementation of ICAAP (these can be included as appendices).
          [Added] [VER3/04-14]

          • PRU-EPRS 1.39 Instructional Guidelines [Deleted]

            [Deleted] [VER2/04-13]

      • PRU-EPRS 2 PRU-EPRS 2 PIB Forms

        This chapter of PRU contains the following forms:

        • Form B10 Form B10 Balance Sheet

          Please click here to download this form in PDF formatPDF format.

          [VER2/04-13]

          • Form B10 Appendix 1 Details of Non-Trading Book Assets

            Please click here to download this form in PDF formatPDF format.

            [VER2/04-13]

          • Form B10 Appendix 2 Details of Counterparty Risk Exposures

            Please click here to download this form in PDF formatPDF format.

            [VER2/04-13]

          • Form B10 Appendix 3 Market Risk in the Trading Book

            Please click here to download this form in PDF formatPDF format.

            [VER2/04-13]

          • Form B10 Appendix 4 Calculation of the DCR

            Please click here to download this form in PDF formatPDF format.

            [VER2/04-13]

        • Form B20 Form B20 Balance Sheet — Islamic Financial Institutions

          Please click here to download this form in PDF formatPDF format.

          [VER2/04-13]

          • Form B20 Appendix 1 Details of Non-Trading Book Assets — Self-Financed

            Please click here to download this form in PDF formatPDF format.

            [VER2/04-13]

          • Form B20 Appendix 2 Details of Non-Trading Book Assets — PSIA Unrestricted ("PSIAU").

            Please click here to download this form in PDF formatPDF format.

            [VER2/04-13]

          • Form B20 Appendix 3 Details of Non-Trading Book Assets — PSIA Restricted ("PSIAR")

            Please click here to download this form in PDF formatPDF format.

            [VER2/04-13]

          • Form B20 Appendix 4 Details of Counterparty Risk Exposures — Self-Financed

            Please click here to download this form in PDF formatPDF format.

            [VER2/04-13]

          • Form B20 Appendix 5 Details of Counterparty Risk Exposures — PSIA Unrestricted ("PSIAU")

            Please click here to download this form in PDF formatPDF format.

            [VER2/04-13]

          • Form B20 Appendix 6 Details of Counterparty Risk Exposures — PSIA Restricted ("PSIAR")

            Please click here to download this form in PDF formatPDF format.

            [VER2/04-13]

          • Form B20 Appendix 7 Details of Market Risk in the Trading Book

            Please click here to download this form in PDF formatPDF format.

            [VER2/04-13]

          • Form B20 Appendix 8 Calculation of the Displaced Commercial Risk ("DCR")

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            [VER2/04-13]

          • Form B20 Appendix 9 Analysis of Reserves Movement

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            [VER2/04-13]

        • Form B30 Income Statement

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          [VER2/04-13]

        • Form B40 Income Statement — Islamic Financial Institutions

          Please click here to download this form in PDF formatPDF format.

          [VER2/04-13]

        • Form B50 Expenditure Based Capital Minimum

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          [VER2/04-13]

        • Form B60 Capital Adequacy Schedule

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          [VER2/04-13]

        • Form B70 Form B70 Large Exposures Schedule

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          [VER2/04-13]

          • Form B70 Appendix 1 Details of Largest 25 Exposures Arising from Islamic Contracts

            Please click here to download this form in PDF formatPDF format.

            [VER2/04-13]

        • Form B80 Liquidity Schedule — Maturity Mismatch

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          [VER2/04-13]

        • Form B90 Form B90 Branch Return

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          [VER2/04-13]

          • Form B90 Appendix 1 Large Exposures — Branch

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            [VER2/04-13]

        • Form B100 Declaration by Authorised Firm

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          [VER2/04-13]

        • Form B120 Geographical Distribution of Assets and Liabilities

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          [VER2/04-13]

        • Form B130 Provisions for Impairment

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          [VER2/04-13]

        • Form B140 Exposures in Arrears

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          [VER2/04-13]

        • Form B150 Investment Activity Schedule

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          [VER2/04-13]

        • Form B160 Credit Activity Schedule

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          [VER2/04-13]

        • Form B170 Acceptance of Deposits Schedule

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          [VER2/04-13]

        • Form B180 Wealth Management Activity

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          [VER2/04-13]

        • Form B190 Asset Management, Custody & Trust Services

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          [VER2/04-13]

        • Form B200 Brokerage Activity

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          [VER2/04-13]

        • Form B210 Outward Remittances

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          [VER2/04-13]

        • Form B220 Inward Remittances

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          [VER2/04-13]

        • Form B230 Domestic Fund Activity

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          [VER2/04-13]

        • Form B240 Balances due from and due to Head Office, Own Branches & Other Banks

          Please click here to download this form in PDF formatPDF format.

          [VER2/04-13]

        • Form B260 Acting as a Trustee of a Fund and Fund Administration Activity

          Please click here to download this form in PDF formatPDF format.

          [VER2/04-13]

        • Form B270 Related Party Transactions

          Please click here to download this form in PDF formatPDF format.

          [VER2/04-13]

        • Form B280 [Deleted]

          Deleted [VER2/04-13]

      • PRU-EPRS 3 PRU-EPRS 3 Instructional Guidelines

        This chapter of PRU contains the instructional guidelines for forms referred to in PIN. The instructional guidelines for each form are set out in the section specified below:

        • PRU-EPRS 3.1 Instructional Guidelines — Form IN10 — Statement of Financial Position

          1. The 'Statement of Financial Position' provides the DFSA with the necessary information on assets, liabilities and capital to undertake an assessment of an Insurer's financial position and performance and facilitate assessing compliance with the minimum capital requirements.
          2. PIN section 5.3 deals with the recognition and measurement of assets and liabilities on this form.
          3. The instructional guidelines in this section provide instructions as to the completion of specific lines on the form. Instructions that are provided in respect of a particular category of current assets or liabilities are normally applicable also (with the appropriate changes) to the corresponding category of non-current assets or liabilities, and vice versa.
          4. The completion of this form requires Insurers to make estimates, for example, in assigning assets and liabilities as current or non-current. As an example, the settlement date of outstanding claims, particularly IBNR, is often uncertain. An Insurer may make a reasonable estimate of the amount that is expected to be settled within twelve months, and record that amount as a current liability, with the balance being recorded as non-current. A similar approach would be acceptable for the assets representing reinsurance and other recoveries that would not normally become due and receivable until the underlying claim has been settled.
          5. Insurers are required to disclose the amount included in certain totals with respect to parties Related to the Insurer. These disclosures exclude amounts due to or from the Insurer under Contracts of Insurance.
          6. This form is required for each reporting unit in respect of which the Insurer must prepare a Return, except for a DIFC Business Return.
          7. Assets and liabilities must be reported as current or non-current. Current assets and liabilities are those expected to mature or be realised within a twelve-month period from the date as at which the return is drawn up. Where an asset or a liability includes elements that are current as well as elements that are non-current, the asset or liability must be separated into the current and non-current components, if necessary by means of an estimate.

          Structure of the form in the EPRS

          8. IN10 is a single form which has three sections. The first section seeks information on assets of an Insurer with further classification into current and non-current assets. In a similar vein, the second section seeks information on liabilities of an Insurer with further classification into current and non-current liabilities. The third section covers the equity of an Insurer.
          Section Instructional Guidelines
          Cash and Liquid Assets This section includes only cash and liquid assets. Insurers must have regard to the following principles:
          a.Item N100_1120 includes only deposits available within 24 hours that are used by the Insurer for daily purposes of liquidity and operations. Deposits that form part of the Insurer's investments are reported under section Investments (Current) or section Receivables; and
          b. Bank overdrafts must be reported at item N100_3630, not netted against any of the items under this section unless there is a legal right of offset.
          Receivables This section includes only receivables. In completing this item, Insurers must have regard to the following principles:
          a. Receivables must be stated net of any provision for doubtful debt or impairment of asset;
          b. Recoveries other than reinsurance includes items such as subrogation or salvage recoveries in respect of claims that have been paid;
          c. Premiums Receivable includes instalment premiums on General Insurance contracts that are not yet due for payment. It also includes premiums on General Insurance contracts that have been entered into but not yet recorded. It does not include premiums on Long-Term Insurance contracts that are not yet due for payment;
          d.Amounts due under reinsurance contracts includes amounts due and receivable under reinsurance contracts, including premiums due from cedants and deposits retained by cedants, as well as amounts due from reinsurers in respect of recoveries against claims that have been paid. Where there is a legal right of set-off, an Insurer may report the working balance on an account with a cedant or reinsurer as a net receivable or payable amount. However, if there is no legal right of set-off, amounts must be recorded gross as receivables and payables;
          e.Expected reinsurance and other recoveries on outstanding claims includes amounts in respect of reinsurance and other recoveries in respect of claims that have been incurred but not paid, up to the date to which the return is drawn up. This includes reinsurance and other recoveries in respect of IBNR. Because of the uncertainty of the outcome of outstanding claims and IBNR, it is necessary to estimate at least a part of this balance. The basis on which the estimate is made must be consistent with the basis of estimation of the related liability, reported at item N100_3300;
          f.Reinsurance and other recoveries in respect of claims that have not yet been incurred are reported at item N100_1260. It is necessary to estimate this balance. The basis on which the estimate is made must be consistent with the basis of estimation of the related liability, reported at item N100_3400; and
          g.Where, in determining the amounts to be reported at item N100_1240 or N100_1250, an Insurer has made or considered making a provision for doubtful debt in respect of recoveries due or potentially due from a reinsurer, the Insurer must take into account the potential need to make a provision when determining any estimate to be included at item N100_1250 or N100_1260.
          It is common practice for Insurers to account for their exposures on General Insurance contracts in force by means of an unearned premium provision, an asset representing deferred reinsurance expense and (where necessary) a premium deficiency reserve. Insurers are referred to the instructional guidelines to item Premium liabilities under general insurance contracts(N100_3400). An insurer that uses an unearned premium provision and premium deficiency reserve as a proxy for Premium Liabilities may record its deferred reinsurance expense at item N100_1260 (for the current portion) and item N100_2160 (for the non-current portion).
          Investments An Insurer's current investments are reported in this section. This section does not include derivatives used to hedge investments reported here. Hedging derivatives are included under "Other Current Assets". Insurers must have regard to the following principles when completing this section:
          a.Investments that are strategic in nature must be assumed to be non-current, and must be reported under sections — Investments (other than Related entities ) or under section Investments in Related entities; and
          b.Deposits that are of the nature of security deposits, or retentions under contracts, are not reported as PSIAs at item N100_1310, but are reported as receivables.
          Investments that take the form of mudaraba or musharaka contracts must be reported in accordance with their nature. A contract that takes the form of a collective investment, where the Insurer is one of several investors providing capital to a mudarib who then provides the capital to the entrepreneur, should be reported as a collective investment (where it does not fall to be reported as a PSIA). Where however, a contract of mudaraba or musharaka is entered into by an Insurer as an investment directly with an entrepreneur, or through a mudarib with the Insurer as sole rab ul mal, the investment should be reported as a contract of mudaraba or musharaka as appropriate.
          Deferred Tax Assets Deferred tax assets that are current assets are reported under this section. Insurers must have regard to the following principles when completing this section:
          a.Netting off of deferred tax assets and liabilities is permitted only where both the asset and the liability relate to the same tax to which the Insurer is subject, and are expected to crystallise in the same taxation period; and
          b. Amounts that represent refunds due from taxation authorities, that are not contingent on earning future taxable income, are not deferred tax assets but are receivables.
          Other Current Assets This section includes current assets that do not fall to be reported under other items. In completing this item, Insurers must have regard to the following principles:
          a.Acquisition costs in respect of General Insurance business must not be deferred, as the basis on which the Premium Liability is determined requires immediate expensing of acquisition costs; and
          b. Item N100_1520 does not include deferred reinsurance expense, as item N100_1260 stands in place of this asset.
          Total Current Assets This item is calculated by EPRS as the sum of the total for all 5 preceding sections — cash & liquid assets, receivables, current investments, deferred tax assets and other current assets classified as current assets.

          The total of amounts due from, balances with or investments in Related parties that form a part of the total of current assets, excluding the amounts due under insurance contracts is reported against the memo item — Current assets representing amounts due from, balances with or investments in related parties, excluding amounts due under insurance contracts reports.
          Receivables (non-current) In completing this section, Insurers should have regard to the principles set out in this section for the equivalent categories of current assets.
          Investments (other than related entities) In completing this section, Insurers should have regard to the principles set out in this section for the equivalent categories of current assets.
          Investments in Related Entities In this section, investments in Related parties must be recognised and measured in accordance with the principles of PIN chapter 5. PIN Rule 5.7 requires an Insurer to make allowance for any minimum capital requirement or equivalent to which a Subsidiary or Associate is subject in the jurisdiction in which it is incorporated.
          Plant and Equipment In this section, an Insurer must exclude any properties of the Insurer, whether or not occupied. Properties must be reported at item N100_1360 or N100_2260 as appropriate.
          Intangible Assets In this section, an Insurer must report intangible assets after deducting any amortisation or impairment charge in respect of those assets.
          Deferred Tax Assets In completing this section (non-current deferred tax assets) Insurers should have regard to the principles set out in this section for the equivalent categories of current assets.
          Other Assets In completing this section (other non-current assets) Insurers should have regard to the principles set out in this section for the equivalent categories of current assets.
          Total Non-Current Assets This item is calculated by EPRS as the sum of the total for all 7 preceding sections -receivables, investments, investments in related entities, plant & equipment, intangible assets, deferred tax assets and other assets classified as Non-Current Assets. The total of amounts due from, balances with or investments in Related parties that form a part of the total of non-current assets, excluding the amounts due under insurance contracts is reported against the memo item — current assets representing amounts due from, balances with or investments in related parties, excluding amounts due under insurance contracts reports.
          Total Assets This item is calculated by EPRS and must equal the total of current assets and non-current assets.
          Amounts due on reinsurance contracts N100_3200 must include premiums payable but not yet due for payment under the terms of reinsurance contracts, and deposits withheld from reinsurers. Other items attributable to reinsurance contracts such as the reinsurer's portion of recoveries and salvage and commissions due to reinsurers must also be included under this item.
          Outstanding Claims Provision (including IBNR) Item N100_3300 reports the current portion of the Insurer's provision for outstanding claims. This item must be completed having regard to the following principles:
          a.The liability must represent the estimated cost to the Insurer of settling claims which it has incurred at the reporting date but which have not been finalised. The liability is in respect of both direct business and inward reinsurance business and must take into account unpaid claims, unreported claims, adjustments for claims development and the direct and indirect claims settlement costs that the Insurer expects to incur in settling its outstanding claims;
          b. In the case of Long-Term Insurance Business, this item must include all claims liabilities in respect of Contracts of Insurance that are no longer included in the calculation of the net policy benefits at item N100_3500;
          c.The liability must be stated without deducting reinsurance and other recoveries (these are disclosed as an asset as reinsurance receivables);
          d.The requirements for recognition and measurement of this liability are set out in Rules PIN 5.4 and PIN 5.6; and
          e.The liability does not include any amounts for catastrophe reserve, equalisation reserve or similar provisions that an Insurer may be required to maintain to satisfy regulatory requirements in a jurisdiction other than the DIFC.
          Premium liabilities under General Insurance contracts This item represents the current portion of the cost of providing insurance service over the unexpired period of General Insurance contracts in force at the balance date. This item must be completed having regard to the following principles:
          a. The Premium Liability reported is required to cover the value of future claims payments and associated direct and indirect settlement costs arising during the unexpired portion of the contracts in question;
          b.This item must be recorded without deducting reinsurance and other recoveries (these are disclosed as an asset as reinsurance receivables); and
          c.The requirements for recognition and measurement of this liability are set out in PIN Rule 5.4.
          As stated in the Guidance to PIN Rule 5.4.7, it is common practice for Insurers to account for their exposures on General Insurance contracts in force by means of an unearned premium provision and (where necessary) a premium deficiency reserve. Where the aggregate of the unearned premium provision and the premium deficiency reserve (both gross of reinsurance) can be shown to be not less than the amount of Premium Liability determined in accordance with PIN Rule 5.4, an Insurer may use that aggregate as a proxy for Premium Liability for the purposes of recording items N100_3400 and N100_4250 on this form.
          Net policy benefits under Long-Term insurance contracts in force This item represents the net value of future Policy Benefits under Long-Term Insurance contracts that are in force as at the date to which the return is made up. The amount reported here must be determined in accordance with PIN Rule 5.6.
          Provisions This section, must be completed having regard to the following principles:
          a.A provision must be made at item N100_3810 in respect of dividends payable out of past and current year profit, to the extent that profit has been recognised;
          b. Employee entitlements at item N100_3820 include annual leave, gratuity, accrued allowances, staff housing and loan benefits, healthcare, pension and other employee entitlements; and
          c.A provision must be made at item N100_3830 in respect of any costs that the Insurer expects to incur as a result of restructuring, including severance, termination and redundancy payments, and integration costs.
          Total Current Liabilities This item is calculated by EPRS as the sum of the total for all 9 preceding sections — N100_3100, N100_3200, N100_3300, N100_3400, N100_3500, total borrowings, total tax liability, total provisions and total other liabilities classified as current liabilities. The total of amounts due to Related parties, other than amounts due under insurance contracts is reported against the memo item under this section.
          Amounts due on reinsurance contracts In completing this item, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.
          Outstanding Claims Provision (including IBNR) In completing this item, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.
          Premium liabilities under General Insurance contracts In completing this item, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.
          Net policy benefits under Long-Term Insurance contracts in force In completing this item, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.
          Provisions In completing this item, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.
          Loan Capital and Hybrid Securities This section includes all loan capital and hybrid securities that have been issued by the Insurer and have a residual term to maturity of more than one year. Any loan capital or hybrid securities that have a residual term to maturity of less than one year should be reported as Borrowings, under Current Liabilities.
          Total Non-Current Liabilities This item is calculated by EPRS as the sum of the total for all 10 preceding sections -

          N100_4100, N100_4150, N100_4200, N100_4250, N100_4300, total borrowings, total tax liability, total provisions, total other liabilities and total loan capital & hybrid securities classified as non-current liabilities.

          The amount of non-current liabilities representing amounts due to Related parties, other than amounts due under insurance contracts and included under Non-current liabilities is reported against the memo item — N100_410M.

          The interest of Related parties in loan capital or hybrid securities issued by the Insurer is reported against the memo item -N100_420M.
          Total Liabilities This item is calculated by EPRS and must equal the sum of total current liabilities assets and total non-current liabilities.
          Net Assets This item is calculated by EPRS and must equal total assets less total liabilities.
          Equity In completing this section, Insurers must have regard to the following principles:
          a. Total Equity must be equal to Net Assets;
          b. Hybrid securities and loan capital are reported under loan capital and hybrid securities and, not under this section;
          c. Item N100_7100 is not used in a Fund Return;
          d. Item N100_7300 is used only in a Fund Return, to record amounts of capital transferred into the Long-Term Insurance Fund; and
          e. Where an Insurer makes use of item N100_7600, the Insurer must state in a Supplementary Note the nature of the amount recorded at this item.
          Insurers must record at item N100_700M the amount included at item N100_7100 meeting the following descriptions:
          a. in the case of a Global Return of an Insurer that is not a Protected Cell Company, the amount of ordinary share capital meeting the description at PIN Rule A3.5.1(d);
          b. in the case of a Global Return of an Insurer that is a Protected Cell Company, the amount of ordinary share capital meeting the description at PIN Rule A5.5.1(e); and
          c. in the case of a Cell Return, the amount of ordinary share capital meeting the description at PIN Rule A5.10.1(d).
          No amount must be recorded at item N100_700M in the case of a Fund Return.

          An Insurer must provide the following information in a Supplementary Note to this form:
          a. any amount included in Total Equity that is not available to meet the Insurance Liabilities of the Insurer;
          b. the amount and details of any guarantees (apart from guarantees arising under Contracts of Insurance) given by the Insurer;
          c. the amount and details of any contingent liabilities existing as at the date to which the return is made up; and
          d. where the amount of item N100_7400 is not equal to the sum of items N100_7400 and N100_7500 for the comparative reporting period, a reconciliation of the differences. This applies only when the form forms a part of the Annual Regulatory Return.
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.2 Instructional Guidelines — Form IN20 — Statement of Capital Adequacy

          1. This form summarises the capital adequacy position of the Insurer so far as concerns the reporting unit for which it is prepared (Global, Cell, or Fund).
          2. The same form is used for all types of Return, although in the calculation of the capital requirements applicable to different Insurers and to their Cells and Long-Term Insurance Funds, different terminology is used. The terms on the face of the form need to be replaced with the specific equivalent terms from the relevant section (as set out below in the interpretation table), depending on the nature of the Insurer and the type of Return.
          3. This form lists a number of adjustments to arrive at the figure to be compared to the minimum capital requirement applicable to the reporting unit. The purpose of these adjustments is to remove significant anomalies that may arise due to the flexibility available to Insurers in selecting their accounting bases. Therefore, not all of these adjustments will be applicable to all Insurers. An item must not be added to the base capital figure if it is already included in the base capital figure because of the accounting basis adopted.
          4. The effect of the instructions, in line with the Rules in PIN, on the Return of a Takaful Insurer is to exclude from equity any element of equity that is not available to participate in the surpluses or deficits of the Insurance Business of the Takaful Insurer, either directly or by loan to the Insurance Fund. Loans that have been made from the Owners' Equity to the Insurance Fund are included in base capital without restriction, while amounts that are available for loan are treated as hybrid capital.
          5. This form is required for each reporting unit in respect of which the Insurer must prepare a Return, except for a DIFC Business Return. A Global Return for a Branch must be submitted in writing as set out in PIN Rule 6.5.
          6. Insurers must follow the requirements of PIN chapter 4 when preparing this form.
          7. For the purposes of this form, the meaning that must be given to each of the terms set out in the leftmost column of the interpretation table below for each type of Return is contained in the column headed by that type of Return.
          8. Where a term does not apply to a type of Return, this is denoted by the characters 'N/A' and this item must be left blank on the form.

          Structure of the form in the EPRS

          9. IN20 is a simple form which covers all the items in a single section.
          Section Instructional Guidelines
          Base Capital Base Capital, represents the starting-point for the calculation of the capital resources of the Insurer to be compared to the minimum capital requirement applicable to the Insurer. This section must be completed having regard to the following principles:
          a. Item N200_1110, Equity, must be equal to Total Equity reported on form IN10, less debt-financed equity reported at item N100_700M on form IN10;
          b. Item N200_1120, must be equal to the amount of Owners' Equity in a Takaful Insurer that is available for loan to the Insurance Fund. It does not include any amount of loans made from Owners' Equity to the Insurance Fund and not repaid. This item applies only to Takaful Insurers;
          c. Any amount recorded at item N200_1131 must not exceed the amount recorded at item N100_4810 on form IN10;
          d. Any amount recorded at item N200_1132 must not exceed the amount recorded at item N100_4820 on form IN10;
          e. Item N200_1133 may only be used by a Takaful Insurer. This item must equal item N200_1120; and
          f. Item N200_1134 may not exceed the amount total equity reported on form IN10.
          Adjustments to Base Capital in Accordance with PIN Adjustments to Base Capital in Accordance with PIN, must be completed having regard to the following principles:
          a. Amounts referred to under Additions to Base Capital (where not included in capital) must not be reported if those amounts are included at item N200_1134;
          b. Amounts referred to under Subtractions from Base Capital must not be reported if those amounts are excluded from item N200_1134;
          c. N200_1211 — minority interests in subsidiaries, applies only where an Insurer excludes from its equity an amount representing minority interests in a controlled entity that is not accounted for as an investment;
          d. Item N200_1212, liability for dividends to be paid in the form of shares, applies only where an Insurer has recorded as a liability a provision for dividends that are to be paid by issuing shares. This item does not apply to a Fund Return;
          e. Item N200_1221 applies to the liability referred to in PIN Rule A3.4.3(a) and equivalent provisions in Rules PIN A5.4.3(a), PIN A5.8.3(a) and PIN A7.4.2(a). This item does not apply to a Fund Return;
          f. Item N200_1222 applies only to a Return of a Takaful Insurer. This item represents amounts of Owners' Equity that are not available for loan to the Insurance Fund or to participate in surpluses or deficits of the Insurance Fund;
          g. Item N200_1223 represents investments of the Insurer or by any Subsidiary of the Insurer in the total base capital of the Insurer;
          h. Item N200_1224 represents the amount of any tax on capital gains, that was not recognised as a liability on form IN10, and that would be incurred by the Insurer if the investments reported on form were realised at the values shown on that form;
          i. Item N200_1225 must be equal to the amount of any deferred acquisition costs included on form IN10, whether as a separate asset or as a reduction from liabilities;
          j. Item N200_1226 must be equal to the sum of total deferred tax assets under both current and non-current assets on form IN10;
          k. Item N200_1227 must be equal to the sum of any asset recorded on form IN10 and representing the value of in-force Long-Term Insurance Business;
          l. Item N200_1228 must be equal to the total intangible assets recorded on form IN10 and not otherwise excluded from base capital;
          m. Item N200_1229 applies only to a Return of a Takaful Insurer. This item represents any amount of Zakah or charity fund of a Takaful Insurer that is not otherwise excluded from base capital;
          n. Item N200_1231 must be equal to the amount reported as total plant & equipment on form IN10; and
          p. Item N200_1232 must record the amount of any other assets, not otherwise excluded from base capital, that are not available to meet the Insurance Liabilities of the Insurer recorded on form IN10.
          This section, adjustments to base capital in accordance with PIN would normally be expected to include assets that are subject to mortgages or other charges, or than cannot for some other reason be realised for the benefit of policyholders.
          Adjusted Equity This item is calculated by EPRS and must equal the total of base capital and net adjustments to base capital in accordance with PIN referred above.
          Hybrid Capital Adjustment Item N200_1410, Hybrid capital adjustment before DFSA approval, must be calculated as the amount by which the sum of items N200_1131 to N200_1134 exceeds 15/85 of the amount arrived at by deducting item N200_1120 from item N200_1110.

          Item N200_1420, additional hybrid capital approved by DFSA, may only be used to record additional amounts of hybrid capital that have been approved in writing by the DFSA, in accordance with Rules PIN A3.5.2, PIN A5.5.4, PIN A5.10.4 or PIN A7.5.3. The amount under this item may not exceed the amount of item N200_1410.

          Item N200_1410 deducts hybrid capital that would normally be inadmissible because it exceeds the prescribed percentage. Item N200_1420 reinstates hybrid capital that had been disallowed by item N200_1410.. Item N200_1420 does not show the total amount of admissible hybrid capital, only that portion that exceeds the 15% ceiling.
          Adjusted Capital Resources This item is calculated by EPRS and must equal the total of adjusted equity and net hybrid capital adjustment, which is the difference between items N200_1410 and N200_1420.
          Minimum Capital Requirement This section sets out the components of the Minimum Capital Requirement applicable to the reporting unit of the Insurer in respect of which the Return is completed. For each reporting unit, the components must be calculated in accordance with the chapter applicable to that reporting unit.
          Absolute minimum requirement applicable to reporting unit Absolute minimum requirement applicable to reporting unit, must be interpreted in accordance with the interpretation table below.
          Applicable result This item is calculated by EPRS and must equal the higher of the amounts reported under calculated capital requirement and Absolute minimum requirement applicable to reporting unit.
          Capital adequacy result This item is calculated by EPRS and must equal Adjusted Capital Resources less applicable result as calculated in item N100_4000.
              Meaning of term for each type of Return
          Section no. Term used in form Global Return (all Insurers except Protected Cell Companies) Global Return (Protected Cell Companies) Cell Return Fund Return
          1. Base Capital Base capital as defined in PIN Rule A3.3.1 Base non-cellular capital as defined in PIN Rule A5.3.1 Base cellular capital as defined in PIN Rule A5.7.1 Base fund capital as defined in PIN Rule A7.3.2
          3. Adjusted Equity AE as defined in PIN Rule A3.2.1 ANE as defined in PIN Rule A5.2.1 ACE as defined in PIN Rule A5.6.1 AFE as defined in PIN Rule A7.2.1
          4. Hybrid Capital Adjustment HCA as defined in PIN Rule A3.2.1 HNCA as defined in PIN Rule A5.2.1 HCCA as defined in PIN Rule A5.6.1 FHCA as defined in PIN Rule A7.2.1
          5. Adjusted Capital Resources ACR as defined in PIN Rule A3.2.1 ANCR as defined in PIN Rule A5.2.1 ACCR as defined in PIN Rule A5.6.1 AFCR as defined in PIN Rule A7.2.1
          6. Minimum Capital Requirement MCR as defined in PIN Rule A4.2.1 MSCR as defined in PIN Rule A6.2.2 MSCR as defined in PIN Rule A6.2.2 MFCR as defined in PIN Rule A8.2.1
          6.1 Default risk component DRC as defined in PIN Rule A4.2.1 DRC as defined in PIN Rule A6.2.2 DRC as defined in PIN Rule A6.2.2 DRC as defined in PIN Rule A8.2.1
          6.2 Investment volatility risk component IVRC as defined in PIN Rule A4.2.1 IVRC as defined in PIN Rule A6.2.2 IVRC as defined in PIN Rule A6.2.2 IVRC as defined in PIN Rule A8.2.1
          6.3 Off-balance sheet asset risk component OARC as defined in PIN Rule A4.2.1 OARC as defined in PIN Rule A6.2.2 OARC as defined in PIN Rule A6.2.2 OARC as defined in PIN Rule A8.2.1
          6.4 Off-balance sheet liability risk component OLRC as defined in PIN Rule A4.2.1 OLRC as defined in PIN Rule A6.2.2 OLRC as defined in PIN Rule A6.2.2 OLRC as defined in PIN Rule A8.2.1
          6.5 Concentration risk component CRC as defined in PIN Rule A4.2.1 CRC as defined in PIN Rule A6.2.2 CRC as defined in PIN Rule A6.2.2 CRC as defined in PIN Rule A8.2.1
          6.6 Size factor adjustment SFAC as defined in PIN Rule A4.2.1 SFAC as defined in PIN Rule A6.2.2 SFAC as defined in PIN Rule A6.2.2 SFAC as defined in PIN Rule A8.2.1
          6.7 Underwriting risk component URC as defined in PIN Rule A4.2.1 N/A URC as defined in PIN Rule A6.2.2 N/A
          6.8 Reserving risk component RRC as defined in PIN Rule A4.2.1 N/A RRC as defined in PIN Rule A6.2.2 N/A
          6.9 Long-Term Insurance risk component LIRC as defined in PIN Rule A4.2.1 N/A LIRC as defined in PIN Rule A6.2.2 LIRC as defined in PIN Rule A8.2.1
          6.10 Asset management risk component AMRC as defined in PIN Rule A4.2.1 AMRC as defined in PIN Rule A6.2.2 AMRC as defined in PIN Rule A6.2.2 AMRC as defined in PIN Rule A8.2.1
          7. Absolute minimum requirement applicable to reporting unit The amount set out in PIN Rule A4.2.3, applicable to the Insurer The amount set out in PIN Rule A6.2.4 or, if higher, the MSCR as defined in PIN Rule A6.2.2 plus any amount that must be added to that amount pursuant to PIN Rule A6.2.6 The amount set out in PIN Rule A6.2.5 The amount set out in PIN Rule A8.2.3
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.3 Instructional Guidelines — Form IN30 — Statement of Financial Performance

          1. This form summarises the financial performance of the Insurer.
          2. This form is required for each reporting unit in respect of which the Insurer must prepare a Return, except for a DIFC Business Return. A Global Return for a Branch must be submitted in writing as set out in PIN Rule 6.5.
          3. This form must agree with other forms in the Return (where those forms are prepared for the same reporting unit) in the following respects:
          a. Item N300_0110 must agree to Total Gross Written Premiums in part I of form IN40;
          b. Item N300_0120 must agree to Total Gross Written Premiums in part II of form IN40;
          c. Item N300_0210 must agree to Total Reinsurance Ceded in part I of form IN40;
          d. Item N300_0220 must agree to Total Reinsurance Ceded in part II of form IN40
          e. Item N300_0410 must agree to Total Gross Claims Paid reported in part I of form IN50
          f. Item N300_0420 must agree to Total Gross Claims Paid reported in part II of form IN50
          g. Item N300_0510 must agree to Total Reinsurance and other recoveries received in respect of paid claims reported in part I of form IN50
          h. Item N300_0520 must agree to Total Reinsurance and other recoveries received in respect of paid claims reported in part II of form IN50
          i. Item N300_1010 must agree to the sum of Total Commissions and Brokerage reported in both parts I & II of form IN80
          j. Item N300_1020 must agree to the sum of Total Other Acquisition Costs reported in both parts I & II of form IN80
          k. Item N300_1310 must agree to Total Other Investment Income less total changes in value reported in form IN70; and
          l. Item N300_1320 must agree to Total changes in value reported in form IN70.
          4. Movements in Insurance Liabilities (Gross): Under this section, an Insurer must report the amount of the movement in the balance of Insurance Liabilities over the reporting period.
          5. Movements in Recoveries Against Insurance Liabilities: Under this section, an Insurer must report the amount of the movement in the balance of reinsurance and other recoveries in respect of Insurance Liabilities over the reporting period.
          6. Insurance Liabilities are reported gross of reinsurance and other recoveries. Reinsurance and other recoveries that are recorded in respect of Insurance Liabilities are reported as assets. An increase in Insurance Liabilities is reported on this form as an expense. In the same manner, an increase in the reinsurance and other recoveries in respect of Insurance Liabilities is recorded as revenue.
          7. The other expenses disclosed at item N300_1040 must be only those attributable to a Long-Term Insurance Fund. Expenses that are not so attributable are disclosed at item N300_1050. By virtue of PIN Rule 3.5.5, expenses that do not relate to the Insurer's Long-Term Insurance Business may not be attributed to a Long-Term Insurance Fund.
          8. An Insurer must present the following information in a Supplementary Note to this form:
          a. the amount if any included in item N300_1120 that represents other operating income receivable from Related parties, and a description of the nature of that income;
          b. the amount if any included in item N300_1330 that represents investment expenses payable to Related parties; and
          c. where item N300_1800 18 does not agree to form IN10 item N100_7500, a reconciliation showing the differences between the two figures.
          Net Income Before Taxation: This item is calculated by EPRS and must equal the total of operating income and net investment income reported above.
          Net Income After Taxation: This item is calculated by EPRS and must equal net income before taxation less tax expenses.
          Net Income After Dividends: This item is calculated by EPRS and must equal net income after taxation less dividend in respect of current reporting period.

          Structure of the form in the EPRS

          9. IN30 is a simple form which covers all the items in a single section.
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.4 Instructional Guidelines — Form IN40 — Statement of Premium Revenue and Reinsurance Expenses

          1. This form is required for each reporting unit in respect of which the Insurer must prepare an Annual Regulatory Return, except for the Global Return of an Insurer that is a Protected Cell Company. A Global Return for a Branch must be submitted in writing as set out in PIN Rule 6.5.
          2. A Protected Cell Company is prevented by COB from carrying on Insurance Business other than through a Cell. Because this form would always be blank for such a company in its Global Return, there is no need for it to submit the form or to complete a Supplementary Note to explain its absence.
          3. An Insurer must record premiums and reinsurance premiums relating to its Insurance Business on this form as follows:
          a. An Insurer that is carrying on General Insurance Business must complete part I of this form;
          b. An Insurer that is carrying on Long-Term Insurance Business must complete part II of this form;
          c. Subject to d. an Insurer that is carrying on Long-Term Insurance Business and General Insurance Business of Class 1 or Class 2 may elect either to record the General Insurance Business in part I of this form, or to include that business in Class I on part II of this form. An Insurer may not, between successive Returns, change its election without the written approval of the DFSA; and
          d. A DIFC Incorporated Insurer undertaking Direct Long-Term Insurance business and General Insurance Business of Class 1 or Class 2 that is Direct business must record that General Insurance Business as Direct Long-Term Insurance Business in Class I.
          4. An Insurer must record its Gross Written Premium for the reporting period in respect of different classes of business and for different types of insurance contracts, using the first table in parts I & II of this form.
          5. An Insurer must record the reinsurance premium ceded for the reporting period in respect of different classes of business and for different types of insurance contracts, using the second table in parts I & II of this form. Reinsurance premiums recorded as ceded must be gross of any commissions or brokerage, and must be recognised on a basis consistent with the recognition of Gross Written Premium on this form.
          6. Reinsurance premiums ceded must be analysed between the four columns referring to the different types of insurance contracts on the basis of the underlying insurance contracts that they are protecting, not on the basis of the reinsurance contracts themselves. Where reinsurance arrangements protect more than one type of business (for example both direct and facultative business) or more than one Class of Business, the Insurer must make a reasonable allocation of the reinsurance premiums between the types or Classes of Business covered.
          7. An Insurer must disclose the aggregate amount of its insurance and reinsurance transactions with its Related parties as follows:
          a. at item N400_110M, the amount of Gross Written Premium accepted from Related parties that has been included in the total Gross Written Premiums for General Insurance Business;
          b. at item N400_120M, the amount of reinsurance premium ceded to Related parties that has been included in the total reinsurance premium ceded for General Insurance Business;
          c. at item N400_210M, the amount of Gross Written Premium accepted from Related parties that has been included in the total Gross Written Premiums for Long-Term Insurance Business; and
          d. at item N400_220M, the amount of reinsurance premium ceded to Related parties that has been included in the total reinsurance premium ceded for Long-Term Insurance Business.

          Structure of the form in the EPRS

          8. IN40 is a simple form with two sequential parts in a table format, covering the General Insurance Business and Long-Term Insurance Business.
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.5 Instructional Guidelines — Form IN50 — Statement of Claims Expense and Recovery Revenue

          1. This form is required for each reporting unit in respect of which the Insurer must prepare an Annual Regulatory Return, except for the Global Return of an Insurer that is a Protected Cell Company. A Global Return for a Branch must be submitted in writing as set out in PIN Rule 6.5.
          2. A Protected Cell Company is prevented by COB from carrying on Insurance Business other than through a Cell. Because this form would always be blank for such a company in its Global Return, there is no need for it to submit the form or to complete a Supplementary Note to explain its absence.
          3. An Insurer must record claims paid and reinsurance and other recoveries in respect of claims paid relating to its Insurance Business on this form as follows:
          a. An Insurer that is carrying on General Insurance Business must complete part I of this form;
          b. An Insurer that is carrying on Long-Term Insurance Business must complete part II of this form;
          c. An Insurer that is carrying on Long-Term Insurance Business and General Insurance Business of Class 1 or Class 2 must record the General Insurance Business in a manner consistent with that adopted in respect of form 4 or determined in accordance with the instructional guidelines 3c under PRU-EPRS section 3.4; and
          d. A DIFC Incorporated Insurer that carries on Direct Long-Term Insurance Business must complete part III of this form in addition to any other part that this rule requires it to complete. Part III of this form is completed in respect of Direct Long-Term Insurance Business only.
          4. An Insurer must record its gross claims paid for the reporting period in respect of different classes of business and for different types of insurance contracts, using the first table in parts I & II of this form. For the purposes of this form, the amount of claims paid includes expenses incurred by the Insurer in the settlement of the claims.
          5. An Insurer must record the reinsurance and other recoveries receivable for the reporting period in respect of different classes of business and for different types of insurance contracts, using the second table in parts I & II of this form.
          6. Reinsurance recoveries must be analysed between columns 1 and 4 on the basis of the underlying insurance contracts that they relate to, not on the basis of the reinsurance contracts themselves. Where the nature of the reinsurance contract is such that the Insurer cannot identify individual claims benefiting from the recoveries (for example, in the case of an aggregate excess of loss contract, or a stop loss contract) the Insurer must make a reasonable allocation of the recoveries across the types and classes of business that have benefit of the reinsurance contracts.
          7. An Insurer must disclose the aggregate amount of its insurance and reinsurance transactions with its Related parties as follows:
          a. at item N500_110M, the amount of gross claims paid to Related parties that has been included in the total Gross Claims Paid for General Insurance Business;
          b. at item N500_120M, the amount of reinsurance and other recoveries in respect of paid claims from Related parties that has been included in the total reinsurance and other recoveries in respect of paid claims for General Insurance Business;
          c. at item N500_210M, the amount of gross claims paid to Related parties that has been included in the total Gross Claims Paid for Long-Term Insurance Business;
          d. at item N500_220M, the amount of reinsurance and other recoveries in respect of paid claims from Related parties that has been included in the total reinsurance and other recoveries in respect of paid claims for Long-Term Insurance Business;
          8. An Insurer required to complete part III must record its Gross Claims Paid for the reporting period in respect of Direct Long-Term Insurance Business across different types of insurance contracts, using the first table in part III of this form.
          9. An Insurer required to complete part III must record, for each type of claim as set out in columns 1 to 4, at item N500_310M the amount of Gross Claims Paid to Related parties that has been included in the total above.
          10. For the purposes of this form, the amount of claims paid includes expenses incurred by the Insurer in the settlement of the claims.
          11. An Insurer required to complete part III must record the reinsurance and other recoveries receivable for the reporting period in respect of different classes of business and for different types of insurance contracts, using the second table in part III of this form.
          12. An Insurer required to complete part III must record, for each type of claim as set out in columns 1 to 4, at item N500_320M the amount of reinsurance and other recoveries receivable from Related parties that has been included in the total above.
          13. The amounts in the far right column, referring to the total amounts in part III of the form must equal the amounts in the first column (Direct insurance) in part II of the form in respect of Gross Claims Paid across different classes of business, total claims paid to Related parties, reinsurance and other recoveries in respect of paid claims and total recoveries from Related parties.
          14. Part III of the form is completed only by DIFC Incorporated Insurers that undertake Direct Long-Term Insurance Business. This part provides an analysis of the information provided in column 1 of part II.

          Structure of the form in the EPRS

          15. IN50 has three sequential parts in a table format. Part I covers the General Insurance Business, part II covers the Long-Term Insurance Business and part III addresses the Direct Long-term Insurance Business.
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.6 Instructional Guidelines — Form IN60 — Statement of Movements in Insurance Provisions

          1. This form is required for each reporting unit in respect of which the Insurer prepares an Annual Regulatory Return, or a part of an Annual Regulatory Return, in respect of General Insurance Business.
          2. A Protected Cell Company is prevented by COB from carrying on Insurance Business other than through a Cell. Because this form would always be blank for such a company in its Global Return, and it is exempted from the requirement to complete other forms relating to General Insurance Business, there is no need for it to submit the form, or to complete a Supplementary Note to explain its absence.
          3. A Global Return of an Insurer that does not carry on General Insurance Business, or a Cell Return, Fund Return or DIFC Business Return of such an Insurer, also omits this form, without the need for a Supplementary Note to explain its absence. However, if an Insurer that carries on Long-Term Insurance Business together with Class 1 or Class 2 General Insurance Business elects to report that Class 1 or Class 2 business as General Insurance Business for the purposes of form 4 or form 5, it must also complete this form in respect of that business. A Global Return for a Branch must be submitted in writing as set out in PIN Rule 6.5.
          4. An Insurer must record separately, in parts I to IV and parts V to VIII respectively of this form, the information required in respect of claims outstanding (including IBNR) gross of reinsurance and other recoveries, and reinsurance and other recoveries in respect of those claims outstanding. This information must be presented for each Class of Business.
          5. Reinsurance recoveries must be analysed between parts V to VIII on the basis of the underlying insurance contracts that they relate to, not on the basis of the reinsurance contracts themselves. Where the nature of the reinsurance contract is such that the Insurer cannot identify individual claims benefiting from the recoveries (for example, in the case of an aggregate excess of loss contract, or a stop loss contract) the Insurer must make a reasonable allocation of the recoveries across the types and Classes of Business that have benefit of the reinsurance contracts.

          Parts I, II, III and IV:

          6. PIN chapter 5 requires an Insurer to record its Insurance Liabilities on a discounted basis. A liability for an outstanding claim increases between the beginning and end of a reporting period, because the amount of discount applied at the later is less. The expense represented by this increase is referred to in the form as release of discount.

          Parts I, II, III and IV must be prepared on the following basis:

          a. At column 1 (starting from the left) in each part, the Insurer must record the amount of claims outstanding (including IBNR), at the end of the reporting period and in respect of claims incurred during the reporting period;
          b. At column 2 in each part, the Insurer must record the amount of claims outstanding (including IBNR), at the beginning of the reporting period and in respect of claims incurred during the previous reporting period;
          c. At column 3 in each part, the Insurer must record the amount of the movement during the reporting period in the provision for claims outstanding (including IBNR), in respect of claims incurred during the previous reporting period, that arises from those claims being one year closer to settlement;
          d. At column 4 in each part, the Insurer must record the amount of claims paid during the reporting period, in respect of claims incurred during the previous reporting period;
          e. At column 5 in each part, the Insurer must record the amount of other movements in the provision for claims outstanding (including IBNR), in respect of claims incurred during the previous reporting period;
          f. At column 7 in each part, the Insurer must record the amount of claims outstanding (including IBNR), at the beginning of the reporting period and in respect of claims incurred before the beginning of the previous reporting period;
          g. At column 8 in each part, the Insurer must record the amount of the movement during the reporting period in the provision for claims outstanding (including IBNR), in respect of claims incurred before the beginning of the previous reporting period, that arises from those claims being one year closer to settlement;
          h. At column 9 in each part, the Insurer must record the amount of claims paid during the reporting period, in respect of claims incurred before the beginning of the previous reporting period; and
          i. At column 10 in each part, the Insurer must record the amount of other movements in the provision for claims outstanding (including IBNR), in respect of claims incurred before the beginning of the previous reporting period.

          Parts V, VI, VII and VIII

          7. PIN chapter 5 requires an Insurer to record its Insurance Liabilities and associated assets on a discounted basis. The asset representing reinsurance and other recoveries against outstanding claims increases between the beginning and end of a reporting period, because the amount of discount applied at the later is less. The revenue represented by this increase is referred to in the form as release of discount.

          Parts V, VI, VII and VIII must be prepared on the following basis:
          a. At column 1 in each part, the Insurer must record the amount of the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), at the end of the reporting period and in respect of claims incurred during the reporting period;
          b. At column 2 in each part, the Insurer must record the amount of the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), at the beginning of the reporting period and in respect of claims incurred during the previous reporting period;
          c. At column 3 in each part, the Insurer must record the amount of the movement during the reporting period in the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), in respect of claims incurred during the previous reporting period, that arises from those recoveries being one year closer to settlement;
          d. At column 4 in each part, the Insurer must record the amount of recoveries received during the reporting period, in respect of claims incurred during the previous reporting period;
          e. At column 5 in each part, the Insurer must record the amount of other movements in the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), in respect of claims incurred during the previous reporting period;
          f. At column 7 in each part, the Insurer must record the amount of the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), at the beginning of the reporting period and in respect of claims incurred before the beginning of the previous reporting period;
          g. At column 8 in each part, the Insurer must record the amount of the movement during the reporting period in the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), in respect of claims incurred before the beginning of the previous reporting period, that arises from those claims being one year closer to settlement;
          h. At column 9 in each part, the Insurer must record the amount of reinsurance and other recoveries received during the reporting period, in respect of claims incurred before the beginning of the previous reporting period; and
          i. At column 10 in each part, the Insurer must record the amount of other movements in the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), in respect of claims incurred before the beginning of the previous reporting period.
          8. The aggregate provision for outstanding claims (including IBNR) reported in the first four tables of this form must together equal the sum on form IN10 of items N100_3300 and N100_4200, except in the case of a Return that does not include form IN10.
          9. The aggregate provision for outstanding claims (including IBNR) reported in the fifth to eighth tables of this form must together equal the sum on form IN10 of items N100_1250 and N100_2150, except in the case of a Return that does not include form IN10.
          10. An Insurer must present, as a Supplementary Note to this form, the following information:
          a. the assumed inflation and discount rates, expressed as an annualised percentage, used by the Insurer in determining the amounts reported on this form, distinguishing between the rates assumed for the periods:
          i. up to two calendar years after the end of the reporting period;
          ii. more than two and up to five calendar years after the end of the reporting period; and
          iii. more than five calendar years after the end of the reporting period;
          b. the basis on which those assumed inflation and discount rates were determined; and
          c. the estimated weighted average term to settlement of:
          i. claims incurred in the reporting period;
          ii. claims incurred in the previous reporting period; and
          iii. claims incurred in earlier reporting periods.

          Structure of the form in the EPRS

          9. IN60 comprises of two linked forms. The main form consists of only the two links to the linked forms. The first linked form presents the parts I, II, III and IV of the form while the second linked form presents the parts V, VI, VII and VIII of the form. The linked forms can be accessed by following the instructions on the main form.
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.7 Instructional Guidelines — Form IN70 — Statement of Investment Income

          1. This form is required for each reporting unit in respect of which the Insurer must prepare an Annual Regulatory Return, except for a DIFC Business Return. A Global Return for a Branch must be submitted in writing as set out in PIN Rule 6.5.
          2. This form summarises the investment income earned by the Insurer.

          Structure of the form in the EPRS

          3. IN70 is structured as a simple form which covers all the items in a single section.
          Section Instructional Guidelines
          Interest Receivable The Insurer must disclose in this section interest receivable, measured on an accruals basis, on securities and loans bearing a fixed or variable rate of interest. This item should include interest receivable on cumulative preference shares
          Dividends Receivable The Insurer must disclose under this section dividends receivable on equity Securities.
          Rental Income Rreceivable The Insurer must disclose here rental income receivable, on an accruals basis, for the use of real property.
          Income Under Investment Contracts of Mudaraba and Musharaka The Insurer must disclose under this section income receivable, on an accruals basis, under investment contracts of mudaraba and musharaka other than Profit Sharing Investment Accounts (PSIAs) or contracts of the nature of collective investments;

          This section should include income receivable under contracts of mudaraba and musharaka where the nature of the investment is that the Insurer provides capital to the counterparty either directly or through a mudarib, but not in the form of a PSIA, mutual fund or other collective investment. Collective investments including PSIAs are disclosed under income from collective investments.
          Income from Collective Investments The Insurer must disclose under this section income receivable, on an accruals basis, from collective investments, including mutual funds, PSIAs and contracts taking the form of collective investments;

          This section should include income receivable under contracts that by their nature are collective investments, where the Insurer stands as one of several rab ul mal providing capital to a mudarib who in turn invests that capital. The rab ul mal may receive a Sukuk or certificate which may be transferable. Investments in PSIAs will normally be disclosed here.
          Changes in Value in Invested Assets The Insurer must disclose under this section the aggregate amount of changes in value in its invested assets. Where the aggregate amount of changes in value for either of the items in this section represents a reduction in value, the Insurer must record that item as a negative figure.
          Other investment income The Insurer must disclose under this section the aggregate amount of any investment income that does not fall into any of the sections above. Where an Insurer uses this item, it must provide details of the item in question in a Supplementary Note to this form.

          This section will normally be used only by Insurers with income on investments that do not readily fall into any of the categories described in this Rule. An Insurer reporting an amount under this item will normally be expected to provide sufficient information to explain to the DFSA the nature of the investment and the nature of the income arising from it.
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.8 Instructional Guidelines — Form IN80 — Statement of Acquisition Expenses

          1. This form is required for each reporting unit in respect of which the Insurer must prepare an Annual Regulatory Return, except for the Global Return of an Insurer that is a Protected Cell Company. A Global Return for a Branch must be submitted in writing as set out in PIN Rule 6.5.
          2. A Protected Cell Company is prevented by COB from carrying on Insurance Business other than through a Cell. Because this form would always be blank for such a company in its Global Return, there is no need for it to submit the form or to complete a Supplementary Note to explain its absence.
          3. An Insurer must record acquisition expenses relating to its Insurance Business on this form as follows:
          a. An Insurer that is carrying on General Insurance Business must complete part I of this form;
          b. An Insurer that is carrying on Long-Term Insurance Business must complete part II of this form;
          c. An Insurer that is carrying on Long-Term Insurance Business and General Insurance Business of Class 1 or Class 2 must record that business consistently with the election made pursuant to form IN50;
          d. A DIFC Incorporated Insurer that carries on Direct Long-Term Insurance Business must complete part III of this form in addition to any other part that this rule requires it to complete. Part III of this form is completed in respect of Direct Long-Term Insurance Business only; and
          e. Commissions receivable by insurers from their reinsurers (often referred to as exchange commissions, overriders or ceded acquisition costs) must not be netted against acquisition costs disclosed on this form but must be recorded as income on form IN30 at item N300_1110.
          4. Part III only of this form provides additional disclosures in respect of expenses recovered from reinsurers, in the case of Direct Long-Term Insurance Business. Those disclosures are not limited to commissions.
          5. An Insurer must record commissions and brokerage payable by it for the reporting period in respect of different classes of Business and for different types of insurance contracts, using the first table in parts I & II of this form.
          6. An Insurer must record acquisition expenses other than commissions and brokerage payable by it for the reporting period in respect of different classes of business and for different types of insurance contracts, using the second table in parts I & II of this form.
          7. An Insurer must disclose the aggregate amount of acquisition costs payable to related parties as follows:
          a. The amount of commissions and brokerage payable to Related parties that has been included in the total above;
          b. The amount of other acquisition expenses payable to Related parties that has been included in the total above;
          c. The amount of commissions and brokerage payable to Related parties that has been included in the total above; and
          d. The amount of other acquisition expenses payable to Related parties that has been included in the total above.
          8. An Insurer required to complete part III must record the Insurer's commission and management expenses paid for the reporting period in respect of different classes of business and for different types of insurance contracts in the table in section I of part III.
          9. An Insurer required to complete part III must record the amount of each type of expense as set out in columns 1 to 4 and included in the total above that is payable to Related parties.
          10. An Insurer required to complete part III must record the amount of each type of expense as set out in columns 1 to 4 and included in the total above that is recoverable from reinsurers.
          11. An Insurer required to complete part III must record the amount of each type of expense as set out in columns 1 to 4 and included in the total above that is recoverable from Related parties.
          12. The amounts in the far right column, referring to the Total amounts in part III of the form must equal the amounts in the first column (Direct insurance) in part II of the form in respect of commissions and brokerage expenses, total expenses payable to Related parties, other acquisition costs, total acquisition costs payable to Related parties.
          13. An Insurer must present by way of Supplementary Note a reconciliation between the sum of management-maintenance expenses and management -other expenses across different classes of direct long-term businesses (amounts in third and fourth columns of table in part III of this form), and item N300_1050 in form IN30.
          14. An Insurer must present by way of Supplementary Note a description of the method by which management expenses have been allocated between columns 2, 3 and 4 of part III.
          15. This part of the form is completed only by DIFC Incorporated Insurers that undertake Direct Long-Term Insurance Business. This part provides an analysis of the information provided in left-most column of tables in part II, with additional information on management expenses not disclosed elsewhere on this form.
          16. In allocating management expenses between columns 2, 3 and 4, Insurers should follow generally accepted practice in the life insurance industry. Costs that are not attributable to the Direct Long-Term Insurance Business will not be included on this form as by virtue of PIN Rule 3.5.5 they may not be paid out of the Long-Term Insurance Fund. In general, an Insurer should observe the following principles when making the allocation:
          a. Acquisition costs include those incurred in writing new business or amendments to existing business, such as underwriting, issue of contracts, and setting up policy records. Expenses attributable to the sales and marketing organisation also fall within this heading;
          b. Maintenance costs include those incurred in maintaining the business, for example the cost of issuing periodic reports to policyholders and investment management expenses; and
          c. Costs of a non-recurring nature should be recorded as 'other'. Costs of this nature include the costs of establishing an operation or developing new systems.
          17. The Supplementary Note required by instructional guideline 14 in this section should provide particulars of reconciling items. Where the only difference between the two figures is management expenses attributable to Long-Term Insurance Business other than Direct, no further explanation is required.

          Structure of the form in the EPRS

          18. IN80 has three sequential parts in a table format. Part I covers the General Insurance Business, part II covers the Long-Term Insurance Business and part III addresses the Direct Long-term Insurance Business.
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.9 Instructional Guidelines — Form IN90 — Reconciliation to Financial Statements

          1. This form is required only for an Insurer's Return. This form is not subject to audit. A Global Return for a Branch must be submitted in writing as set out in PIN Rule 6.5. .
          2. The purpose of this is to provide a reconciliation between the net assets of the Insurer as recorded on form IN10 and the net assets of the Insurer as recorded in its financial statements prepared under relevant companies legislation for the same reporting period.
          3. Where an Insurer's financial statements prepared under relevant companies legislation are not available at the time of lodgement of the Annual Regulatory Return, the Insurer will be expected to complete this form based on the draft financial position of the Insurer as at the end of the reporting period. Where the financial statements are subsequently provided to the DFSA as permitted by PIN Rule 6.5.7, the Insurer should consider whether it is necessary to draw the attention of the DFSA to any significant changes between the draft financial statements on which this form was based and the financial statements subsequently provided.
          4. An Insurer must disclose the amounts making up the difference between the Insurer's net assets reported as total equity (item N100_700T) on form IN10 and the Insurer's net assets (or equivalent designation) reported on the balance sheet, statement of financial position or equivalent document (referred to in this section as the 'statutory balance sheet') forming part of the financial statements that the Insurer is required to complete under the Companies Law 2004 (or equivalent legislation in jurisdictions other than the DIFC), made up as at the same date as the information contained in form IN10.

          Structure of the form in the EPRS

          5. IN90 is a simple form which covers all the items in a single section.
          Section Instructional Guidelines
          Net assets according to Form IN10 item N100_700T This item 1 must agree to form IN10 item N100_700T.
          Differences between item 1 and Net Assets according to Financial Statements Differences constituting differences in recognition of assets and liabilities must be disclosed at item 2.1. Where an asset is recognised in the statutory balance sheet but not in form IN10, the item must be disclosed as a positive amount, and vice versa. Where a liability is recognised in the statutory balance sheet but not in form IN10, the item must be disclosed as a negative amount, and vice versa.

          Differences constituting differences in valuation of assets and liabilities that are recognised in both the statutory balance sheet and form IN10 must be disclosed in this section. Where an asset is valued at more in the statutory balance sheet than in form 1, the item must be disclosed as a positive amount, and vice versa. Where a liability is valued at more in the statutory balance sheet than in form IN10, the item must be disclosed as a negative amount, and vice versa.

          The information presented in this section must include:
          a. the amount of each material difference; and
          b. a description of each material difference.
          Net Assets according to Financial Statements This item must agree to the amount of net assets (or equivalent designation) in the Insurer's statutory balance sheet.
          6. Where this form does not contain sufficient space for the presentation of the information required by this section, the Insurer must present a Supplementary Note containing that information.
          7. Presenting a Supplementary Note does not relieve an Insurer from the obligation to prepare the form. However it will be acceptable for an Insurer to include on the form a reference to the Supplementary Note containing the information required to be presented, together with the aggregate amount covered in that Supplementary Note.
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.10 Instructional Guidelines — Form IN100 — Summary Statement to Operations

          1. This form is required only for a DIFC Business Return.
          2. The Summary statement of operations provides the DFSA with information on the operations of a DIFC Branch of an Insurer that is not incorporated in the DIFC, on a quarterly and annual basis.
          3. The instructional guidelines in this section provide instructions as to the completion of specific lines on the form. The instructions are similar to those applicable to corresponding items on forms IN10 and IN30, which are not applicable to DIFC Business Returns.
          4. On this form, reinsurance premiums and reinsurance recoveries refer to amounts ceded and recovered in respect of insurance contracts entered into as part of the Insurer's DIFC Insurance Business, regardless of where the reinsurance premiums and reinsurance recoveries are payable or receivable.

          Structure of the form in the EPRS

          5. IN100 is a single form with two parts, part I dealing with revenue and expense information and part II dealing with asset and liability information.
          Section Instructional Guidelines
          Gross Written Premiums An Insurer must present under this section the amount of its Gross Written Premium in respect of its business conducted in the DIFC.
          Reinsurance Premiums Ceded An Insurer must present under this section the amount of Reinsurance Premium Ceded in respect of insurance contracts whose Gross Written Premium is recorded above.
          Net Written Premiums This item is calculated by EPRS and must equal Gross Written Premiums reported above less Reinsurance Premiums Ceded, as reported above.
          Claims Paid An Insurer must report in this section the amount of Claims Paid in respect of its business conducted in the DIFC.
          Reinsurance and Other Recoveries Received An Insurer must report in this section the amount of reinsurance and other recoveries receivable in respect of claims reported in the previous section.
          Net Claims Paid This item is calculated by EPRS and must equal gross claims paid reported above less reinsurance recoveries received, as reported above.
          Movements in Insurance Liabilities (gross) An Insurer must present in this section the amount of the movement in the balance of Insurance Liabilities for the reporting period.
          Movements in Recoveries Against Insurance Liabilities An Insurer must present in this section the amount of the movement in the balance of reinsurance and other recoveries in respect of Insurance Liabilities for the reporting period.

          Insurance Liabilities are reported gross of reinsurance and other recoveries. Reinsurance and other recoveries that are recorded in respect of Insurance Liabilities are reported as assets. An increase in Insurance Liabilities is reported on form IN100 as an expense. In the same manner, an increase in the reinsurance and other recoveries in respect of Insurance Liabilities is recorded as revenue.
          Other Operating Revenue Where an Insurer reports any amount as other revenue, the Insurer must present in a Supplementary Note the amount of any such income receivable from Related parties, and a description of the nature of that income.
          Operating Income This item is calculated by EPRS and must equal the sum of Net Written Premiums and Other Operating Revenue less the total of Net Claims Paid, Net Movement in Provisions and Total Expenses, as reported above.
          Outstanding Claims Provision (including IBNR) This section includes the Insurer's provision for outstanding claims. This item must be completed having regard to the following principles:
          a. The liability must represent the estimated cost to the insurer of settling claims which it has incurred at the reporting date but which have not been finalised. The liability is in respect of both direct business and inward reinsurance business and must take into account unpaid claims, unreported claims, adjustments for claims development and the direct and indirect claims settlement costs that the Insurer expects to incur in settling its outstanding claims;
          b. In the case of Long-Term Insurance Business, this item must include all claims liabilities in respect of Contracts of Insurance that are no longer included in the calculation of the net policy benefits at item 17;
          c. The liability must be stated without deducting reinsurance and other recoveries (these are disclosed as an asset as reinsurance receivables);
          d. The requirements for recognition and measurement of this liability are set out in Rules PIN 5.4 and PIN 5.6; and
          e. The liability does not include any amounts for catastrophe reserve, equalisation reserve or similar provisions that an Insurer may be required to maintain to satisfy regulatory requirements in a jurisdiction other than the DIFC.
          Expected Reinsurance and Other Recoveries in Respect of previous section item 13 This section includes amounts in respect of reinsurance and other recoveries in respect of claims that have been incurred but not paid, up to the date to which the return is drawn up. This includes reinsurance and other recoveries in respect of IBNR. Because of the uncertainty of the outcome of outstanding claims and IBNR, it is necessary to estimate at least a part of this balance. The basis on which the estimate is made must be consistent with the basis of estimation of the related liability, reported in the previous section.

          Where, in determining the amount to be reported in this section, an Insurer has made or considered making a provision for doubtful debt in respect of recoveries due or potentially due from a reinsurer, the Insurer must take into account the potential need to make a provision when determining any estimate to be included under this section or under item N101_1500.

          It is common practice for Insurers to account for their exposures on General Insurance contracts in force by means of an unearned premium provision, an asset representing deferred reinsurance expense and (where necessary) a premium deficiency reserve. Insurers are referred to the instructional guidelines to next item. An insurer that uses an unearned premium provision and premium deficiency reserve as a proxy for Premium Liabilities may record its deferred reinsurance expense at item N101_1600.
          Premium Liabilities under General Insurance Contracts Premium Liability, represents the current portion of the cost of providing insurance service over the unexpired period of general insurance contracts in force at the balance date. This item must be completed having regard to the following principles:
          a. The Premium Liability reported is required to cover the value of future claims payments and associated direct and indirect settlement costs arising during the unexpired portion of the contracts in question;
          b. This item must be recorded without deducting reinsurance and other recoveries (these are disclosed as an asset as reinsurance receivables); and
          c. The requirements for recognition and measurement of this liability are set out in PIN Rule 5.4.
          As stated in the Guidance to PIN Rule 5.4.7, it is common practice for Insurers to account for their exposures on General Insurance contracts in force by means of an unearned premium provision and (where necessary) a premium deficiency reserve. Where the aggregate of the unearned premium provision and the premium deficiency reserve (both gross of reinsurance) can be shown to be not less than the amount of Premium Liability determined in accordance with PIN section 5.4, an Insurer may use that aggregate as a proxy for Premium Liability for the purposes of recording this item.
          Expected Reinsurance and Other Recoveries in Respect of item N101_1500 Reinsurance and other recoveries in respect of claims that have not yet been incurred are reported under this section. It is necessary to estimate this balance. The basis on which the estimate is made must be consistent with the basis of estimation of the Related liability, reported at item N101_1500.
          Net policy benefits under Long-Term insurance contracts in force This item represents the net value of future Policy Benefits under Long-Term Insurance contracts that are in force as at the date to which the return is made up. The amount reported here must be determined in accordance with PIN section 5.6.
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.11 Instructional Guidelines — Form IN110 — Reconciliation of Direct to Total Long-Term Insurance Business

          1. This form is required only for a DIFC Incorporated Insurer that undertakes Direct Long-Term Insurance Business.
          2. This form requires an Insurer that undertakes Direct Long-Term Insurance Business to identify (in summary form) the assets and liabilities that are attributable to that business, and the amount of the Minimum Capital Requirement that is attributable to the business.
          3. The Rules in this section provide instructions as to the completion of specific lines on the form. The instructions are similar to those applicable to corresponding items on forms IN10 and IN20.
          4. The disclosures at item N110_1000 in the column titled Direct Long-term Insurance must be consistent with the disclosures made on forms IN140 and IN150. Forms IN140 and IN150 identify assets that are held to cover liabilities under Direct Long-Term Insurance Business. It would not be appropriate for an Insurer to disclose on this form assets that were less, either by type or in the aggregate, than the total amount of assets of each type and in the aggregate, that are reported on forms IN140 and IN150 to be held to meet liabilities under Direct Long-Term Insurance contracts and the Minimum Capital Requirement in respect of Direct Long-Term Insurance Business. The assets disclosed on form IN110 may on the other hand exceed the total amount of assets reported on forms IN140 and IN150 to be held to meet liabilities under Direct Long-Term Insurance contracts and the Minimum Capital Requirement in respect of Direct Long-Term Insurance Business.
          5. An Insurer must present in sections 1 and 2 in the column titled Direct Long-Term Insurance the amounts of its assets and liabilities that are attributable to its Direct Long-Term Insurance Business and that are otherwise attributable, respectively.
          6. An Insurer must present in section 3 in the column titled Direct Long-Term Insurance the amounts of the components of its Minimum Capital Requirement that are attributable to its Direct Long-Term Insurance Business and that are otherwise attributable, respectively.
          7. Amounts reported in the column titled "Total" must agree to the current year column of form IN10 or of form IN20, as follows:
          a item N110_1000 must agree to item N100_110T in the current year column of form IN10;
          b item N110_1010 must agree to the sum of items N100_120T and N100_210T in the current year column of form IN10;
          c item N110_1020 must agree to the sum of items N100_130T,, N100_220T and N100_230T in the current year column of form IN10;
          d. item N110_1030 must agree to item N100_240T in the current year column of form IN10;
          e. item N110_1040 must agree to item N100_250T in the current year column of form IN10;
          f. item N110_1050 must agree to the sum of items N100_140T and N100_260T in the current year column of form IN10;
          g. item N110_1060 must agree to the sum of items N100_150T and N100_260T in the current year column of form IN10;
          h. item N110_1080 must agree to the sum of items N100_3100 and N100_4100T in the current year column of form IN10;
          i. item N110_1090 must agree to the sum of items N100_3200 and N100_4150 in the current year column of form IN10;
          j. item N110_1100 must agree to the sum of items N100_3300 , N100_3400, N100_4200 and N100_4250 in the current year column of form IN10;
          k. item N110_1110 must agree to the sum of items N100_3500 and N100_4300 in the current year column of form IN10;
          l. item N110_1120 must agree to the sum of amounts reported under Total borrowings reported under the sections Current Liabilities and Non-current liabilities in the current year column of form IN10;
          m. item N110_1130 must agree to the sum of amounts reported under Total tax liability reported under the sections Current Liabilities and Non-current liabilities in the current year column of form IN10;
          n. item N110_1140 must agree to the sum of amounts reported under Provisions reported under the sections Current Liabilities and Non-current liabilities in the current year column of form IN10;
          o. item N110_1150 must agree to the sum of amounts reported under other liabilites reported under the sections Current Liabilities and Non-current liabilities in the current year column of form IN10; and
          p. items under section 3 must agree to items under section titled "Minimum Capital Requirement" respectively in the current year column of form IN20.

          Structure of the form in the EPRS

          8. IN110 is a simple form which covers all the items in a single section.
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.12 Instructional Guidelines — Form IN120 — Statement of Direct Long-Term Insurance Business

          1. This form is required only for a DIFC Incorporated Insurer that undertakes Direct Long-Term Insurance Business, and is completed in respect only of Direct Long-Term Insurance Business.
          2. When this form is presented as part of a Quarterly Regulatory Return, part III is not required to be completed.
          3. This form provides the DFSA with quarterly and annual information on the makeup of Direct Long-Term Insurance premiums accounted for by a DIFC Incorporated Insurer, and new business underwritten, during the reporting period. When presented as part of the Annual Regulatory Return, it also provides information on persistency.
          4. Because this part of the form is required only in the case of an Annual Regulatory Return, the reporting periods covered in part III will only ever be financial years. The form will disclose the persistency rate (the contracts remaining in force expressed as a percentage of those written, less those terminating naturally) for the most recent financial year at the end of twelve months, and the three financial years beforehand at the end of, respectively, twenty-four, thirty-six and forty-eight months.
          5. On this form, reinsurance is classified according to the underlying premiums accepted by the Insurer, not on the basis of the form of the reinsurance contract. Thus, a reinsurance of a regular premium policy is classified in columns for regular premium policies, regardless of the form of the reinsurance contract.
          6. On this form:
          a. 'regular premiums' means premiums payable at regular intervals during the term of the contract; 'single premiums' means premiums that are not regular premiums. An additional premium payable on an existing regular premium contract is not a regular premium unless it constitutes one in a series of regular premiums;
          b. 'new business' means premiums on new contracts of insurance effected during the reporting period, together with additional premiums paid on existing contracts where those additional premiums have the characteristic of new business rather than representing a payment due on the original contract; and
          c. 'new policyholders/fund members' means policyholders who have effected a new contract of insurance during the reporting year or (in the case of Class VII business) persons who have joined a pension fund that is the subject of a contract of insurance in that Class, during the reporting year.
          7. On this form, items in the second table of part II and the whole of part III must be presented in whole numbers, not rounded, and with no decimal place.
          8. An Insurer must present the gross Direct Long-Term Insurance Business premiums that it has accounted for in the reporting period, for each Class of Business listed in the first table, analysed across the columns between participating business and non-participating business and between regular premium business and single premium business.
          9. An Insurer must present at item N120_1080 the total amount included in item N120_107T that represents premiums receivable from Related parties of the Insurer, for each of columns.
          10. An Insurer must present the reinsurance premiums that it has accounted for as ceded in the reporting period, for each Class of Business listed in the first table, analysed across the columns between participating business and non-participating business and between regular premium business and single premium business.
          11. An Insurer must present at item N120_1170 the total amount included in item N120_116T that represents reinsurance premiums ceded to Related parties of the Insurer, for each of columns.
          12. Where an Insurer is required to complete this form, the total column of this form for items in the first table — gross premiums must agree to column for direct insurance in form IN40 for items in part II of IN40, in respect of Long-Term Insurance Business.
          13. An Insurer must present the gross Direct Long-Term Insurance new business premiums that it has accounted for in the reporting period, for each Class of Business listed in the first table, analysed across the columns between participating business and non-participating business and between regular premium business and single premium business.
          14. An Insurer must present the new policyholders/fund members that it recorded in the reporting period, for each Class of Business listed in the first table, analysed across the columns between participating business and non-participating business and between regular premium business and single premium.
          15. An Insurer must present at item N120_1360 for the reporting period and items N120_1370 , N120_1380 and N120_1390 respectively for the previous reporting period and the two immediately prior to that (in each case, the 'reporting year in question'), the following information in respect of participating long-term contracts of insurance:
          a. in the left most column, the number of Direct Long-Term Insurance contracts effected during the reporting period in question;
          b. in column titled naturally terminated contracts, the number of contracts effected during the reporting period in question that have, during the period from their inception up to the reporting date, terminated through expiry of the contract term, through occurrence of the insured event, or otherwise through an event contemplated in the policy document other than lapse, surrender or cancellation;
          c. in column titled otherwise terminated, the number of contracts effected during the reporting period that have, during the period from their inception up to the reporting date, terminated through lapse, surrender, or cancellation or otherwise through an event not contemplated in the policy document;
          d. the column titled "In force on reporting date", the number of contracts remaining in force on the reporting date is calculated by EPRS, as the number of contract effected less the number of contracts naturally terminated and less the number of contracts otherwise terminated; and
          e. the column titled "Persistency rate" is calculated by EPRS as the number of contracts remaining in force on the reporting date divided by the number of contracts effected less the number of contracts naturally terminated, expressed as a percentage.
          16. An Insurer must present at item N120_1410 for the reporting period and items N120_1420, N120_1430 and N120_1440 respectively for the previous reporting period and the two immediately prior to that (in each case, the 'reporting year in question'), the information set out in instructional guideline 15(a) to (c), in respect of linked long-term contracts of insurance.
          17. An Insurer must present at item N120_1460 for the reporting period and items N120_1470, N120_1480 and N120_1490 respectively for the previous reporting period and the two immediately prior to that (in each case, the 'reporting year in question'), the information set out in instructional guideline 16(a) to (c), in respect of long-term contracts of insurance not already included in the disclosures under participating or linked long term contracts.

          Structure of the form in the EPRS

          18. IN120 comprises of two linked forms. The main form consists of only the two links to the linked forms. The first linked form presents the parts I and II of the form while the second linked form presents part III of the form. The linked forms can be accessed by following the instructions on the main form.
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.13 Instructional Guidelines — Form IN130 — Statement of Direct Long-Term Insurance Liabilities

          1. This form is required only for an Annual Regulatory Return prepared by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business, and is required only in respect of that Direct Long-Term Insurance Business.
          2. This form, which is prepared only by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business, provides the DFSA with an analysis of the breakdown of gross insurance liabilities in respect of those liabilities, and reinsurance recoverable in their respect.
          3. An Insurer must present in the first table titled "Gross Policy Liabilities", for each Class of Business, the gross Direct Long-Term Insurance Business policy liabilities as at the reporting date, analysed across the columns in the table as follows:
          a. in the left-most column titled "Vested-Direct participating", the amount in respect of participating business Direct Long-Term Insurance contracts, in respect of benefits that have vested in the policyholders;
          b. in the column titled "Non-vested Direct participating", the amount in respect of participating business Direct Long-Term Insurance contracts, in respect of benefits that have not vested in the policyholders;
          c. in the column titled "Direct Non-participating", the amount in respect of all other Direct Long-Term Insurance Contracts; and
          d. in the column titled "Additional Provisions", the amount of any additional provisions made by the insurer, that form part of gross policy liabilities but do not fall within the columns to the left.
          4. Vested benefits are those to which policyholders are collectively or individually entitled as a result of a guarantee in the insurance contract, and include bonuses that have been declared or allotted, The Rules in PIN 5 on valuation of assets and liabilities require an Insurer also to make provision for benefits that are discretionary, for example bonuses that are expected to be declared in the future. The provision in respect of these items will be included under the column titled "Non-vested Direct participating".
          5. An Insurer must present at item N130_1080, for each of columns, the amount of the gross policy liabilities that relates to liabilities in respect of parties that are Related to the Insurer.
          6. In practice, a valuation of Insurance Liabilities may include provisions that are not readily attributable to particular insurance contracts. Where this is the case, such provisions should be shown in column titled "Additional Provisions". The Actuary's Report prepared under PIN section 7.3 includes commentary on additional provisions. Insurers should ensure that disclosure on this form is consistent with the description in the Actuary's Report. A reconciliation may be provided in a Supplementary Note to this form.
          7. An Insurer must present in the second table titled "Reinsurance Recoverable", for each Class of Business, the amount of gross Direct Long-Term Insurance Business policy liabilities as at the reporting date that is recoverable under reinsurance arrangements, analysed across the columns in the table in the same manner as it applies to the first table (refer above paragraph 3 (a) to (d)).
          8. An Insurer must present at item N130_1170, for each of columns, the amount of gross Direct Long-Term Insurance Liabilities that is recoverable under reinsurance arrangements from parties that are Related to the Insurer.

          Structure of the form in the EPRS

          9. IN130 is a simple form with the two tables in the form covering gross policy liabilities and reinsurance recoverables.
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.14 Instructional Guidelines — Form IN140 — Statement of Assets Covering Direct Linked Long-Term Insurance Liabilities

          1. This form is required only for an Annual Regulatory Return prepared by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business of Class III, and is required only in respect of that Class of its Direct Long-Term Insurance Business.
          2. This form, which is prepared only by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business of Class III, provides the DFSA with information on the assets held to cover policy liabilities under insurance contracts of that Class.
          3. On this form, a reference to assets held to cover linked contract liabilities means assets that:
          a. are held by the Insurer with the intention of meeting liabilities under Class III contracts of insurance effected by it;
          b. are not reported by the Insurer on form IN150; and
          c. so far as concerns linked benefits that are vested in policyholders, are the assets to which the contract is linked under the terms of the contract or assets that are closely equivalent to those assets, or, where the contract is linked to an index, are the assets on which that index is based or assets closely equivalent to those assets.
          4. In this form an Insurer must report the amount of its assets disclosed on Form IN10 that are held to cover linked contract liabilities under Direct Long-Term Insurance Business of Class III. The instructional guidelines at PRU-EPRS section 3.1 above apply to the completion of this form where an item on this form has the same description as an item on Form IN10, except that no distinction is made on this form between current and non-current assets.
          5. An Insurer must present at item N140_1280 the amount of any assets not falling within any of the other items in this form that are held to cover linked contract liabilities under Direct Long-Term Insurance Business of Class III. Where an Insurer includes an amount at this item, particulars of the asset must be included in a Supplementary Note, including a description of how that asset is disclosed on form IN10.
          6. An Insurer must disclose at item N140_1310 the amount of assets included in total assets that represent amounts due from, balances with or investments in Related parties, other than amounts due under insurance contracts.
          7. The amount reported as total assets must be not less than the gross policy liabilities less the amount of reinsurance recoverable in respect of linked long-term insurance business as reported in form IN130.

          Structure of the form in the EPRS

          8. IN140 is a simple form which covers all the items in a single section.
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.15 Instructional Guidelines — Form IN150 — Statement of Assets Covering Non-Linked Direct Long-Term Insurance Liabilities and Minimum Capital Requirement

          1. This form is required only for an Annual Regulatory Return prepared by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business and is required only in respect of that business.
          2. This form, which is prepared only by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business, provides the DFSA with information on the assets held to cover policy liabilities under insurance contracts other than Class III, and assets held to cover the Minimum Capital Requirement. This form also provides the DFSA with information on the yields of those assets, to assist in interpretation of the Actuary's Report.
          3. On this form, a reference in part I to assets held to cover participating contract liabilities, in part II to assets held to cover non-participating contract liabilities and in part III to assets held to cover the Minimum Capital Requirement means assets that:
          a. in the case of assets held to cover participating or non-participating contract liabilities, are held by the Insurer with the intention of meeting those liabilities under contracts of insurance effected by it, and in the opinion of the Directors, formed on reasonable grounds, are appropriate assets for that purpose; and
          b. are not reported by the Insurer on form IN140 or in any other part of this form.
          4. In this form an Insurer must report the amount of its assets disclosed on form IN10 that are held to cover contract liabilities under participating Direct Long-Term Insurance Business. The instructional guidelines at PRU-EPRS section 3.1 apply to the completion of this form where an item on this form has the same description as an item on form IN10, except that no distinction is made on this form between current and non-current assets.
          5. An Insurer must present at item N150_1300 the amount of any assets not reported under any of the other items in this form that are held to cover contract liabilities under participating Direct Long-Term Insurance Business. Where an Insurer includes an amount at this item, particulars of the asset must be included in a Supplementary Note, including a description of how that asset is disclosed on form IN10.
          6. An Insurer must disclose at item N150_1330 the amount of assets included in total assets in this form that represent amounts due from, balances with or investments in Related parties, other than amounts due under insurance contracts.
          7. Total assets as reported in this form must be not less than the amount of gross policy liabilities less the amount of reinsurance recoverable and any element of the amount reported under "Additional Provisions in respect of direct participating policies (both vested and non-vested) as reported in form IN130.
          8. An Insurer must report in part II of this form which is presented as the second linked form in the EPRS the amount of its assets disclosed on Form IN10 that are held to cover contract liabilities under non-participating Direct Long-Term Insurance Business other than Class III. The Rules at PRU-EPRS section 3.5 apply to the completion of this form where an item on this form has the same description as an item on form IN10, except that no distinction is made on this form between current and non-current assets.
          9. An Insurer must present at item N150_1300 the amount of any assets not reported under any of the other items in this form that are held to cover contract liabilities under non-participating Direct Long-Term Insurance Business other than Class III. Where an Insurer includes an amount at this item, particulars of the asset must be included in a Supplementary Note, including a description of how that asset is disclosed on form IN10.
          10. An Insurer must disclose at item N150_1330 the amount of assets included total assets that represent amounts due from, balances with or investments in Related parties, other than amounts due under insurance contracts.
          11. Total assets reported in this form must be not less than the amount of gross policy liabilities less the amount of reinsurance recoverable and any element of the amount reported under "Additional Provisions in respect of direct non-participating business other than Class III as reported in form IN130.
          12. An Insurer must report in part III of this form which is presented as the third linked form in the EPRS the amount of its assets disclosed on Form IN10 that are held to cover the Minimum Capital Requirement in respect of Direct Long-Term Insurance Business. The Rules at PRU-EPRS section 3.5 apply to the completion of this form where an item on this form has the same description as an item on form IN10, except that no distinction is made on this form between current and non-current assets.
          13. An Insurer must present at item N150_1300 the amount of any assets not reported under any of the other items in this form that are held to cover the Minimum Capital Requirement in respect of Direct Long-Term Insurance Business. Where an Insurer includes an amount at this item, particulars of the asset must be included in a Supplementary Note, including a description of how that asset is disclosed on form IN10.
          14. An Insurer must disclose at item N150_1330 the amount of assets included in total assets as reported in this form, that represent amounts due from, balances with or investments in Related parties, other than amounts due under insurance contracts.
          15. For each asset which an Insurer is required to disclose on this form, the Insurer must also disclose in the column titled "Expected yields", the lower of the two following figures, expressed as a percentage:
          a. the actual annual yield achieved on the assets disclosed under that item; and
          b. the annual yield expected to be achieved on the assets disclosed under that item, in the year following the reporting date.
          16. Where the figure in column 1 is derived as the result of a mathematical calculation expressed on the face of the Form. The amount to be disclosed in column 2 is not the sum of the values in column 2 for the items specified in the mathematical calculation expressed on the face of the form, but the yield in accordance with instrumental guideline 17 on the assets disclosed at the item in question in column 1.

          Structure of the form in the EPRS

          17. IN150 is comprised of three linked forms each of which present the three parts of IN150. The main form consists of the links to the three linked forms. The first linked form includes part I — Assets covering participating contract liabilities. The second linked form includes part II — Assets covering non-participating contract liabilities. The third linked form includes part III — Assets covering minimum capital requirement.
          Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]

        • PRU-EPRS 3.16 Instructional Guidelines — Form IN160 — Calculation of Direct Long-Term Insurance Element of Long-Term Insurance Component

          1. This form is required only for an Annual Regulatory Return prepared by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business, and is required only in respect of that business.
          2. This form, which is prepared only by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business, provides an Insurer with a working schedule for the calculation of the element of the Long-Term Insurance Risk Component that is attributable to its Direct Long-Term Insurance Business, and permits the DFSA to assess the compliance of that calculation with the Rules in PIN A4.12.
          3. In the first linked form A-Percentage of insurance provisions the Insurer must report, for each Class of Business, or for each sub-division of a Class of Business as shown on the face of the form,
          a. the amount of the Long-Term Insurance Liability, gross and net of reinsurance respectively
          b. Reinsurance ratio and the column titled "Result" are calculated by EPRS. The reinsurance ratio is calculated as the net provisions divided by the gross provisions, except that if the result is less than 85%, the figure shall be 85%.
          c. The result column is calculated by multiplying the gross provisions with the percentage factor and with the reinsurance ratio.
          4. The total gross provisions reported in this linked form must agree to the amount of gross policy liabilities reported in form IN130 in respect of both vested and non-vested direct participating business less the reinsurance recoverables in respect of these classes of business as reported in IN 130.
          5. In the second linked form B-Percentages of capital at risk, an Insurer must report, for all Direct Long-Term Insurance Business, according to the extent of death risk borne by the Insurer as shown on the face of the form,
          a. the amount of capital at risk, gross and net of reinsurance respectively, where capital at risk has the meaning given in PIN Rule A4.12.2(c);
          b. Reinsurance ratio and the column titled "Result" are calculated by EPRS. The reinsurance ratio is calculated as the net provisions divided by the gross provisions, except that if the result is less than 50%, the figure shall be 50%.
          c. The result column is calculated by multiplying the gross provisions with the percentage factor and with the reinsurance ratio.
          6. At item N160_1190, the Insurer must report
          a. the amount of net administrative expenses incurred in the reporting period in respect of linked Direct Long-Term Insurance Business where the Insurer bears no investment risk and expenses are not fixed for a period of more than five years.
          b. the result in the right most column is determined by multiplying the expenses reported with the applicable percentage factor.
          7. At item N160_1210 the Insurer must report
          a. the amount of gross premiums in the reporting period in respect of Class IV as reported in form IN120 in respect of permanent health business, multiplied by 18% so far as concerns the amount up to $50 million and by 16% so far as concerns any amount in excess of $50 million;
          b. the reinsurance ratio, expressed as a percentage is calculated by EPRS by dividing the amount of total gross premiums in respect of permanent health business as reported in form IN120 (across all policy types) less the amount of reinsurance premiums ceded in respect of that business with the amount of total gross premiums, except that if the result of this calculation is less than 50% the figure shall be 50%.
          8. At item N160_1220 the Insurer must report
          a. the amount of gross claims incurred in the reporting period in respect of Class IV, multiplied by 26% so far as concerns the amount up to $35 million and by 23% so far as concerns any amount in excess of $35 million.
          b. the reinsurance ratio, expressed as a percentage is calculated by EPRS by dividing the gross claims incurred minus claims recovered, by the gross claims incurred, except that if the result of this calculation is less than 50% the figure shall be 50%.
          c. gross claims incurred means the amount of gross claims paid in respect of linked long-term business as reported in form IN50 plus the amount, if any, in respect of Direct Long Term Insurance Business of Class IV reported in IN10 as outstanding claims provision (including IBNR) form IN10 and less any such amount included at those items for the prior year in that form: and
          d. claims recovered means the amount of reinsurance and other recoveries in respect of paid claims relating to linked long-term business as reported in form IN50 plus the amount, if any, in respect of Direct Long Term Insurance Business of Class IV reported in IN10 as recoveries other than insurance and amounts due under reinsurance contracts and less any such amount included at those items for the prior year in that form.
          9. At item N160_124