Entire Section

  • Direction Powers for Prudential Purposes

    • RPP 4-12-5

      Under Article 75A, the DFSA may for, prudential purposes, direct a particular Authorised Firm, or Authorised Firms within a specified class, to:

      (a) comply with any specified additional capital or liquidity requirements;
      (b) apply a specific provisioning policy or treatment of specified assets;
      (c) comply with specified limits on material risk exposures;
      (d) comply with specified limits on exposures to related parties;
      (e) meet additional or more frequent reporting requirements; or
      (f) take such other action as is specified in the direction.
      Inserted (Made 21st August 2014). August 2014 Edition

    • RPP 4-12-6

      Where the DFSA issues a direction under Article 75A to Authorised Firms within a specified class, the direction will remain in force for a period of no more than 12 months in the first instance, unless the DFSA specifies a shorter period of time in the notice. The DFSA considers that such a direction should remain in force for a limited period as it has a Rule making power under the Regulatory Law at its disposal, which the DFSA would ordinarily use where it was proposing to change its Rules relating to Authorised Firms within a specified class.

      Inserted (Made 21st August 2014). August 2014 Edition

    • RPP 4-12-7

      The DFSA may also direct an Affiliate of an Authorised Person to take specified steps or not to carry out specified activities.12 The DFSA may give such a direction to an Affiliate if the DFSA is the consolidated supervisor of the Group to which the Authorised Person belongs and is satisfied that the direction is necessary or desirable for the effective prudential supervision of the Group.13 A direction may, for example, include a requirement that the Affiliate limit any activities reasonably likely to expose the Authorised Person or its Group to excessive risks or risks that are not properly managed.


      12 Article 75A(2).

      13 Article 75A(2).

      Inserted (Made 21st August 2014). August 2014 Edition