Direction Powers for Prudential Purposes
Under Article 75A, the
DFSAmay for, prudential purposes, direct a particular Authorised Firm, or Authorised Firmswithin 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
DFSAissues a direction under Article 75A to Authorised Firmswithin a specified class, the direction will remain in force for a period of no more than 12 months in the first instance, unless the DFSAspecifies a shorter period of time in the notice. The DFSAconsiders that such a direction should remain in force for a limited period as it has a Rule making power under the Regulatory Lawat its disposal, which the DFSAwould ordinarily use where it was proposing to change its Rules relating to Authorised Firmswithin a specified class.Inserted (Made 21st August 2014). August 2014 Edition
DFSAmay also direct an Affiliate of an Authorised Personto take specified steps or not to carry out specified activities.12 The DFSAmay give such a direction to an Affiliate if the DFSAis the consolidated supervisor of the Groupto which the Authorised Personbelongs 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 Personor its Groupto 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