Entire Section

  • PIB 9.2.7 PIB 9.2.7

    (1) An Authorised Firm must hold sufficient liquidity resources and ensure that its Governing Body sets appropriate liquidity limits to manage its Liquidity Risk effectively under both day-to-day and stressed conditions.
    (2) An Authorised Firm must periodically review and, where appropriate, adjust the limits referred to in (1) when its Liquidity Risk policy changes.
    (3) An Authorised Firm must promptly escalate and resolve any policy or limit exceptions according to the processes described in its Liquidity Risk policy.
    Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
    [Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]

    • PIB 9.2.7 Guidance

      An Authorised Firm should set limits to control its liquidity risk exposure and vulnerabilities. Limits and corresponding escalation procedures should be reviewed regularly. Limits should be relevant to the business in terms of its location, complexity of activity, nature of products, currencies and markets served. If an Authorised Firm breaches a liquidity risk limit, it should implement a plan to review its exposure and reduce it to a level that is within the limit.

      [Added] DFSA RM148/2014 (Made 1st January 2015). [VER23/01-15]
      [Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]