PIB 9.2A.1 PIB 9.2A.1(1) An
Authorised Firmmust develop a funding strategy that provides effective diversification in the sources and nature of its funding.(2) An Authorised Firmmust ensure that the funding strategy is in writing and is approved by its Governing Body.(3) The funding strategy must be in line with the Authorised Firm'sstated Liquidity Risktolerance and supported by robust assumptions that are consistent with the Authorised Firm'sbudgeting and business planning process.(4) The funding strategy must be supported by systems that allow the Authorised Firmto identify, measure, manage and monitor funding positions.(5) An Authorised Firmmust ensure that its funding strategy is reviewed regularly and at least annually, and is updated as necessary in light of changed funding conditions and any change in the Authorised Firm'sstrategy.(6) An Authorised Firmmust notify the DFSAin writing immediately of any material changes to the Authorised Firm'sfunding strategy.
PIB 9.2A.1 Guidance1. The diversification under PIB Rule 9.2A.1(1) should include, for example, different counterparties, instruments, currencies, geographies and markets.2. The assumptions in PIB Rule 9.2A.1(3) should be forward looking and take into account the macroeconomic and market conditions in which the
Authorised Firmoperates and any other factors that are likely to impact its funding position.3. The DFSAexpects that funding positions referred to in PIB Rule 9.2A.1(4) would cover both present and projected positions across multiple time horizons generated from both on- and off-balance sheet items.4. In order to formulate the funding strategy properly, an Authorised Firmshould pay attention to other risks, including, for example, credit market, operational and reputational risk and their impact of funding requirements.5. An Authorised Firmshould maintain an ongoing presence in its chosen funding markets and strong relationships with funds providers.
PIB 9.2A.2(1) An
Authorised Firmmust assess market access under a variety of normal and stressed conditions.(2) An Authorised Firmmust assess regularly its capacity to raise funds quickly including on a secured and unsecured basis.(3) An Authorised Firmmust:(a) identify the main factors that affect its ability to raise funds; and(b) monitor those factors closely to ensure that estimates of fund raising capacity remain valid.