PIB A9.1.1 PIB A9.1.1(1) This Rule applies to an
Authorised Firmcarrying on business in or from the DIFCthrough a Branchthat applies for a global liquidity concession under PIB Rule 9.3.2.(2) The Authorised Firmmust demonstrate to the DFSAthat:(a) its Branchcomplies with all applicable liquidity systems and controls requirements in sections PIB 9.2 and PIB 9.2A;(b) its head office is established in a jurisdiction where there are no legal constraints imposed by the home supervisor or any other authority on the provision of liquidity to its branch; and(c) its head office is subject to equivalent or more restrictive liquidity requirements, than those imposed by the DFSA.(3) The DFSAmay, when considering an application from the Authorised Firmfor a global liquidity concession, impose additional or alternative conditions to those specified in (2) or disapply a condition in (2).[Added] DFSA RM148/2014 (Made 1st January 2015). [VER23/01-15]
PIB A9.1.1 Guidance1. An application for a global liquidity concession pursuant to PIB Rule 9.3.2 should include at least the following:a. a clear description of the home supervisor's requirements for managing, monitoring and controlling liquidity risk;b. a clear description of the systems and controls used by the head office to ensure the adequacy of the
Branch'sliquidity;c. a written assurance from the Authorised Firm'shead office that it will:i. ensure that adequate liquidity is available at all times to support the branch;ii. notify the DFSA, at the same time as it notifies its home supervisor, of any material issues concerning its exposure to Liquidity Riskand issues in relation to its compliance with applicable liquidity limits, including its liquidity coverage ratio; andiii. in the event of a liquidity crisis, provide the DFSAwith all relevant information on the whole Authorised Firm'sliquidity, and a list of any known constraints on the head office, legal or otherwise, to providing the branch with liquidity.d. a notification from the Authorised Firm'shome supervisor:i. expressing no objection to the branch obtaining the DFSA'sliquidity concession or acknowledging the branch application to the DFSAfor a global liquidity concession; andii. providing information about, and confirming, the quality of Liquidity Risksystems and controls and the liquidity exposures at the Authorised Firm'shead office.2. Under PIB Rule A9.1.1(2)(b), the DFSAwill consider liquidity transfer restrictions (e.g. ring-fencing measures, non-convertibility of local currency, foreign exchange controls) imposed under applicable laws, regulations or supervisory requirements in jurisdictions in which a banking group operates which affect the availability of liquidity by inhibiting the transfer of HQLA and fund flows within the Group.