(1) The Operator of a Scheme must ensure that there are well documented policies and strategies to meet the requirements in COB Rule 12.5.1, which include:
(a) maintaining appropriate liquid buffers (including any reserves) and limits on illiquid assets; and
(b)access to other resources (such as lines of credit).
(2) The policies and strategies referred to in (1) must take into account, among other things:
(a) the nature of the liquidity of the underlying investments in which Member contributions and earnings are invested;
(b) if the underlying investments are securities traded on an exchange, liquidity on the exchange;
(c) the benefit Payment Schedule, including any contingencies;
(d) reserves established to meet fees, charges and any other outgoings of the Scheme; and
(e) any other factors that may potentially affect the liquidity of the assets available for the payment of Member benefits.
Derived from DFSA RMI261/2019 (Made 18th December 2019). [VER35/01-20]