PIB 4.13.1

(1) An Authorised Firm must not recognise the effects of Credit Risk mitigation unless:
(a) all documentation relating to that mitigation is binding on all relevant parties and legally enforceable in all relevant jurisdictions; and
(b) the Authorised Firm complies with the Rules set out in this section, as applicable.
(2) Where the calculation of Credit RWA already takes into account the Credit Risk mitigant, the provisions of this section do not apply.
(3) An Authorised Firm must, where it uses a specific Credit Risk mitigation technique for the purposes of its Capital, use the same technique for Large Exposure reduction, where it is permitted and chooses to use mitigation under the requirements in PIB chapter 4.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
[Added] DFSA RMI293/2021 (Made 24th February 2021). [VER38/04-21]