PIB 4.15.10

(1) This Rule applies to an Authorised Firm in Category 2 and 3A.

(2) For Exposures to a Financial Institution, or a group of Connected Counterparties one of which is a Financial Institution, the total amount of an Authorised Firm's Exposures may exceed 25% of its Tier 1 Capital, provided those institutions are Investment Grade (Credit Quality Grades 1 to 3) and subject to the following:

(a) Exposures to any entities within the group of Connected Counterparties that are not Financial Institutions are limited to 25% of Tier 1 Capital after taking account of Credit Risk mitigation;
(b) the Exposures must not form part of the Tier 1 Capital of the Counterparty;
(c) the Counterparty Risk profile must be subject to review on at least an annual basis; and
(d) Exposures of this nature must not in any case exceed a maximum of US$ 100 million or 100% of Tier 1 Capital, whichever is the lower.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
[Amended] DFSA RMI293/2021 (Made 24th February 2021). [VER38/04-21]