PIB 9.2A.1 Guidance

1. 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 Firm operates and any other factors that are likely to impact its funding position.
3. The DFSA expects 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 Firm should pay attention to other risks, including, for example, credit market, operational and reputational risk and their impact of funding requirements.
5. An Authorised Firm should maintain an ongoing presence in its chosen funding markets and strong relationships with funds providers.
[Added] DFSA RM148/2014 (Made 1st January 2015). [VER23/01-15]
[Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]