PIB A4.11.1 Guidance

1. In order to be applicable under (c) the guarantees must meet the requirements of PIB section 4.13.9 in relation to Credit Risk mitigation.
2. An Authorised Firm can only treat Exposures as Collateralised provided the conditions of Rules PIB 4.13.5 to PIB 4.13.8 (relating to Credit Risk mitigation) are met. Item (d) also includes cash received under a credit linked note issued by the Authorised Firm and loans and deposits of a Counterparty to or with the Authorised Firm which are subject to an on balance sheet Netting agreement recognised under PIB section 4.13 (Credit Risk mitigation).
3. The DFSA may consider a waiver for other sovereign Exposures where there is a local regulatory requirement to hold assets with a national regulatory authority. Authorised Firms will be required to apply for a waiver of the Large Exposure requirements in this regard and will be considered by the DFSA on a case by case basis.
4. The DFSA may, where it considers it appropriate, allow two or more Exposures to a sovereign not to be treated as connected or related if the sole reason for linking them is being controlled or economically dependent on the sovereign (including eligible PSEs). An eligible PSE is a PSE referred to in PIB Rule A4.11.1(a).
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
[Added] DFSA RMI293/2021 (Made 24th February 2021). [VER38/04-21]