(1) An Authorised Firm must apply for approval from the DFSA if it intends to use own-estimate haircuts.

(2) An Authorised Firm must not use own-estimate haircuts unless it has received approval to adopt the internal models approach to calculate the Market Risk Capital Requirement.

(3) The DFSA may grant approval for an Authorised Firm to use own-estimate haircuts subject to such conditions or restrictions as the DFSA may impose.