PIN 5.8.2 Guidance

In considering:

a. whether to grant such a waiver; and
b. the amount which the DFSA will allow the Insurer to bring into account for these purposes;

the DFSA will take into account the following factors:

c. where the ISPV is an Authorised ISPV, the DFSA will wish to be satisfied that the ISPV complies with PIN Rules 10.1.2 to 10.1.7 The DFSA may rely on information supplied in connection with the ISPV's application for authorisation. However, if the application for a waiver is made after authorisation has been granted, the DFSA may request confirmation that there has been no material change to the information originally supplied;
d. where the ISPV is not authorised, the DFSA will expect to receive confirmation that the ISPV is subject to regulation by a Financial Services Regulator in a jurisdiction acceptable to the DFSA. In addition, it will need details of the debt issuance or other financing mechanism by which the ISPV's reinsurance liabilities are funded. The DFSA will also expect to receive information about the ISPV's key management and control functions, including details of the ISPV's auditors and arrangements for claims handling, and any material outsourcing agreements. The DFSA will also need information about the structure of any Group of which the ISPV is a member;
e. no credit will be allowed for a contract of reinsurance with an ISPV unless there is an effective transfer of risk to the ISPV. The DFSA will require evidence of such transfer.
f. the DFSA will also expect to receive an analysis of the potential for risk to revert to the Insurer or any of its associates under realistic adverse scenarios or for liabilities to arise in respect of the risks transferred for which no provision has been made.

[Added] DFSA RM48/2007 (Made 1st October 2007). [VER7/10-07]