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RAR 1.2.1

In this module, the terms and abbreviations listed in the table below have the following meanings:

AT1 Capital
Has the meaning given in PIB Rule 1.2.1.
Bail-In Tool
The Resolution Tool referred to in Articles 84N(1)(i) and 84P of the Law.
Business Reorganisation Plan
A plan drawn up in accordance with RAR Rule 3.4.7.
CET1 Capital
Has the meaning given in PIB Rule 1.2.1.
Conversion Rate
The ratio that determines the number of Shares into which a liability of a specific class will be converted, by reference either to a single instrument of the class or to a specified unit of value of a debt claim.
Commencement Date
The day on which Rule-Making Instrument No. 283 of 2020 comes into force.
Core Business Lines
Business lines and associated services which represent material sources of revenue, profit or franchise value for an Authorised Firm or its Group.
Critical Functions
Activities, services or operations the discontinuance of which is likely to lead to:
(a) the disruption of services that are essential to the financial services industry in the DIFC or to the UAE economy; or
(b) the disruption of financial stability due to the size, market share, external or internal interconnectedness, complexity, or crossborder activities of an Authorised Person or its Group,
with particular regard to the substitutability of those activities, services or operations.
Debt Instrument
Bonds and other forms of transferable debt, instruments creating or acknowledging debt and an instrument giving rights to acquire such instruments.
Definitive Valuation
A valuation referred to in RAR Rule 3.1.5, which is carried out after a Provisional Valuation.
Eligible Depositor
Has the meaning given in Rule 4.4.2 of COB.
Eligible Liabilities
Liabilities and capital instruments that do not qualify as CET1 Capital instruments, AT1 Capital instruments or T2 Capital instruments of an Authorised Firm and that are not excluded from the exercise of the Write Down or Conversion Power under RAR Rules 3.4.1(3) or (4).
LAC
Loss-Absorbing Capacity as defined in Article 84H of the Law.
LAC requirement
A requirement under Article 84H of the Law for an Authorised Firm to hold and maintain a minimum amount of Loss Absorbing Capacity.
Law
The Regulatory Law.
Management Information System
Has the meaning given in RAR section 4.1.
Pre-Resolution Valuation
A valuation referred to in Article 84M(1) of the Law.
Provisional Valuation
A valuation referred to in Article 84M(2) of the Law.
Recognition Order
An order made by the DFSA under Article 84T of the Law that recognises, in whole or in part, resolution action taken by another Resolution Authority.
Recovery Measures
The measures, set out in a Recovery Plan, to be taken to restore the financial position of an Authorised Firm in the event of a serious deterioration of its financial position.
Recovery Plan
A plan referred to in Article 84D(2) of the Law.
Residual Institution
In circumstances where part of the business of an Authorised Firm has been sold to a private sector purchaser using the Sale of Business Tool, the unsold or non-transferred part of the Authorised Firm and the legal entity in which any related assets, liabilities or business resides.
Resolution
The process of resolving an Authorised Firm, including the stabilisation and restructuring of that Authorised Firm through the exercise or application of one or more Resolution Powers or Resolution Tools
Resolution Action
The exercise of a Resolution Power or application of a Resolution Tool and any activity connected with that exercise or application.
Resolution Conditions
The conditions referred to in Article 84K(1) of the Law.
Resolution Objectives
The DFSA’s aims set out in Article 8(3B) and 8(3C) of the Law.
Resolution Plan
A plan referred to in Article 84E(1) of the Law.
Resolution Power
A power referred to in Article 84N of the Law.
Resolution Safeguards
The safeguards referred to in Article 84R of the Law and RAR section 3.6.
Resolution Tool
The Sale of Business Tool or Bail-In Tool referred to in Article 84O and 84P respectively of the Law.
Sale of Business Tool
The Resolution Tool referred to in Articles 84N(1)(h) and Article 84O of the Law.
Temporary Administrator
A person appointed by the DFSA under Article 84Q of the Law to be a Temporary Administrator of an Authorised Firm.
T2 Capital
Has the meaning given in PIB Rule 1.2.1.
Write Down or Conversion Power
The power referred to in Article 84N(1)(e) of the Law.

 

Derived from DFSA RMI283/2020 (Made 16th December 2020). [VER1/04-21]