(1) Where the DFSA has caused a Provisional Valuation to be carried out under RAR Rule 3.1.4, the DFSA shall appoint an independent valuer to carry out, as soon as practicable, a Definitive Valuation of:
(a) in the case of an Authorised Firm that is not a Branch, the assets and liabilities of the Authorised Firm; or
(b) in the case of a Branch, the business of the Branch.
(2) The purpose of the Definitive Valuation is to:
(a) ensure that:
(i) in the case of an Authorised Firm that is not a Branch, the full extent of any losses on the assets of the Authorised Firm is recognised in the accounting records of the Authorised Firm;
(ii) in the case of a Branch, the full extent of any losses on the property and rights of the Regulated Financial Institution which formed part of the business of the Branch is recognised in the accounting records of the Authorised Firm; and
(b) inform a decision by the DFSA as to whether:
(i) additional consideration will be paid by a purchaser for any property, rights, liabilities or Shares transferred under a Sale of Business Tool; or
(ii) to increase or reinstate any liability which has been reduced or cancelled by the exercise of a Resolution Power or application of a Resolution Tool.
(3) An independent valuer shall comply with RAR Rule 3.1.2 in respect of the Definitive Valuation.
(4) A person who acts as the independent valuer in a Provisional Valuation of an Authorised Firm may be the same person who acts as the independent valuer for the purpose of carrying out a Definitive Valuation of that Authorised Firm.
Derived from DFSA RMI283/2020 (Made 16th December 2020). [VER1/04-21]