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RAR 3.4.7 Guidance

1. Measures aiming to restore the long-term viability of the Authorised Firm under RAR Rule 3.4.7(6) may include:
a. the reorganisation of the activities of the Authorised Firm;
b. changes to the operational systems and infrastructure within the Authorised Firm;
c. the withdrawal from loss-making activities;
d. the restructuring of existing activities that can be made competitive; and
e. the sale of assets or business lines.
2. The Business Reorganisation Plan must take account of, amongst other things, the current state and future prospects of the financial markets, reflecting best-case and worst-case assumptions, including a combination of events allowing the identification of the Authorised Firm’s main vulnerabilities. Assumptions must be compared with appropriate sector-wide benchmarks.

 

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