(1) Where the DFSA:
(a) transfers some but not all of the rights, assets or liabilities of an Authorised Firm in Resolution to another entity; or
(b) exercises the power to cancel or modify the terms of a contract to which the Authorised Firm in Resolution is a party or substitute a recipient as a party,the DFSA shall take reasonable steps to protect the arrangements specified in (2) and the counterparties of such arrangements.
(2) The arrangements protected under (1) are as follows:
(a) collateral arrangements, including title transfer collateral arrangements;
(b) set-off arrangements under which two or more claims or obligations owed between the Authorised Firm in Resolution and a counterparty can be set off against each other;
(c) netting arrangements;
(d) collateral and default fund contributions provided to payment systems, Central Counterparties, Securities Settlement Systems and Central Securities Depositories; and
(e) any transfer or obligation that is subject to irrevocable settlement finality protections under applicable DIFC law.
(3) The arrangements under (2) are to be protected irrespective of the number of parties involved in the arrangements or whether the arrangements:
(a) are created by contract, deed, trusts or other means, or arise automatically by operation of law; or
(b) arise under or are governed in whole or in part by the law of another jurisdiction.
Derived from DFSA RMI283/2020 (Made 16th December 2020). [VER1/04-21]