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The DFSA Sourcebook

Prudential Returns Module

(PRU)

PRUDENTIAL RETURNS MODULE (PRU)

PRU-EPRS/VER1/12-07

Contents

The contents of this module are divided into the following chapters, sections and forms:

1 INSTRUCTIONAL GUIDELINES FOR PIB RETURNS 1.1 Form B10 Statement of Financial Position 1.2 Form B10 Appendix 1 Detail of Non-Trading Book Assets 1.3 Form B10 Appendix 2 Detail of Non-Market Risk in the Trading Book 1.4 Form B10 Appendix 3 Market Risk in the Trading Book 1.5 Form B10 Appendix 4 Calculation of the DCR 1.6 Form B20 Statement of Financial Position – Islamic Financial

Institutions 1.7 Form B20 Appendix 1 Detail of Non-Trading Book Assets - Self-Financed 1.8 Form B20 Appendix 2 Detail of Non-Trading Book Assets - PSIA Unrestricted

(PSIAU). 1.9 Form B20 Appendix 3 Detail of Non-Trading Book Assets - PSIA Restricted (PSIAR) 1.10 Form B20 Appendix 4 Detail of Non-Market Risk in Trading Book - Self-Financed 1.11 Form B20 Appendix 5 Detail of Non-Market Risk in Trading Book - PSIA Unrestricted

(PSIAU) 1.12 Form B20 Appendix 6 Detail of Non-Market Risk in Trading Book - PSIA Restricted

(PSIAR) 1.13 Form B20 Appendix 7 Detail of Market Risk in the Trading Book 1.14 Form B20 Appendix 8 Calculation of the Displaced Commercial Risk (DCR) 1.15 Form B20 Appendix 9 Analysis of Reserves Movement 1.16 Form B30 Income Statement 1.17 Form B40 Income Statement - Islamic Financial Institutions 1.18 Form B50 Expenditure Based Capital Minimum 1.19 Form B60 Capital Adequacy Schedule 1.20 Form B70 Large Exposures Schedule 1.21 Form B80 Liquidity Schedule – Maturity Mismatch 1.22 Form B90 Branch Return 1.23 Form B90 Appendix 1 Large Exposures - Branch 1.24 Form B120 Geographical Distribution of Assets and Liabilities 1.25 Form B130 Provisions for Impairment 1.26 Form B140 Exposures in Arrears 1.27 Form B150 Investment Activity Schedule 1.28 Form B160 Credit Activity Schedule 1.29 Form B170 Acceptance of Deposits Schedule 1.30 Form B180 Wealth Management Activity 1.31 Form B190 Asset Management, Custody & Trust Services 1.32 Form B200 Brokerage Activity 1.33 Form B210 Outward Remittances 1.34 Form B220 Inward Remittances 1.35 Form B230 Domestic Fund Activity 1.36 Form B240 Balances due from and due to Head Office, Own

Branches & Other Banks


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1.37 Form B260 Acting as a Trustee of a Fund and Fund Administration Activity

1.38 Form B270 Related Party Transactions 1.39 Form B280 Financial Group Capital Adequacy Report

2 PIB FORMS

Form B10 Statement of Financial Position Form B10 Appendix 1 Detail of Non-Trading Book Assets Form B10 Appendix 2 Detail of Non-Market Risk in the Trading Book Form B10 Appendix 3 Market Risk in the Trading Book Form B10 Appendix 4 Calculation of the DCR Form B20 Statement of Financial Position – Islamic Financial Institutions Form B20 Appendix 1 Detail of Non-Trading Book Assets - Self-Financed Form B20 Appendix 2 Detail of Non-Trading Book Assets - PSIA Unrestricted (PSIAU). Form B20 Appendix 3 Detail of Non-Trading Book Assets - PSIA Restricted (PSIAR) Form B20 Appendix 4 Detail of Non-Market Risk in Trading Book - Self-Financed Form B20 Appendix 5 Detail of Non-Market Risk in Trading Book - PSIA Unrestricted (PSIAU) Form B20 Appendix 6 Detail of Non-Market Risk in Trading Book - PSIA Restricted (PSIAR) Form B20 Appendix 7 Detail of Market Risk in the Trading Book Form B20 Appendix 8 Calculation of the Displaced Commercial Risk (DCR) Form B20 Appendix 9 Analysis of Reserves Movement Form B30 Income Statement Form B40 Income Statement - Islamic Financial Institutions Form B50 Expenditure Based Capital Minimum Form B60 Capital Adequacy Schedule Form B70 Large Exposures Schedule Form B70 Appendix 1 Detail of Largest 25 Exposures Arising from Islamic Contracts Form B80 Liquidity Schedule – Maturity Mismatch Form B90 Branch Return Form B90 Appendix 1 Large Exposures - Branch Form B100 Declaration by Authorised Firm Form B120 Geographical Distribution of Assets and Liabilities Form B130 Provisions for Impairment Form B140 Exposures in Arrears Form B150 Investment Activity Schedule Form B160 Credit Activity Schedule Form B170 Acceptance of Deposits Schedule Form B180 Wealth Management Activity Form B190 Asset Management, Custody & Trust Services Form B200 Brokerage Activity Form B210 Outward Remittances Form B220 Inward Remittances Form B230 Domestic Fund Activity Form B240 Balances due from and due to Head Office, Own Branches &

Other Banks Form B260 Acting as a Trustee of a Fund and Fund Administration Activity Form B270 Related Party Transactions Form B280 Financial Group Capital Adequacy Report


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3 INSTRUCTIONAL GUIDELINES 3.1 Form IN10 – Statement of Financial Position 3.2 Form IN20 – Statement of Capital Adequacy 3.3 Form IN30 – Statement of Financial Performance 3.4 Form IN40 – Statement of Premium Revenue and Reinsurance Expenses 3.5 Form IN50 – Statement of Claims Expense & Recovery Revenue 3.6 Form IN60 – Statement of Movements in Insurance Provisions 3.7 Form IN70 – Statement of Investment Income 3.8 Form IN80 – Statement of Acquisition Expenses 3.9 Form IN90 – Reconciliation to Financial Statements 3.10 Form IN100 – Summary Statement to Operations 3.11 Form IN110 – Reconciliation of Direct to Total Long-Term Insurance Business 3.12 Form IN120 – Statement of Direct Long-Term Insurance Business 3.13 Form IN130 – Statement of Direct Long-Term Insurance Liabilities 3.14 Form IN140 – Statement of Assets Covering Direct Linked Long-Term

Insurance Liabilities 3.15 Form IN150 – Statement of Assets Covering Non-Linked Long-Term Insurance

Liabilities and Minimum Capital Requirement 3.16 Form IN160 – Calculation of Direct Long-Term Insurance Element of Long-

Term Insurance Component 3.17 Form IN170 – Financial Group Capital Adequacy Report

4 PIN FORMS IN10 Statement of Financial Position IN20 Statement of Capital Adequacy IN30 Statement of Financial Performance IN40 Statement of Premium Revenue and Reinsurance Expenses IN50 Statement of Claims Expense & Recovery Revenue IN60 Statement of Movements in Insurance Provisions IN70 Statement of Investment Income IN80 Statement of Acquisition Expenses IN90 Reconciliation to Financial Statements IN100 Summary Statement to Operations IN110 Reconciliation of Direct to Total Long-Term Insurance Business IN120 Statement of Direct Long-Term Insurance Business IN130 Statement of Direct Long-Term Insurance Liabilities IN140 Statement of Assets Covering Direct Linked Long-Term Insurance Liabilities IN150 Statement of Assets Covering Non-Linked Long-Term Insurance Liabilities

and Minimum Capital Requirement IN160 Calculation of Direct Long-Term Insurance Element of Long- Term Insurance

Component IN170 Financial Group Capital Adequacy Report


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INTRODUCTION

Application

Guidance

1. This Sourcebook (PRU) is relevant to a Person to whom PIB or PIN applies.

2. Chapter 1 contains instructional guidelines in respect of the forms in Chapter 2. 3. Chapter 2 contains the forms referred to in PIB. 4. Chapter 3 contains instructional guidelines in respect of the forms in Chapter 4. 5. Chapter 4 contains the forms referred to in PIN.

Defined terms

Guidance 1. Defined terms are identified throughout the forms by the capitalisation of the initial letter of a word

or each word of a phrase and are defined in the Glossary module (GLO) of the DFSA’s Rulebook. Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning. Within this module the term EPRS has the meaning of the DFSA’s electronic prudential reporting system.

2. Notwithstanding the use of capitalisation for identifying defined terms, capitalisation is also used

when reference is made to sections and items in the forms by quoting the title of the section or the name of the item. Take note that some of these words or phases are not also defined terms and, therefore, will not be defined in GLO, PIB or PIN.


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1 INSTRUCTIONAL GUIDELINES This chapter of PRU contains instructional guidelines for forms referred to in PIB. The instructional guidelines for each form are set out in the sections specified below:

1.1 Form B10 Statement of Financial Position 1.2 Form B10 Appendix 1 Detail of Non-Trading Book Assets 1.3 Form B10 Appendix 2 Detail of Non-Market Risk in the Trading Book 1.4 Form B10 Appendix 3 Market Risk in the Trading Book 1.5 Form B10 Appendix 4 Calculation of the DCR 1.6 Form B20 Statement of Financial Position – Islamic Financial Institutions 1.7 Form B20 Appendix 1 Detail of Non-Trading Book Assets - Self-Financed 1.8 Form B20 Appendix 2 Detail of Non-Trading Book Assets - PSIA Unrestricted

(PSIAU). 1.9 Form B20 Appendix 3 Detail of Non-Trading Book Assets - PSIA Restricted (PSIAR) 1.10 Form B20 Appendix 4 Detail of Non-Market Risk in Trading Book - Self-Financed 1.11 Form B20 Appendix 5 Detail of Non-Market Risk in Trading Book - PSIA Unrestricted

(PSIAU) 1.12 Form B20 Appendix 6 Detail of Non-Market Risk in Trading Book - PSIA Restricted

(PSIAR) 1.13 Form B20 Appendix 7 Detail of Market Risk in the Trading Book 1.14 Form B20 Appendix 8 Calculation of the Displaced Commercial Risk (DCR) 1.15 Form B20 Appendix 9 Analysis of Reserves Movement 1.16 Form B30 Income Statement 1.17 Form B40 Income Statement - Islamic Financial Institutions 1.18 Form B50 Expenditure Based Capital Minimum 1.19 Form B60 Capital Adequacy Schedule 1.20 Form B70 Large Exposures Schedule 1.21 Form B80 Liquidity Schedule – Maturity Mismatch 1.22 Form B90 Branch Return 1.23 Form B90 Appendix 1 Large Exposures - Branch 1.24 Form B120 Geographical Distribution of Assets and Liabilities 1.25 Form B130 Provisions for Impairment 1.26 Form B140 Exposures in Arrears 1.27 Form B150 Investment Activity Schedule 1.28 Form B160 Credit Activity Schedule 1.29 Form B170 Acceptance of Deposits Schedule 1.30 Form B180 Wealth Management Activity 1.31 Form B190 Asset Management, Custody & Trust Services 1.32 Form B200 Brokerage Activity 1.33 Form B210 Outward Remittances 1.34 Form B220 Inward Remittances 1.35 Form B230 Domestic Fund Activity 1.36 Form B240 Balances due from and due to Head Office, Own Branches &

Other Banks 1.37 Form B260 Acting as a Trustee of a Fund and Fund Administration Activity 1.38 Form B270 Related Party Transactions 1.39 Form B280 Financial Group Capital Adequacy Report


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1 INSTRUCTIONAL GUIDELINES FOR PIB RETURNS 1.1 Instructional Guidelines – Form B10 – Statement of Financial

Position

Purpose Form B10 – Balance sheet is intended to reflect the financial position of an Authorised Firm at the end of the reporting period. Applicability This form is applicable to the Authorised Firms categorised under prudential categories 1, 2, 3 and 4, except for Authorised Firms in these categories involved in managing PSIAs. This form is not applicable to Islamic Financial Institutions (IFI), Authorised Firms operating through branches in the DIFC and Authorised Firms managing PSIAs. Instead, IFIs and Authorised Firms managing PSIAs should use the form B20 and branches should use the form B90 along with the respective appendices. Content The form is designed to capture information pertaining to the Authorised Firm’s on-balance sheet and off-balance sheet assets, liabilities and shareholders’ equity at a given point in time. Structure of the form in EPRS B10 is presented as a single form. Instructional Guidelines

Item/ Section

No. Item/ Section Instructional Guidelines

On Balance sheet items B100_0110 Cash in hand &

Gold bullion Include, for example, the following amounts:

• Notes and coins; • Long positions in Gold bullion (including Tola Bars);

B100_0120 Balances with the Central Banks

Amounts placed with central banks including funds required to be placed on deposit with central banks and monetary authorities.

B100_0130 Money market placements

Include deposits at call and other money market placements with banks or other money market participants.

B100_0140 Treasury bills and other eligible bills

Treasury bills issued by the national governments or by the Central banks on behalf of the governments. Also include bills issued by other entities, which are eligible for rediscounting with the central bank.


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B100_0211 Derivative financial

instruments The assets reported here should include, but are not limited to, positions representing the following instruments, recorded at fair value:

• Forward and Futures contracts in currencies, interest rates and other financial assets

• Forward rate agreements • Currency and interest rate swaps • Credit derivatives • Option contracts on currency, interest rate and other financial

assets. These derivatives include both the exchange-traded and over-the-counter versions. Derivatives held for hedging purposes should be included under section B100_030T.

B100_0212 Other Financial instruments (held for trading)

Include investments acquired principally for the purpose of selling or repurchasing them in the near term for short-term-profit-taking. This would include but not limited to, debt, equity and hybrid instruments

B100_0220 Other financial instruments – Designated at fair value through profit and loss

Include all financial instruments which are, upon initial recognition, designated by the entity as financial assets to be measured at fair value through profit or loss other than the trading securities included in B100_0211 and B100_0212.

B100_0230 Available-for-sale Include non-derivative financial assets that are designated as available for sale by the firm or that have not been classified under any of the other categories of investments.

B100_02401101.2.5

Held-to-maturity Include non-derivative financial assets with fixed or determinable payments and fixed maturity that the firm has positive intention and ability to hold to maturity.

B100_0310 and B100_0320

Derivatives – Hedge accounting -Fair value hedges -Cash flow hedges

Include all the derivative instruments held for the purposes of hedging. Derivatives held for trading should be accounted for under B100_0211.

B100_040T Loans and advances Under this section include the amounts arising from, for example: • Revolving credit facilities; • Credit cards outstanding balances; • Housing loans (both variable and fixed rates); • Term loans (both variable and fixed rates); • The book value of assets leased out under finance lease agreements; • Loans made under conditional hire purchase contracts; • Advances purchased by or assigned to the reporting institutions,

factoring or similar arrangements • Other loans and advances.

The items listed above are indicative examples and are not exhaustive universe of items to be reported under this item.

The amounts reported should be gross of provisions (as specific and general provisions should be reported in the Liabilities section of the balance sheet) and net of interest receivable.


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B100_0510 Murabaha and Istisna’a receivables

Report here all receivables relating to Murabaha and Istisna’a contracts. Refer to FAS 2 and FAS 10 of AAOIFI respectively.

B100_0520 Ijarah assets and receivables

Include Ijarah assets net of depreciation/ amortisation and Ijarah receivables. Refer to FAS 8 of AAOIFI.

B100_0530 Mudaraba Financing Financing provided on a Mudaraba basis should be reported here. Refer to FAS 3 of AAOIFI.

B100_0540 Musharaka Financing

Report financing provided on a Musharaka basis. Refer to FAS 4 of AAOIFI. Investment in the share capital of another company should be reported under “Other investments”, under B100_0550.

B100_0550 Other investments Include any other investments undertaken through Islamic contracts, including Parallel Istisna’a assets (refer FAS 10 of AAOIFI) and capital provided on Salam contracts (refer FAS 7 AAOIFI).

B100_0700 Fixed assets Include, for example, the value of the following: • Plant and equipment, the residual value of items leased out under an

operating lease (excluding balances relating to named Ijarah assets which should be included separately under B100_0520);

• Own premises being occupied or developed for occupation by the Authorised Firm, property (excluding property acquired / held available for sale which should be included in “Other Assets”, B100_0920).

The amounts reported here should be net of accumulated depreciation and amortisation.

B100_0810 Goodwill Include amounts relating to any purchased goodwill. B100_0820 Other intangible

assets Items to be included, for example, but are not limited to:

• Capitalised development costs • Brand names, trademarks and similar rights • Licences and exchange seats which may be held as part of the

Authorised Firm’s trading requirement. Off Balance sheet items

B100_1010 Direct credit substitutes

These relate to the financial requirements of Counterparty where the risk of loss to the Authorised Firm on the transaction is equivalent to that arising from a direct claim on the Counterparty. The indicative examples of items to be Included here are • Guarantees of a financial nature to stand behind the current obligations

of customers (e.g. loan guarantees); • Guarantees of leasing operations; • Letters of Credit and Stand-by Letters of Credit to the extent that they

do not qualify for inclusion in item B100_1030 “Trade related contingents” below;

• Guarantees of a capital nature such as undertakings given to a non-bank financial company which are considered as capital by the appropriate regulatory body. Guarantees given to a company not connected to the reporting institution should be risk weighted at 100% and those for connected companies should be deducted from the reporting institution’s capital base.

• Acceptances granted and risk participation in bankers’ acceptances. Where the Authorised Firm’s own acceptances have been discounted by that institution the nominal value of the bills held should be deducted from the nominal amount of the bills issued under the facility and a corresponding on-balance sheet entry made.


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B100_1020 Transaction related

contingents These exposures relate to the on-going trading activities of a Counterparty where the risk of loss to the Authorised Firm depends on the likelihood of a future event which is independent of the creditworthiness of the Counterparty. They are essentially guarantees that support particular non financial obligations rather than a customer’s financial obligations. Include here: • Advance payment guarantees • Performance bonds including bid or tender bonds, warranties and

indemnities (indemnities given for lost share certificates or bills of lading and guarantees of the validity of papers rather than of payment under certain conditions should be reported here);

Stand-by Letters of Credit relating to a particular contract or to non-financial transactions (including arrangements backing, inter alia, subcontractors’ and supplier’s performance, labour and materials, contracts and construction tenders/bids).

B100_1030 Trade related contingents

Report short term self-liquidating trade related items such as documentary letters of credit issued by the Authorised Firm that are collateralised by the underlying shipment i.e. the credit provides for the Authorised Firm to retain title to the underlying shipment. L/C’s issued without provision for the Authorised Firm to retain title to the underlying shipment should be reported under direct credit substitutes above.

B100_1040 Sale and Repurchase Agreements

In this item, report only the sale and repurchase agreements where the asset sold is not reported on the balance sheet. Where the asset is off-balance sheet, the appropriate Counterparty weighting is determined by the issuer of the security and not according to the Counterparty with whom the transaction has been undertaken.

B100_1050 Forward Assets Purchases

The appropriate Counterparty weighting should be determined by the asset to be purchased and not the Counterparty with whom the contract has been entered into. Include commitments for loans and other on-balance sheet items with definitive drawdown schedules. Exclude foreign currency spot deposits with value date of up to two business days after trade date.

B100_1060 Forward Deposits Placed

Relates to agreements between two parties whereby one will pay and the other receive an agreed rate of interest on a deposit to be placed by one with the other at some pre-determined rate in the future. Exclude foreign currency spot deposits with value date of up to two business days after trade date.

B100_1070 Uncalled partly- paid shares and securities

Include under this item calls with specific dates. If there is no specific date for a call, the item should be included as a long term commitment under item no. B100_1122 “Other Commitments”.

B100_1080 NIF’s and RUF’s Note issuance and revolving underwriting facilities should include the Authorised Firm’s underwriting obligations of any maturity. Where the facility has been drawn down by the borrower and the notes are held by someone other than the Authorised Firm, the underwriting obligation should continue to be reported at the nominal amount.

B100_1090 Endorsement of Bills These should be reported at the full nominal amount, less any amount for bills which the Authorised Firm currently holds but had previously endorsed.

B100_1111 & B100_1122

Other commitments All other undrawn commitments are to be reported here, divided into commitments of maturity, under and over one year.


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B100_1110 Assets funded by restricted PSIAs

The methodology for calculating exposures financed by PSIAs are, in principle, no different to calculating exposures for a reporting institution’s self financed assets. All the Instructional Guidelines above apply in their entirety unless stated otherwise.

B100_210T Deposits In this section, identify and report deposits due to banks and financial institutions in item no B100_2110. All other deposits are to be reported as deposits due to other customers - item no B100_2120.

B100_2310 Provisions for bad and doubtful debts

All specific and general provisions in respect of all assets, including loans and advances and other receivables should be reported under this section. Exclude provisions against Islamic contracts which should be reported in item no B100_2640.

B100_2400 Derivative financial instruments – held for trading

The indicative examples of liabilities to be included under this item, but are not limited to, liabilities arising out of positions representing the following instruments, recorded at fair value:



assets. These derivatives include both the exchange-traded and over-the-counter versions. Also include under this item other trading liabilities.

B100_260T Liabilities arising from Islamic contracts

Liabilities arising from Islamic contracts include advances received against Salam contracts (defined in Para 3 and 19 of FAS 7 issued by AAOIFI and Ijarah investment payables (refer to FAS 8 of AAOIFI). Report any provisions against Islamic contracts in item B100_2640.

B100_3100 Liabilities relating to Restricted PSIA

Include under this section, off-balance sheet liabilities related to restricted PSIA investments.

B100_4110 Ordinary Shares Include in respect of this item the amount of ordinary share capital issued, reported at nominal paid up value. Do not report the unpaid element of partly paid shares or authorised but unissued share capital. Authorised Firms should exclude holdings in their own shares.

B100_4120 Preference Shares Report the value of the preference shares issued, which rank above ordinary shares in the event of liquidation.

B100_4130 Partnership Capital and other

Include here other types of equity which have the same properties of permanent share capital. This could include partnership capital accounts, capital items for unincorporated associations etc.

B100_4200 Share premium account

Any amounts received by the Authorised Firm in excess of the nominal paid up value.

B100_4310 Asset revaluation reserve

Include in this item, reserves arising from the revaluation of assets for which it has been necessary to set up this reserve.

B100_4320 Goodwill reserve Include reserves arising from purchased goodwill or other situations for which it has been necessary to set up this or any other reserve.

B100_4330 Investment Risk reserve

Prudential category 5 Authorised Firms should include in respect of this item the amount that is appropriated out of the income of investment account holders, after allocating the Mudarib share, in order to meet future losses attributable to investment account holders. Refer also to FAS 11 of AAOIFI.


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B100_4340 Profit Equalisation Reserve

Prudential category 5 Authorised Firms should include in respect of this item the amount appropriated out of the Mudaraba income, before allocating the Mudarib share, in order to maintain a certain level of investment returns for investment account holders and to increase owners’ equity. Refer also to FAS 11 of AAOIFI.

B100_4350 General Reserve Include here all the reserves which have not been reported under any of the above categories in the section “Reserves” – B100_430T.

B100_430T Total Reserves This is calculated by EPRS and is calculated by adding the items. B100_4310 + B100_4320 + B100_4330 + B100_4340+ B100_4350.

B100_4500 Minority Interests Report amounts attributable to minority shareholders from the overall equity figure.

B100_400T Total shareholders’ equity

This is calculated by EPRS as the sum of items B100_430T, B100_410T, B100_4200 and B100_4400 less B100_4500.

B100_500T Total liabilities and shareholders’ equity

This is calculated by the EPRS as the sum of items B100_200T and B100_400T.

1.2 Instructional Guidelines – Form B10 – Appendix 1 – Detail of Non-Trading Book Assets Purpose Form B10A1 is intended to capture the information regarding the calculation of risk weighted assets in the Non-Trading Book of an Authorised Firm. Applicability This form is applicable to the Authorised Firms which are Domestic Firms, and are categorised under prudential categories 1, 2, and 3. This form is not applicable to the Authorised Firms operating through branches in the DIFC. Content The form is designed to capture the details regarding the risk weighted assets on the Non-Trading Book of an Authorised Firm and calculate the applicable capital charge. Structure of the form in EPRS B10A1 consists of three linked forms namely, “On Balance Sheet items”, “Off Balance sheet items” and “OTC derivative contracts”. Accordingly, all the on-balance sheet items should be analysed in the first linked form and the off balance sheet items in the second linked form. The OTC derivative contracts are analysed in the third linked form. The main form has the links to the three linked forms and also displays the result of each of the linked forms – the NTB risk-weighted assets calculated by each of the linked forms. The main form also calculates the total NTB risk-weighted assets and the CRCOM applicable to the Authorised Firm.


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Instructional Guidelines:

1. Authorised Firms are referred to PIB Chapter 4 and Appendix 4 to understand the rationale behind risk weighting of assets in the Non-Trading Book and the relevant rules for risk weighting. In particular, PIB Section A4.3 contains detailed rules on classifying exposures in the appropriate risk weight categories. If an Authorised Firm is uncertain as to where to classify a particular exposure, it should contact DFSA to obtain this clarity. Particular care should be taken for exposures classified in anything other than the 100% risk weight category.

2. Among other things, risk weights may be reduced on Non-Trading Book items by

obtaining a guarantee from a third party or a party connected to the Authorised Firm (the “guarantor”). Provided the conditions laid out in PIB Rules A4.3.1 to A4.3.4 are met, the Authorised Firm may opt to use the Counterparty risk weight of the guarantor where this risk weight is less than that for the underlying Counterparty.

3. In respect of Counterparty weightings for exposures in the Non-Trading Book relating to

the Islamic contracts, Authorised Firms are referred PIB Rules 3.5.1 to 3.5.5. In particular, attention is drawn to the weightings referred to in table 2 by Islamic contract type

4. On-balance sheet items: Analyse each of the on-balance sheet items and classify them

into various risk weight categories as per applicable PIB rules referred above. The applicable risk weight categories are listed for each of the asset groups. The total value of assets classified into a particular risk weight category should be entered in the second column – titled “Non_Trading – Amount”, against the respective risk weight percentages. Amount of assets classified as forming part of the Trading Book under each of the major asset groups should be entered in the column titled –“Trading Book Amount”. However, Trading Book Amounts are captured primarily to ensure completeness and are not analysed across various risk weights.

5. Off-balance sheet items: All the off-balance sheet items should be analysed and

classified on the basis of the Credit Conversion factors applicable to them. Details of Credit Conversion Factors are set out in PIB Rules A4.3.10 to A4.3.14. These are then analysed and classified further into various risk weights as per rules in PIB Section A4.3. The second linked form which deals with off-balance sheet items provides for entry of the aggregate amount of off-balance sheet items classified into categories representing a specific credit conversion factor. Each credit conversion factor is dealt with in a separate table. For each credit conversion factor, the items are to be classified and aggregated into trading book and Non-Trading Book amounts. The aggregate Non-Trading Book amount for that particular credit conversion factor is then classified in to those pertaining to different risk weight categories. The total amount of items which deserve a specific risk weight should be entered in the respective row under the column titled “Non_Trading Amount”.

6. Specifically, guarantees given to a company not connected to the reporting institution

should be risk weighted at 100% and those for connected companies should be deducted from the reporting institution’s capital base.

7. Sale and Repurchase Agreements: Attention is drawn to PIB Rules A4.3.15 to 4.3.17

which note that the Counterparty weight of a repo agreement is by reference to the issuer of the asset subject to the agreement and not to the Counterparty to the repurchase agreement. The weight on a reverse repo is determined as if it were a collateralised loan to a Counterparty


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8. Forward deposits placed: The risk weight should be determined according to the Counterparty with whom the deposit will be placed.

9. Endorsement of bills: Exposures arising out of endorsed bills not accepted by banks will

attract the Counterparty risk weighting of the issuer. If it has been endorsed by another bank, a reduced risk weighting applies.

10. Other commitments: Authorised Firms are referred to the detail of PIB Rules A4.4.1 to A

4.4.7 in respect of determining the maturity of commitments where they have been renegotiated or are linked commitments.

11. OTC derivative contracts: In the third linked form provide details regarding the OTC

derivative contracts. The calculation of the Credit Equivalent Amount is set out in PIB Rule A4.5.12. Authorised Firms are referred to the table in PIB Rule A4.5.14 which sets out the calculation of Potential Future Credit Exposures with detailed rules on how to net them being set out in PIB Rule A4.9.1.

12. Capital charge on the Non-Trading Book assets (i.e. CRCOM) is derived by multiplying

the sum of risk weighted assets from the Non-Trading Book by 8%. The main form of B10A1 indicates the Total Non-Trading Book risk weighted assets and the resultant CRCOM. CRCOM thus calculated is used in Form B60 for the purposes of calculating capital adequacy.

1.3 Instructional Guidelines – Form B10 – Appendix 2 – Detail of

Non-Market Risk in the Trading Book Purpose Form B10A2 is intended to capture the details regarding the non-market risk in the Trading Book of an Authorised Firm. Applicability This form is applicable to Authorised Firms which are Domestic Firms, and are categorised under prudential categories 1, 2, and 3. This form is not applicable to Authorised Firms operating through branches in the DIFC, IFIs and Authorised Firms managing PSIAs. Content The form is designed to capture the data on Counterparty credit risk exposures arising from unsettled transactions on markets, OTC derivative trades, repos and reverse repo transactions and deferred settlement transactions. included in the Trading Book of an Authorised Firm. The form also enables the calculation of amount at risk, weighted amount and applicable capital charge i.e. CPCOM.


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Structure of the form in EPRS B10A2 consists of five linked forms covering the five main sections of this form dealing with “Counterparty risk on unsettled transactions”, “OTC Derivatives Capital Charge”, “Repos capital charge”, “Reverse repos capital charge” and “Deferred Settlement Transactions”. In each of the linked forms, the amount of potential loss and other information required to calculate the Potential Future Exposure are to be provided in the respective columns and the weighted amounts are calculated as per the applicable risk weights. The total capital charge for Counterparty risk reported in the linked forms will be displayed as a result on the main form. Instructional Guidelines The details for calculating the exposures on these risks is set out in PIB Section A4.5 which is the Appendix relating to Credit Risk.

Item Instructional Guidelines OTC derivatives For OTC derivatives, attention is drawn to PIB Rule A4.5.3 which

states that the maximum weighting is limited to 50%.

Repos and Reverse Repos For the Counterparty weights on Repos and Reverse Repos, attention is drawn to the Instruction Instructional Guidelines relating to Form B10, Item No. B100_1040.

Total Counterparty risk requirement for non market risk in the Trading Book

The total Counterparty risk requirement for non-market risk in the trading book (“CPCOM”) is the sum of the capital charges arising from Delivery Versus Payment transactions, Free Deliveries, OTC Derivatives, Repos, Reverse Repos and Deferred Settlement Transactions. CPCOM thus calculated is used in Form B60 for the purposes of calculating capital adequacy.

1.4 Instructional Guidelines – Form B10 – Appendix 3 – Market Risk in the Trading Book Purpose Form B10A3 is intended to capture the data on capital charges applicable to market risk exposures in the Trading Book of an Authorised Firm. Applicability This form is applicable to the Authorised Firms which are Domestic Firms categorised under prudential categories 1 and 2. This form is not applicable to the Authorised Firms operating through branches in the DIFC, IFIs and Authorised Firms managing PSIAs.


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Content The form is designed to enable Authorised Firms to report the capital charges applicable to the various elements of market risk exposures in their Trading Book and the resultant capital charge for market risk i.e. Market Risk Capital Requirement (MRCOM). Structure of the form in EPRS B10A3 is presented as a single form in the EPRS.

Instructional Guidelines 1. DFSA acknowledges that even for Authorised Firms with relatively straightforward

exposures on the trading books, the underlying calculations for various market risks can be detailed and complex. DFSA requires Authorised Firms to report only the summary capital charge for various elements of market risk recognised in the rules under PIB Chapter 5 of the DFSA Rulebook. However, DFSA expects Authorised Firms to maintain detailed audit trails that substantiate the capital charges reported in this form. Authorised Firms are also reminded that they should make this information available for review as and when required.

2. In the event of any uncertainty, Authorised Firms are advised to contact their supervisor

for clarity. Authorised Firms are expected to review the material set out Appendix 5 of the PIB module with care given the multiplicity of methods that can be used to calculate the capital requirement on Interest Rate Risk, Equity Risk, FX Risk, Commodities Risk Options Risk and Securities Underwriting Risk.

3. Where Authorised Firms intend to use internally developed market risk models for the

purposes of valuing positions and calculating capital requirements, particular attention is drawn to PIB Section A5.8 and the qualitative criteria.

Item No. Item Instructional Guidelines B103_1100, B103_1200, B103_1400, B103_1500, B103_1600

Various risk requirements

An Authorised Firm’s total Trading Book capital requirement is as defined in PIB Rule 2.8.3. With the exception of the foreign exchange risk requirement, the total risk requirements as calculated for Interest rate, Equity, Commodities, Options and Securities Underwriting transactions are transferred to Form B60 under the section titled Trading Book Capital requirement (item nos. B103_1100 to B103_1600).

B103_1300

Foreign exchange risk requirement

The Foreign Exchange risk capital requirement is included in the Form B60 under the Non Trading Book Capital requirement and is transferred to item no. B103_1300 (refer PIB Rule 2.8.3).

B103_000T Total Trading Book capital requirement

The total Trading Book Capital requirement calculated in this form is transferred to the Form B 60, item no B600_141T.


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1.5 Instructional Guidelines – Form B10 – Appendix 4 – Calculation of the DCR

Purpose Form B10A4 is intended to reflect the data on different elements of the Displaced Commercial Risk Capital Requirement faced by Authorised Firms. Applicability This form is applicable to Authorised Firms falling under prudential categories 1, 2, or 3 and operating an Islamic window to manage PSIAs. Note that the DCR only applies in respect of restricted and unrestricted PSIA accounts. Content The form is designed to capture the credit and market risk capital requirements pertaining to the assets of both PSIA restricted and PSIA unrestricted accounts and calculate the Displaced Commercial Risk capital charge in respect of the PSIAs managed by an Authorised Firm as per applicable PIB rules. Structure of the form in EPRS The form does no allow any manual data entry. The values required for completion of this form are directly sourced from the detailed appendices relating to CRCOM, CPCOM and MRCOM pertaining to the PSIA restricted and unrestricted businesses (Appendices B20A2, B20A3, B20A5, B20A6 and B20A7 respectively) that precede this form. So, Authorised Firms are advised to complete the appendices referred above before attempting to complete this form.

Instructional Guidelines DCR is defined in PIB Section 3.4. Authorised Firms are advised to refer to that Section to understand why DCR arises and how it is calculated. Authorised Firms are reminded that DCR only applies in respect of PSIA assets of both the restricted and unrestricted type. As noted earlier, this Appendix aggregates totals from the detailed appendices that precede this form.

Item No. Item Instructional Guidelines B104_010T PSIACOM Credit PSIACOM Credit comprised CRCOM and CPCOM calculated on

PSIA assets. It is the sum of item nos. [B104_0110 and B104_0120] below.

B104_0110 CPCOM CPCOM for PSIAu comes from Form B20A5, and for PSIAR from Form B20A6.

B104_0120 CRCOM CRCOM for PSIAu comes from Form B20A2, and for PSIAR from Form B20A3.

B104_025T PSIACOM Market The figures for PSIACOM Market are all derived from Form B20A7.


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B104_000T Calculation of DCR DCR represents (PSIACOM Credit +PSIACOM Market) * 35%. This figure is transferred to Form B60, item no B104_000T.

1.6 Instructional Guidelines – Form B20 – Statement of Financial Position – Islamic Financial Institutions Purpose Form B20 – Balance sheet is intended to capture the financial position of an Islamic Financial Institution (IFI) at the end of the reporting period. Applicability This form is applicable to the Authorised Firms categorised under prudential category 5 and Authorised Firms classified under categorised 1, 2, 3 and managing PSIAs within an Islamic Window . Content The form is designed to capture information pertaining to the Authorised Firm’s on-balance sheet and off-balance sheet assets, liabilities and shareholders’ equity at a given point in time. The form enables reporting of assets and liabilities pertaining to the Restricted and Unrestricted PSIA accounts separately, apart from presenting the balance sheet of the IFI. Structure of the form in EPRS The form is split into two linked forms. The first linked form is intended to capture information pertaining to assets and liabilities on the Authorised Firm’s own balance sheet which are its self-financed business and the assets and liabilities of Unrestricted PSIAs managed by the Authorised Firm. The second linked form is designed to capture information pertaining to the assets and liabilities of Restricted PSIAs managed by the Authorised Firm. Instructional Guidelines The form enables effectively three sets of returns on balance sheet information for Authorised Firms using this form. Whilst AAOIFI permits unrestricted PSIA assets to be commingled with self financed assets for balance sheet reporting purposes, the need to maintain separate records for each asset class is paramount. Restricted PSIA assets and liabilities cannot be commingled with the former and should be reported off balance sheet. In the event of any uncertainty, Authorised Firms are required to consult with DFSA to obtain the necessary clarity.

Item No Item Instructional Guidelines

B100_0110 Cash in hand & Gold bullion

Include, for example, the following amounts: • Notes and coins; • Long positions in Gold bullion (including Tola Bars);

B100_0120 Balances with the Central Banks

Amounts placed with central banks including funds required to be placed on deposit with central banks and monetary authorities.


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B100_0130 Money market placements

Include deposits at call and other money market placements with banks or other money market participants.



B100_0211 Derivative financial instruments

The assets reported here should include, but are not limited to, positions representing the following instruments, recorded at fair value:



assets. These derivatives include both the exchange-traded and over-the-counter versions. Derivatives held for hedging purposes should be included under section B100_030T.

B100_0212 Other financial instruments (held for trading)

Include investments acquired principally for the purpose of selling or repurchasing them in the near term for short-term-profit-taking. This would include but not limited to, debt, equity and hybrid instruments

B100_0220 Other financial instruments designated at fair value through profit and loss

Include all financial instruments which are, upon initial recognition, designated by the entity as financial assets to be measured at fair value through profit or loss other than the trading securities included in B100_0211 and B100_0212.

B100_0230 Available-for-sale Include non-derivative financial assets that are designated as available for sale by the firm or that have not been classified under any of the other categories of investments.

B100_0240 Held-to-maturity Include non-derivative financial assets with fixed or determinable payments and fixed maturity that the firm has positive intention and ability to hold to maturity.

B100_040T Loans and advances Under this section include the amounts arising from, for example: • Revolving credit facilities; • Credit cards outstanding balances; • Housing loans (both variable and fixed rates); • Term loans (both variable and fixed rates); • The book value of assets leased out under finance lease agreements; • Loans made under conditional hire purchase contracts; • Advances purchased by or assigned to the reporting institutions,

factoring or similar arrangements • Other loans and advances.

The items listed above are indicative examples and are not exhaustive universe of items to be reported under this item.

The amounts reported should be gross of provisions (as specific and general provisions should be reported in the Liabilities section of the balance sheet) and net of interest receivable.

B100_0510 Murabaha and Report here all receivables relating to Murabaha and Istisna’a contracts.


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Istisna’a receivables Refer to FAS 2 and FAS 10 of AAOIFI respectively. B100_0520 Ijarah assets and

receivables Include Ijarah assets net of depreciation/ amortisation and Ijarah receivables. Refer to FAS 8 of AAOIFI.

B100_0530 Mudaraba Financing Financing provided on a Mudaraba basis should be reported here. Refer to FAS 3 of AAOIFI.

B100_0540 Musharaka Financing

Report financing provided on a Musharaka basis. Refer to FAS 4 of AAOIFI. Investment in the share capital of another company should be reported under “Other investments”, under B100_0550.

B200_0550 Salam Financing provided on Salam contract should be reported here. Refer to FAS 7 of AAOIFI.

B200_0560 Parallel Istisna’a Parallel Istisna’a receivables/assets should be reported here. Refer to FAS 10 of AAOFI.


B100_0700 Fixed assets Include, for example, the value of the following: • Plant and equipment, the residual value of items leased out under an

operating lease (excluding balances relating to named Ijarah assets which should be included separately under B100_0520);

• Own premises being occupied or developed for occupation by the Authorised Firm, property (excluding property acquired / held available for sale which should be included in “Other Assets”, B100_0920).


B100_0810 Goodwill Include amounts relating to any purchased goodwill. B100_0820 Other intangible

assets Items to be included, for example, but are not limited to:

• Capitalised development costs • Brand names, trademarks and similar rights • Licences and exchange seats which may be held as part of the

Authorised Firm’s trading requirement. Off Balance sheet items

B100_1010 Direct credit substitutes

These relate to the financial requirements of Counterparty where the risk of loss to the Authorised Firm on the transaction is equivalent to that arising from a direct claim on the Counterparty. The indicative examples of items to be Included here are • Guarantees of a financial nature to stand behind the current obligations

of customers (e.g. loan guarantees); • Guarantees of leasing operations; • Letters of Credit and Stand-by Letters of Credit to the extent that they

do not qualify for inclusion in item B100_1030 “Trade related contingents” below;

• Guarantees of a capital nature such as undertakings given to a non-bank financial company which are considered as capital by the appropriate regulatory body. Guarantees given to a company not connected to the reporting institution should be risk weighted at 100% and those for connected companies should be deducted from the reporting institution’s capital base.

• Acceptances granted and risk participation in bankers’ acceptances. Where the Authorised Firm’s own acceptances have been discounted by that institution the nominal value of the bills held should be


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deducted from the nominal amount of the bills issued under the facility and a corresponding on-balance sheet entry made.

B100_1020 Transaction related contingents

These exposures relate to the on-going trading activities of a Counterparty where the risk of loss to the Authorised Firm depends on the likelihood of a future event which is independent of the creditworthiness of the Counterparty. They are essentially guarantees that support particular non financial obligations rather than a customer’s financial obligations. Include here: • Advance payment guarantees • Performance bonds including bid or tender bonds, warranties and

indemnities (indemnities given for lost share certificates or bills of lading and guarantees of the validity of papers rather than of payment under certain conditions should be reported here);

Stand-by Letters of Credit relating to a particular contract or to non-financial transactions (including arrangements backing, inter alia, subcontractors’ and supplier’s performance, labour and materials, contracts and construction tenders/bids).

B100_1030 Trade related contingents

Report short term self-liquidating trade related items such as documentary letters of credit issued by the Authorised Firm that are collateralised by the underlying shipment i.e. the credit provides for the Authorised Firm to retain title to the underlying shipment. L/C’s issued without provision for the Authorised Firm to retain title to the underlying shipment should be reported under direct credit substitutes above.


In this item, report only the sale and repurchase agreements where the asset sold is not reported on the balance sheet. Where the asset is off-balance sheet, the appropriate Counterparty weighting is determined by the issuer of the security and not according to the Counterparty with whom the transaction has been undertaken.

B100_1050 Forward Assets Purchases

The appropriate Counterparty weighting should be determined by the asset to be purchased and not the Counterparty with whom the contract has been entered into. Include commitments for loans and other on-balance sheet items with definitive drawdown schedules. Exclude foreign currency spot deposits with value date of up to two business days after trade date.

B100_1060 Forward Deposits Placed

Relates to agreements between two parties whereby one will pay and the other receive an agreed rate of interest on a deposit to be placed by one with the other at some pre-determined rate in the future. Exclude foreign currency spot deposits with value date of up to two business days after trade date.


Only include here if there is a specific date for a call. If there is no specific date for a call, the item should be included as a long term commitment under item no. B100_1122 “Other Commitments”.

B100_1080 NIF’s and RUF’s Note issuance and revolving underwriting facilities should include the Authorised Firm’s underwriting obligations of any maturity. Where the facility has been drawn down by the borrower and the notes are held by someone other than the Authorised Firm, the underwriting obligation should continue to be reported at the nominal amount.


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B100_1090 Endorsement of Bills These should be reported at the full nominal amount, less any amount for

bills which the Authorised Firm currently holds but had previously endorsed.

B100_1111 & B100_1122

Other Commitments All other undrawn commitments are reportable here, divided into commitments under and over one year.

B100_000T to B100_100T

Assets funded by restricted PSIAs


B100_210T Deposits In this section, identify and report deposits due to banks and financial institutions in item no B100_2110. All other deposits are to be reported as deposits due to other customers - item no B100_2120.

B100_230T Provisions All specific and general provisions in respect of all assets, including loans and advances and other receivables should be reported under this section. Exclude provisions against Islamic contracts which should be reported in item no B100_2640.


Liabilities arising from Islamic contracts include advances received against Salam contracts (defined in Para 3 and 19 of FAS 7 issued by AAOIFI and Ijarah investment payables (refer to FAS 8 of AAOIFI). Report any provisions against Islamic contracts in item B100_2640.

Off balance sheet liabilities

Liabilities relating to Restricted PSIA

Include under this section, off-balance sheet liabilities related to restricted PSIA investments.

B100_4110 Ordinary Shares Include in respect of this item the amount of ordinary share capital issued, reported at nominal paid up value. Do not report the unpaid element of partly paid shares or authorised but unissued share capital. Authorised Firms should exclude holdings in their own shares.

B100_4120 Preference Shares Report the value of the preference shares issued, which rank above ordinary shares in the event of liquidation.

B100_4130 Partnership Capital and other

Include here other types of equity which have the same properties of permanent share capital. This could include partnership capital accounts, capital items for unincorporated associations etc.

B100_4200 Share premium account

Any amounts received by the authorised institution in excess of the nominal paid up value.

B100_4310 Asset revaluation reserve

Include in this item, reserves arising from the revaluation of assets for which it has been necessary to set up this reserve.

B100_4320 Goodwill reserve Include reserves arising from purchased goodwill or other situations for which it has been necessary to set up this or any other reserve.

B100_4330 Investment Risk reserve

Prudential category 5 Authorised Firms should include in respect of this item the amount that is appropriated out of the income of investment account holders, after allocating the Mudarib share, in order to meet future losses attributable to investment account holders. Refer also to FAS 11 of AAOIFI.

B100_4340 Profit Equalisation reserve

Category 5 Authorised Firms should include in respect of this item the amount appropriated out of the Mudaraba income, before allocating the Mudarib share, in order to maintain a certain level of investment returns for investment account holders and to increase owners’ equity. Refer also to FAS 11 of AAOIFI.


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B100_430T Total Reserves This is calculated by the EPRS and is calculated by adding the items. B100_4310 + B100_4320 + B100_4330 + B100_4340+ B100_4350.

B100_4500 Minority Interests Report amounts attributable to minority shareholders from the overall equity figure.

B100_400T Total shareholders’ equity

This is calculated by the EPRS as the sum of items B100_430T, B100_410T, B100_4200 and B100_4400 less B100_4500.

B100_500T Total liabilities and shareholders’ equity

This is calculated by the EPRS as the sum of items B100_200T and B100_400T.

1.7 Instructional Guidelines – Form B20 – Appendix 1 – Detail of Non-Trading Book Assets - self-financed Purpose Form B20A1 is intended to capture the details regarding the calculation of risk weighted assets in respect of the self-financed assets in the Non-Trading Book of an Authorised Firm. Applicability This form is applicable to the Authorised Firms categorised under prudential category 5 and Authorised Firms classified under categories 1,2,3 which are also involved in managing PSIAs within an Islamic Window . Content The form is designed to capture the details regarding the risk weighted assets on the Non-Trading Book and the applicable capital charge. Structure of the form in EPRS B20A1 consists of three linked forms namely, “On Balance Sheet items”, “Off Balance sheet items” and “OTC derivative contracts”. Accordingly, all the on balance sheet items should be analysed in the first linked form and the off balance sheet items in the second linked form. The OTC derivative contracts are analysed in the third linked form. The main form has the links to the three linked forms and also displays the result of each of the linked forms – the NTB risk-weighted assets calculated by each of the linked forms. The main form also calculates the total NTB risk-weighted assets and the CRCOM applicable to the Authorised Firm.

Instructional Guidelines

1. This form is meant for entry of data on exposures relating to self financed assets or

assets on the balance sheet of the Authorised Firm. 2. Authorised Firms are referred to PIB Chapter 4 and Appendix 4 to understand the

rationale behind risk weighting of assets in the Non-Trading Book and the relevant rules


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for risk weighting. In particular, PIB Section A4.3 contains detailed rules on classifying exposures in the appropriate risk weight categories. If an Authorised Firm is uncertain as to where to classify a particular exposure, it should contact DFSA to obtain this clarity. Particular care should be taken for exposures classified in anything other than the 100% risk weight category.

3. Among other things, risk weights may be reduced on Non-Trading Book items by

obtaining a guarantee from a third party or a party connected to the Authorised Firm (the “guarantor”). Provided the conditions laid out in PIB Rules A4.3.1 to A4.3.4 are met, the Authorised Firm may opt to use the Counterparty risk weight of the guarantor where this risk weight is less than that for the underlying Counterparty.

4. In respect of Counterparty weightings for exposures in the Non-Trading Book relating to

the Islamic contracts, Authorised Firms are referred PIB Rules 3.5.1 to 3.5.5. In particular, attention is drawn to the weightings referred to in table 2 by Islamic contract type.

5. On balance sheet items: Analyse each of the on-balance sheet items and classify them

into various risk weight categories as per applicable PIB Rules referred above. The applicable risk weight categories are listed for each of the asset groups. The total value of assets classified into a particular risk weight category should be entered in the second column – titled “Non_Trading – Amount”, against the respective risk weight percentages. Amount of assets classified as forming part of the Trading Book under each of the major asset groups should be entered in the column titled –“Trading Book Amount”. However, Trading Book Amounts are captured primarily to ensure completeness and are not analysed across various risk weights.

6. Off-balance sheet items: All the off-balance sheet items should be analysed and

classified on the basis of the Credit Conversion factors applicable to them. Details of Credit Conversion Factors are set out in PIB Rules A4.3.10 to A4.3.14. These are then analysed and classified further into various risk weights as per rules in PIB Section A4.3. The second linked form which deals with off-balance sheet items provides for entry of the aggregate amount of off-balance sheet items classified into categories representing a specific credit conversion factor. Each credit conversion factor is dealt with in a separate table. For each credit conversion factor, the items are to be classified and aggregated into trading book and Non-Trading Book amounts. The aggregate Non-Trading Book amount for that particular credit conversion factor is then classified in to those pertaining to different risk weight categories. The total amount of items which deserve a specific risk weight should be entered in the respective row under the column titled “Non_Trading Amount”.

7. Specifically, guarantees given to a company not connected to the reporting institution

should be risk weighted at 100% and those for connected companies should be deducted from the reporting institution’s capital base.

8. Sale and Repurchase Agreements: Attention is drawn to PIB Rules A4.3.15 to 4.3.17

which note that the Counterparty weight of a repo agreement is by reference to the issuer of the asset subject to the agreement and not to the Counterparty to the repurchase agreement. The weight on a reverse repo is determined as if it were a collateralised loan to a Counterparty

9. Forward deposits placed: The risk weight should be determined according to the

Counterparty with whom the deposit will be placed.


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10. Endorsement of bills: Exposures arising out of endorsed bills not accepted by banks will attract the Counterparty risk weighting of the issuer. If it has been endorsed by another bank, a reduced risk weighting applies.

11. Other commitments: Authorised Firms are referred to the detail of PIB Rules A4.4.1 to A

4.4.7 in respect of determining the maturity of commitments where they have been renegotiated or are linked commitments.

12. OTC derivative contracts: In the third linked form provide details regarding the OTC

derivative contracts. The calculation of the Credit Equivalent Amount is set out in PIB Rule A4.5.12. Authorised Firms are referred to the table in PIB Rule A4.5.14 which sets out the calculation of Potential Future Credit Exposures with detailed rules on how to net them being set out in PIB Rule A4.9.1.

13. Capital charge on the Non-Trading Book assets (i.e. CRCOM) is derived by multiplying

the sum of risk weighted assets from the Non-Trading Book by 8%. The main form of B10A1 indicates the Total Non-Trading Book risk weighted assets and the resultant CRCOM. CRCOM thus calculated is used in Form B60 for the purposes of calculating capital adequacy.


Non-Trading Book Assets - PSIA Unrestricted (PSIAU).

Purpose Form B20A2 is intended to capture the details regarding the calculation of risk weighted assets in respect of the PSIAU assets in the Non-Trading Book of an Authorised Firm. Applicability This form is applicable to the Authorised Firms categorised under prudential category 5 and to Authorised Firms classified under categories 1, 2, 3 and involved in managing PSIAs within an Islamic Window. Content The form is designed to capture the details regarding the risk weighted assets on the Non-Trading Book and the applicable capital charge which is essential for calculation of the DCR capital requirement. Structure of the form in EPRS This form is identical to the form B20A1 in EPRS.


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Instructional Guidelines 1. All the Instructional Guidelines provided for form B20A1 are applicable to this form

also. However, this form is meant only for exposures relating to assets funded by the PSIAU investments.

2. Note that the total CRCOM (i.e. the capital charge) figure as calculated in this form and

reported on the main form is transferred to Form B20A8, item no B104_0120.

1.9 Instructional Guidelines – Form B20 – Appendix 3 – Detail of Non-Trading Book Assets - PSIA Restricted (PSIAR) Purpose Form B20A3 is intended to capture the details regarding the calculation of risk weighted assets in respect of the PSIAR assets in the Non-Trading Book of an Authorised Firm. Applicability This form is applicable to the Authorised Firms categorised under prudential category 5 and to Authorised Firms classified under categories 1, 2, 3 and involved in managing PSIAs within an Islamic Window. Content The form is designed to capture the details regarding the risk weighted assets on the Non-Trading Book and the applicable capital charge which is essential for calculation of the DCR capital requirement. Structure of the form in EPRS This form is identical to the form B20A1 in EPRS.


1. All the Instructional Guidelines provided for form B20A1 are applicable to this form

also. However, this form is meant only for exposures relating to assets funded by the PSIAR investments.

2. Note that the total CRCOM (i.e. the capital charge) figure as calculated in this form and

reported on the main form is transferred to Form B20A8, item no B104_0120.


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1.10 Instructional Guidelines – Form B20 – Appendix 4 – Detail of Non-Market Risk in Trading Book - Self-financed

Purpose Form B20A4 is intended to capture the details regarding the non-market risk in the Trading Book of an Authorised Firm, particularly those arising from exposures self-financed by the firm. Applicability This form is applicable to the Authorised Firms categorised under prudential category 5 and Authorised Firms classified under categories 1, 2, 3 and managing PSIAs within an Islamic Window. Content The form is designed to capture the data on Counterparty credit risk exposures arising from unsettled transactions on markets, OTC derivative trades, repos and reverse repo transactions and deferred settlement transactions included in the Trading Book of an Authorised Firm. The form also enables the calculation of amount at risk, weighted amount and applicable capital charge i.e. CPCOM. Structure of the form in EPRS B20A4 consists of five linked forms covering the five main sections of this form dealing with “Counterparty risk on unsettled transactions”, “OTC Derivatives Capital Charge”, “Repos capital charge”, “Reverse repos capital charge” and “Deferred Settlement Transactions”. In each of the linked forms, the amount of potential loss and other information required to calculate the Potential Future Exposure are to be provided in the respective columns and the weighted amounts are calculated as per the applicable risk weights. The total capital charge for Counterparty risk reported in the linked forms will be displayed as a result on the main form.

Instructional Guidelines This form is restricted to calculating the risk weighted capital charge for self financed assets only. The details for calculating the exposures on these risks is set out in PIB Section A4.5 of the DFSA Rulebook.

Item Instructional Guidelines OTC derivatives For OTC derivatives, attention is drawn to PIB Rule A4.5.3 which

states that the maximum weighting is limited to 50%.

Repos and Reverse Repos For the Counterparty weights on Repos and Reverse Repos, attention is drawn to the Instructional Guidelines relating to Form B20, Item No. B100_1040.


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Total Counterparty risk requirement for non market risk in the Trading Book

The total Counterparty risk requirement for non-market risk in the trading book (“CPCOM”) is the sum of the capital charges arising from Delivery Versus Payment transactions, Free Deliveries, OTC Derivatives, Repos, Reverse Repos and Deferred Settlement Transactions. CPCOM thus calculated is used in Form B60 for the purposes of calculating capital adequacy.


Non-Market Risk in Trading Book - PSIA Unrestricted (PSIAU)

Purpose Form B20A5 is intended to capture the details regarding the non-market risk in the Trading Book of an Authorised Firm, particularly those arising from exposures funded by the PSIAU funds. Applicability This form is applicable to the Authorised Firms categorised under prudential category 5 and Authorised Firms classified under categorised 1, 2, 3 and managing PSIAs within an Islamic Window. Content & Structure of the form in EPRS This form is identical to the form B20A4 in respect of its content and structure in EPRS. Instructional Guidelines All the Instructional Guidelines provided for form B20A4 are applicable to this form also. However, this form is meant only for exposures relating to assets funded by the PSIAU investments. Note that the total CPCOM (i.e. the capital charge) figure as calculated in this form and reported on the main form is transferred to Form B20A8, item no B104_0110.


Non-Market Risk in Trading Book - PSIA Restricted (PSIAR)

Purpose Form B20A6 is intended to capture the details regarding the non-market risk in the Trading Book of an Authorised Firm, particularly those arising from exposures funded by the PSIAR.


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Applicability This form is applicable to the Authorised Firms categorised under prudential category 5 and Authorised Firms classified under categories 1, 2, 3 and managing PSIAs within an Islamic Window. Content & Structure of the form in EPRS This form is identical to the form B20A4 in respect of its content and structure in EPRS.


All the Instructional Guidelines provided for form B20A4 are applicable to this form also. However, this form is meant only for exposures relating to assets funded by the PSIAR investments. Note that the total CPCOM (i.e. the capital charge) figure as calculated in this form and reported on the main form is transferred to Form B20A8, item no B104_0110.


Market Risk in the Trading Book

Purpose Form B20A7 is intended to capture the details regarding the market risk in the Trading Book of an Authorised Firm. Applicability This form is applicable to the Authorised Firms categorised under prudential category 5 and Authorised Firms classified under categories 1,2,3 and managing PSIAs within an Islamic Window . Content The form is designed to enable Authorised Firms to report the capital charges applicable to the various elements of market risk exposures in their Trading Book and the resultant capital charge for market risk i.e. MRCOM. Structure of the form in EPRS The form is split into two linked forms namely, “Interest Rate Risk Capital Requirement” and “All Other Risks”.


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1. The first linked form (“Interest Rate Risk Capital Requirement”) enables the calculation of the Interest Rate Risk Capital Requirement. Note that the relevant amounts have to be entered in respect of self financed, PSIA Unrestricted and PSIA Restricted businesses, separately in the respective columns provided.

2. In the second linked (“All Other Risk”) form summary amounts of all other components

of market risk capital requirement such as Equity Risk, Foreign Exchange Risk, Commodities Risk, Options Risk and Securities Underwriting Risk are required to be entered. The relevant amounts should be provided for self financed, PSIA Unrestricted and PSIA Restricted business separately in the respective columns provided.

3. Authorised Firms are asked to review the rules set out PIB Appendix 5 with care given

the multiplicity of methods that can be used to calculate the capital requirement on Interest Rate Risk, Equity Risk, FX Risk, Commodities Risk Options Risk and Securities Underwriting Risk.

4. DFSA acknowledges that even for Authorised Firms with relatively straightforward

exposures on the trading books, the underlying calculations for various market risks can be detailed and complex. DFSA requires only the summary numbers to be reported but expects Authorised Firms to maintain detailed audit trails that substantiate the risk requirements. Authorised Firms are also reminded that they should make this information available for review as and when required.

5. In the event of any uncertainty, Authorised Firms are advised to contact their supervisor

for clarity. 6. Where Authorised Firms intend to use internally developed market risk models for the

purposes of valuing positions and calculating capital requirements, particular attention is drawn to PIB Section A5.8 and the qualitative criteria.

Item No. Item Instructional Guidelines B103_1100, B103_1200, B103_1400, B103_1500, B103_1600

Various risk requirements

The total capital requirements for interest rate, equity position risk, Commodities, Options and Securities Underwriting exposures in respect of self financed assets is transferred to Form B60 (item nos. B103_1100 to B103_1600). The capital requirements for PSIA funded assets (both unrestricted and restricted), including the Foreign exchange risk requirement is transferred to Form B20A8 for the calculation of the Displaced Commercial Risk Charge.

B103_1300

Foreign exchange risk requirement

The FX risk capital requirement arising from self financed assets is transferred to Form B60 under Non-Trading Book Capital requirement to item no. B103_1300 (refer PIB Rule 2.8.3).

B103_000T Total Trading Book Capital Requirement

The total Trading Book Capital requirement (i.e. MRCOM) here is transferred to the Form B60, item no B600_141T.


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1.14 Instructional Guidelines – Form B20 – Appendix 8 – Calculation of the Displaced Commercial Risk (DCR) Purpose Form B20A8 is intended to capture the details regarding the Displaced Commercial Risk charge. Applicability This form is applicable to the Authorised Firms categorised under prudential category 5 and Authorised Firms classified under categories 1,2,3 and managing PSIAs within an Islamic Window. Note that the DCR only applies in respect of PSIA assets for both the restricted and unrestricted categories. Content The form is designed to capture the details regarding the Displaced Commercial Risk charge in respect of Islamic Finance Business. Structure of the form in EPRS The form does no allow any manual data entry. The values in this form are directly transferred by EPRS from the detailed forms relating to the calculation of CRCOM, CPCOM and MRCOM in respect of PSIAR and PSIAU businesses (Appendices B20A2, B20A3, B20A5, B20A6 and B20A7 respectively) that precede it. So, Authorised Firms are advised to complete the appendices referred above before attempting to complete this form.


DCR is defined in PIB Section 3.4. Authorised Firms are advised to refer to that Section to understand why DCR arises and how it is calculated. Authorised Firms are reminded that DCR only applies in respect of PSIA assets of both the restricted and unrestricted type. As noted earlier, this Appendix aggregates totals from the detailed appendices that precede this form.

Item No. Item Instructional Guidelines B104_010T PSIACOM Credit PSIACOM Credit is comprised of CRCOM and CPCOM and is

calculated on PSIA assets. It is the sum of item nos. [B104_0110 and B104_0120] below.

B104_0110 CPCOM CPCOM for PSIAu comes from Form B20A5, and for PSIAR from Form B20A6.

B104_0120 CRCOM CRCOM for PSIAu comes from Form B20A2, and for PSIAR from Form B20A3.

B104_025T PSIACOM Market The figures for PSIACOM Market are all derived from Form B20A7. B104_000T Calculation of DCR DCR represents (PSIACOM Credit +PSIACOM Market) * 35%. This

figure is transferred to Form B60, item no B104_000T.


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1.15 Instructional Guidelines – Form B20 – Appendix 9 – Analysis of Reserves Movement Purpose Form B20A9 is intended to capture the details regarding the changes in the reserves pertaining to the Islamic Finance Business. Applicability This form is applicable to the Authorised Firms categorised under prudential category 5 and Authorised Firms classified under categorised 1,2,3 and managing PSIAs within an Islamic Window. Note that the DCR only applies in respect of PSIA assets for both he restricted and unrestricted categories. Content The form is designed to capture the details regarding the details regarding the changes in the reserves pertaining to the Islamic Finance Business. The form provides two separate columns for data to be input in respect of both PSIA Unrestricted and Restricted businesses.


Item No. Item Instructional Guidelines B290_1010 Capital invested Report here the total amount of capital invested by PSIAU account

holders (on balance sheet) gross of provisions. Report similar amounts relating to funds provided by PSIAR account holders (off balance sheet).

B290_1020 Net asset value Report here the net amount after provisions. B290_1030 Percentage for

profit equalisation reserve

Report the percentage used for allocation to the profit equalisation reserves.

B290_1040 Amount of profit equalisation reserve

This represents the amount after the net asset value has been multiplied by the percentage of the profit equalisation reserve. Refer to FAS 11 of AAOIFI.

B290_1050 Mudarib fee Report here the Mudarib fee which the authorised institution is entitled to receive for undertaking the investment of the funds provided by the PSIA holders. The fee is agreed by the investment account holders and the bank before the implementation of any contract. In case of a loss, the bank is not entitled to any Mudarib fee and the loss is borne by the investment account holders. Refer to FAS 3 of AAOIFI.

B290_1060 Net amount after Mudarib fee

Report here the balance after the amount of profit equalisation reserve and the Mudarib fee has been deducted from the net asset value.

B290_1070 Percentage of investment risk reserve

Report here the percentage of the investment risk reserve applicable to the net amount after the mudarib fee.

B290_1080 Amount of investment risk reserve

Report under this item the amount of the reserve being the product of the balance in Item B290_1060 multiplied by the percentage in Item B290_1070 above. Refer to FAS 11 of AAOIFI.


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B290_1090 Amount attributed to PSIAs

This amount is the residual amount allocated to the PSIA account holders after the deduction of the amounts for the profit equalisation reserve, mudarib fee and investment risk reserves.

1.16 Instructional Guidelines – Form B30 - Income Statement

Purpose Form B30 – Profit and Loss Statement is intended to capture the results of operations of an Authorised Firm during the reporting period. Applicability This form is applicable to the Authorised Firms categorised under prudential categories 1, 2, 3 and 4. This form is not applicable to the Islamic Financial Institutions (IFI) and the Authorised Firms operating through branches in the DIFC. Instead, IFIs and branches should use the forms B40 and B90 respectively. Content The form is designed to capture information pertaining to the Authorised Firm’s income, expenses and profit for the reporting period.

Instructional Guidelines 1. All figures relating to income statement items, other expense accounts, volumes, activity

levels, number of accounts or units sold/traded and any other data relating to amounts invested/deposited except outstanding balances in any of the quarterly returns must correspond to the current reporting period (quarter) and not cumulative or year-to-date amounts.

2. The instructional guidelines below are regarding certain specific data elements in the

form:

Item No. Item Instructional Guidelines B300_1100 Interest income Include both actually received interest and receivable interest

which has accrued but has not yet been received, generated for example by:

• Cash and liquid assets • Trading securities • Investment securities • Derivatives in the non-trading book • Loans and advances • Investment / loans to parent entity / loans to

associates / joint venture • Other investments • Other interest earning assets


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B300_1200 Interest expense Include both interest actually paid and interest payable which

has accrued but has not yet been paid, linked to, for example: • Deposits; • Other borrowings; • Derivatives in the non-trading book; • Bonds, notes and other borrowings; • Loan capital; • Loan from parent entity; • Loan from associates / joint ventures;

Other interest bearing liabilities. B300_2100 Income from fees and

commissions Include income received and income receivable but has been accrued for services provided by the Authorised Firm, for example the provision of:

• Current account facilities; • Corporate advice; • Investment management and trustee services; • Guarantees and indemnities; • Commission on the sale of insurance or travellers

cheques; Foreign exchange services (if they can be separately identified).

B300_2200 Fees and commission expense

Include revenue generated for all services rendered to the company by third parties (excluding those which have the character of interest).

B300_3200 Net income from trading securities

Include all profits or losses (including revaluation profits or losses) other than those arising from the sale of investments in subsidiary or associated companies, trade investments or the amortisation of premiums or discounts on the purchase of fixed maturity investments which are not held for dealing.

B300_3300 Net income from investment securities

Include net income/(losses) from investments other than the trading securities, such as available for sale and held to maturity investments.

B300_3400 Income from Islamic contracts

Income derived from any islamic contracts in which the Authorised Firm has invested in.

B300_3500 Other operating income Include under this heading income from any other source (other than extraordinary items), for example:

• Revaluations of foreign exchange positions; • Revaluation of any investment in subsidiaries or

associates (if equity accounting); • Share of profits from associated companies (if

reporting on a consolidated basis); • Profit or loss on the sale of non-trading assets – e.g.

premises, equipment, subsidiary and associated companies and trade investments;

• Revaluation surpluses/deficits - following normal accounting practice.

• Any other source (other than extraordinary items) B300_3610 General provisions Report here the general provisions recorded by the Authorised

Firm to reflect the overall level of credit losses expected in respect of the Authorised Firm’s exposures.

B300_3620 Specific provisions This item includes total provisions made to cover losses foreseen in respect of specific exposures.


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B300_3630 Provisions for Islamic

contracts Include here provisions arising from any Islamic business undertaken

B300_3650 Other To include, for example, provisions made for taxation or dividends.

B300_3700 Staff expenses Include, for example: • Salary costs; • Employer’s contribution to any pension scheme; • Costs of staff benefits paid on a per capita basis such

as private medical insurance. B300_3800 Depreciation &

Amortisation Charges relating, for example, to depreciation / amortisation of property, plant and equipment and other amounts written off in respect of tangible and intangible fixed assets.

B300_3900 Other operating expenses Examples of expenses can be as follows: • Occupancy expenses – for example, rates, rent,

insurance of building, lighting, heating, maintenance costs and subsidised restaurants;

• Equipment; • Other overhead expenses; • All other expenditure not falling into one of the other

specific categories. B300_300T Operating profit from

ordinary activities This item is calculated by EPRS and is calculated as the sum of B30 item nos. B300_1100 to B300_3900. (excluding sub totals at items nos B300_100T and B300_200T).

B300_4100 Net income from subsidiaries and associated companies

Profit / losses received from subsidiaries, joints ventures and other associated undertakings.

B300_4200 Profit (loss) from extraordinary Items

For example: Profit or losses on sale or termination of an operation; Profits or losses on disposal of fixed assts.

B300_400T Profit (loss) before tax This item is calculated by EPRS and is calculated as the sum of B30 item nos. B300_300T, B300_4100 and B300_4200.

B300_5100 Tax on (profit)/loss Any amount that has been or is expected to be paid in taxation.

B300_500T Profit / (loss) after tax This item is calculated by EPRS and is calculated as the sum of B30 item nos. B300_400T and B300_5100.

B300_600T Net profit / (loss) The amount of profit / loss that could be distributed to shareholders (or partners) or retained for future use within the company. This is calculated by EPRS as the sum of B30 item nos B300_500T and B300_6100.

B300_7100 Dividends and other distributions, declared or paid

The amount to be distributed in the current year to shareholders out of the profits of a company.

B300_7200 Partners’ drawings, declared or paid

The amount to be distributed in the current year to partners out of the profits of a partnership.

B300_7300 Other adjustments Any other adjustments that affect the retained profits. B300_700T Retained profits for the

reporting period Profits that have not been paid out as dividends to shareholders or withdrawn by partners but retained for further investment by the company. This is calculated by EPRS as the sum of B30 item nos B300_600T, B300_7100, B300_7200 and B300_7300.


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1.17 Instructional Guidelines – Form B40 – Income Statement - Islamic Financial Institutions Purpose Form B40 – Profit and Loss Statement is intended to capture the results of operations of an Islamic Financial Institution during the reporting period. Applicability This form is applicable to the Authorised Firms categorised under prudential category 5. This form is also applicable for Authorised Firms operating an Islamic Window and involved in managing PSIAs as well as for Islamic Financial Institutions in prudential categories 2, 3, or 4. Content The form is designed to capture information pertaining to an Islamic Financial Institution’s income, expenses and profit for the reporting period. Instructional Guidelines 1. All figures relating to income statement items, other expense accounts, volumes, activity



form: Item No. Item Instructional Guidelines B400_1010 Income from jointly financed

accounts Authorised Firms should include in respect of this item income earned on funds from jointly financed investment accounts (i.e. unrestricted PSIAs and self-financed). The income should be gross before allocating to the unrestricted PSIAs and the bank’s Mudarib fee.

B400_1020 Allocated to unrestricted account holders (before Mudarib fee)

Authorised Firms should include in respect of this item the amount allocated from B40 item no. B400_1010 above to the unrestricted PSIAs as their share of the income. Note that this number should be entered as positive amount.

B400_1030 Authorised Firm's Mudarib fee from managing jointly financed accounts

Authorised Firms should include in respect of this item the amount of the Mudarib fee that they are entitled to receive for the management of the unrestricted PSIAs.

B400_1040 Authorised Firm's fees from managing other (restricted) accounts

Include any amounts owing to the Authorised Firm as fees for managing PSIAR accounts.

B400_2010 Authorised Firm's income from its own non-financing activities

Authorised Firms should include in respect of this item the income received from non-financing activities (e.g. Murabaha sales) that results from the employment of the Authorised Firm’s own funds and current accounts. The income should have been generated from funds that have been employed


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separately from the PSIA funds. B400_2020 Authorised Firm's income

from its own financing and investment activities

Authorised Firms should include in respect of this item the income received from financing and investment activities that results from the employment of the Authorised Firm’s own funds and current accounts. The Bank is solely entitled to profits/ (losses) from these activities.

B400_2030 Net fees and commission income

Authorised Firms should include in respect of this item the income received for services provided such as trade related letters of credit, Corporate advice, Investment management and trustee services, Kefala (guarantees) and indemnities.

B400_2040 Other operating income Include income from any other source not included in any of the above.

B300_3700 Staff expenses Include costs such as: • Wages and salaries; • Social security contributions; • Contribution to any pension schemes (employer’s

share); • Costs of staff benefits paid.

B400_3040 Premises and equipment costs Should include rent, property tax, lighting, heating, maintenance costs etc.

B300_3800 Depreciation and amortisation Charges relating, for example, to depreciation / amortisation of property, plant and equipment and other amounts written off in respect of tangible and intangible fixed assets.

B400_3060 Provision for losses on Islamic contracts

Provision for losses on Islamic Contracts: refer to FAS 11 of AAOIFI which requires the inclusion of bad and doubtful Islamic Financing and non financing contracts and investments.

B400_3070 Other provisions Include here all other provisions other than for Islamic contracts.

B300_3900 Other operating expenses Include all other expenses not included in any of the above. B300_4100 Net income from subsidiaries

and associated companies Report share of profits and losses of from subsidiaries and associated companies.

B300_4200 Profit (loss) from extraordinary items

For example: Profit or losses on sale or termination of an operation; Profits or losses on disposal of fixed assts.

B400_3130 Zakah Include Zakah amount calculated with reference to FAS 9 of AAOIFI.

B300_5100 Tax on profit / loss Any amount that has been or is expected to be paid in taxation.

B300_7100 Dividends, and other distributions, declared or paid

The amount to be distributed in the current year to shareholders out of the profits of a company.

B300_7300 Other adjustments Any other adjustments that affect the retained profits.


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1.18 Instructional Guidelines – Form B50 - Expenditure Based Capital Minimum Purpose Form B50 – Expenditure Based Capital Minimum form is intended to capture the level of actual expenses incurred by an Authorised Firm during the reporting period. The information in this form is used to assess the continued relevance of an Authorised Firm’s Expenditure Based Capital Minimum, in light of the actual level of expenses being incurred. Applicability This form is applicable to an Authorised Firm in Categories 2, 3 or 4. Content The form is designed to capture the information pertaining to an Authorised Firm’s actual expenses for the reporting period along with the deductions allowed as per PIB Rule 2.5.

Instructional Guidelines An Authorised Firm in Categories 2, 3 or 4 is drawn attention to the PIB section 2.5 which elaborately explains the calculation of Expenditure Based Capital Minimum. A thorough understanding of this section is a must for completing this form accurately.

Item No. Item Instructional Guidelines B500_1100 Total expenses This figure should correspond to Form B30, sum of item nos.

B300_1200, B300_2200, B300_3700, B300_3800 and B300_3900. Deductions from total expenses (refer PIB section 2.5). However, note that the deductions should be entered as positive amounts. EPRS is configured to deduct the amount in the relevant calculations. B500_1200 Staff bonuses All staff bonuses paid during the year except to the extent that they are

non-discretionary. B500_1300 Employees’ and

directors shares in profits

All employees’ and directors shares in profits except to the extent that they are non-discretionary.

B500_1400 Other appropriations of profits

All such appropriations except to the extent that they are automatic. As per PIB Rule 2.5.2(2), a management charge should not be treated as an appropriation of profits.

B500_1500 Shared commissions payable

Those commissions that would no longer be payable if business were to cease.

B500_1600 Interest charges in respect of borrowings made to finance the acquisition of realisable investments

Interest that is paid in respect of borrowings made to finance the acquisition of the Authorised Firm’s realisable investments

B500_1700 Interest paid to clients on client money balances

Include here interest paid on Client Money balances.


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B500_1800 Interest paid to

counterparties Interest that is payable to counterparties in the Trading Book.

B500_1900 Fees, brokerage and other charges

An Authorised Firm may exclude commissions shared with third parties other than employees, directors, half commission men or appointed representatives. Fees, brokerage and other charges paid for the purposes of executing, registering or clearing transactions may also be excluded.

B500_2000 Foreign exchange losses

Losses arising from the translation of foreign currency balances may be excluded.

B500_2100 Contributions to charities

The contribution that would no longer be paid if business were to cease.

B500_100T Total expenditure This item is calculated by EPRS as B50 item B500_1100 less the sum of items B500_1200 to B500_2100.

B500_3000 Fraction applied The applicable fractions depending on the nature of an Authorised Firm’s operations are set out in PIB Rule 2.5.1.

B500_300T Expenditure based capital minimum (based on actual expenses)

This item is calculated by EPRS by multiplying item B500_100T by 4 to annualise in the case of quarterly returns and by 1 in the case of annual returns and then multiplying by the fraction in cell B500_3000.

B500_4000 Expenditure based capital minimum (as notified to the firm)

In this cell input the Expenditure Based Capital Minimum amount calculated as per the provisions of PIB section 2.5. In particular, note that the amount in this cell should not be arrived at by applying the fraction in B500_3000 to the total expenses in cell B500_100T. This cell should not be left blank as this is linked to one of the validations in EPRS (refer the validation page).

1.19 Instructional Guidelines – Form B60 – Capital Adequacy

Schedule Purpose Form B60 – Capital Adequacy Calculation is intended to calculate the Capital Resources and the Capital Requirements of an Authorised Firm in order to arrive at the overall Capital Adequacy position of the Authorised Firm. Applicability This form is applicable to all Categories of Authorised Firm domiciled in the DIFC (i.e. Domestic Firms). Accordingly, this form is not applicable to the Authorised Firms operating through branches in the DIFC.


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Content The structure of this reporting form, which applies to all Categories of Authorised Firm, is designed first to calculate the total eligible capital resources after the appropriate amounts have been charged to cover trading and non trading book risks. It takes into account limitations on the use of different types of capital, including Tiers 1 and 2 capital components. Secondly, it provides a snapshot of the institution’s capital adequacy at the reporting date by comparing the adjusted capital resources calculated as described above to the total capital requirement.

Instructional Guidelines Most of the numbers in this form are transferred from the other relevant forms such as B10 or B20 – Balance Sheet and appendices to B10 or B20 relating to the calculation of capital charges in respect of Credit, Market and Displaced Commercial Risks.

Item No. Item Instructional Guidelines B600_112T and B600_113T

Tier 1 and Tier 2 capital

See PIB Section 2.6 and Table 2.6.1 for a summary of the components of capital base. PIB Section 2.7 describes each capital component in greater detail. Attention is drawn to Partnership Capital which constitutes the capital accounts of partners when the business is created. It must share the same characteristics as permanent share capital, particularly the fact that it must rank for repayment upon winding up or insolvency after all debts and liabilities have been paid. The deduction for partners drawings is in respect of any excess in drawings over current period profits. Attention is also drawn in respect of PIB Rule 2.7.3 in respect of the limitation on the use of general provisions in Tier 2 capital. Authorised Firms should note that there are related Instructional Guidelines on the capital base for forms B10 and B20. The Instructional Guidelines there would apply in their entirety to this section of the return.

B600_1230 Deduction for excess of reserves

This applies only in respect of Category 5 Authorised Firms with regards the Investment Risk and Profit Equalisation Reserves. See PIB Section 2.9.

B600_129T NTB Capital Requirement

See PIB Rule 2.8.3 for a definition of the components of non trading book capital. For Category 5 Authorised Firms, the CRCOM and FER are on self financed assets only. These numbers will be derived from forms B10 and B20 for Category 1-4 Authorised Firms and Category 5 Authorised Firms, respectively. The DCR charges are derived from form B10 Appendix 4 and Form B20 Appendix 8 for Category 1-4 Authorised Firms and Category 5 Authorised Firms, respectively.

B600_133T Capital allocated to the NTB

The limitations on the use of capital allocated to the NTB are set out in PIB Section 2.8.


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B600_141T TB Capital

Requirement This is defined in PIB Rule 2.8.3. For Category 1-4 Authorised Firms, the numbers here are derived from Appendices B10A2 and B10A3 (also see Instructional Guidelines relating to those appendices). For Category 5 Authorised Firms, the capital requirements are in respect of self financed assets only (PSIA assets are subject to a DCR charge). These numbers are derived from Appendices B20A4 and B20A7.

B600_142T Total Eligible Capital allocated to the TB

Note the limitation on the use of Tier 2 capital as referenced to PIB Rule 2.8.2 (b) (iii). Category 1 and 5 Authorised Firms must exclude from Tier 2 trading book capital any excess over 200% of Tier 1 trading book capital. For Category 2-4 Authorised Firms, the appropriate percentage is 250%.

B600_1520 to B600_1560

Deductions from total capital resources

The deductions in respect of connected lending, material holdings and qualifying holdings are defined in PIB Rules 2.7.4, 2.7.5 and 2.7.6, respectively.

B600_160T Capital Requirement The non additive thresholds of capital are set out in PIB Rule 2.3.1. Details of the base capital requirement are further analysed in PIB Section 2.4. The Expenditure Based Capital Requirement definition is set out in PIB Section 2.5 and applies to Categories 2, 3 and 4 Authorised Firms only.

B600_1610 Resources less requirement

Note that the total of resources over requirement is expected to be positive. In the event of the requirement exceeding resources, Authorised Firms should make immediate contact with DFSA and not wait till the form has been submitted.

B600_1620 Risk Asset Ratio Obtained by dividing total capital resources by the risk weighted assets (whether on the trading or non trading books). The risk weighted assets have been reported by Authorised Firms in the preceding Forms B10 and 20 (including appendices to these forms) .The capital resources are summarised in Form B60. Note that the value in this cell is calculated by EPRS.

1.20 Instructional Guidelines – Form B70 – Large Exposures Schedule Purpose Form B70 is intended to capture the information regarding the Large Exposures of an Authorised Firm. Applicability This form is applicable to the Authorised Firms categorised under prudential categories 1, 2, 3 and 5. This form is not applicable to the Authorised Firms operating through branches in the DIFC. Instead, the branches would use the form B90A1.


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Content The form is designed to capture information regarding the 20 Largest Exposures, Details of Exposures to Connected Counterparties and 10 Largest Exempt Exposures of an Authorised Firm. Further details are sought in respect of these Exposures such as type of Counterparties, provisioning amount etc which are explained under the Instructional Guidelines section below. Structure of the form in EPRS In EPRS the form is split into two parts namely, Part I – Capital Resources and Part II – Exposures. Values in Part I – Capital Resources are calculated by EPRS based on the data in form B60- Capital Adequacy Calculation. PART II – Exposures is a linked form and all the information regarding the Large Exposures have to be entered in this form. Instructional Guidelines 1. An Authorised Firm is required to identify and manage its exposures in accordance with

PIB Rule 4.5.6 and section A4.8. 2. As per the Glossary, an Exposure, whether in an Authorised Firm’s Non-Trading Book or

Trading Book, or both, to a Counterparty or Group of Closely related Counterparties connected to the Authorised Firm which in the aggregate equals or exceeds 10% of the Authorised Firm’s Capital Resources.

3. The 20 largest exposures should be listed and, if requested, any other exposure that

exceeds 10% of the Authorised Firm’s Capital Resources. Only exposures that are non-exempt are required to be reported in the first two tables.

Item Instructional Guidelines Capital Resources

The Capital Resources used as the basis for monitoring and controlling large exposures should be calculated in the same way as those used for capital adequacy monitoring, i.e. the sum of allowable Tier 1 and Tier 2 capital less any deductions (as set out in PIB Table 2.6.2) - as per Form B60, item B600_158T. As mentioned earlier, the values in this section are calculated by EPRS based on the values in form B60- Capital Adequacy Calculation.


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Column Instructional Guidelines Twenty Largest Exposures

Include in this table the twenty largest exposures to all types of Counterparty except those that are considered to be exempt. Exposures to individual, or groups of closely related, Counterparties should be reported in descending order by size. Exposures to individual Counterparties which constitute a group of closely related Counterparties should be reported as one aggregate exposure.

Counterparty The identity of a Counterparty, as defined in the Glossary, in this context will generally be one of the categories as set out in PIB Rule A4.8.6.

Connected, Unconnected – Bank, Unconnected – Other, Government

The Authorised Firm should clarify here into what category an exposure falls. These are set out in detail in PIB Rules A4.8.7 to A4.8.11 but for the purposes of this form, an Authorised Firm should state whether an Exposure is to: i. a Connected Counterparty; ii. an Unconnected Counterparty or group of Closely Related Counterparties

that are predominantly comprised of non-financial businesses; iii. an Unconnected Counterparty or group of Closely Related Counterparties

that are predominantly comprised of financial businesses; iv. Central governments and central banks.

Amount of non-exempt exposure

For exposures arising in the Non-Trading Book the amount at risk should, with certain exceptions detailed below, be reported as the book value of the Authorised Firm’s actual or potential claims, contingent liabilities or assets. Exposures should be calculated in accordance with IFRS or AAOFI standards. For exposures arising in the Trading Book, all positions should be marked-to-market daily. Where a market determined price is not readily available, the Authorised Firm may generate its own mark-to-market valuation. Positions should be valued in accordance with the procedures outlined in the Authorised Firm’s trading book policy statement. This is set out in more detail in PIB Rules A4.8.13 to A4.8.31.

Specific bad debt provision

Include here the amount of specific bad debt provision that may have been made against a particular exposure.

Reduction by netting, collateral etc.

As set out in PIB Rule 4.5.6 (d) (ii), the value of an exposure can be reduced through the following:

• Collateral – discussed in more detail in PIB Section 4.6 and Rule A4.8.32 • Netting – discussed in more detail in PIB Sections 4.7 and A4.9 • Securitisation – discussed in more detail in PIB Sections 4.8 and A4.10 • Credit derivatives – discussed in more detail in PIB Sections 4.9 and A4.11.

Exposure at reporting date after eligible set-offs

Amounts in column “Amount at risk at reporting date” less the amounts in Columns “Specific bad debt provision” and “Reduction by netting collateral and other off-sets”.

Amount of this exposure financed by own assets or unrestricted PSIAs

For Exposures arising out of Islamic business, this column should be used to quantify the amount of the Exposure that is financed by the Authorised Firm’s own assets or by unrestricted PSIA assets.

Amount of this exposure financed by restricted PSIAs.

For Exposures arising out of Islamic business, this column should be used to quantify the amount of the Exposure that is financed by restricted PSIA assets.

Detail of exposures to connected counterparties

This section comprises the disaggregated detail of all connected lending and exposures should be split into different counterparties within the connected group.

Financial or Non-financial company

An Authorised Firm should indicate here if the exposure is to a bank or non-bank within its own group.


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Ten Largest Exempt Exposures

An Authorised Firm is required to identify its exempt and partially exempt exposures as per PIB Rules 4.5.6 (e) and A4.8.1 to A4.8.4.

Reason for exemption

The Authorised Firm should specify here under what section of A4.8.1 – A4.8.4 the Exposure is captured.

Additional detail for Form B70A1 - Appendix 1 - Largest 25 Exposures arising from Islamic contracts Content The form is intended to capture information regarding the Largest 25 Exposures arising from Islamic contracts. Structure of the form in EPRS In EPRS the form is split into five linked forms parts namely, Part I – Musharaka, Part II – Mudaraba, Part III - Istisna’a and Salam Contracts, Part IV – Ijarah and Part V – Murabaha Receivables. These are explained further in the following table. Instructional Guidelines

Item No.

Contract type Instructional Guidelines

Part I Musharaka Report all Musharaka contracts currently outstanding that exceed 10% of the Authorised Firm’s Capital Resources. Details regarding the following should be included:

• Whether the capital has been self financed or provided by PSIA accounts

• The amount of capital redeemed during the period such as in the case of a diminishing Musharaka.

• Any income or loss declared, any provisions being made to the value of the Musharaka and the net value of the investment.

FAS 4 of AAOIFI refers. Part II Mudaraba Report all Mudaraba financing contracts that would qualify as a Large

Exposure. Identify the basis on which the Authorised Firm has provided the financing i.e. whether on a self financed or on a PSIA funds basis. Refer FAS 3.

Part III Istisna’a/ Parallel Istisna’a

Report all Istisna’a contracts that would qualify as a Large Exposure. Identify the value of the Parallel Istisna’a and indicate what proportion of the value has been financed by Authorised Firm’s own capital and the funds of PSIA account holders. Refer FAS 10.

Part III Salam/ Parallel Salam

Report all Salam contracts and Parallel Salam amounts that would qualify as a Large Exposure. The data is to be split into values financed by Authorised Firm’s own capital and the restricted and unrestricted PSIA account holders. Refer FAS 7.

Part IV Ijarah/ Ijarah Muntahia Bittamleek

Report all Ijarah assets on the valuation basis set out in FAS 8. Report also, all assets transferred to lessee for consideration or gift including the value of impairment before transfer of legal asset. State total depreciation/ amortisation charge and the net book value. This information is required to be provided for self financed and both forms of PSIA accounts. The data is to be split by the industrial sectors identified in the reporting statement. Refer FAS 8.


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Part V Murabaha Report here all Murabaha exposures that would qualify as a Large Exposure. Divide exposures into self financed, PSIAR and PSIA unfunded exposures. Refer FAS 2.

1.21 Instructional Guidelines – Form B80 – Liquidity Schedule –

Maturity Mismatch

Purpose Form B80 is intended to capture the information regarding the Liquidity position of an Authorised Firm. Applicability This form is applicable to the Authorised Firms falling under prudential categories 1 and 5. Content The form is designed to capture information regarding the inflows and outflows and the overall liquidity position of an Authorised Firm. Structure of the form in EPRS In EPRS the form is split into two linked forms namely, Part I – Inflows and Outflows and Part II – Calculation of Maturity Mismatches. Instructional Guidelines

1. As set out in PIB Rule 6.3.3, an Authorised Firm in Category 1 or 5 must use the

Maturity Mismatch approach to measure its liquidity. This applies equally to Authorised Firms that have a branch presence in the DIFC as to those that are incorporated.

2. In accordance with PIB Rule 6.3.4, an Authorised Firm needs to complete separate

returns for a business that is funded by:

i. its own assets; ii. restricted PSIA assets; and iii. unrestricted PSIA assets.

Liquidity reporting in individual currencies 3. The return should be completed on the basis of all currencies combined. Currencies

should be translated into $ at the closing spot mid price on the reporting date and entered in the relevant time band. However, the DFSA may require institutions to provide management information on positions in individual currencies in the event of difficulties either in the individual institution or with the currency in question.


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Cashflow versus maturity analysis approach

4. The policy aim is to ensure that institutions hold sufficient liquid assets to meet their obligations as they fall due and the DFSA has set mismatch guidelines to help secure the policy objective. The Form B80 monitors Authorised Firms’ compliance with the limits in two ways: firstly, by including a maturity analysis of known and/or potential cashflows out to six months and secondly, by a maturity analysis of assets and liabilities from 6 months to 5 years.

5. Institutions should report both inflows and outflows on the same basis. Therefore, if an

institution reports inflows on the cashflow basis out to three months, it should also report outflows on the cashflow basis out to three months.

6. Items reported on a cashflow basis should include both interest and principal amounts,

together with any other income relating to them. Items reported on a maturity basis should be reported at their value on the institution’s books. However, any cashflows arising from these items (e.g. interest payments) within the cashflow reporting period should be included in the relevant cashflow periods. Thus cashflows (e.g. interest payments on a loan) arising from items (however reported) should be entered in the relevant cashflow timebands (i.e. those which the institution reports) when they fall due.

Provisions 7. Items should be reported net of specific provisions. General provisions should not be

recorded on this return.

Residual Maturity

8. As set out in PIB Rule A6.2.1, outflows (such as deposits and other liabilities) are to be included according to their earliest possible repayment date. In this context, the earliest repayment date means the first rollover date or the shortest period of notice required to withdraw the funds or to exercise a break clause, where applicable. Inflows (such as loans) are to be entered as occurring on the latest possible repayment date. Purely technical break facilities should be disregarded for fixed term loans. Where the Authorised Firm has loans outstanding at the reporting date under revolving credit lines and has not received notification that they will be redrawn on maturity, the intermediate date should be taken as the maturity date.

Time bands 9. The time band ‘Overdue’ should be used to record cash flows where assets or other items

giving rise to cash flows are non-performing, poorly performing or there is reasonable doubt about the certainty of receipt of inflows of funds pertaining to them. Where an asset or cash flow previously reported as overdue is contractually rescheduled according to a written agreement, institutions should cease to report these items as ‘overdue’ and report them according to the new agreed dates for repayment.

10. The time band ‘Demand (including next day)’ comprises cash flows or asset items due,

available or maturing on the next business day after the reporting date. Cash flows arising or assets/liabilities maturing on a non-business day should be reported as taking place on the following business day. Funds callable at one day’s notice should be entered as two-day maturity unless notice has been received or given on the reporting date.


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Netting of debts and claims 11. All claims and liabilities should be reported gross. Authorised Firms should not net (or

offset) claims on counterparties or groups of counterparties against debts owed to those counterparties or groups of counterparties, even where a legal right of set off exists. Where the maturity of the claims and debts falls within the same time band, the claims and debts will automatically offset each other on the return in the calculation of the mismatch.

Marketable securities 12. An asset is considered to be marketable if it meets the requirements as set out in PIB

Section A6.3(2) – essentially, these are assets that could be readily converted into cash where necessary. These assets are reported under the section ‘Highly liquid / marketable assets’. Authorised Firms should enter the full value of the marketable asset concerned in Column ‘Marked to market’ against the applicable discount rate in Column ’Discount currency’. The discounted value is then calculated by EPRS. Discounts are applied to reflect that an institution may realise less than the market price quoted for an asset where the institution is seeking to realise assets quickly because of liquidity problems pertaining either to itself, or to general market conditions, or both.

13. The Authorised Firm should then allocate the discounted value of the assets to either of

Columns ’8 days & under’ or ’Over 8 days to 1 month’ determined by the length of the settlement period for the instrument in question. This reflects the length of time it would take for an Authorised Firm to receive the proceeds of any sale. Where the settlement period for items is more than eight days, or where there are other factors which mean that funds would not be received within eight days, were the assets are sold or repo’d today, then the funds should be recorded as receivable in Column ‘Over 8 days to 1 month’. Where settlement or other delays mean that funds would not be received within one month, then the items should be recorded in the maturity analysis section of the form.

14. Marketable assets maturing at exactly one month should be reported in the cash flow

section of the return. Authorised Firms may however include the full value of the asset in the one month time band and not discount at all during the life of the asset.

15. Where assets have a residual maturity of less than one month, the DFSA recognises that it

is not relevant to apply automatically a discount to such assets. In general, these assets should be entered as cashflows in the relevant timebands in rows under ‘Wholesale’ section of the form and no discount will be applied.

16. Assets which do not meet the criteria for marketable assets, or which cannot be fitted into

the table in PIB Rule A6.3.1(4), are non-marketable assets for the purposes of this return and should be reported in the form according to their residual maturity. This covers for example:

a. Non-investment grade debt instruments (as rated by a recognised credit agency)

issued by a Zone 2 issuer; b Non-investment grade debt instruments (as rated by a recognised credit agency)

issued by a non-government Zone 1 issuer; c. Commercial paper and certificates of deposit that do not meet the definition of

marketable assets.

17. Authorised Firms should ensure that there is no double counting of cash flows (of principal or interest) arising from holdings of marketable assets on the form.


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Item Instructional Guidelines INFLOWS Highly liquid / marketable assets

As described in detail above.

Cash Holdings of notes and coins. Central gov't (Z1) sec - 1 yr or less Central gov't (Z1) sec - 1 - 5 yrs Central gov't (Z1) sec - over 5 yrs

Central government (including central government guaranteed) paper and paper eligible for discount at the Central Bank issued a Zone 1 Central Government / another Zone 1 issuer. Both fixed and variable rate securities should be reported. Only record those securities currently in the reporting institution's ownership.

Non gov't sec - 6 mths or less Non gov't sec - 6 mths - 5 yrs Non gov't sec - over 5 yrs

Debt instruments that are of investment grade. Only those securities in the reporting institution’s ownership, which the institution may freely dispose of at any time with no restrictions, should be recorded. Those assets pledged to another institution or otherwise encumbered should not be included.

Other cen gov't debt (active)

Central government (including central government guaranteed) paper and paper eligible for discount at the Central Bank issued by a Zone 2 Central Government/ another Zone 2 issuer. Include only that debt issued by, or fully guaranteed by, Zone 2 central governments and central banks that is actively traded. Only the debt currently in the reporting institution’s ownership should be recorded.

Highly liquid equities

Equities those are eligible for a specific risk weight of 4% or less under the DFSA’s Rules regarding the capital requirement for Market Risks and which are currently in the reporting institution’s possession.

Non-marketable securities

Securities which the Authorised Firm holds or will receive, but which it cannot classify as marketable. These should be reported according to the redemption value of the asset or alternatively, where the redemption value is unavailable or not appropriate (e.g. in the case of equities), the book value. Marketable assets maturing within one month reported at their full marked-to-market value, i.e. undiscounted, should also be reported here.

Inter-bank

Inflows arising from placements with other financial institutions. Include the inflows from those entities that would attract a 20% Counterparty weighting. Include also that element of committed facilities provided to the Authorised Firm where notification of draw down date has been given. Exclude inflows from any bank entities within the group.

Intergroup / related

Inflows from counterparties connected to the Authorised Firm. Entries should be made in this item rather than any other item in the Wholesale section if any intragroup/connected counterparties are involved.

Corporate

Inflows from non-bank, non-connected corporate counterparties. Initial margins held at clearing houses should be entered here according to their residual maturity. Repayments from leases should also be recorded in this line.

Govt / public sector - Zone 1

Inflows from central governments, public sector entities, local authorities and central banks in Zone 1 countries.


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Inflows from central governments, public sector entities, local authorities and central banks in Zone 2 countries.

Repos / reverse repos

Include any transactions relating to repos and reverse repos. Authorised Firms should also enter any transactions relating to stock borrowing and lending.

Forward foreign exchange

Cashflows relating to forward purchases of foreign currency, where an exchange of principal is effected at the start or maturity of the swap. The amount received should be entered in the appropriate maturity band.

Forward sales and purchases

The cash leg of any forward sales should be treated as an inflow in the timeband corresponding to the date of the forward sale. For forward purchases, where the asset purchased is a marketable asset, the Authorised Firm should report the USD equivalent discounted value of the security purchased at the maturity of the contract. Where the asset purchased is non-marketable, the institution should enter the USD equivalent discounted value of the security at the maturity of the asset.

Swaps & FRAs

For interest rate and currency swaps, enter the receipts of fixed and floating legs in the cashflow section. For FRAs, enter the marked-to-market receipt in the relevant time period. The amount of receipts should be derived from the contract’s present value at yields prevailing at the reporting date.

Commodities

Inflows from the sale of commodities held by the Authorised Firm.

Trade related letters of credit

Inflows arising from trade related letters of credit.

Fees (incl Mudarib)

Report here fees, commissions or other income receivable by the Authorised Firm relating to their wholesale business, according to their known date of receipt. Where the date of receipt is unknown, do not report these flows.

Other funding sources

Include here any other funding sources not included elsewhere, according to their cashflows.

OUTFLOWS Non-marketable securities

Include here at residual maturity outflows pertaining to maturing securities or debt instruments, which cannot be classified as marketable. Marketable assets maturing within one month at their full marked-to-market value, i.e. undiscounted should also be reported here.

Inter-bank Funds

Outflows arising from placements with or from, or repayments of loans to or from, banks. Also include the entire outflows to those entities that would attract a 20% Counterparty weighting. Exclude from this item loans to, or placements with, or deposits / placements from, bank entities within the group.

Intergroup / related

Outflows of funds to counterparties connected to the reporting institution. Entries should be made in this item rather than any other item in the Wholesale section if any intragroup/connected counterparties are involved.

Corporate Outflows to non-bank, non-connected, corporate counterparties. Govt / public sector - Zone 1

Report funds lent to central governments, public sector entities, local authorities and central banks in Zone 1 countries. Where an Authorised Firm is required to place funds on deposit with central banks and monetary authorities, these should be entered as an outflow in the relevant time band.


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Report funds lent to central governments, public sector entities, local authorities and central banks in Zone 2 countries. Where an Authorised Firm is required to place funds on deposit with central banks and monetary authorities, these should be entered as an outflow in the relevant time band.

Repos / reverse repos

Outflows related to repos or reverse repos. Also include any outflows relating to stock borrowing and lending.

Forward foreign exchange

Enter any cashflows relating to forward sales of foreign currency, where an exchange of principal is effected at the start or maturity of the swap. The amount paid should be entered in the appropriate maturity band.

Forward sales and purchases

For forward sales, the sterling (or euro) equivalent discounted value of the security sold should be recorded as an outflow. The cash leg of any forward purchases should be treated as an outflow in the timeband corresponding to the date of the forward purchase.

Swaps & FRAS

For interest rate and currency swaps, enter payments of fixed and floating legs in the cashflow section. For FRAs, enter the marked-to-market payment in the relevant time period. The amount paid should be derived from the contract’s present value at yields prevailing at the reporting date.

Commodities

Outflows from the purchase of commodities held by the Authorised Firm.

Trade related letters of credit

Outflows arising from trade related letters of credit.

Dividends, tax & other costs

Outflows arising from dividends, tax etc.

Ijarah asset purchases Outflows for commitments made for the purchase of these assets. Other outflows

Any outflows relating to payments of dividends and tax, or any other outflows that have not previously been reported elsewhere. Also report any outflows relating to settlement accounts, using the trade date plus the settlement period to determine the appropriate timeband.

Other off-balance sheet

Any outflows relating to off balance sheet items that have not been reported elsewhere.

CALCULATION OF LIQUIDITY MISMATCHES

Authorised Firms should monitor compliance with their liquidity mismatch guidelines each business day and should report in this section the mismatch on the reporting date, using the data from the previous parts of the return.

Type of business Denotes business financed by different sorts of assets. Timeband The timebands for which limits are set: Sight to 8 days and Sight to one month. Total discounted marketable assets

Figure from row ”Total” for “High Liquid/Marketable Assets” section Column “8 days & Under” for S-8 days and Columns ”8 days & Under” and “Over 8 days to 1 month" for S-1 month.

Total standard inflows Figure from row “Total Wholesale Inflows”, columns “Demand” and “8 days & Under” for S-8 days and Columns “Demand”, “8 days & Under” and “Over 8 days to 1 month" for S-1 month.

Total standard outflows Figure from row “Total Wholesale Outflows”, columns “Demand” and “8 days & Under” for S-8 days and Columns “Demand”, “8 days & Under” and “Over 8 days to 1 month" for S-1 month.


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Total relevant deposits This figure provides the denominator for the mismatch calculation

• For conventional Authorised Firms, the figure is obtained from Form B10, item B100_210T.

• For Islamic Authorised Firms, see next section of the table. • For branches, figure from form B90, item B900_610T.

Mismatch as a % of total deposits

As set out in PIB Rules 6.3.4 and 6.3.5, the mismatch positions should not exceed -15% or -25% for the sight – 8 days and sight – 1 month timebands respectively.

Additional Instructional Guidelines for Islamic contracts

Inflows All inflows should be taken as occurring at the last possible contractual

repayment date. The treatment of inflows for Islamic contracts are as follows and it is for the authorised institution to determine in which of the categories the inflows should be recorded. In the event of any doubt, the institution should contact its regular supervisory contact at DFSA.

Mudaraba Inflows of capital should be reported at the latest redemption date or as assets maturing at the latest possible redemption date. Profits on Mudaraba should only be reported to the extent that it is being reported at the reporting date.

Musharaka Capital inflows on a normal Musharaka contract should be entered as occurring on the latest possible termination date and in the case of a diminishing Musharaka at the latest redemption date. Inflows on profits should only be entered if it is being distributed at reporting date.

Murabaha Receivables

Inflows reported should include instalment payments and related accrued profit at the latest possible repayment date (or assets maturing at such a date).

Ijarah/ Ijarah Muntahia Bittamleek

Report all inflows occurring from Ijarah lease rentals at the last possible payment date. Where the lessee has option to purchase the asset either during the duration of the lease or at the end of the contract, the amount to be received should be reported as an inflow at the latest possible exercise date.

Salam and Parallel Salam

Enter the amount of inflows as occurring at the latest possible delivery date. If payments are received in the form of instalments (Parallel Salam), only enter the amount of instalments occurring at their latest possible repayment date (or as an asset maturing at the latest repayment date). Enter commodity flows separately in the line market commodities.

Istisna’a and Parallel Istisna’a

Inflows should be assumed to occur at the latest possible completion date. If repayment is via instalments, inflows should be on the latest instalment date.

Outflows

All outflows should be taken as occurring at the earliest possible contractual repayment date. In the case of a Liability, assume the outflows to occur at the earliest possible maturity date. For Islamic contracts, outflows should only be recognised when there is already in existence a defined agreement between the parties for a particular Islamic Contracts. As previously stated, Authorised Firms will be expected to refer to the appropriate AAOIFI FAS pronouncement in respect of Islamic contracts. These include Mudaraba, Musharaka, Murabaha, Salam and Parallel Salam, Istisna’a and Parallel Istisna’a and Ijara or Ijarah Munatahia Bitamleek.

Salam and Parallel Salam

For Salam transactions enter amount of outflows as additional advances committed at the earliest possible drawdown date.

Istisna’a Outflows on Istisna’a contracts are to be entered as occurring at the earliest possible drawdown date. If drawdown occurs based on percentage completion, the outflows should be assumed to occur at the earliest completion date or as a liability maturing at the earliest completion date.

Ijarah Commitments made for the purchases of assets for Ijarah purposes should be included as outflows at the earliest date committed for the purchase.


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Total relevant deposits

For self-financed business, Authorised Firms should use the figure from Form B20, item B100_210T. For business financed through PSIAs, the appropriate figure should be derived from the amounts due (akin to deposits) to PSIA account holders.

1.22 Instructional Guidelines – Form B90 – Branch Return

Purpose Form B90 is intended to capture the financial position and the results of operations of an Authorised Firm for the reporting period. Applicability This form is applicable to the Authorised Firms operating through branches in the DIFC. Content The form is designed to capture information pertaining to the Authorised Firm’s income, expenses assets and liabilities.


1. All figures relating to income statement items, other expense accounts, volumes, activity



form. 3. As noted earlier, this return should only be completed by Authorised Firms that operate

in or from the DIFC through a branch, rather than incorporated, office.

Statement of Profit and Loss Item No. Item Instructional Guidelines B900_1010 Interest income Include both actually received interest and receivable interest

which has accrued but has not yet been received, generated for example by:

• Cash and liquid assets • Trading securities • Investment securities • Derivatives in the non-trading book • Loans and advances • Investment / loans to parent entity / loans to associates

/ joint venture • Other investments


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• Other interest earning assets B900_1020 Interest expense Include both interest actually paid and interest payable which

has accrued but has not yet been paid, linked to, for example: • Deposits; • Other borrowings; • Derivatives in the non-trading book; • Bonds, notes and other borrowings; • Loan capital; • Loan from parent entity; • Loan from associates / joint ventures;

Other interest bearing liabilities. B900_2010 Fee and commission

income Include charges made for services provided by the reporting institution, for example the provision of:

• Current account facilities; • Corporate advice; • Investment management and trustee services; • Guarantees and indemnities; • Commission on the sale of insurance of travellers

cheques; Foreign exchange services (if they can be separately identified).

B900_2020 Fees and commission expense

Include charges for all services rendered to the company by third parties (excluding those which have the character of interest).

B900_3200 Net income from trading securities

Include all profits or losses (including revaluation profits or losses) other than those arising from the sale of investments in subsidiary or associated companies, trade investments or the amortisation of premiums or discounts on the purchase of fixed maturity investments which are not held for dealing.

B900_3300 Net income from investment securities

Include net income/(losses) from investments other than the trading securities, such as available for sale and held to maturity investments.

B900_3400 Income from Islamic contracts

Income derived from any Islamic business undertaken by the Authorised Firm.

B900_3500 Other operating income Include under this heading income from any other source (other than extraordinary items), for example:

• Revaluations of foreign exchange positions; • Revaluation of any investment in subsidiaries or

associates (if equity accounting); • Share of profits from associated companies (if

reporting on a consolidated basis); • Profit or loss on the sale of non-trading assets – e.g.

premises, equipment, subsidiary and associated companies and trade investments;

Revaluation surpluses/deficits - following normal accounting practice.

B900_3610 General provisions Total provisions to cover non-specific bad debt provisions. B900_3620 Specific provisions Total of provisions made against specific exposures. B900_3640 Provisions for Islamic

contracts Those provisions arising from any Islamic business undertaken

B900_3650 Other To include, for example, provisions made for taxation or dividends.

B900_3700 Staff expenses Include, for example: • Salary costs;


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• Employer’s contribution to any pension scheme; • Costs of staff benefits paid on a per capita basis such as

private medical insurance. B900_3800 Depreciation &

Amortisation Charges relating, for example, to depreciation / amortisation of property, plant and equipment and other amounts written off in respect of tangible and intangible fixed assets.

B900_3900 Other operating expenses Examples of expenses can be as follows: • Occupancy expenses – for example, rates, rent,

insurance of building, lighting, heating, maintenance costs and subsidised restaurants;

• Equipment; • Other overhead expenses; • All other expenditure not falling into one of the other

specific categories.

Statement of Assets

Item No. Item Instructional Guidelines B900_4110 and B900_4120

Cash and Balances with Central Banks

Include, for example, the following amounts: • Notes and coins; • Long positions in Gold bullion (including Tola Bars); • Amounts placed with central banks including funds required

to be placed on deposit with central banks and monetary authorities.



B900_4130 Money market placements Include deposits at call and other money market placements with banks or other money market participants

B900_4210 Trading securities Include investments acquired principally for the purpose of selling or repurchasing it in the near term for short-term-profit-taking. This would include but not limited to, debt, equity and hybrid instruments

B900_4211 Derivative financial instruments

Include, but are not limited to, positions representing the following instruments, recorded at fair value: Forward and Futures contracts in Currencies, Interest rates and other financial assets Forward rate agreements Currency and interest rate swaps Credit derivatives Option contracts on currency, interest rate and other financial assets. These derivatives include both the exchange-traded and over-the-counter versions.

B900_4220 Designated at fair value through profit & Loss

Include all financial instruments which are, upon initial recognition, designated by the entity as financial assets to be measured at fair value through profit or loss other than the trading securities included in B900_4210.


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B900_4230 Investment securities – available for sale

Include non-derivative financial assets that are designated as available for sale by the firm or that have not been classified under any of the other categories of investment in section B900_420T.

B900_4240 Investment securities - held to maturity

Include non-derivative financial assets with fixed or determinable payments and fixed maturity that the firm has positive intention and ability to hold to maturity.

B900_4810 Investments in associates, subsidiaries and JVs

Include investments in entities, including unincorporated entities such as partnerships, over which the firm has significant influence and where the entity in question is neither a subsidiary nor a joint venture operation

B900_4410 and B900_4420

Loans and advances Amounts arising from, for example: • Revolving credit facilities; • Credit cards outstanding balances; • Housing loans (both variable and fixed rates); • Term loans (both variable and fixed rates); • The book value of assets leased out under finance lease

agreements; • Loans made under conditional hire purchase contracts; • Advances purchased by or assigned to the reporting

institutions, factoring or similar arrangements • Other loans and advances.

The amounts reported should be gross of provisions (as specific and general provisions should be reported in the Liabilities section of the balance Sheet) and net of interest receivable.

B900_4510 Murabaha and Istina’a receivables

Report here all receivables relating to Murabaha and Istisna’a contracts. Refer to FAS 2 and FAS 10 of AAOIFI respectively.

B900_4520 Ijarah assets and receivables

Include Ijarah assets net of depreciation/ amortisation and Ijarah receivables. Refer to FAS 8 of AAOIFI.

B900_4530 Mudaraba Financing Capital provided on a Mudaraba basis should be reported here. Refer to FAS 3 of AAOIFI.

B900_4540 Musharaka Financing Report capital provided on a Musharaka basis. Refer to FAS 4 of AAOIFI. Investment in the share capital of another company should be reported under “Other investments”.


B900_4820 Fixed assets Include, for example, the value of the following: • Plant and equipment, the residual value of items leased out

under an operating lease (excluding balances relating to named Ijarah assets which should be included separately in item B900_4520);

• Own premises being occupied or developed for occupation by the Authorised Firm, property (excluding property acquired / held available for sale which should be included in “Other Assets”, item B900_4720).



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B900_4610 Goodwill Include amounts relating to any purchased goodwill. B900_4620 Other intangible assets Items to be included:

• Capitalised development costs • Brand names, trademarks and similar rights • Licences and exchange seats which may be held as part of

the Authorised Firm’s trading requirement. B900_4720 Other assets Assets that have not been included in any of the items above. In

particular, positions in short term securities held with the intention of resale, sundry debtors, prepayments and accrued income not identified elsewhere.

B900_5010 Direct credit substitutes These relate to the financial requirements of Counterparty where the risk of loss to the Authorised Firm on the transaction is equivalent to a direct claim on the Counterparty. Include here • Guarantees of a financial nature to stand behind the current

obligations of customers (e.g. loan guarantees); • Guarantees of leasing operations; • Letters of Credit and Stand-by Letters of Credit to the extent

that they do not qualify for inclusion in item no. B900_5030 “Trade related contingents” below;

• Guarantees of a capital nature such as undertakings given to a non bank financial company which are considered as capital by the appropriate regulatory body. Guarantees given to a company not connected to the reporting institution should be risk weighted at 100% and those for connected companies should be deducted from the reporting institution’s capital base.

• Acceptances granted and risk participation in bankers’ acceptances. Where the reporting institution’s own acceptances have been discounted by that institution the nominal value of the bills held should be deducted from the nominal amount of the bills issued under the facility and a corresponding on balance sheet entry made.

B900_5020 Transaction related contingents

These exposures relate to the on-going trading activities of a Counterparty where the risk of loss to the reporting institution depends on the likelihood of a future event which is independent of the creditworthiness of the Counterparty. They are essentially guarantees that support particular non financial obligations rather than a customer’s financial obligations. Include here: • Advance payment guarantees • Performance bonds including bid or tender bonds, warranties

and indemnities (indemnities given for lost share certificates or bills of lading and guarantees of the validity of papers rather than of payment under certain conditions should be reported here);

• Stand by Letters of Credit relating to a particular contract or to non financial transactions (including arrangements backing, inter alia, subcontractors’ and supplier’s performance, labour and materials, contracts and bids).


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B900_5030 Trade related Contingents Report short term self-liquidating trade related items such as

documentary letters of credit issued by the reporting institution that are collateralised by the underlying shipment i.e. the credit provides for the reporting institution to retain title to the underlying shipment. L/C’s issued without provision for the reporting institution to retain title to the underlying shipment should be reported under direct credit substitutes above.


Only report here sale and repurchase agreements where the asset sold is not reported on the balance sheet. Where the asset is off balance sheet, the appropriate Counterparty weighting is determined by the issuer of the security and not according to the Counterparty with whom the transaction has been undertaken.

B900_5050 Forward Assets Purchases The appropriate Counterparty weighting should be determined by the asset to be purchased and not the Counterparty with whom the contract has been entered into. Include commitments for loans and other on balance sheet items with certain drawdown. Exclude foreign currency spot deposits with value date of up to two working dates after trade date.

B900_5060 Forward Deposits Placed Relates to agreements between two parties whereby one will pay and the other receive an agreed rate of interest on a deposit to be placed by one with the other at some pre-determined rate in the future. The weight should be determined according to the Counterparty with whom the deposit will be placed. Exclude foreign currency spot deposits with value date of up to two working dates after trade date.


Only include here if there is a specific date for a call. If there is no specific date for a call, the item should be included as a long term commitment under item no. B900_510T, “Other Commitments”.

B900_5080 NIF’s and RUF’s Note issuance and revolving underwriting facilities should include the reporting institutions underwriting obligations of any maturity. Where the facility has been drawn down by the borrower and the notes are held by someone other than the Authorised Firm, the underwriting obligation should continue to be reported at the nominal amount.

B900_5090 Endorsement of Bills These should be reported at the full nominal amount, less any amount for bills which the institution now holds but had previously endorsed. Endorsement of bills not accepted by banks will attract the Counterparty risk weighting of the issuer. If it has been endorsed by another bank, a reduced risk weighting applies.

B900_510T Other Commitments All other undrawn commitments are reportable here, divided into commitments under and over one year.

B900_5210 Assets funded by restricted PSIAs



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Statement of Total Liabilities B900_610T Deposits Separately identify deposits due to the financial institutions in

item B900_6002. All other deposits are to be reported in the other deposit section, item B900_6004.

B900_630T Total Provisions All specific and general provisions in respect of Loans and Advances and other receivables should be reported here. Exclude provisions against Islamic contracts which should be reported in item no B900_6640.


Liabilities arising from Islamic contracts include advances received against Salam contracts (defined in Para 3 and 19 of FAS 7 issued by AAOIFI and Ijarah investment payables (refer to FAS 8 of AAOIFI).

B900_6010 and B900_6020

Creditors and other Liabilities

Report all items not included in any of the above, such as proposed dividends payable, sundry accruals and deferred income etc.

B900_6400 Derivative financial instruments – held for trading

Include, but are not limited to, liabilities arising out of positions representing the following instruments, recorded at fair value: Forward and Futures contracts in Currencies, Interest rates and other financial assets Forward rate agreements Currency and interest rate swaps Credit derivatives Option contracts on currency, interest rate and other financial assets. These derivatives include both the exchange-traded and over-the-counter versions.

1.23 Instructional Guidelines – Form B90 – Appendix 1 – Large Exposures - Branch Purpose Form B90A1 is intended to capture the information regarding the Large Exposures undertaken out of the branch by an Authorised Firm. Applicability This form is applicable to the Authorised Firms operating through branches in the DIFC, except for the branches in prudential category 4.


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Content The form is designed to capture information pertaining to the Authorised Firm’s 20 Largest Exposures to Unconnected Counterparties and 10 Largest Exposures to Connected Counterparties. Further details are sought in respect of these Exposures such as type of Counterparties, provisioning amount etc which are explained under the Instructional Guidelines section below. Instructional Guidelines 1. An Authorised Firm operating through a branch presence is required as part of its general

systems and controls obligations, to identify and manage the exposures agreed and undertaken by its operations.

2. The 20 largest exposures, in absolute terms, to unconnected counterparties should be

listed in the first table and the 10 largest exposures, again in absolute terms, to connected counterparties should be listed in the second table.

Item Instructional Guidelines Twenty Largest Exposures (Unconnected)

Include in this table the twenty largest exposures to all types of Counterparty except those that are connected to the branch. Exposures to individual, or groups of closely related, counterparties should be reported in descending order by size. Exposures to individual counterparties which constitute a group of closely related counterparties should be reported as one aggregate exposure.

Counterparty The identity of a Counterparty, as defined in the Glossary, in this context will generally be one of the categories as set out in PIB Rule A4.8.6.

Unconnected – Financial, Unconnected – Other, Government

The Authorised Firm should clarify here into what category an exposure falls. These are set out in detail in PIB Rules A4.8.7 to A4.8.11 but for the purposes of this form, an Authorised Firm should state whether an Exposure is to: i. an Unconnected Counterparty or group of Closely Related Counterparties that are

predominantly comprised of financial businesses; ii. an Unconnected Counterparty or group of Closely Related Counterparties that are

predominantly comprised of non-financial businesses; iii. Central governments and central banks.

Amount of exposure at risk

For exposures arising in the Non-Trading Book the amount at risk should, with certain exceptions detailed below, be reported as the book value of the Authorised Firm’s actual or potential claims, contingent liabilities or assets. Exposures should be calculated in accordance with internationally or AAOFI accepted accounting practice. For exposures arising in the Trading Book, all positions should be marked-to-market daily. Where a market determined price is not readily available, the Authorised Firm may generate its own mark-to-market valuation. Positions should be valued in accordance with the procedures outlined in the Authorised Firm’s trading book policy statement. This is set out in more detail in PIB Rules A4.8.13 to A4.8.31.

Exposure as a percentage of company’s equity

The branch should use as the denominator the amount its head office has available as regulatory capital (e.g. financial resources). This is intended to provide DFSA with a guide as to the relative size and importance of the exposure for the financial institution as a whole.

Specific bad debt provision

Include here the amount of specific bad debt provision that may have been made against a particular exposure.

Reduction by netting, collateral etc.

As set out in PIB Rule 4.5.6 (d) (ii), the value of an exposure can be reduced through the following:

• Collateral – discussed in more detail in PIB Section 4.6 and Rule A4.8.32 • Netting – discussed in more detail in PIB Sections 4.7 and A4.9


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• Securitisation – discussed in more detail in PIB Sections 4.8 and A4.10 • Credit derivatives – discussed in more detail in PIB Sections 4.9 and A4.11.

Exposure at reporting date after eligible set-offs

Column ”Amount of exposure at risk” less the amounts in Columns ”Specific bad debt provision” and “Reduction by netting, collateral & other set-offs”.

Amount of this exposure financed by own assets or unrestricted PSIAs

For Exposures arising out of Islamic business, this column should be used to quantify the amount of the Exposure that is financed by the Authorised Firm’s own assets or by unrestricted PSIA assets.

Amount of this exposure financed by restricted PSIAs.

For Exposures arising out of Islamic business, this column should be used to quantify the amount of the Exposure that is financed by restricted PSIA assets.

Ten Largest Exposures (Connected)

Include in this table the ten largest exposures to connected counterparties i.e. the dis-aggregated detail of all connected lending and exposures should be split into different counterparties within the connected group.

1.24 Instructional Guidelines - Form B120 – Geographical

Distribution of Assets and Liabilities

Purpose Form B120 is intended to capture the information regarding geographical distribution of assets and liabilities of an Authorised Firm at the end of the reporting period. Applicability This form is applicable to the Authorised Firms categorised under prudential categories 1 and 5. Content The information reported covers claims, other exposures, and liabilities booked by the Authorised Firm at the DIFC office and its branches. The level of consolidation for this return should be the same as that for the balance sheet. The positions of the subsidiaries carrying out the Financial Services of Accepting Deposits and Providing Credit are to be consolidated into this return. Structure of the form in EPRS The form is split into three linked forms, namely, Part I – Claims Immediate Borrower Basis, Part II - Other and Part III – Liabilities. In Part I – Claims Immediate Borrower Basis information regarding all the claims and other exposures are to be entered. In the second linked form (Part II – Other) mainly the information regarding the risk transfers i.e. claims on immediate borrowers that can be reallocated to the country sector where the final risk lies, i.e., the entity of ultimate risk is to be reported by way of outward and inward risk transfers.


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The third linked form (Part III – Liabilities) captures the information regarding the geographical distribution of various liabilities of an Authorised Firm. Note: A comprehensive list of countries has been provided within the EPRS system. Therefore, for providing country wise breakdown of the amounts right click on the row ‘Country Code’ in each of the linked forms and select the necessary countries from the list that would appear.

Instructional Guidelines 1. The residency of counterparties on both an immediate borrower and ultimate risk basis is

to be reported.

2. All claims and other exposures are to be reported gross of any provisions for impairment. Accrued interest is to be excluded from all parts of the return. Exclude all gold and silver balances, foreign coin, foreign government or bank notes, net debit or credit items in transit vis-à-vis third parties and amounts reported as insurance-related assets and liabilities.

3. Claims, other exposures, and liabilities are to be initially classified on a geographical

basis according to the mailing address of the Counterparty, unless the Authorised Firm is aware that the resident status of the Counterparty is different from their mailing address.

Risk transfers

4. Information on claims on immediate borrowers that can be reallocated to the country

sector where the final risk lies, i.e., the entity of ultimate risk, is to be reported by way of outward and inward risk transfers.

5. In line with the risk reallocation principle for measuring country exposure recommended

by the Basel Committee on Banking Supervision, the country of ultimate risk or where the final risk lies is defined as the country in which the guarantor of a financial claim resides or the country in which the head office of a legally dependent branch is located.

6. Claims on separately capitalized subsidiaries can only be considered as being guaranteed

by the head office if the parent has provided an explicit guarantee. Collateral may be considered as an indicator of where the final risk lies to the extent that it is recognized as a risk mitigant under the Basel Capital Accord. The following is a list of eligible collateral:

a. cash on deposit with the lending bank including certificates of deposit or

comparable instruments issued by the lending bank b. gold c. debt securities rated by a recognised external credit assessment institution where

these are:

i. rated at least BB- when issued by sovereigns and public sector entities (PSEs) that are treated as sovereigns by the national supervisor;

ii. rated at least BBB- when issued by other issuers (including banks and

securities firms); or


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iii. rated at least A2/P3;

d. debt securities not rated by a recognised external credit assessment institution

where these are:

i. issued by a bank; ii. listed on a regulated exchange; iii. qualify as senior debt; iv. all other rated issues of the same seniority by the issuing bank are rated at

least BBB- or A3/P3 by a recognized external credit assessment institution;

v. the bank holding the securities as collateral has no information to suggest

that the issue justifies a rating below BBB- or A3/P3 (as applicable); and vi. the supervisor is sufficiently confident about the market liquidity of the

security;

e. equities that are included in a main index; f. equities that are not included in a main index but are listed on a regulated

exchange; and g. Domestic or Foreign Funds where:

i. a price for the Units is publicly quoted daily; and ii. the Fund is limited to investing in the instruments listed in this section.

7. If credit derivatives are used to cover the Counterparty risk of financial claims in the banking book, the country of ultimate risk of these positions is defined as the country in which the Counterparty to the credit derivative contract resides. However, credit derivatives, such as credit default swaps and total return swaps, that belong to the trading book of the protection buying reporting bank should only be reported under the “Derivatives” category, and all other credit derivatives should be reported as “guarantees” by the protection seller (see guarantees and other unused credit commitments below).

Reporting of Credit derivatives

Buy protection Sell protection Banking book Risk transfers Guarantees Trading book Derivatives Guarantees

8. In the case of security holdings, such as credit-linked notes and other collateralised debt

obligations and asset-backed securities, a “look-through” approach should be adopted and the country of ultimate risk is defined as the country where the debtor of the underlying credit, security or derivative contract resides.


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9. Note that inward and outward risk transfers are used to report transfer of risk from one sector to another sector, even when the country of the immediate borrower and the country of ultimate risk are the same. Where banks are unable to allocate outward risk by country because the protection has been purchased to cover a group, e.g., an industry exposure, banks are to use a reasonable weighted-average allocation formula, eg. weighted-average based on total claims of the group. Amounts involved in such allocations should be insignificant.

Example

10. The following example demonstrates a risk transfer. A borrower in country XXX

borrows USD $1 million bank and the repayment of that loan is guaranteed by another entity in country YYY. For purposes of risk transfer, this transaction would be reported as follows:

Country Name Loans Outward Risk

Transfer Inward Risk Transfer XXX 1000 1000 YYY 1000

11. The data in line 1 tell us that the bank has a $1 million claim on a borrower located in

country XXX, and this claim is guaranteed by a resident of another country. Line 2 data tell us that the residents of country YYY have provided an unconditional credit commitment for the claims the bank has on the residents of another country. Note that the total of the "Outward Risk Transfer" column and the "Inward Risk Transfer" column (columns 3 and 4 in the above example) will be the same.

12. The following equation illustrates how to derive claims on an ultimate risk basis:

Total Claims - Outward Risk

Transfer + Inward Risk

Transfer = Total Claims (Immediate Borrower

Basis) (Ultimate Risk

Basis)

Derivatives

13. Authorised Firms are to provide data on financial claims (i.e., positive market values) resulting from derivative contracts, independent of whether they are booked as on- or off-balance sheet items. The data should be reported on an ultimate risk basis, i.e., the positions should be allocated to the country where the final risk lies. The data would, therefore, mainly comprise forwards, swaps and options relating to foreign exchange, interest rate, equity, commodity and credit derivative contracts. As previously indicated, credit derivatives that are used to cover for the Counterparty risk of financial claims in the banking book should be reported as “risk transfers” and not as derivatives.

14. The following items are common OTC derivative instruments:


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Forward contracts 15. Forward contracts represent agreements for delayed delivery of financial instruments or

commodities in which the buyer agrees to purchase and the seller agrees to deliver, at a specified future date, a specified instrument or commodity at a specified price or yield. Forward contracts are not traded on organised exchanges and their contractual terms are not standardised. Forward contracts are to be reported that have been entered into by the reporting bank and are outstanding (i.e., open contracts) as at the reporting date. Contracts are outstanding (i.e., open) until they have been cancelled by acquisition or delivery of the underlying financial instrument or commodity or settled in cash.

Swaps 16. Swaps are transactions in which two parties agree to exchange payment streams based on

a specified notional amount for a specified period.

OTC options 17. Option contracts convey either the right or the obligation, depending upon whether the

reporting institution is the purchaser or the writer, respectively, to buy or sell a financial instrument or commodity at a specified price up to a specified future date. OTC option contracts include all option contracts not traded on an organized exchange. These include: swaptions, i.e., options to enter into a swap contract, and contracts known as caps, floors, collars, and corridors. Options such as call features embedded in loan, securities and other on-balance-sheet assets are not to be included. Sold options are not considered a financial claim and therefore are not to be included under derivatives.

Guarantees and Other Unused Credit Commitments

18. Data must be supplied on exposures to the reporting bank via guarantees and unused

credit commitments other than guarantees. These are to be reported on an ultimate risk basis, i.e., the positions allocated to the country where the final risk lies. Both types of data should be reported to the extent that they represent the unutilised portion of both binding contractual obligations and any other irrevocable commitments. Performance bonds and other forms of guarantee should only be reported if, in the event of the contingency occurring, the resulting claims would have an impact on total balance sheet claims. A more detailed definition of guarantees and other credit commitments and a non-exhaustive list of typical instruments that qualify as guarantees and other credit commitments is provided below.

19. ”Guarantees” are contingent liabilities arising from an irrevocable obligation to pay to a

third-party beneficiary when a client fails to perform some contractual obligation. They include secured, bid and performance bonds, warranties and indemnities, confirmed documentary credits, irrevocable and standby letters of credit, acceptances and endorsements. Guarantees also include the contingent liabilities of the protection seller of credit derivative contracts.


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20. “Other unused credit commitments” are arrangements that irrevocably obligate an institution, at a client’s request, to extend credit in the form of loans, participation in loans, lease financing receivables, mortgages, overdrafts or other loan substitutes or commitments to extend credit in the form of the purchase of loans, securities or other assets. Normally commitments involve a written contract or agreement and some form of consideration, such as a commitment fee. This definition is identical to that used in the capital adequacy return. Include customers’ liability under acceptances (Assets 13 of the month-end balance sheet). Do not include such items as letters of awareness or intent, comfort letters, or similar documents.

Specific Guidance First linked form – Part I – Claims – Immediate Borrower Basis

Item Instructional Guidelines Country Code For the relevant exposure, enter the country code found on the List of

Country Codes. Deposits Report deposits with banks or official monetary institutions according to the

location of the office where the deposit is held.

Securities Report short term and long term securities and equities. Short term securities are those with an initial term of less than 1 year.

Loans Report loans at book value gross of provisions for impairment. Distribution of claims by residual term to maturity

The maturity should reflect amortisation periods or final maturity dates rather than interest adjustments or rollover dates. Instalment loans should be allocated to the periods in which instalment payments are made. Demand loans should be classified as claims with a maturity of less than one year. Equities should be reported as unallocated.

Second linked form – Part II - Other

Item Instructional Guidelines Outward Risk Transfer Report the amounts which are guaranteed or assured through some type of

commitment by a party in another country or by another sector in the same country.

Inward Risk Transfer Report the amount of any guarantees and other types of credit commitments made by residents of other countries or by another sector in the same country.

Total Claims ultimate risk basis

Report the total "claims - immediate borrower basis" less "outward risk transfers" plus "inward risk transfers".

Other Exposures ultimate risk basis

Report separate amounts for guarantees, derivatives and other as previously defined.


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Third linked form – Part III - Liabilities Item Instructional Guidelines Official Monetary Institutions

Report deposits payable to official monetary institutions.

Other Banks Report deposits payable to other banks. Other Liabilities Report any other liabilities.

1.25 Instructional Guidelines – Form B130 – Provisions for Impairment Purpose Form B130 is intended to capture the information regarding the provisions for impairment of assets of an Authorised Firm. Applicability This form is applicable to the Authorised Firms categorised under prudential categories 1 and 5. Content The information reported covers movement in the specific and general provisions in respect of various categories of assets such as Mortgage Loans, Non- Mortgage Loans, Deposits with the Financial Institutions, Securities and Off – Balance sheet items. Instructional Guidelines All figures relating to income statement items, other expense accounts, volumes, activity levels, number of accounts or units sold/traded and any other data relating to amounts invested/deposited except outstanding balances in any of the quarterly returns must correspond to the current reporting period (quarter) and not cumulative or year-to-date amounts.

Item Instructional Guidelines Opening Balance Report the provisions as at the end of the previous period. Charge from Profit and Loss

The additional provisions that management considers adequate to reduce the recorded investment in the firm's books net of other movements. The amount of provisions should be the same as recorded on the profit and loss statement.

Write offs The reduction of provisions due to a write off of the corresponding investment.

Recoveries The increase of provisions due to funds recovered from an investment that had previously been written off.

Other Include and specify any other credit related adjustments to provisions occurring during the period.


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Closing Balance This item is calculated by EPRS as the opening balance adjusted by the items in ’Charge from P&L”, ‘Write offs, ‘Recoveries’ and ‘Other adjustments’

1.26 Instructional Guidelines – Form B140 – Exposures in Arrears

Purpose Form B140 is intended to capture the information regarding the Exposures/Assets in arrears or past due. Applicability This form is applicable to the Authorised Firms categorised under prudential categories 1 and 5. Content The information reported covers amount of exposure broken down into different time brackets such as exposures over due for less than 30 days, between 30 and 59 days etc, in respect of various categories of assets/exposures such as Mortgage Loans, Non- Mortgage loans, deposits with the Financial Institutions, Securities and Off – Balance sheet items.




2. The Amount should be the total of the exposures corresponding to the time in arrears

from the day on which the payment for the exposure was due as per the contractually agreed terms. The Amount should be gross of any provisions for impairment.

3. The number of exposures should be the total number of exposures corresponding to

relevant amount. 4. The provision applied should be the specific provision applied to the relevant amount. 5. Authorised Firms in category 1 and 5 are required to complete this form in respect of its

exposures in arrears.


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1.27 Instructional Guidelines – Form B150 – Investment Activity Schedule

Purpose Form B150 – Investment Activity is intended to capture the details of the investments held by the Authorised Firm on its own account, i.e. on its own balance sheet at the end of the reporting period. Applicability This form is applicable to the all the Authorised Firms irrespective of their prudential category, including Islamic Financial Institutions (IFI) and Authorised Firms operating as branches in the DIFC. Content The form is designed to capture information pertaining to the investments carried on the Authorised Firm’s balance sheet. Specifically the form captures the detailed break-up of investments across different classes of financial instruments, the geographical distribution of investments and the sectoral distribution of the entities into which the investments have been made. The form also seeks to obtain the composition of investments in terms of currency of denomination across three main currency categories – USD, UAE Dirham and Other Currencies. Authorised firms are required to report the investments made to deploy their capital funds, though they do not do it as part of their business. However, investments held by an Authorised Firm as part of its Client Assets should not be included in this form. bear in mind the following general factors while using the guidelines given below to complete the form. (a) Authorised firms are expected to determine the classification of their

investments for reporting on the basis of the economic import of the investment and its risk-return profile rather than on the basis of specific nomenclature for the transaction/product involved.

(b) In cases where the investments are made in special-purpose vehicles

or structured products, the nature and characteristics of the underlying assets or cash-flow streams should be considered while determining its sectoral and geographical classification.

(c) Although the investments have to disclosed across three different

currency bases, the reporting amounts will always be in US Dollars. Consequently, the value of the investments classified under UAE Dirham and Other Currencies need to be translated into US Dollars, using relevant exchange rates and reported in the respective columns.


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(d) The total investments in each part of the form need to be the same as in the other parts and must equal the total investments reported in form B10 – Statement of Financial Position.

Structure of the form in EPRS B150 is a single form with three main parts. The first part involves splitting the investments across different types of instruments. The total investments will automatically be reflected in item # B150_100T. The details of investments made using derivatives are to be disclosed in the next part. Subsequent parts of the form require the Authorised Firm to classify its investments across two different dimensions - the geographical distribution of investments and the sectoral distribution. Sectoral distribution involves classifying investments in terms of the sector in which the investee entity/vehicle operates. Every category of investments resulting from the classifications referred above are required to be disclosed in three broad classes of currency of denomination – US Dollar, UAE Dirham and other currencies. The form provides three columns to report the three different currency bases for every category of investment. Authorised Firm is required to ensure that the total investments reported in each of the three main parts are equal to each other. The total investments must also be equal to the amount of total investments reported on the applicable statement of financial position, Form B10, Form B20 or Form B90.


1. Part I: Classification of investments by asset class: The different asset classes and the

underlying asset categories are described in the title column which render them self explanatory, except for the following specific points.

2. B150_1110 - Government Securities: Include debt securities with original maturity of

366 days or less, issued by sovereign governments or issuers of sovereign risk. These securities can be denominated in any currency.

3. B150_1120 - Government Bonds: Include debt securities with original maturity of

more than 366 days, issued by sovereign governments or issuers of sovereign risk. These securities can be denominated in any currency.

4. B150_1130 – Sub-Sovereign Debt: Include debt securities issued by emirate/ state /

provincial governments, municipal authorities, agencies of the government which carry do not represent sovereign risk. These securities can be denominated in any currency.

5. B150_1140 – Issuance by Public sector enterprises: Include debt securities issued by

corporate entities which are wholly or majority owned by federal/state governments.


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6. B150_1150 to B150_1195: These items are self-explanatory.

7. B150_1210 to B150_1230: These items in the section titled Hybrid debt & preferential shares are intended to capture data on amount of investments made in all forms of hybrid debt and quasi-equity instruments. These typically include, but are not limited to, convertible bonds, preference shares etc.

8. B150_1310 to B150_2500: These items in the sections titled Equity, Other Assets &

Derivatives are self-explanatory, except for B150_1420 – Stakes in SPVs. Include investments made in Special Purpose Vehicles (SPVs) including but not limited to those used for cash-flow securitisations, asset securitisations, project financing, structured credit transactions and for ship/aircraft financing.

9. B150_3100 to B150_500T: These items in the sections titled Geographic distribution,

sectoral distribution and currency denomination of investments are self-explanatory, except for those indicated below.

10. B150_4230 – Others: Include all investments made where the investee entities do not

lend themselves to be classified under any of the sectors listed under this section.

11. B150_500T – This row titled “Total Investments based on currency denomination” leads to a linked form. To reach the linked form, right-click on the green cell in the fourth column titled “Total” and choose “Linked Form” in the pop-up box.

12. The linked form provides for addition of any currencies which the Authorised Firm

wishes to use for reporting its investments. To add currencies, click the icon in the first column on the left which opens a dialogue box listing the entire universe of currencies. User will choose the currencies on which reporting is required to be done by clicking on the code numbers for the currency listed in the dialogue box. On completing the selection of all the currencies required, the user clicks OK button at the bottom of the window. This will bring the user back to the linked form where all the chosen currencies are listed. The user can then report all the investments against the selected currencies.

1.28 Instructional Guidelines – Form B160 – Credit Activity Schedule Purpose Form B160 – Credit Activity is designed to capture the details of the credit activity of the Authorised Firms carried out by way of business, on both dimensions of outstanding credit at the end of the reporting period and fresh credit delivery during the reporting period.


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Applicability This form is applicable to Authorised Firms licensed to carry out the financial service of Providing Credit. Such authorised firms are likely to be included in prudential categories 1 & 5. This includes Authorised Firms operating as branches in the DIFC and Islamic Financial Institutions (IFI) in prudential category 5. Content The form is intended to capture information pertaining to the outstanding credit carried on the Authorised Firm’s balance sheet and the amount of fresh credit delivered by the firm. Specifically the form captures the detailed break-up of credit across: (a) different types of borrowers (referred to as counterparties in the form);

(b) by product category;

(c) by domicile of the borrower;

(d) maturity of the credit exposure;

(e) the sector in which the borrower(s) operate; and

(f) by the currency of denomination of the credit. The form also seeks to collect information on the types of unfunded or off-balance sheet credit exposures and on the currency distribution of the credit activity. Authorised Firms are required to report all exposures, with a risk-reward profile similar to that of credit in this form. Although the list of typical credit products is provided in the second section of the form, all exposures resembling credit, like lease, hire purchase etc must also be included as part of the information reported in this form. For sake of consistency, the instructions provided herein uses the term “Credit” to refer to all types of lending, including but not limited to Loans, advances, mortgages, structured credit, revolving credit, self-liquidating short-term credit, lease, Hire Purchase etc. Authorised firms are required to report all the credit activity in USD terms, including the amounts they report in respect of the credit activity denominated in different currencies. In the last section of the form collecting data on credit activity across different currencies, firms are also required to categorise the credit provided between group companies & related counterparties, banks & financial institutions and other customers.


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Structure of the form in EPRS B160 is a single form with two main parts. The first part has six sections, each of which involves classifying total credit activity across one of the dimensions referred above. The second part is in a linked form which seeks classification of credit activity in terms of the currency in which credit is provided. In respect of every category of credit resulting from the classifications referred above, Authorised Firms are required to be disclose total outstanding credit and total credit provided in the reporting period. The total outstanding credit classified under each section must be the same and must equal the total credit reported in form B10, B20 or B90, whichever is applicable.




2. Part I: Classification of credit by type of borrower or counterparty: The different types of

borrowers for which data is to be reported are listed in the title column which render them self explanatory, except for the following specific points.

3. B160_1010 – Credit to Sovereign Governments and Central Banks: Include credit to

sovereign governments, central banks or issuers of sovereign risk. This will include all reserve requirements maintained with central banks.

4. B160_1020 – Credit to sub-sovereign entities: Include credit to emirate/ state / provincial

governments, municipal authorities, agencies of the government which do not represent sovereign risk.

5. B160_1030 – Credit to Public sector enterprises: Include credit (Loans and advances of

all types) provided to corporate entities which are wholly or majority owned by federal/state governments.

6. B160_1040 to B160_2110: These items are self-explanatory.

7. B160_2120 – Loans collateralised by other assets: Include lease and hire purchase

exposures, wherein the underlying equipment or assets provide cover for the credit.

8. B160_3010 to B160_3090 – Geographical distribution of credit: The classification in this section is intended to be mutually exclusive. For example, reporting of credit to borrowers domiciled in the GCC, B160_3040 should not include the credit to borrowers in the DIFC or those in the UAE, because they are reported in the previous three items. Similarly, credit reported in B160_3050 should not include the credit reported in B160_3040 and the previous items.


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9. B160_4010 to B160_6030: These items in the sections addressing classification by maturity, sectoral distribution, unfunded credit and currency denomination of credit are self-explanatory, except for those indicated below.

10. B160_5130 – Others: Include all credits made where the borrowers do not lend

themselves to be classified under any of the sectors listed under this section.

11. B160_700T – This row titled “Total Credits based on currency denomination” leads to a linked form. To reach the linked form, right-click on the green cells in either of the two columns on the right and choose Linked Form in the pop-up box.

12. The linked form provides for addition of any currencies which the user wishes to use for

reporting its credits. To add currencies, click the icon in the first column on the left which opens a dialogue box listing the entire universe of currencies. User will choose the currencies on which reporting is required to be done by clicking on the code numbers for the currency listed in the dialogue box. The currencies thus chosen can be seen on the right hand side window. On completing the selection of all the currencies required, the user clicks OK button at the bottom of the window. This will bring the user back to the linked form where all the chosen currencies are listed. The user can then report all the credits against the selected currencies.

1.29 Instructional Guidelines – Form B170 – Acceptance of Deposits Schedule Purpose Form B170 – Acceptance of Deposits is designed to capture the details of the deposit taking activity of the Authorised Firms carried out by way of business, on both dimensions of outstanding amount at the end of the reporting period and fresh deposit inflows during the reporting period. Applicability This form is applicable to Authorised Firms in the prudential category 1, which are licensed to carry out the financial service of Accepting Deposits. These include Authorised Firms operating as branches in the DIFC. Content The form is intended to capture information pertaining to the outstanding amount of deposits owed by and reported on the Authorised Firm’s balance sheet and the amount of deposits raised by the firm during the reporting period. Specifically the form captures the detailed break-up of deposits across: (a) different types of depositors;

(b) type of deposits;


PRU-EPRS/VER1/12-07

(c) geographic diversification of the depositor;

(d) maturity of the deposits; and

(e) Currency denomination of deposits.

The form also seeks to collect the data composition of deposits as described above, except for the distribution across currencies, in terms of USD deposits and deposits raised in other currencies separately. Authorised firms are required to report all data on deposits in USD terms, including the data on deposits raised in other currencies. Authorised Firms are required to report all deposits which meet the definition provided in appendix 1 of the GEN module of the DFSA Rulebook. Authorised Firms involved in managing PSIA accounts for its customers need not report the amounts involved in such PSIA accounts in this form. Structure of the form in EPRS B170 has a main form with a linked form, wherein the main form has four sections, each of which involves classifying total deposits across one of the dimensions referred above. The linked form seeks classification of deposits accepted in terms of the currency in which they are denominated. In respect of every category of deposits resulting from the classifications referred above, Authorised Firms are required to disclose total outstanding deposits at the end of the reporting period and the total deposits raised during the reporting period. The total outstanding deposits reported under each section must be the same and must equal total deposits reported in form B10, B20 or B90, whichever is applicable.




2. Section I: Classification of deposits by type of depositor: The different types of

depositors for which data is to be reported are listed in the title column which render them self explanatory, except for the following specific points.

3. B170_1010 – Individuals: This refers to all the individual depositors who have made the

deposits on their own name. Include also deposits made by personal investment vehicles of individual investors which usually, but are not limited to take the form of trusts, investment companies etc.

4. B170_1050 – Sovereign, sub-sovereign entities and PSEs: Include deposits raised from

sovereign governments, emirate/ state / provincial governments, municipal authorities, agencies of the government which do not represent sovereign risk. Also include deposits


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accepted from corporate entities which are wholly or majority owned by federal/state governments.

5. B170_3010 to B160_3060 – Geographical distribution of depositors: The classification in

this section is intended to be mutually exclusive. For example, reporting of deposits from the MENA, B170_3020 should not include the deposits raised from the GCC, because it is reported in the previous item.

6. B170_500T – This row titled “Total (Currency) leads to a linked form. To reach the

linked form, right-click on the green cell in the right-most column of this row and choose Linked Form in the pop-up box.

7. The linked form provides for addition of any currencies which the user wishes to use for

reporting deposits. To add currencies, click the icon in the first column on the left which opens a dialogue box listing the entire universe of currencies. User will choose the currencies on which reporting is required to be done by clicking on the code numbers for the currency listed in the dialogue box. The currencies thus chosen can be seen on the right hand side window. On completing the selection of all the currencies required, the user clicks OK button at the bottom of the window. This will bring the user back to the linked form where all the chosen currencies are listed. The user can then report the data regarding deposits against the selected currencies.

1.30 Instructional Guidelines – Form B180 – Wealth Management Activity Purpose Form B180 – Wealth Management is designed to capture the data regarding wealth management of the Authorised Firms, including both the business arising out of accounts booked in the DIFC and accounts booked elsewhere. Applicability This form is applicable to Authorised Firms licensed to deal in investments as an agent or advise on financial products or credit or arrange transactions in investments or credit. These include Authorised Firms operating as branches in the DIFC. Content The form is intended to capture information pertaining to the number of customers, net new assets during the reporting period and the total assets under management of the Authorised Firm. The form captures the composition of these data for both accounts booked in the DIFC and for accounts booked elsewhere. The form seeks classification of the data across discretionary and non-discretionary investment accounts as well as across domicile of the clients. The form also seeks to collect information on the booking destination of the accounts, which are not booked in the DIFC.


PRU-EPRS/VER1/12-07

Authorised firms are required to report all data on assets under management in USD terms, including the assets denominated in other currencies. Authorised Firms are required to report all accounts of their clients, including accounts booked other than in the DIFC for which the firm provides only investment advisory or arranging services Authorised Firms involved in managing PSIA accounts for its customers are required to include the data on such PSIA accounts as part of the data on discretionary accounts – item B180_1010. Structure of the form in EPRS B180 is a single form which has three sections. The first section seeks the composition of data between discretionary and non-discretionary accounts, while the second section seeks classification of the data across broad geographical segments of the client base. The third section seeks the data on accounts booked other than in the DIFC, to be classified across the different booking centres where such accounts are normally booked. The first three columns pertain to accounts booked in the DIFC and seek data on number of accounts, net new assets added during the reporting period and the total assets under management on the reporting date. The next three columns seek the same data on accounts booked in centres other than in the DIFC.



2. The data being sought in all the three sections of this form are self explanatory given the

description provided in the title column, except for the following specific points. 3. Second section on domicile of customers: The classification in this section is intended to

be mutually exclusive. For example, information on accounts of customers domiciled in the GCC & MENA, B180_2030 should not include the accounts of customers domiciled in the UAE or in the DIFC, because they are reported in the previous two items. Similarly, data reported in B180_2020 should not include the accounts reported in B180_2010.


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1.31 Instructional Guidelines – Form B190 – Asset Management, Custody & Trust services Purpose Form B190 – This form is designed to capture the data regarding wealth management of the Authorised Firms, including both the business arising out of accounts booked in the DIFC and accounts booked elsewhere. Applicability This form is applicable to Authorised Firms licensed to deal in investments as an agent or advise on financial products or credit or arrange transactions in investments or credit. These include Authorised Firms operating as branches in the DIFC. Content The form is intended to capture information pertaining to the number of customers, net new assets during the reporting period and the total assets under management of the Authorised Firm. The form captures the composition of these data for both accounts booked in the DIFC and for accounts booked elsewhere. The form seeks classification of the data across discretionary and non-discretionary investment accounts as well as across domicile of the clients. The form also seeks to collect information on the booking destination of the accounts, which are not booked in the DIFC. Authorised firms are required to report all data on assets under management in USD terms, including the assets denominated in other currencies. Authorised Firms are required to report all accounts of their clients, including accounts booked other than in the DIFC for which the firm provides only investment advisory or arranging services. Authorised Firms involved in managing PSIA accounts for its customers are required to include the data on such PSIA accounts as part of the data on asset management services for Discretionary PMS for High Net Worth Individuals (HNWIs) in the first table of the form. Structure of the form in EPRS B180 is a single form which has three sections. The first section seeks the composition of data between discretionary and non-discretionary accounts, while the second section seeks classification of the data across broad geographical segments of the client base. The third section seeks the data on accounts booked other than in the DIFC, to be classified across the different booking centres where such accounts are normally booked.


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The first three columns pertain to accounts booked in the DIFC and seek data on number of accounts, net new assets added during the reporting period and the total assets under management on the reporting date. The next three columns seek the same data on accounts booked in centres other than in the DIFC.




description provided in the title column, except for the following specific points. 3. Second section on domicile of customers: The classification in this section is intended to

be mutually exclusive. For example, information on accounts of customers domiciled in the GCC & MENA, B180_2030 should not include the accounts of customers domiciled in the UAE or in the DIFC, because they are reported in the previous two items. Similarly, data reported in B180_2020 should not include the accounts reported in B180_2010.

1.32 Instructional Guidelines – Form B200 – Brokerage Activity Purpose Form B200 – This form is designed to capture the data on the brokerage business of the Authorised Firms, including both the business arising out of execution of client orders as well as arranging of order executions with other market intermediaries. Applicability This form is applicable to Authorised Firms licensed to deal in investments as an agent or arrange transactions in investments or credit. These include Authorised Firms operating as branches in the DIFC.


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Content The form is intended to capture information pertaining to the number of customers, number of trades, volume of units traded and the value of the transactions over the reporting period. The form captures the composition of these data for both execution business as well as the data relating to the business of arranging for execution with other market intermediaries. The data required to be reported in respect of execution business is limited to the accounts booked by the Authorised Firm as part of its DIFC operations. Consequently, only Authorised Firms licensed to deal in investments as agent are expected to report data on this activity. Authorised Firms are required to report data relating to all accounts of their clients, including accounts booked other than in the DIFC for which the firm only arranges trades. Structure of the form in EPRS B200 is a form which has three sections. The first section seeks data on trades executed by the Authorised Firm as part of its DIFC operations, across the different product/market categories. The second section seeks data on arranging of trades across the same mix of products/markets as in the first section. The third section of the form (Brokerage by Customer type) is in a linked form, which seeks data on classification of brokerage customers by type of customers and by the domicile of customers. The total value of trades reported on both the dimensions must be the same. In the linked form which has the third section, the required data for execution business booked in each customer category segment is to be reported on the first three columns and the data on arranging of trades is to be reported on the fourth to sixth columns. Instructional Guidelines 1. All figures relating to income statement items, other expense accounts, volumes, activity



description provided in the title column, except for the following specific points. 3. B200_3100: Include all High Net Worth Individuals and any of the personal investment

vehicles, like trusts, investment companies etc. used by such clients to manage their wealth.

4. B200_3300: Include all wholesale investors who are not identified as a separate category

in this section of the form. This would include, but is not limited to, pension funds, private investment/holding companies, corporate entities, insurers and their insurance funds/cells, etc.


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5. B200_3400: Include Collective Investment Funds (CIFs) of all types – irrespective of whether they are recognised by the CI Law or Rules of the DFSA.

6. Third section on domicile of customers: The classification in this section is intended to be

mutually exclusive. For example, information on accounts of customers domiciled in the GCC & MENA, B180_2030 should not include the accounts of customers domiciled in the UAE or in the DIFC, because they are reported in the previous two items. Similarly, data reported in B180_2020 should not include the accounts reported in B180_2010.

1.33 Instructional Guidelines – Form B210 – Outward Remittances Purpose Form B210 – This form is designed to capture the data on outward remittances made by Authorised Firms, which include remittances made to entities located outside the UAE. Applicability This form is applicable to Authorised Firms carrying out banking business. This involves Authorised Firms licensed to accept deposits and provide credit and Authorised Firms classified under prudential category 5 and licensed to manage PSIAs. These include Authorised Firms operating as branches in the DIFC. Content The form is intended to capture information pertaining to the remittances made to a specified set of countries / regions and to the rest of world over the reporting period. The form seeks the data on remittances classified according to the purpose of the remittance. Authorised Firms are required to report data relating to all remittances made by them, both on their own account and those made for the benefit of their clients or on the instructions of their clients. Structure of the form in EPRS B210 is a single form which seeks data on outward remittances made to the different countries / regions listed in the columns. The data is to be provided across different purposes for which the remittances are made. The form has two sections – first section B30_010 relates to trade related to remittances and the second section which relates to non-trade related remittances. Instructional Guidelines 1. The data being sought in the form are self explanatory given the description provided in

the title column, except for the following specific points.


PRU-EPRS/VER1/12-07

2. B30_010: Include all the trade related remittances, including but not limited to payments on behalf of clients for all trade finance transactions, payments to suppliers/sellers domiciled outside the UAE, payments to banks located outside providing the trade credit for such deals.

1.34 Instructional Guidelines – Form B220 – Inward Remittances Purpose Form B220 – This form is designed to capture the data on inward remittances received by Authorised Firms, which include remittances made to customers located inside the UAE. Applicability This form is applicable to Authorised Firms carrying out banking business. This involves Authorised Firms licensed to accept deposits and provide credit and Authorised Firms classified under prudential category 5 and licensed to manage PSIAs. These include Authorised Firms operating as branches in the DIFC. Content The form is intended to capture information pertaining to the remittances received from a specified set of countries / regions and from the rest of world over the reporting period. The form seeks the data on remittances classified according to the purpose of the remittance. Authorised Firms are required to report data relating to all remittances received by them, both for their own account and those received on their client accounts. Structure of the form in EPRS B220 is a single form which seeks data on inward remittances received from the different countries / regions listed in the columns. The data is to be provided across different purposes for which the remittances are made. The form has two sections – first section B30_010 relates to trade related to remittances and the second section which relates to non-trade related remittances.


1. The data being sought in the form are self explanatory given the description provided in

the title column, except for the following specific points.


PRU-EPRS/VER1/12-07

2. B30_010: Include all the trade related remittances, including but not limited to receipts on behalf of clients for all trade finance transactions, receipts for their exports or provision of goods or services to their clients located outside the UAE, receipts from banks located outside providing the trade credit for such deals.

1.35 Instructional Guidelines – Form B230 – Domestic Fund

Activity

Purpose Form B230 – Operating CIFs is designed to capture the data regarding all types of CIFs being operated by the Authorised Firms. This scope of this form is restricted to CIFs classified as Domestic Funds as per the CI Laws and the rules in the CIR module of the DFSA Rulebook. Applicability This form is applicable to Authorised Firms licensed to operate Collective Investment Funds (CIFs) registered in the DIFC. These include Authorised Firms operating as branches in the DIFC. Content The form is intended to capture information pertaining to the number of CIFs and the assets under management for each type of CIF. The form seeks data relating to CIFs classified as per the type of fund, whether they are public or private funds and by type of investment vehicle used by the CIF. The total number of funds and the total assets under management reported must be the same for the three broad categories. Authorised firms are required to report all data on assets under management in USD terms, including the assets denominated in other currencies. Structure of the form in EPRS B230 is a single form which has three sections. The first section seeks the classification of CIFs between public and private funds. The second section seeks classification of the data across types of funds based on the asset classes, strategies or investment structures. The third section seeks the data classified as per the investment vehicle of the CIFs.

Instructional Guidelines The data being sought in all the three sections of this form are self explanatory given the description provided in the title column.


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1.36 Instructional Guidelines – Form B240 – Balances due from and due to Head Office, Own Branches & Other Banks Purpose Form B240 – This form is designed to capture the data on outstanding balances which are due from and due to banks. This data would include outstanding balances with the head office or other branches of the same bank and outstanding balances with other banks. Applicability This form is applicable to Authorised Firms carrying out banking business. This involves Authorised Firms licensed to accept deposits and provide credit and Authorised Firms classified under prudential category 5 and licensed to manage PSIAs. These include Authorised Firms operating as branches in the DIFC. Content The form is intended to capture information pertaining to the outstanding balances with other banks or with respect to its head office or with other branches/sister entities of the bank. The form seeks the data on outstanding balances classified across a specified set of countries / regions and from the rest of world over the reporting period. Structure of the form in EPRS B240 is a single form which seeks data on balances due to and due from other banks and from/to the head office classified across the different countries / regions listed in the rows. Instructional Guidelines The data being sought in the form are self explanatory given the description provided in the title column, except for the following specific points.

1.37 Instructional Guidelines– Form B260 – Acting as a Trustee of a Fund and Fund Administration Activity Purpose Form B260 is designed to capture the data pertaining to acting as a trustee of CIFs and fund administration activity. The scope of this form includes all CIFs for which the services referred above are being provided irrespective of whether the CIFs are recognised or registered with the DFSA.


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Applicability This form is applicable to Authorised Firms licensed to act as a trustee to a CIF and to Authorised Firms licensed to provide fund administration services to CIFs or to other investment vehicles. These include Authorised Firms operating as branches in the DIFC. The Authorised Firms need to complete only the sections of the form which is/are applicable to them. Content The form is intended to capture information pertaining to the number of CIFs and the net asset value of the CIFs for which these services are being provided for each type of CIF. The form seeks the data referred above across funds categories – based on their public/private status and based on the domicile of the CIFs involved. Authorised firms are required to report all data on net asset value of funds in USD terms, including the net asset values of funds denominated in other currencies. Structure of the form in EPRS B260 is a single form which has two main sections. The first section seeks data pertaining to acting as a Trustee and the second section seeks data on fund administration activity. Both the main sections are similar in arrangement and both of them have two sub-sections. The first sub-section – By Type of Funds requires data on number of funds and total net asset value of those funds classified as per their public/private status. The second sub-section – Domicile of Foreign Funds requires the same data classified as per the jurisdiction where the funds are domiciled. Instructional Guidelines The data being sought in all the three sections of this form are self explanatory given the description provided in the title column.

1.38 Instructional Guidelines– Form B270 – Related Party

Transactions

Purpose Form B270 is designed to capture the data pertaining to all the assets and liabilities of an Authorised Firm which involve a Related party or a Connected Counterparty to the Authorised Firm. The scope of this form includes all Authorised Firms falling under the rules of the PIB module of the DFSA Rulebook.


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Applicability This form is applicable to all Authorised Firms classified under any of the prudential categories 1-5 as per the PIB module of the DFSA Rulebook. These include Authorised Firms operating as branches in the DIFC. Content The form is intended to capture information pertaining to assets and liabilities of the Authorised Firm which are owed by or owed to a Related Party or to a Connected Counterparty. The form is structured to seek the data on all the assets and liabilities of the Authorised Firm, split in to assets and liabilities pertaining to Related party & group companies and those pertaining to other counterparties. Authorised firms are required to report all data in USD terms. Structure of the form in EPRS B270 is a single form which has two main sections. The first section seeks data pertaining to assets and the second section on liabilities. The data being sought is restricted to broad categories of assets and liabilities consistent with the purpose of the form in identifying the extent of related party transactions in the overall business of the Authorised Firm. In both sections, the data is required to be split-up between related party exposures and those relating to other parties in the two columns along with the total of the two classes in the right-most column. Instructional Guidelines The data being sought in this form are self explanatory given the description provided in the title column.

1.39 Instructional Guidelines – Form B280 – Financial Group Capital Adequacy Report Purpose Form B280 is intended to capture the information regarding the capital adequacy position of a Financial Group. Applicability An Authorised Firm that is required to prepare a Financial Group Capital Adequacy Report may use this form to submit that Report. Use of this form is not mandatory.


PRU-EPRS/VER1/12-07

Where an Authorised Firm chooses to use form B280 for its Financial Group Capital Adequacy Report, it must do so in accordance with the instructional guidelines in this section. Note: As the form B280 is not mandatory it has not been built into the EPRS EPRS. Therefore, if an Authorised Firm chooses to use form B280 it should use the paper based, available on the DFSA website, and submit it manually. Instructional Guidelines

1. An Authorised Firm completing this form must present:

a. in the header portion of the Form the information required by PIB Rule

A7.2.2(2)(a), (b) and (c); b. at item 1, the Financial Group Capital Resources; c. at item 2, the Financial Group Capital Requirement

2. An Authorised Firm completing this form must present at item 4:

a. the names of all Authorised Firms and Financial Institutions in the Financial

Group; and b. where an entity disclosed at (a) is itself the Parent of a Financial Group, the

Financial Group Capital Resources of that group and the Financial Group Capital Requirement of that group.

3. Where an entity is disclosed in accordance with instructional guideline 5(a) is not the

Parent of a Financial Group, there is no need to report the group capital position entries at columns 1 and 2 of item 4 must be left blank.

4. An Authorised Firm completing this form must present at item 5:

a. the names of all Authorised Firms and Financial Institutions meeting the

conditions set out at PIB Rule A7.2.2(2)(i); b. the Capital Resources or Adjusted Capital Resources as applicable of that entity;

and c. in column 2, the capital requirement of that entity calculated in accordance with

PIB Rule A7.2.2 (4).


PRU-EPRS/VER1/12-07

2 PIB FORMS

This chapter of PRU contains the following forms:

Form B10 Statement of Financial Position Form B10 Appendix 1 Detail of Non-Trading Book Assets Form B10 Appendix 2 Detail of Non-Market Risk in the Trading Book Form B10 Appendix 3 Market Risk in the Trading Book Form B10 Appendix 4 Calculation of the DCR Form B20 Statement of Financial Position – Islamic Financial Institutions Form B20 Appendix 1 Detail of Non-Trading Book Assets - Self-Financed Form B20 Appendix 2 Detail of Non-Trading Book Assets - PSIA Unrestricted (PSIAU). Form B20 Appendix 3 Detail of Non-Trading Book Assets - PSIA Restricted (PSIAR) Form B20 Appendix 4 Detail of Non-Market Risk in Trading Book - Self-Financed Form B20 Appendix 5 Detail of Non-Market Risk in Trading Book - PSIA Unrestricted (PSIAU) Form B20 Appendix 6 Detail of Non-Market Risk in Trading Book - PSIA Restricted (PSIAR) Form B20 Appendix 7 Detail of Market Risk in the Trading Book Form B20 Appendix 8 Calculation of the Displaced Commercial Risk (DCR) Form B20 Appendix 9 Analysis of Reserves Movement Form B30 Income Statement Form B40 Income Statement - Islamic Financial Institutions Form B50 Expenditure Based Capital Minimum Form B60 Capital Adequacy Schedule Form B70 Large Exposures Schedule Form B70 Appendix 1 Detail of Largest 25 Exposures Arising from Islamic Contracts Form B80 Liquidity Schedule – Maturity Mismatch Form B90 Branch Return Form B90 Appendix 1 Large Exposures - Branch Form 100 Declaration by Authorised Firm Form B120 Geographical Distribution of Assets and Liabilities Form B130 Provisions for Impairment Form B140 Exposures in Arrears Form B150 Investment Activity Schedule Form B160 Credit Activity Schedule


PRU-EPRS/VER1/12-07

Form B170 Acceptance of Deposits Schedule Form B180 Wealth Management Activity Form B190 Asset Management, Custody & Trust Services Form B200 Brokerage Activity Form B210 Outward Remittances Form B220 Inward Remittances Form B230 Domestic Fund Activity Form B240 Balances due from and due to Head Office, Own Branches &

Other Banks Form B260 Acting as a Trustee of a Fund and Fund Administration Activity Form B270 Related Party Transactions Form B280 Financial Group Capital Adequacy Report


PRU-EPRS/VER1/12-07

2 Forms B10 - B280

Reference number (For DFSA use only)


FORM B10: Statement of Financial Position

B100_010T - Cash and liquid assetsB100_0110 - Cash in hand & Gold bullionB100_0120 - Balances with the Central BanksB100_0130 - Money market placementsB100_0140 - Treasury and other eligible bills

B100_020T - Investment securitiesB100_021t - Held for tradingB100_0211 - Derivative financial instrumentsB100_0212 - Other financial instrumentsB100_0220 - Designated at fair value through profitB100_0230 - Available-for-saleB100_0240 - Held-to-maturity

B100_030T - Derivatives - Hedge accountingB100_0310 - Fair value hedgesB100_0320 - Cash flow hedges

B100_040T - Loans and advancesB100_0410 - To banksB100_0420 - To other customers

B100_050T - Islamic contractsB100_0510 - Murabaha and Istinaa receivableB100_0520 - Ijarah assets and receivablesB100_0530 - Mudaraba FinancingB100_0540 - Musharaka FinancingB100_0550 - Other investments

B100_0600 - Investments in associates, subsidiaries

B100_0700 - Fixed assets

B100_080T - Intangible assetsB100_0810 - GoodwillB100_0820 - Other

B100_090T - Total (other)B100_0910 - Accounts receivableB100_0920 - Other assets

B100_000T - TOTAL ASSETS

B100_100T - Off Balance Sheet Assets

FORM B10: Statement of Financial Position PRU-EPRS/VER1/12-07


B100_1010 - Direct credit substitutesB100_1020 - Transaction-related contingentsB100_1030 - Trade-related contingentsB100_1040 - Sale and repurchase agreementsB100_1050 - Forward asset purchasesB100_1060 - Forward deposits placedB100_1070 - Uncalled partly-paid shares and securitiB100_1080 - NIFs and RUFsB100_1090 - Endorsement of billsB100_110T - Other commitmentsB100_1111 - 1 year or less to maturityB100_1122 - Over 1 year to maturityB100_1110 - Assets funded by restricted PSIAs

LIABILITIESB100_210T - DepositsB100_2110 - Due to Banks and Financial InstitutionsB100_2120 - Due to other customers

B100_220T - Current LiabilitiesB100_2210 - CreditorsB100_2220 - Other payables/liabilities

B100_230T - ProvisionsB100_2310 - Provisions for bad and doubtful debtsB100_2320 - Provisions for othersB100_2330 - Tax liability

B100_2400 - Derivative financial instruments - held for trading


B100_260T - Liabilities arising from Islamic contractsB100_2610 - Parallel SalamB100_2620 - Ijarah instalment payablesB100_2630 - Liabilities related to PSIAuB100_2640 - Other

B100_2700 - Debt securities in issueB100_2750 - Other borrowed fundsB100_2800 - Sub ordinated debt

B100_200T - TOTAL LIABILITIES



B100_300T - Off Balance Sheet LiabilitiesB100_3100 - Liabilities relating to restricted PSIAsB100_3200 - Other

SHAREHOLDERS' EQUITY

B100_410T - Share capital:B100_4110 - Ordinary sharesB100_4120 - Preference sharesB100_4130 - Partnership capital & Other

Total Share Capital

B100_4200 - Share Premium account

B100_430T - ReservesB100_4310 - Asset revaluation reserveB100_4320 - Goodwill reserveB100_4330 - Investment risk reserveB100_4340 - Profit equalisation reserveB100_4350 - General reserve

Total Reserves

B100_4400 - Retained profits / losses

B100_4500 - Minority interests

B100_400T - TOTAL SHAREHOLDERS EQUITY

B100_500T - TOTAL LIABILITIES AND SHAREHOLDERS EQUITY



FORM B10: Appendix 1 Summary FormDetail of Non-Trading Book Assests

ON BALANCE SHEET ITEMSWeighted NTB

amount

OFF BALANCE SHEET ITEMSWeighted NTB

amount

OTC derivative contractsWeighted NTB

amount

Total NTB Risk Wieghted Assets

CRCOM [=8% of (Total NTB RWA + Total OTC RWA)

Linked Form -1

FORM B10: Appendix 1Trading Book

AmountNon_Trading -

AmountWeight % Weighted NTB

Detail of Non-Trading Book AssestsOn Balance Sheet ItemsCash and Liquid Assets

0102050

100

Deducted from Tier 1 & Tier 2Total Cash and Liquid Assets

Investment Securities0

102050

100

Deducted from Tier 1 & Tier 2Total Investment Securities

Derivatives - Hedge Funding0

102050

100

Deducted from Tier 1 & Tier 2Total Derivatives - Hedge Funding

Loans and Advances0

102050

100

Deducted from Tier 1 & Tier 2Total Loans and Advances

FORM B10 Appendix 1: Detail of Non-Trading Book Assets PRU-EPRS/VER1/12-07


Islamic Contracts0

102050

100

Deducted from Tier 1 & Tier 2Total Islamic Contracts

Investments in Associates0

102050

100

Deducted from Tier 1 & Tier 2Total Investments in Associates

Fixed Assets0

102050

100

Deducted from Tier 1 & Tier 2Total Fixed Assets

Intangible Assets0

102050

100

Deducted from Tier 1 & Tier 2Total Intangible Assets

Other Assets & Accounts Receivable0

102050

100

Deducted from Tier 1 & Tier 2

Total Other Assets & Accounts Receivable

Total Assets




AmountNon_Trading

AmountWeight % Weighted NTB

Detail of Non-Trading Book AssetsOff Balance Sheet ItemsItems with 100% CCF

0102050

100

Total Items with 100% CCF

Items with 50% CCF0

102050

100Total Items with 50% CCF

Items with 20% CCF0

102050


Items with 0% CCF0

102050


Deductions from Tier 1 & Tier 2

Total Off-Balance Sheet NTB Assets


FORM B10: Appendix 1 Replacement CostPotential Future

ExposureCEA Weight %

Weighted Amount

FORM B10: Appendix 1Detail of Non-Trading Book AssestsOTC Derivative Contracts

0102050

OTC Derivative Contracts - Total



FORM B10: Appendix 2 - Detail of Non-Market Risk in the Trading Book

COUNTERPARTY RISK ON UNSETTLED TRANSACTIONSOTC Derivatives Capital ChargeRepos capital chargeReverse repos capital charge

DEFERRED SETTLEMENT TRANSACTIONS

TOTAL CAPITAL REQUIREMENT FOR NON-MARKET RISK IN THE TRADING BOOK


Amount of Potential

LossCPW

Weight Amt

Capital Weight

Capital Charge

Detail of Non-Market RiskCounterparty Risk on Unsettled TransactionsB102_1100 - Delivery versus payment 0 - 4 Days 100 0

5 - 15 Days 100 8

16 - 30 Days 100 50

31 - 45 Days 100 75

46 or More Days 100 100

Total Delivery Vs Payment

B102_1200 - Free deliveries 0 - 4 Days 100 85 - 15 Days 100 5016 - 30 Days 100 7531 - 45 Days 100 100

Total Free Deliveries

Other Counterparty Risks0 8

10 820 8

100 8Total Other Counterparty Risk

Total


Replacement Cost PFECredit Equivalent Amount

Weight %Weighted Amt

OTC DerivativesB102_2110 - OTC Contract 0% ` 0B102_2120 - OTC Contract 10% 10B102_2130 - OTC Contract 20% 20B102_2140 - OTC Contract 50% 50B102_2150 - OTC Contract Unanalysed 50OTC Derivatives Total

B102_2050 - OTC Derivatives Capital Charge

FORM B10 Appendix 2: Detail of Non-Market Risk in the Trading Book PRU-EPRS/VER1/12-07



Market value of securities sold or lent

Market value of collat'l taken

Amount at risk

WeightWeighted Amt

REPOSPlease Insert Details 0

102050

REPO's Total

B102_2250 - Repos capital charge


Market value of collat'l given

Market value of sec' bought or borw'd

Amount at risk

WeightWeighted Amt

Reverse REPOSPlease Insert Details 0

102050

Reverse REPO's Total

B102_2260 - Reverse repos capital charge


Amount of Potential Loss

WeightWeighted amount

Cap requirement

Capital Charge

Deferred Settlement Transactions

Contractual Settlement less that T+300 8

10 820 850 8

100 8Total

Contractual settlement more than T+30 5 - 15 Days 100 816 - 30 Days 100 5031 - 45 Days 100 75

46 or More Days 100 100Total

Total Deferred Settlement Transactions

FORM B10 Appendix 2: Detail of Non-Market Risk in the Trading Book PRU-EPRS/VER1/12-07


FORM B10: Appendix 3 AmountSpecific Risk Weights

Capital Requirement

Detail of Market Risk in the Trading BookInterest Rate Risk Capital Requirment

B103_1110 - Specific Risk- Insert Details Here 0.00%

0.25%1.00%1.60%8.00%

Total

B103_1121 - General Market Risk (Simplified Method)B103_1122 - General Market Risk (Maturity Method)B103_1123 - General Market Risk (Duration Method)B103_1130 - Calculated using modelsB103_1100 - Total interest rate risk capital requirement

Equity Risk Capital RequirementB103_1211 - Specific RiskB103_1212 - General Market RiskB103_121T - Standard methodB103_1220 - Simplified MethodB103_1230 - Calculated using modelsB103_1200 - Total equity position risk capital requirement

Foreign Exchange Risk Capital RequirementB103_1310 - Standard approachB103_1320 - Calculated using models

B103_1300 - Total foreign exchange risk capital requirement

Commodities Risk Capital RequirementB103_1410 - Maturity Ladder approachB103_1420 - Simplified approachB103_1430 - Calculated using modelsB103_1400 - Total commodities risk capital requirement

Option Risk Capital RequirementB103_1510 - Simplified approachB103_1520 - Delta plus methodB103_1530 - Calculated using modelsB103_1500 - Total option risk capital requirement

B103_1600 - Securities Underwriting Capital Requirement

B103_100T - MRCOM

B103_0000 - TOTAL CAPITAL REQUIREMENT FOR MARKET RISK IN THE TRADING BOOK

B102_000T - TOTAL CAPITAL REQUIREMENT FOR NON-MARKET RISK IN THE TRADING BOOK

B103_000T - TOTAL TRADING BOOK CAPITAL REQUIREMENT

Memo Item:B103_0010 - NOTIONAL RISK WEIGHTED ASSETS IN THE TRADING BOOK

FORM B10 Appendix 3: Market Risk in the Trading Book PRU-EPRS/VER1/12-07


FORM B10: Appendix 4 - Calculation of DCR PSIAR PSIAU TotalPSIACOM CreditB104_0110 - CPCOMB104_0120 - CRCOMB104_010T - Total PSIACOM Credit

PSIACOM Market

B104_0210 - Interest Rate Risk Capital Requirement

B104_0220 - Equity Position Risk Capital Requirement

B104_0230 - Foreign Exchange Risk Capital requirement

B104_0240 - Commodities Risk Capital Requirement

B104_0250 - Option Risk Capital Requirement

B104_0260 - Securities Underwriting Capital RequirementB104_020T - Total Capital ChargeB104_025T - Total PSIACOM Market

Calculation of DCRB104_000T - (PSIACOM Credit +PSIACOM Market) * 35%

FORM B10 Appendix 4: Calculation of the DCR PRU-EPRS/VER1/12-07


FORM B20: Statement of Financial Position - Islamic Financial Institutions

Self Financed PSIA U PSIA R

Self Financed & PSIAUPSIAR

Linked Form - 1FORM B20: Statement of Financial Position - Islamic Financial Institutions

Self Financed PSIAU

B100_010T - Cash and liquid assetsB100_0110 - Cash in hand & Gold bullionB100_0120 - Balances with the Central BanksB100_0130 - Money market placementsB100_0140 - Treasury and other eligible bills



B100_050T - Islamic contractsB100_0510 - Murabaha and Istinaa receivableB100_0520 - Ijarah assets and receivablesB100_0530 - Mudaraba FinancingB100_0540 - Musharaka FinancingB200_0550 - SalamB200_0560 - Parallel IstisnaaB100_0550 - Other investments




B100_0910 - Accounts receivableB100_0920 - Other assets


FORM B20: Statement of Financial Position - Islamic Financial Institutions PRU-EPRS/VER1/12-07


B100_1010 - Direct credit substitutesB100_1020 - Transaction-related contingentsB100_1030 - Trade-related contingentsB100_1040 - Sale and repurchase agreementsB100_1050 - Forward asset purchasesB100_1060 - Forward deposits placed

B100_1070 - Uncalled partly-paid shares and securiti

B100_1080 - NIFs and RUFsB100_1090 - Endorsement of billsB100_110T - Other commitmentsB100_1111 - 1 year or less to maturityB100_1122 - Over 1 year to maturityB200_1120 - OTC derivative contractsB100-100T Total Off-Balance Sheet Assets



B100_230T - Provisions

B100_2310 - Provisions for bad and doubtful debts

B100_2320 - Provisions for othersB100_2330 - Tax liability

B100_260T - Liabilities arising from Islamic contracts

B100_2610 - Parallel SalamB100_2620 - Ijarah instalment payablesB100_2630 - Liabilities related to PSIAuB100_2640 - Other

Loans & Other Borrowed Funds




Off-Balance Sheet LiabilitiesB100_3200 - Other


B100_410T - Total Share CapitalB100_4110 - Ordinary sharesB100_4120 - Preference sharesB100_4130 - Partnership capital & other


B100_430T - Total ReservesB100_4310 - Asset revaluation reserveB100_4320 - Goodwill reserveB100_4330 - Investment risk reserveB100_4340 - Profit equalisation reserve





Linked Form - 2FORM B20: Statement of Financial Position - Islamic Financial Institutions

PSIA R

B100_010T - Cash and liquid assetsB100_0110 - Cash in hand & Gold bullion

B100_0120 - Balances with the Central Banks

B100_0130 - Money market placementsB100_0140 - Treasury and other eligible bills





B100_050T - Islamic contractsB100_0510 - Murabaha and Istinaa receivableB100_0520 - Ijarah assets and receivablesB100_0530 - Mudaraba FinancingB100_0540 - Musharaka FinancingB200_0550 - SalamB200_0560 - Parallel IstisnaaB100_0550 - Other investments






B100_1010 - Direct credit substitutesB100_1020 - Transaction-related contingentsB100_1030 - Trade-related contingentsB100_1040 - Sale and repurchase agreementsB100_1050 - Forward asset purchasesB100_1060 - Forward deposits placed

B100_1070 - Uncalled partly-paid shares and securiti

B100_1080 - NIFs and RUFsB100_1090 - Endorsement of billsB100_110T - Other commitmentsB100_1111 - 1 year or less to maturityB100_1122 - Over 1 year to maturityB200_1120 - OTC derivative contractsB100-100T Total Off-Balnce Sheet Assets





B100_230T - ProvisionsB100_2310 - Provisions for bad and doubtful debtsB100_2320 - Provisions for othersB100_2330 - Tax liability

B100_260T - Liabilities arising from Islamic contracB100_2610 - Parallel SalamB100_2620 - Ijarah instalment payablesB100_2630 - Liabilities related to PSIAuB100_2640 - Other

B100_2700 - Debt securities in issue


Off-Balance Sheet LiabilitiesB100_3100 - Liabilities relating to restricted PSIAs


B100_410T - Total Share CapitalB100_4110 - Ordinary sharesB100_4120 - Preference sharesB100_4130 - Partnership capital


B100_430T - Total ReservesB100_4310 - Asset revaluation reserveB100_4320 - Goodwill reserveB100_4330 - Investment risk reserveB100_4340 - Profit equalisation reserve







FORM B20: Appendix 1Detail of Non-Trading Book Assests - Self Financed

ON BALANCE SHEET ITEMSOFF BALANCE SHEET ITEMSOTC derivative contracts



Linked Form - 1

FORM B20: Appendix 1Trading Book Amount

Non_Trading Book Amount

Weight %Weighted NTB

Detail of Non-Trading Book Assests - Self FinancedOn Balance Sheet ItemsCash and Liquid Assets

0102050

100



102050

100


Loans and Advances0

102050

100


Assets Arising from Islamic Contracts0

102050

100


Total Assets Arising from Islamic Contracts

FORM B20 Appendix 1: Detail of Non-Trading Book Assets - Self Financed PRU-EPRS/VER1/12-07



102050

100


Fixed Assets0

102050

100


Intangible Assets


102050

100



Total Non-Trading Book Assets

Linked Form - 2



Weight %Weighted NTB Amont

Detail of Non-Trading Book Assests - Self FinancedOff Balance Sheet ItemsItems with 100% CCF

0102050

100


Items with 50% CCF0

102050

100




Items with 20% CCF


Items with 0% CCF


Deduct Tier 1 from Tier 2



Linked Form - 3

FORM B20A1: Appendix 1Replacement Cost

Potential Future Exposure- Amount

CEA Weight %Weighted Amount

Detail of Non-Trading Book Assests - Self Financed

OTC Derivative Contracts0

102050

OTC Derivative Contracts



FORM B20: Appendix 2Detail of Non-Trading Book Assests - PSIA Unrestricted (PSIAU)




Linked Form - 1



Weight %Weighted NTB

Detail of Non-Trading Book Assests - PSIA Unrestricted (PSIAU)On Balance Sheet ItemsCash and Liquid Assets

0102050

100



102050

100


Loans and Advances0

102050

100



102050

100



FORM B20 Appendix 2: Detail of Non-Trading Book Assets - PSIA Unrestricted (PSIAU) PRU-EPRS/VER1/12-07



102050

100


Fixed Assets0

102050

100


Intangible Assets


102050

100




Linked Form - 2




Detail of Non-Trading Book Assests - PSIA Unrestricted (PSIAU)Off Balance Sheet ItemsItems with 100% CCF

0102050

100




Items with 50% CCF0

102050

100


Items with 20% CCF


Items with 0% CCF





Linked Form - 3

FORM B20: Appendix 2Replacement

Cost

Potential Future

Exposure- Amount


Detail of Non-Trading Book Assests - PSIA Unrestricted (PSIAU)


102050




FORM B20: Appendix 3Detail of Non-Trading Book Assests - PSIA Restricted (PSIAR)




Linked Form - 1


AmountNon_Trading Book Amount

Weight %Weighted

NTB

Detail of Non-Trading Book Assests - PSIA Restricted (PSIAR)On Balance Sheet ItemsCash and Liquid Assets

0102050

100



102050

100


Loans and Advances0

102050

100



102050

100



FORM B20 Appendix 3: Detail of Non-Trading Book Assets - PSIA Restricted (PSIAR) PRU-EPRS/VER1/12-07



102050

100


Fixed Assets0

102050

100


Intangible Assets


102050

100




Linked Form - 2




Detail of Non-Trading Book Assests - PSIA Restricted (PSIAR)Off Balance Sheet ItemsItems with 100% CCF

0102050

100


Items with 50% CCF0

102050

100




Items with 20% CCF


Items with 0% CCF





Linked Form - 3

FORM B20: Appendix 3Replacement

Cost

Potential Future

Exposure- Amount


Detail of Non-Trading Book Assests - PSIA Restricted (PSIAR)


102050





Self Financed




Linked Form - 1

FORM B20: Appendix 4 - Detail of Non-Market Risk in the Trading Book - Self Financed

Amount of Potential

LossCPW

Weight Amt

Capital Weight

Capital Charge

Counterparty Risk on Unsettled Transactions Delivery versus payment 0 - 4 Days 100 0

5 - 15 Days 100 8

16 - 30 Days 100 50

31 - 45 Days 100 75



Free deliveries 0 - 4 Days 100 85 - 15 Days 100 5016 - 30 Days 100 7531 - 45 Days 100 100



10 820 8


TotalLinked Form - 2






FORM B20 Appendix 4: Detail of Non-Market Risk in the Trading Book - Self Financed PRU-EPRS/VER1/12-07


Linked Form - 3




Amount at risk

WeightWeighted Amt


102050

REPO's Total


Linked Form - 4




Amount at risk

WeightWeighted Amt


102050


B102_2260 - Reverse Repos capital charge

Linked Form - 5




Cap requirement

Capital Charge



10 820 850 8

100 8Total




FORM B20 Appendix 4: Detail of Non-Market Risk in the Trading Book - Self Financed PRU-EPRS/VER1/12-07


FORM B20: Appendix 5 - Detail of Non-Market Risk in the Trading Book - PSIA Unrestricted (PSIAU)




Linked Form - 1


Amount of Potential

LossCPW

Weight Amt

Capital Weight

Capital Charge


5 - 15 Days 100 8

16 - 30 Days 100 50

31 - 45 Days 100 75






10 820 8


Total

Linked Form - 2






FORM B20 Appendix 5: Detail of Non-Market Risk in the Trading Book - PSIA Unrestricted (PSIAU) PRU-EPRS/VER1/12-07


Linked Form - 3




Amount at risk

WeightWeighted Amt


102050

REPO's Total


Linked Form - 4




Amount at risk

WeightWeighted Amt


102050



Linked Form - 5




Cap requirement

Capital Charge



10 820 850 8

100 8Total




FORM B20 Appendix 5: Detail of Non-Market Risk in the Trading Book - PSIA Unrestricted (PSIAU) PRU-EPRS/VER1/12-07


FORM B20: Appendix 6 - Detail of Non-Market Risk in the Trading Book - PSIA Restricted (PSIAR)




Linked Form - 1


Amount of Potential

LossCPW

Weight Amt

Capital Weight

Capital Charge


5 - 15 Days 100 8

16 - 30 Days 100 50

31 - 45 Days 100 75






10 820 8


Total

Linked Form - 2






FORM B20 Appendix 6: Detail of Non-Market Risk in the Trading Book - PSIA Restricted (PSIAR) PRU-EPRS/VER1/12-07


Linked Form - 3




Amount at risk

WeightWeighted Amt


102050

REPO's Total


Linked Form - 4




Amount at risk

WeightWeighted Amt


102050



Linked Form - 5




Cap requirement

Capital Charge


10 820 850 8

100 8Total




FORM B20 Appendix 6: Detail of Non-Market Risk in the Trading Book - PSIA Restricted (PSIAR) PRU-EPRS/VER1/12-07


FORM B20:Appendix 7

Detail of Market Risk in the Trading Book

Interest Rate Risk Capital Requirment

All Other Risk

Linked Form - 1

FORM B20: Detail of Market Risk in the Trading Book - Islamic Business

Amount - Self Financed

Amount - PSIAU

Amount - PSIAR

Specific Risk Weights

Capital Requirement - Self Financed

Capital Requirement - PSIAU

Capital Requirement - PSIAR

Interest Rate Risk Capital Requirment

Specific Risk- Insert Details Here 0.00%

0.25%1.00%1.60%8.00%

Linked Form - 2

FORM B20: Detail of Market Risk in the Trading Book - Islamic Business

Capital Requirement - Self Financed

Capital Requirement - PSIAU

Capital Requirement - PSIAR

B103_1121 - General Market Risk (Simplified Method)B103_1122 - General Market Risk (Maturity Method)B103_1123 - General Market Risk (Duration Method)

B103_1130 - Calculated using models

B103_1100 - Total interest rate risk capital requirement

Equity Risk Capital RequirementB103_121T - Standard methodB103_1220 - Simplified Method


B103_1200 - Total equity position risk capital requirement

Foreign Exchange Risk Capital RequirementB103_1310 - Standard approach


B103_1300 - Total foreign exchange risk capital requirement

FORM B20 Appendix 7: Detail of Market Risk in the Trading Book PRU-EPRS/VER1/12-07


Commodities Risk Capital Requirement

B103_1410 - Maturity Ladder approach

B103_1420 - Simplified approach


B103_1400 - Total commodities risk capital requirement

Option Risk Capital RequirementB103_1510 - Simplified approachB103_1520 - Delta plus method


B103_1500 - Total option risk capital requirement

B103_1600 - Securities Underwriting Capital Requirement

B103_100T - MRCOM

B103_0000 - TOTAL CAPITAL REQUIREMENT FOR MARKET RISK IN THE TRADING BOOK

B102_000T - TOTAL CAPITAL REQUIREMENT FOR NON-MARKET RISK IN THE TRADING BOOK

0

B103_000T - TOTAL TRADING BOOK CAPITAL REQUIREMENT 0

Memo Item:B103_0010 - NOTIONAL RISK WEIGHTED ASSETS IN THE TRADING BOOK 0

FORM B20 Appendix 7: Detail of Market Risk in the Trading Book PRU-EPRS/VER1/12-07


FORM B20: Appendix 8 - Calculation of Displaced Commercial Risk (DCR)

PSIAR PSIAU Total

PSIACOM CreditB104_0110 - CPCOMB104_0120 - CRCOMB104_010T - Total PSIACOM Credit

PSIACOM Market

B104_0210 - Interest Rate Risk Capital Requirement

B104_0220 - Equity Position Risk Capital Requirement

B104_0230 - Foreign Exchange Risk Capital requirement

B104_0240 - Commodities Risk Capital Requirement

B104_0250 - Option Risk Capital Requirement

B104_0260 - Securities Underwriting Capital RequirementB104_020T - Total Capital ChargeB104_025T - Total PSIACOM Market

Calculation of DCRB104_000T - (PSIACOM Credit +PSIACOM Market) * 35%

FORM B20 Appendix 8: Calculation of the Displaced Commercial Risk (DCR) PRU-EPRS/VER1/12-07


FORM B20 Appendix 9: Analysis of Reserves Movement

PSIA U PSIA R

B290_1010 - Capital InvestedB290_1020 - Net asset value

B290_1030 - Percentage for profit equalisation reserve

B290_1040 - Amount of profit equalisation reserve

B290_1050 - Mudarib feeB290_1060 - Net amount after Mudarib fee

B290_1070 - Percentage of Investment Risk Reserve

B290_1080 - Amount of Investment Risk Reserve

B290_1090 - Amount attributed to PSIAs

Profit Equalisation Reserve

B290_1110 - Opening balance (Profit equalisation res

B290_1115 - Additions (P)B290_1120 - Withdrawals (P)B290_1130 - Closing balance (Profit equalisation reserve)

Investment Risk Reserve

B290_1210 - Opening balance (Investment risk reserve

B290_1215 - Additions (I)B290_1220 - Withdrawals (I)

B290_1230 - Closing balance (Investment risk reserve

FORM B20 Appendix 9: Analysis of Reserves Movement PRU-EPRS/VER1/12-07


FORM B30: Income Statement

B300_1100 - Interest incomeB300_1200 - Interest expense

B300_100T - Net interest income

B300_2100 - Fee and commission incomeB300_2200 - Fee and commission expense

B300_200T - Net fee and commission income

B300_3100 - Dividend incomeB300_3200 - Net income from trading securitiesB300_3300 - Net income from investment securitiesB300_3400 - Income from Islamic contractsB300_3500 - Other operating incomeB300_360T - Impairment losses on loans and advancesB300_3610 - General provisionsB300_3620 - Specific provisionsB300_3630 - Provisions for Islamic contractsB300_3640 - Direct write offsB300_3650 - OtherB300_3700 - Staff expensesB300_3800 - Depreciation & amortisationB300_3900 - Other operating expenses

B300_300T - Operating profit from ordinary activities

B300_4100 - Net income from subsidiaries and associated companiesB300_4200 - Profit (loss) from extraordinary Items

FORM B30: Income Statement PRU-EPRS/VER1/12-07


B300_400T - Profit/ (loss) before taxation

B300_5100 - Tax on profit / loss

B300_500T - Profit/ (loss) after tax

B300_6100 - (Minority interests)

B300_600T - NET PROFIT/ (LOSS)

B300_7100 - Dividends, and other distributions, declared or paidB300_7200 - Partners drawings, declared or paidB300_7300 - Other adjustments

B300_700T - RETAINED PROFITS/(LOSSES) FOR THE REPORTING PERIOD

This section of the return is to be completed with the Annual Report Only

Retained Profits at the end of the reporting periodB300_8100 - Per final quarterly returnB300_8200 - Per annual returnB300_8300 - Per audited annual accounts

B300_8500 - Provide the nature and the amount of differences identified in the box below

FORM B30: Income Statement PRU-EPRS/VER1/12-07


FORM B40: Income Statement - Islamic Financial Institutions

IncomeIncome from Jointly Financed Accounts and Mudarib Fees

B400_1010 - Income from jointly financed accounts

B400_1020 - (Allocated to unrestricted account holders (before Mudarib fee))B400_1030 - Authorised Firms Mudarib fee from managing jointly financed accountsB400_1040 - Authorised Firms fee from managing other (restricted) accountsNet Income from Jointly Financed Accounts and Mudarib Fees

Income from Authorised Firm's Own Funds

B400_2010 - Authorised Firms income from its own non-financing activities

B400_2020 - Authorised Firms income from its own financing and investment activitiesB400_2030 - Net fees and commission incomeB400_2040 - Other operating incomeTotal Income from Authorised Firm's Own Funds

ExpensesB300_3700 - Staff expensesB400_3040 - Premises and equipment costsB300_3800 - Depreciation & amortisationB400_3060 - Provision for losses on Islamic contractsB400_3070 - Other provisionsB300_3900 - Other operating expensesTotal Expenses


B300_4100 - Net income from subsidiaries and associated companies

B300_4200 - Profit (loss) from extraordinary Items

FORM B40: Income Statement - Islamic Financial Institutions PRU-EPRS/VER1/12-07


Profot (loss) before Zakah and Tax

B400_3130 - ZakahB300_5100 - Tax on profit / loss

B300_500T - Profit/ (loss) after tax

B300_6100 - (Minority interests)

B300_600T - NET PROFIT/ (LOSS)

B300_7100 - Dividends, and other distributions, declared or paidB300_7300 - Other adjustments

B300_700T - RETAINED PROFITS/(LOSSES) FOR THE REPORTING PERIOD

Complete the section below for ANNUAL Returns onlyB300_8100 - Per final quarterly returnB300_8200 - Per annual returnB300_8300 - Per audited annual accounts

Provide the nature and the amount of differences identified in this box

FORM B40: Income Statement - Islamic Financial Institutions PRU-EPRS/VER1/12-07


FORM B50: Expenditure Based Capital Minimum

Expenditure Item

B500_1100 - Total expenses of the AF in the normal course of business exc. exceptional items

LESS:B500_1200 - Staff bonuses

B500_1300 - Employees and directors shares in profits

B500_1400 - Other appropriations of profits

B500_1500 - Shared commissions payable which are directly related to commissions receivable

B500_1600 - Interest for borrowings made to finance the acquisition of realisable investments

B500_1700 - Interest paid to clients on client money

B500_1800 - Interest paid to counterparties

B500_1900 - Fees, brokerage and other chgs paid for executing, registering orclearing trans

B500_2000 - Foreign exchange losses

B500_2100 - Contributions to charities

B500_100T - Total expenditure

B500_3000 - Fraction applied

B500_300T - Expenditure based capital minimum (based on Actual expenses)

B500_4000 - Expenditure based capital minimum (as notified to the firm)

FORM B50: Expenditure Based Capital Minimum PRU-EPRS/VER1/12-07


FORM B60: Capital Adequacy Schedule

Capital Adequacy

Capital BaseTier 1 CapitalB600_1030 - Permanent share capitalB600_1040 - Audited reservesB600_1050 - Share premium accountB600_1060 - Partnership capitalB600_1070 - Externally verified interim net profits

LessB600_1080 - Investments in own sharesB600_1090 - Intangible assetsB600_1100 - Interim net lossesB600_1110 - Excess of drawings over profits for partnerships

B600_112T - Tier 1 Capital

Tier 2 CapitalB600_114T - Upper Tier 2 CapitalB600_1150 - Perpetual qualifying hybrid capital instrumentsB600_1160 - Fixed dividend ordinary sharesB100_4310 - Asset revaluation reserveB600_1180 - General provisionsB100_4330 - Investment risk reserveB100_4340 - Profit equalisation reserve

B600_121T - Lower Tier 2 CapitalB600_1220 - Subordinated debt

B600_1230 - Deduction for excess of reserves over displaced Commercial Risk (IFIs only)

B600_113T - Total Tier 2 capital

NTB Capital RequirmentB101_2500 - CRCOMB103_1300 - Total foreign exchange risk capital requirementB104_000T - Displaced Commercial Risk

B600_129T - Total NTB Capital Requirement [i.e. CRCOM + FER + DCR]

FORM B60: Capital Adequacy Schedule PRU-EPRS/VER1/12-07


Capital Allocated to the NTBB600_1310 - Tier 1 Capital (*)B600_1320 - Eligible Tier 2 capital (*)B600_1321 - Eligible Upper Tier 2B600_1322 - Eligible Lower Tier 2 (*)

B600_133T - Total Eligible Capital allocated to the NTB

TB Capital Requirement

B600_1350 - Non-Market Risk Requirement in the TB - i.e. CPCOM

B103_1100 - Total interest rate risk capital requirement

B103_1200 - Total equity position risk capital requirement

B103_1400 - Total commodities risk capital requirementB103_1500 - Total option risk capital requirementB103_1600 - Securities Underwriting Capital Requirements

B600_141T - Total TB Capital Requirements [i.e. MRCOM - FER + CPCOM]

B600_142T - Total Eligible Capital allocated to the TB

B600_1430 - Tier 1 TB Capital (Total Tier 1 Capital - NTB Tier 1 Capital)

B600_1440 - Eligible Tier Two TB Capital

Total Capital ResourcesB600_112T - Tier 1 CapitalB600_1480 - Eligible Tier Two NTB CapitalB600_1440 - Eligible Tier Two TB Capital

B600_146T - TOTAL CAPITAL RESOURCES



Deductions from Total Capital ResourcesB600_1520 - Investments in subsidiaries and associatesB600_1530 - Connected lending of a capital natureB600_1540 - Material holdings of capital instruments of Regulated Financial InstitutionsB600_1550 - Qualifying holdings in non-financial companiesB600_1560 - Illiquid assets (for Authorised Firms in Categories 2 - 4)

B600_157T - Total capital deductions

B600_158T - TOTAL ADJUSTED CAPITAL RESOURCES

Capital RequirementCapital Requirement is the highst of:B600_1591 - Base Capital RequirementB500_4000 - Expenditure Based Capital Requirement (Category 2-4 firms Only)B600_1593 - 125% [Capital Requirements for Credit Risk + Market Risk + DCR]

B600_160T - TOTAL CAPITAL REQUIREMENT

B600_1610 - RESOURCES LESS REQUIREMENT (must be positive)

B600_1620 - RISK ASSET RATIO


PRUDENTIAL RETURNS MODULE (PRU) FORM B70: Large Exposures ScheduleFORM B70: Large Exposures ScheduleFORM B70: Large Exposures ScheduleFORM B70: Large Exposures SchedulePart I - Capital ResourcesPart I - Capital ResourcesPart I - Capital ResourcesPart I - Capital Resources10% of the Authorised Firms capital resources25% of the Authorised Firms capital resources30% of the Authorised Firms capital resources40% of the Authorised Firms capital resources800% of the Authorised Firms capital resources1200% of the Authorised Firms capital resourcesPart II - ExposuresPart II - ExposuresPart II - ExposuresPart II - Exposures Linked FormLinked FormLinked FormLinked FormFORM B70: Large ExposuresFORM B70: Large ExposuresFORM B70: Large ExposuresFORM B70: Large Exposures CounterpartyCounterpartyCounterpartyCounterparty Reason for Reason for Reason for Reason for exemptionexemptionexemptionexemption Financial or Financial or Financial or Financial or Non Non Non Non Financial Financial Financial Financial CompanyCompanyCompanyCompany Amount at Amount at Amount at Amount at risk at risk at risk at risk at reporting reporting reporting reporting datedatedatedate Connected, Connected, Connected, Connected, Uncont d - Uncont d - Uncont d - Uncont d - Financial, Financial, Financial, Financial, Uncontd - Uncontd - Uncontd - Uncontd - other, other, other, other, govenmentgovenmentgovenmentgovenment Amount of Amount of Amount of Amount of non-exempt non-exempt non-exempt non-exempt exposure at exposure at exposure at exposure at risk at risk at risk at risk at reporting reporting reporting reporting datedatedatedate Specific bad Specific bad Specific bad Specific bad debt debt debt debt provisions provisions provisions provisions against against against against exposure at exposure at exposure at exposure at reporting reporting reporting reporting datedatedatedate Reduction Reduction Reduction Reduction by netting, by netting, by netting, by netting, collateral & collateral & collateral & collateral & other offsets other offsets other offsets other offsets at the at the at the at the reporting reporting reporting reporting datedatedatedate Exposure Exposure Exposure Exposure at reporting at reporting at reporting at reporting date after date after date after date after eligible eligible eligible eligible offsetsoffsetsoffsetsoffsets Amount of Amount of Amount of Amount of this this this this exposure exposure exposure exposure self-self-self-self-financed or financed or financed or financed or by by by by unrestricteunrestricteunrestricteunrestricted PSIAsd PSIAsd PSIAsd PSIAs Amount of Amount of Amount of Amount of this this this this exposure exposure exposure exposure financed by financed by financed by financed by restricted restricted restricted restricted PSIAsPSIAsPSIAsPSIAsTwenty Largest ExposuresTwenty Largest ExposuresTwenty Largest ExposuresTwenty Largest ExposuresCounterparty (principal counterparty for a Counterparty (principal counterparty for a Counterparty (principal counterparty for a Counterparty (principal counterparty for a group of closely related institutions)group of closely related institutions)group of closely related institutions)group of closely related institutions)B700_7500 - Large Exposure 1B700_7510 - Large Exposure 2B700_7520 - Large Exposure 3B700_7530 - Large Exposure 4B700_7540 - Large Exposure 5B700_7550 - Large Exposure 6B700_7560 - Large Exposure 7B700_7570 - Large Exposure 8B700_7580 - Large Exposure 9FORM B70: Large Exposures Schedule PRU-EPRS/VER1/12-07

PRUDENTIAL RETURNS MODULE (PRU) B700_7590 - Large Exposure 10B700_7600 - Large Exposure 11B700_7610 - Large Exposure 12B700_7620 - Large Exposure 13B700_7630 - Large Exposure 14B700_7640 - Large Exposure 15B700_7650 - Large Exposure 16B700_7660 - Large Exposure 17B700_7670 - Large Exposure 18B700_7680 - Large Exposure 19B700_7690 - Large Exposure 20CounterpartyCounterpartyCounterpartyCounterpartyB700_7500 - Large Exposure 1B700_7510 - Large Exposure 2B700_7520 - Large Exposure 3B700_7530 - Large Exposure 4B700_7540 - Large Exposure 5B700_7550 - Large Exposure 6B700_7560 - Large Exposure 7B700_7570 - Large Exposure 8B700_7580 - Large Exposure 9B700_7590 - Large Exposure 10B700_7600 - Large Exposure 11B700_7610 - Large Exposure 12B700_7620 - Large Exposure 13B700_7630 - Large Exposure 14B700_7640 - Large Exposure 15B700_7650 - Large Exposure 16B700_7660 - Large Exposure 17B700_7670 - Large Exposure 18B700_7680 - Large Exposure 19B700_7690 - Large Exposure 20

Detail for Exposures to Connected CounterpartyDetail for Exposures to Connected CounterpartyDetail for Exposures to Connected CounterpartyDetail for Exposures to Connected Counterparty

FORM B70: Large Exposures Schedule PRU-EPRS/VER1/12-07


B700_7500 - Large Exposure 1B700_7510 - Large Exposure 2B700_7520 - Large Exposure 3B700_7530 - Large Exposure 4B700_7540 - Large Exposure 5B700_7550 - Large Exposure 6B700_7560 - Large Exposure 7B700_7570 - Large Exposure 8B700_7580 - Large Exposure 9B700_7590 - Large Exposure 10Ten Largest Exempt Large ExposuresTen Largest Exempt Large ExposuresTen Largest Exempt Large ExposuresTen Largest Exempt Large ExposuresCounterparty (principal counterparty for a group of closely related institutions)Counterparty (principal counterparty for a group of closely related institutions)Counterparty (principal counterparty for a group of closely related institutions)Counterparty (principal counterparty for a group of closely related institutions)

FORM B70: Large Exposures Schedule PRU-EPRS/VER1/12-07


FORM B70: Appendix 1Detail of Largest 25 Exposures Arising from Islamic Contracts

Part I: Musharaka: Linked FormPart II: Mudaraba: Linked FormPart III: Istisna'a & Salam Contracts: Linked FormPart IV:Ijarah: Linked FormPart V: Murabaha Receivables: Linked Form

Part I: Musharaka: Linked Form

FORM B70A1: Appendix 1 - Detail of Largest 25 Exposures by Contract Type

Musharaka Partner

Brief description

Total exposure

Financed by Self

Financed by PSIAU

Financed by PSIAR

Capital redemption during period

Income/ Loss declared

Provisions Net value

B701_1010 - Musharaka partner 1B701_1011 - Musharaka partner 2B701_1012 - Musharaka partner 3B701_1013 - Musharaka partner 4B701_1014 - Musharaka partner 5B701_1015 - Musharaka partner 6B701_1016 - Musharaka partner 7B701_1017 - Musharaka partner 8B701_1018 - Musharaka partner 9B701_1019 - Musharaka partner 10B701_1020 - Musharaka partner 11B701_1021 - Musharaka partner 12B701_1022 - Musharaka partner 13B701_1023 - Musharaka partner 14B701_1024 - Musharaka partner 15B701_1025 - Musharaka partner 16B701_1026 - Musharaka partner 17B701_1027 - Musharaka partner 18B701_1028 - Musharaka partner 19B701_1029 - Musharaka partner 20B701_1030 - Musharaka partner 21B701_1031 - Musharaka partner 22B701_1032 - Musharaka partner 23B701_1033 - Musharaka partner 24B701_1034 - Musharaka partner 25

Part II: Mudaraba: Linked Form


Name of Mudarib

Mudaraba Type

AmountFinanced by self

Financed by PSIA U

Financed by PSIA R

B701_2010 - Other Islamic contract 1B701_2011 - Other Islamic contract 2B701_2012 - Other Islamic contract 3B701_2013 - Other Islamic contract 4B701_2014 - Other Islamic contract 5B701_2015 - Other Islamic contract 6B701_2016 - Other Islamic contract 7B701_2017 - Other Islamic contract 8B701_2018 - Other Islamic contract 9B701_2019 - Other Islamic contract 10B701_2020 - Other Islamic contract 11B701_2021 - Other Islamic contract 12B701_2022 - Other Islamic contract 13B701_2023 - Other Islamic contract 14B701_2024 - Other Islamic contract 15B701_2025 - Other Islamic contract 16B701_2026 - Other Islamic contract 17B701_2027 - Other Islamic contract 18B701_2028 - Other Islamic contract 19B701_2029 - Other Islamic contract 20B701_2030 - Other Islamic contract 21B701_2031 - Other Islamic contract 22B701_2032 - Other Islamic contract 23B701_2033 - Other Islamic contract 24B701_2034 - Other Islamic contract 25

FORM B70 Appendix 1: Detail of Largest 25 Exposures Arising from Islamic Contracts PRU-EPRS/VER1/12-07


Part III: Istisna'a & Salam Contracts: Linked Form


DescriptionParallel Istisna'a Amount

AmountFinanced by self

Financed by PSIA U

Financed by PSIA R

ISTISNAA


Salam Contracts Description Parallel Salam Amount

AmountFinanced by Self

Financed by PSIA U

Financed by PSIA R




Part IV:Ijarah: Linked Form


Plant and machinery

Aircraft leasing

Real estate

Others

Ijarah/Ijarah Muntahiah Bittamleek Contracts

Self FinancedB701_5010 - Opening BalanceB701_5020 - Assets acquired for leasingB701_5030 - Transfer to Lessee for considerationB701_5040 - Transfer as giftB701_5050 - Assets Written/offB701_5060 - Depreciation/ amortisationB701_5070 - Net book value

PSIA UB701_5010 - Opening BalanceB701_5020 - Assets acquired for leasingB701_5030 - Transfer to Lessee for considerationB701_5040 - Transfer as giftB701_5050 - Assets Written/offB701_5060 - Depreciation/ amortisationB701_5070 - Net book value

PSIA RB701_5010 - Opening BalanceB701_5020 - Assets acquired for leasingB701_5030 - Transfer to Lessee for considerationB701_5040 - Transfer as giftB701_5050 - Assets Written/offB701_5060 - Depreciation/ amortisationB701_5070 - Net book value

Part V: Murabaha Receivables: Linked Form


DescriptionAmount receivable

Specific provision

Collateral held

Net receivable

Murabaha ReceivablesSelf FinancedB701_6010 - Islamic receivable 1B701_6011 - Islamic receivable 2B701_6012 - Islamic receivable 3B701_6013 - Islamic receivable 4B701_6014 - Islamic receivable 5B701_6015 - Islamic receivable 6B701_6016 - Islamic receivable 7B701_6017 - Islamic receivable 8B701_6018 - Islamic receivable 9B701_6019 - Islamic receivable 10B701_6020 - Islamic receivable 11B701_6021 - Islamic receivable 12B701_6022 - Islamic receivable 13B701_6023 - Islamic receivable 14B701_6024 - Islamic receivable 15B701_6025 - Islamic receivable 16B701_6026 - Islamic receivable 17B701_6027 - Islamic receivable 18B701_6028 - Islamic receivable 19B701_6029 - Islamic receivable 20B701_6030 - Islamic receivable 21B701_6031 - Islamic receivable 22B701_6032 - Islamic receivable 23B701_6033 - Islamic receivable 24B701_6034 - Islamic receivable 25



PSIAUB701_6010 - Islamic receivable 1B701_6011 - Islamic receivable 2B701_6012 - Islamic receivable 3B701_6013 - Islamic receivable 4B701_6014 - Islamic receivable 5B701_6015 - Islamic receivable 6B701_6016 - Islamic receivable 7B701_6017 - Islamic receivable 8B701_6018 - Islamic receivable 9B701_6019 - Islamic receivable 10B701_6020 - Islamic receivable 11B701_6021 - Islamic receivable 12B701_6022 - Islamic receivable 13B701_6023 - Islamic receivable 14B701_6024 - Islamic receivable 15B701_6025 - Islamic receivable 16B701_6026 - Islamic receivable 17B701_6027 - Islamic receivable 18B701_6028 - Islamic receivable 19B701_6029 - Islamic receivable 20B701_6030 - Islamic receivable 21B701_6031 - Islamic receivable 22B701_6032 - Islamic receivable 23B701_6033 - Islamic receivable 24B701_6034 - Islamic receivable 25

PSIARB701_6010 - Islamic receivable 1B701_6011 - Islamic receivable 2B701_6012 - Islamic receivable 3B701_6013 - Islamic receivable 4B701_6014 - Islamic receivable 5B701_6015 - Islamic receivable 6B701_6016 - Islamic receivable 7B701_6017 - Islamic receivable 8B701_6018 - Islamic receivable 9B701_6019 - Islamic receivable 10B701_6020 - Islamic receivable 11B701_6021 - Islamic receivable 12B701_6022 - Islamic receivable 13B701_6023 - Islamic receivable 14B701_6024 - Islamic receivable 15B701_6025 - Islamic receivable 16B701_6026 - Islamic receivable 17B701_6027 - Islamic receivable 18B701_6028 - Islamic receivable 19B701_6029 - Islamic receivable 20B701_6030 - Islamic receivable 21B701_6031 - Islamic receivable 22B701_6032 - Islamic receivable 23B701_6033 - Islamic receivable 24B701_6034 - Islamic receivable 25



FORM 80: Liquidity Schedule - Maturity Mismatch

Part I - Inflows and Outflows on Cashflow Basis Linked Form

Part II - Calculation of Liquidity Mismatches Linked Form

Part I - Linked Form


Mark to marketDiscount currency

Discount mark to market

OverdueDemand (incl. next day)

8 days & under (excl. next day)

Over 8 days to 1 month

Over 1 month to 3 months

Over 3 months to 6 months

Total from cash basis

Over 6 mn to 1 yr

Over 1 yr to 3 yrs

Over 3 yrs to 5 yrs

Total maturity basis

InflowsHigh Liquid / Marketable AssetsCash 0%

Cen gov't (Z1) sec - 1 yr or less 0%

Cen gov't (Z1) sec - 1-5 Yrs 5%

Cen gov't (Z1) sec - over 5 Yrs 10%

Non gov't sec - 6 mths or less 0%

Non gov't sec - 6 mths-5 Yrs 5%

Non gov't sec - over 5 Yrs Other cen gov't debt (active) 10%

Other cen gov't debt (active) 0%

Highly liquid equities 20%

Total

WholesaleNon-marketable securitiesInter-bankIntergroup / relatedCorporateGovt / public sector - Zone 1Govt / public sector - Zone 2Repos / reverse reposForward foreign exchangeForward sales and purchasesSwaps & FRAsCommoditiesTrade related letters of creditFees (incl Mudarib)Other funding sourcesTotal Wholesale Inflows

Total Inflows on Cashflow Basis

FORM 80: Liquidity Schedule - Maturity Mismatch PRU-EPRS/VER1/12-07


OutflowsWholesaleNon-marketable securitiesInter-bank fundsIntergroup / relatedCorporateGovt / public sector - Zone 1Govt / public sector - Zone 2Repos / reverse reposForward foreign exchangeForward sales and purchasesSwaps & FRAsCommoditiesTrade related letters of creditDividendsIjarah assets purchasesOther outflowsOther Off-Balance SheetTotal Wholesale Outflows

Total outflows on Cashflow Basis

Part I - Linked Form


Non-Islamic and Self-Financed Business

Non-Islamic

and Self-Financed Business

Unrestricted PSIA

Business

Unrestricted PSIA

Business

Restricted PSIA

Business

Restricted PSIA

Business

Calculation of Liquidity Mismatches S - 8 DaysS - 1

MonthS - 8 Days

S - 1 Month

S - 8 Days S - 1 Month

Type of BusinessB800_3030 - Total discounted marketable assets

B800_3040 - Total standard inflows

B800_3050 - Total standard outflows

B800_3060 - Total relevant deposits

B800_3070 - Mismatch as a % of total deposits

FORM 80: Liquidity Schedule - Maturity Mismatch PRU-EPRS/VER1/12-07


FORM B90: Branch Return

Statment of Profit and LossB900_1010 - Interest incomeB900_1020 - Interest expense

B900_100T - Net interest income

B900_2010 - Fee and commission incomeB900_2020 - Fee and commission expense

B900_200T - Net fee and commission income

B900_3100 - Dividend incomeB900_3200 - Net income from trading securitiesB900_3300 - Net income from investment securitiesB900_3400 - Income from Islamic contractsB900_3500 - Other operating incomeB900_360T - Impairment losses on loans and advancesB900_3610 - General provisionsB900_3620 - Specific provisionsB900_3630 - Direct write offsB900_3640 - Provisions for Islamic contractsB900_3650 - OtherB900_3700 - Staff expensesB900_3800 - Depreciation & amortisationB900_3900 - Other operating expenses


Statment of Total AssetsB900_410T - Cash and liquid assetsB900_4110 - Cash in hand & Gold bullionB900_4120 - Balances with the Central BanksB900_4130 - Money market placementsB900_4140 - Treasury and other eligible bills

B900_420T - Investment securitiesB900_4210 - Held for tradingB900_4211 - Derivative financial instrumentsB900_4212 - Other financial instrumentsB900_4220 - Designated at fair value through profit & LossB900_4230 - Available-for-saleB900_4240 - Held-to-maturity

FORM B90: Branch Return PRU-EPRS/VER1/12-07




B900_450T - Islamic contractsB900_4510 - Murabaha and Istinaa receivableB900_4520 - Ijarah assets and receivablesB900_4530 - Mudaraba FinancingB900_4540 - Musharaka FinancingB900_4550 - Other investments

B900_4810 - Investments in associates, subsidiaries and JVs




B900_400T - TOTAL ASSETS (Branch)

B900_500T - Off Balance Sheet AssetsB900_5010 - Direct credit substitutesB900_5020 - Transaction-related contingentsB900_5030 - Trade-related contingentsB900_5040 - Sale and repurchase agreementsB900_5050 - Forward asset purchasesB900_5060 - Forward deposits placedB900_5070 - Uncalled partly-paid shares and securitiesB900_5080 - NIFs and RUFsB900_5090 - Endorsement of billsB900_510T - Other commitmentsB900_5110 - 1 year or less to maturityB900_5120 - Over 1 year to maturityB900_5210 - Assets funded by restricted PSIAs



Statment of Total LiabilitiesB900_610T - DepositsB900_6002 - Due to Banks and Financial InstitutionsB900_6004 - Due to other customers

B900_620T - Current liabilitiesB900_6010 - CreditorsB900_6020 - Other payables/liabilities

B900_630T - Total ProvisionsB900_6310 - Provisions for bad and doubtful debtsB900_6320 - Provisions for othersB900_6330 - Tax liability

B900_6400 - Derivative financial instruments - held for trading


B900_660T - Liabilities arising from Islamic contractsB900_6610 - Parallel SalamB900_6620 - Ijarah instalment payablesB900_6630 - Liabilities related to PSIAuB900_6640 - Other

B900_6710 - Debt securities in issue

B900_6720 - Other borrowed fundsB900_6730 - Sub ordinated debt

B900_600T - TOTAL LIABILITIES (Branch)

B900_700T - Off Balance Sheet LiabilitiesB900_7010 - Liabilities relating to restricted PSIAsB900_7020 - Other



FORM B90 Appendix 1:Large Exposures - Branch

Twenty Largest Exposures (Unconnected)Counterparty (principal counterparty for a group of closely related institutions)

Financial or Non Financial Company

Amount at risk at reporting date

Connected, Uncont d - Financial, Uncontd - other, govenment

Amount of non-exempt exposure at risk at reporting date

Exposures as a percentage of companys equity

Specific bad debt provisions against exposure at reporting date

Reduction by netting, collateral & other offsets at the reporting date

Exposure at reporting date after eligible offsets

Amount of this exposure self-financed or by unrestricted PSIAs

Amount of this exposure financed by restricted PSIAs

B700_7500 - Large Exposure 1B700_7510 - Large Exposure 2B700_7520 - Large Exposure 3B700_7530 - Large Exposure 4B700_7540 - Large Exposure 5B700_7550 - Large Exposure 6B700_7560 - Large Exposure 7B700_7570 - Large Exposure 8B700_7580 - Large Exposure 9B700_7590 - Large Exposure 10B700_7600 - Large Exposure 11B700_7610 - Large Exposure 12B700_7620 - Large Exposure 13B700_7630 - Large Exposure 14B700_7640 - Large Exposure 15B700_7650 - Large Exposure 16B700_7660 - Large Exposure 17B700_7670 - Large Exposure 18B700_7680 - Large Exposure 19B700_7690 - Large Exposure 20

Ten Largest Exposures (Connected)Counterparty (principal counterparty for a group of closely related institutions)

Financial or Non Financial Company

Amount at risk at reporting date

Connected, Uncont d - Financial, Uncontd - other, govenment

Amount of non-exempt exposure at risk at reporting date

Exposures as a percentage of companys equity

Specific bad debt provisions against exposure at reporting date

Reduction by netting, collateral & other offsets at the reporting date

Exposure at reporting date after eligible offsets

Amount of this exposure self-financed or by unrestricted PSIAs

Amount of this exposure financed by restricted PSIAs

Detail for Exposures to Connected CounterpartiesB700_7500 - Large Exposure 1B700_7510 - Large Exposure 2B700_7520 - Large Exposure 3B700_7530 - Large Exposure 4B700_7540 - Large Exposure 5B700_7550 - Large Exposure 6B700_7560 - Large Exposure 7B700_7570 - Large Exposure 8B700_7580 - Large Exposure 9B700_7590 - Large Exposure 10

FORM B90 Appendix 1: Large Exposures - Branch PRU-EPRS/VER1/12-07


FORM B100: Declaration by Authorised Firm PRU-EPRS/VER1/12-07

Form B100: Declaration by Authorised Firm I declare that, to the best of my knowledge and belief, having made due enquiry, the forms prepared and submitted using the DFSA’s electronic prudential reporting system are complete and correct. I understand that it is an offence under Article 66 of the Regulatory Law 2004 to provide to the DFSA any information which is false, misleading, deceptive, or to conceal information where the concealment of such information is likely to mislead or deceive the DFSA. I declare that the forms prepared and submitted using the DFSA’s electronic prudential reporting system have been prepared in accordance with the Rules in PIB, the relevant accounting standards and the PRU Sourcebook. I declare that, during the period, the Authorised Firm has been in compliance at all times with Articles 67(1)-(3) of the Regulatory Law 2004. Print name of person authorised to sign the return in accordance with PIB Rule 1.6.3 Date Signature of person authorised to sign the return in accordance with PIB Rule 1.6.3 Date Print name of person authorised to sign the return in accordance with PIB Rule 1.6.3 Date Signature of person authorised to sign the return in accordance with PIB Rule 1.6.3 Date


FORM B120: Geographical Distribution of Assets and Liabilities

Part I: Claims- Immediated Borrower Basis: Linked FormPart II: Other: Linked FormPart III: Liabilities: Linked Form

Part I: Claims- Immediated Borrower Basis: Linked Form


Deposits Securities LoansDistribution of Total Claims by Residual Term to

Maturity

Official Monetary InstitutionOther Banks

Short Term Long Term Equities Bank Non BankLess than 1 Year

Between 1 and 2 Years

More than 2 Years

Unallocated

Claims - Immediate Borrower Basis

Click to select CountryCountry Code

Part II: Other: Linked Form


Outward Risk Transfer Inward Risk Transfer

Total Claims Ultimate Risk

Other Exposures Ultimate Risk Basis

BanksNon-Banks Total Banks

Non-Banks Total Guarantees Derivatives Other

Other


Part III: Liabilities: Linked Form


Official Monetary Institutions

Other Banks

Other Liabilities

Liabilitites


FORM B120: Geographical Distribution of Assets and Liabilities PRU-EPRS/VER1/12-07


FORM B130: Provisions for ImpairmentSpecific General

Opening BalanceMortgage LoansNon-Mortgage LoansDeposits with Financial InstitutionsSecuritiesOtherOff-Balance Sheet ItemsTotal

Charge from Profit and LossMortgage LoansNon-Mortgage LoansDeposits with Financial InstitutionsSecuritiesOtherOff-Balance Sheet ItemsTotal

Write-OffsMortgage LoansNon-Mortgage LoansDeposits with Financial InstitutionsSecuritiesOtherOff-Balance Sheet ItemsTotal

RecoveriesMortgage LoansNon-Mortgage LoansDeposits with Financial InstitutionsSecuritiesOtherOff-Balance Sheet ItemsTotal

OtherMortgage LoansNon-Mortgage LoansDeposits with Financial InstitutionsSecuritiesOtherOff-Balance Sheet ItemsTotal

Closing BalanceMortgage LoansNon-Mortgage LoansDeposits with Financial InstitutionsSecuritiesOtherOff-Balance Sheet ItemsTotal

FORM B130: Provisions for Impairment PRU-EPRS/VER1/12-07


FORM B140: Exposures in Arrears

Amount of exposure No. Exposures Provision applied

Mortgage LoansLess than 30 daysBetween 30 and 59 daysBetween 60 and 89 daysBetween 90 and 182 daysBetween 183 and 365 daysExceeding 365 days

Non-Mortgage LoansLess than 30 daysBetween 30 and 59 daysBetween 60 and 89 daysBetween 90 and 182 daysBetween 183 and 365 daysExceeding 365 days

Deposits with Financial InstitutionsLess than 30 daysBetween 30 and 59 daysBetween 60 and 89 daysBetween 90 and 182 daysBetween 183 and 365 daysExceeding 365 days

SecuritiesLess than 30 daysBetween 30 and 59 daysBetween 60 and 89 daysBetween 90 and 182 daysBetween 183 and 365 daysExceeding 365 days

OtherLess than 30 daysBetween 30 and 59 daysBetween 60 and 89 daysBetween 90 and 182 daysBetween 183 and 365 daysExceeding 365 days

FORM B140: Exposures in Arrears PRU-EPRS/VER1/12-07


Off-Blance Sheet ItemsLess than 30 daysBetween 30 and 59 daysBetween 60 and 89 daysBetween 90 and 182 daysBetween 183 and 365 daysExceeding 365 days

TotalLess than 30 daysBetween 30 and 59 daysBetween 60 and 89 daysBetween 90 and 182 daysBetween 183 and 365 daysExceeding 365 days

FORM B140: Exposures in Arrears PRU-EPRS/VER1/12-07


FORM B150: Investment Activity Schedule AED USDOther Currencies

Total

DebtB150_1110 - Government Securities (original maturity of 366 days or less)B150_1120 - Government Bonds (original maturity of more than 366 days)B150_1130 - Sub-sovereign - Regional/Local/Municipal Government DebtB150_1140 - Issuance by Public Sector EnterprisesB150_1150 - Corporate bonds & debentures (original maturity of more than 1 year)B150_1160 - Mortgage backed securitiesB150_1170 - Other Asset backed securitiesB150_1180 - Other structured credit transactionsB150_1190 - Deposits with Banks (residual maturity of 366 days or less)B150_1195 - Deposits with Banks (residual maturity of more than 366 days)Total Debt

Hyprid Debt & Preferential SharesB150_1210 - Public Sector enterprisesB150_1220 - Public listed entitiesB150_1230 - Private companies - unlistedTotal Hyprid Debt & Preferential Shares

EquityB150_1310 - Public Sector enterprisesB150_1320 - Public listed entitiesB150_1330 - Private companies - unlistedTotal Equity Investment

Other AssetsB150_1410 - Real Estate & PropertyB150_1420 - Stakes in SPVsB150_1430 - Funds - CIFsB150_1440 - Private equity and venture capital fundsTotal

FORM B150: Investment Activity Schedule PRU-EPRS/VER1/12-07


B150_100T - Total Direct Investments

DerivativesB150_2100 - Equity DerivativesB150_2200 - Credit DerivativesB150_2300 - Fixed Income Derivatives

B150_2400 - Rate Products - Currency & Interest rate

B150_2500 - Commodity derivativesTotal Derivatives Positions

Geographic Distribution of investment madeB150_3100 - DIFCB150_3200 - UAEB150_3300 - GCCB150_3400 - MENA (Exclusive of GCC)B150_3500 - EuropeB150_3600 - AmericasB150_3700 - East Asia & AustraliaB150_3800 - South Asia & rest of AsiaTotal Investments

Sectoral Distribution of investment by AFsB150_4110 - AgricultureB150_4120 - Metals, Mining and commoditiesB150_4130 - Energy - inlcudes Oil & GasB150_4140 - ManufacturingB150_4150 - ServicesB150_4160 - Communications, media & ITB150_4170 - ConstructionB150_4180 - Trading

B150_4190 - Transportation, logistics and warehousing

B150_4200 - Financial ServicesB150_4210 - UtilitiesB150_4220 - Public servicesB150_4230 - OthersTotal Investments

B150_500T - Total Investments (Denomination) Linked Form

Cash & Liquid Assets

Investments held for sale

All other investments

Total

Click to select currenciesCurrency D

FORM B150: Investment Activity Schedule PRU-EPRS/VER1/12-07


FORM B160: Credit Activity ScheduleOutstanding

PrincipalDisbursements in

current period

Loans & Advances - by Counterparty Type

B160_1010 - Credit to Soveriegn Governments and Central Banks

B160_1020 - Credit to Sub-soveriegn Governments (local / regional and municipal)B160_1030 - Public Sector Enterprises (PSEs)B160_1040 - BanksB160_1050 - Investment Firms and financial institutionsB160_1060 - Large Corporates

B160_1070 - Small and Medium Enterprises (SME Lending)

B160_1080 - Hedge FundsB160_1090 - Other CIFs or investment vehiclesB160_1100 - Family OfficesB160_1110 - HNWIsB160_1120 - OthersTotal

Loans & Advances - by Product CategoryB160_2010 - Short term Debt - loans / notes / OverdraftsB160_2020 - Commercial PaperB160_2030 - Bills Financing - TradeB160_2040 - Bills from banks and othersB160_2050 - Term DebtB160_2060 - Project FinanceB160_2070 - Structured CreditB160_2080 - Revolving CreditB160_2090 - Residential Mortgage LendingB160_2100 - Commercial Mortgage LendingB160_2110 - Loans collateralised by sharesB160_2120 - Loans collateralised by other assetsTotal

Loans & Advances - Geographic Distribution

B160_3010 - To Banks in the UAEB160_3020 - To entities in the DIFCB160_3030 - To non-bank entities in the UAEB160_3040 - To entities in the GCCB160_3050 - To entities in the MENAB160_3060 - EuropeB160_3070 - AmericasB160_3080 - East Asia & AustraliaB160_3090 - South Asia & rest of AsiaTotal

Loans & Advances - by MaturityB160_4010 - Upto 6 monthsB160_4020 - 6 months to 1 yearB160_4030 - over 1 year to 3 yearsB160_4040 - over 3 years to 5 yearsB160_4050 - over 5 yearsTotal

FORM B160: Credit Activity Schedule PRU-EPRS/VER1/12-07


Loans & Advances - by SectorB160_5010 - AgricultureB160_5020 - Metals, Mining and commoditiesB160_5030 - Energy - inlcudes Oil & GasB160_5040 - ManufacturingB160_5050 - ServicesB160_5060 - Communications, media & ITB160_5070 - ConstructionB160_5080 - TradingB160_5090 - Transportation, logistics and warehousingB160_5100 - Financial ServicesB160_5110 - UtilitiesB160_5120 - Public servicesB160_5130 - OthersTotal

Unfunded CreditB160_6010 - GuaranteesB160_6020 - Letters of CreditB160_6030 - Commitments and unused lines of creditTotal

B160_700T - Total Investments (Currency Denomination) Linked Form

FORM B160-II: Distribution of Outstanding Loans and Advances by Currency of Denomination

to Head office, other branches or

groupTo banks

To other customers

Total


FORM B160: Credit Activity Schedule PRU-EPRS/VER1/12-07


FORM B170: Acceptance of Deposits Schedule

US $ Other Currencies

Outstanding Amount at the end of Period

Deposit Inflows in this Period

Outstanding Amount at the end of Period

Deposit Inflows in this Period

By Type of DepositorB170_1010 - HNWIsB170_1020 - Family OfficesB170_1030 - Corporate entitiesB170_1040 - Investment entities including fundsB170_1050 - Sovereign, Sub-sovereign and PSEsB170_1060 - Non-bank FIsB170_100T-Total

By Type of DepositsB170_2010 - Demand depositB170_2020 - Fixed Deposits or Time depositsB170_2030 - Other depositsB170_200T-Total

By Geographical DiversificationB170_3010 - GCC - excluding UAEB170_3020 - MENA - except GCCB170_3030 - EuropeB170_3040 - AmericasB170_3050 - South AsiaB170_3060 - East Asia & AustraliaB170_300T-Total

By Maturity of DepositsB170_4010 - Upto 1 yearB170_4020 - over 1 year to 3 yearsB170_4030 - over 3 years to 5 yearsB170_4040 - over 5 yearsB170_400T-Total

B170_500T - Total (Currency) Linked FormFORM B170-II: Deposits by Currenices Total (Currency)


FORM B170: Acceptance of Deposits Schedule PRU-EPRS/VER1/12-07


FORM B180: Wealth Management Activity Accounts booked in DIFC Accounts Booked Elsewhere

No. of Customers Net New AssetsAssets Under Management


Wealth Management ActivityB180_1010 - Discretionary accountsB180_1020 - Non-discretionary accountsTotal

Customers - by their domicileB180_2010 - DIFCB180_2020 - UAE (Except DIFC)B180_2030 - GCC & MENA (except UAE)B180_2040 - EuropeB180_2050 - AmericasB180_2060 - South AsiaB180_2070 - East Asia & AustraliaTotal

Destination of accounts booked outside DIFCB180_3010 - Switzerland

B180_3020 - Jersey, Guernsey & Isle of Man

B180_3030 - Rest of EuropeB180_3040 - SingaporeB180_3050 - Rest of AsiaB180_3060 - Bermuda, CaymanB180_3070 - Rest of WorldTotal

FORM B180: Wealth Management Activity PRU-EPRS/VER1/12-07


FORM B190: Asset Management, Custody & Trust Services

Services provided by firm or its agents in the DIFC Arranging services outside DIFC


No. of Customers Net New Assets Assets Under Management

Asset Management ServicesCIFs registered in DIFCFunds registered elsewhereDiscretionary PMS for HNWIsPrivate accountsFamily officesInstitutional clientsExternal asset managersTotal

Custody ServicesCIFs registered in DIFCFunds registered elsewhereDiscretionary PMS for HNWIsPrivate accountsFamily officesInstitutional clientsExternal asset managersTotal

Providing Trust ServicesHNWIsInvestment companiesOther corporatesFamily officesInstitutional officesOther clientsTotal

FORM B190: Asset Management, Custody Trust Services PRU-EPRS/VER1/12-07


FORM B200: Brokerage Activity No. of clientsNo. of trades

executedVolume of activity

(No. of units traded)Total value of

trades

Execution of TransactionsExchange TradedEquityFixed IncomeFixed FuturesCommodity FuturesTotalOTC TradingEquityFixed IncomeFixed FuturesCommodity FuturesForwardsSwapsCredit DerivativesTotalFundsCIFsREITsPrivate EquityTotalTotal Transactions Executed

FORM B200: Brokerage Activity PRU-EPRS/VER1/12-07


Arranging of TransactionsExchange TradeEquityFixed IncomeFixed FuturesCommodity FuturesTotalOTC TradingEquityFixed IncomeFixed FuturesCommodity FuturesForwardsSwapsCredit DerivativesTotalFundsCIFsREITsPrivate EquityTotalTotal Trades Arranged



Brokerage by Customer Type Linked Form

FORM B200: Brokerage ActivityNo. of clients (Execution)

No. of trades executed

(Execution)

Total value of trades (Execution)

No. of clients (Arrangement)

No. of trades executed (Arrangement)

Total value of trades

(Arrangement)

Classification by customer typeB200_3100 - HNWIs & their vehiclesB200_3200 - Family OfficesB200_3300 - Institutional ClientsB200_3400 - CIFsB200_3500 - Trusts, endownments & charitiesB200_3600 - Fund distributorsTotal

Customers - by their domicileB200_4100 - DIFCB200_4200 - UAE (Except DIFC)B200_4300 - GCC & MENA (except UAE)B200_4400 - EuropeB200_4500 - AmericasB200_4600 - South AsiaB200_4700 - East Asia & AustraliaTotal



FORM B210: Outward Remittances UK USA EU SwitzerlandGCC other than UAE

MENA excluding

GCCOther countries Total

By Sector/Purpose of RemittanceB30_010 - Trade related remittancesB30_020 - Total of non-trade related remittancesB30_030 - Government sector in UAEB30_040 - Foreign Government entitiesB30_050 - Banks payments to HO and other branchesB30_060 - Banks payments to other banks abroadB30_070 - Banks payments to other non-residentsB30_080 - Banks remittance of charges and feesB30_090 - Banks remittance of ProfitsB30_100 - Other remittances by the bankB30_110 - Remittances by Insurance companiesB30_120 - Remittances by other banks & financial fB30_130 - Remittances by other business enterpriseB30_140 - Remittances by individualsB30_150 - All other remittancesB210_100T-Total

FORM B210: Outward Remittances PRU-EPRS/VER1/12-07


FORM B220: Inward Remittances UK USA EU SwitzerlandGCC other than UAE

MENA excluding

GCC

Other countries

Total

Sector/Purpose of RemittanceB30_010 - Trade related remittancesB30_020 - Total of non-trade related remittancesB30_030 - Government sector in UAEB30_040 - Foreign Government entitiesB30_050 - Banks payments to HO and other branchesB30_060 - Banks payments to other banks abroadB30_070 - Banks payments to other non-residentsB30_080 - Banks remittance of charges and feesB30_090 - Banks remittance of ProfitsB30_100 - Other remittances by the bankB30_110 - Remittances by Insurance companiesB30_120 - Remittances by other banks & financial fB30_130 - Remittances by other business enterpriseB30_140 - Remittances by individualsB30_150 - All other remittancesB220_100T-Total

FORM B220: Intward Remittances PRU-EPRS/VER1/12-07


FORM B230: Domestic Fund Activity No. of FundsFunds Under Management

By Type of FundsB230_1010 - Public FundsB230_1020 - Private FundsB230_100T-Total

By Type of FundsB230_2010 - Conventional FundsB230_2020 - Sharia FundsB230_2030 - Equity FundsB230_2040 - Feeder FundsB230_2050 - Property FundsB230_2060 - Private Equity FundsB230_2070 - Hedge FundsB230_2080 - Umbrella FundsB230_2090 - REITsB230_2100 - Fund of FundsB230_200T-Total

By Type of Investment VehicleB230_3010 - Investment Companies

B230_3020 - Open-Ended Investment Companies

B230_3030 - Close-Ended Investment Companies

B230_3040 - Investment PartnershipsB230_3050 - Investment TrustsB230_300T-Total

FORM B230: Domestic Fund Activity PRU-EPRS/VER1/12-07


FORM B240: Balance due from & due to Head Office, Own Branches & Other Banks

Head Office and/or own branches abroad

Other banks abroad

Own Branches and Other Banks Due from Due to Due from Due to

Countries

B240_1110 - ChinaB240_1120 - SingaporeB240_1130 - Hong KongB240_1140 - Other Asian countriesB240_110T - Total - Asian Countries

B240_1210 - BahrainB240_1220 - Other GCC CountriesB240_1230 - Other Arab/MENA countriesB240_120T - Total - GCC & Arab/MENA Countries

B240_1310 - United StatesB240_1320 - United KingdomB240_1330 - SwitzerlandB240_1340 - FranceB240_1350 - GermanyB240_1360 - JapanB240_1370 - Other West European & Industrial Countri

B240_1380 - East European countries

B240_130T - Total - European & Industrial Countries

B240_140T - Latin American CountriesB240_150T - Other Countries

B240_100T - Total (Balances due)

FORM B240: Balance due from due to Head Office,

Own Branches Other Banks PRU-EPRS/VER1/12-07


FORM B260: Acting as Trustee of a Fund and Fund Administration Activity

No. of FundsNet Asset Value of

Funds

Acting as Trustee

By Type of Funds

B260_1110 - Domestic FundsB260_1120 - Foreign FundsB260_110T - Total (Acting by type of funds)

B260_1130 - Domicile of Foreign funds Country Code

Fund Administration

By Type of Funds

B260_2110 - Domestic FundsB260_2120 - Foreign FundsB260_210T - Total (Acting by type of funds)

B260_2130 - Domicile of Foreign funds Country Code

FORM B260: Acting as Trustee of a Fund and

Fund Administration Activity PRU-EPRS/VER1/12-07


FORM B270: Related Party TransactionsRelated Party & Group

CompaniesOthers Total

ASSETSB270_1010 - Investment securities (RP)B270_1020 - Investments in associates, subsidiariesB270_1030 - Loans and advances to banks (RP)B270_1040 - Loans and advances to other customers (R) B270_1050 - Islamic contracts (RP)B270_1060 - Accounts Receivable (RP)TOTAL ASSETS

LIABILITIES

B270_2010 - Deposits from Banks and Financial Instit

B270_2020 - Deposits from non-bank customers (RP)

B270_2030 - Other borrowed funds (RP)B270_2040 - Sub ordinated debt (RP)B270_2050 - Debt securities in issue (RP)B270_2060 - Liabilities arising from Islamic contracB270_2070 - Other payables and liabilities (RP)TOTAL LIABILITIES

FORM B270: Related Party Transactions PRU-EPRS/VER1/12-07


Financial Group Capital Adequacy Report (Annual/Mid-year)Form B280: Financial Group Capital AdequacyLicence number:Firm name:Reference date of report:In respect of Parent entity of Financial Group reported on:

Name:Location:Principal activity:

Accounting standards used:Are these accounting standards IFRS compliant?

PART I: FINANCIAL GROUP CAPITAL ADEQUACY

1. Financial Group Capital Resources

2. Financial Group Capital Requirement

3. Surplus or deficit (item 1 less item 2)

PART II: FINANCIAL GROUP MEMBERSCapital

resourcesCapital

requirementSurplus/

(Deficit) (1. - 2.)4. Authorised Firms and Financial Institutions in Financial Group 1. 2. 3.

Name of Authorised Firm or Financial Institution4.14.24.34.44.54.64.74.84.94.10

Continuation sheet presented? Yes/No Number of continuation sheets:

Capital resources

Capital requirement

(Deficit) (1. - 2.)

5. Financial Group members in regulatory deficit 1. 2. 3.Name of Authorised Firm or Financial Institution

5.15.25.35.45.55.65.75.85.95.10

Continuation sheet presented? Yes/No Number of continuation sheets:

PART III: CERTIFICATION BY DIRECTORS

This Financial Group Capital Adequacy Report, including any continuation sheets and Supplementary Notes appended to it, has been prepared in accordance with the Rules in PIB A7.2, from information provided to the Firm by other members of its Financial Group and from its own records.

Signed in accordance with Rule PIB A7.2.2(4):

Signature:Name and position:

Signature:Name and position:

FORM B280: Financial Group Capital Adequacy Report PRU-EPRS/VER1/12-07


PRU-EPRS/VER1/12-07

3 INSTRUCTIONAL GUIDELINES This chapter of PRU contains the instructional guidelines for forms referred to in PIN. The instructional guidelines for each form are set out in the section specified below: 3.1 IN10 Statement of Financial Position 3.2 IN20 Statement of Capital Adequacy 3.3 IN30 Statement of Financial Performance 3.4 IN40 Statement of Premium Revenue and Reinsurance Expenses 3.5 IN50 Statement of Claims Expense & Recovery Revenue 3.6 IN60 Statement of Movements in Insurance Provisions 3.7 IN70 Statement of Investment Income 3.8 IN80 Statement of Acquisition Expenses 3.9 IN90 Reconciliation to Financial Statements 3.10 IN100 Summary Statement to Operations 3.11 IN110 Reconciliation of Direct to Total Long-Term Insurance Business 3.12 IN120 Statement of Direct Long-Term Insurance Business 3.13 IN130 Statement of Direct Long-Term Insurance Liabilities 3.14 IN140 Statement of Assets Covering Direct Linked Long-Term Insurance

Liabilities 3.15 IN150 Statement of assets covering non-linked Long-Term Insurance

Liabilities and Minimum Capital Requirement 3.16 IN160 Calculation of Direct Long-Term Insurance element of Long- Term

Insurance Component 3.17 IN170 Financial Group Capital Adequacy Report


PRU-EPRS/VER1/12-07

3 INSTRUCTIONAL GUIDELINES 3.1 Instructional Guidelines – Form IN10 – Statement of Financial

Position

1. The ‘Statement of Financial Position’ provides the DFSA with the necessary information on assets, liabilities and capital to undertake an assessment of an Insurer’s financial position and performance and facilitate assessing compliance with the minimum capital requirements.

2. PIN section 5.3 deals with the recognition and measurement of assets and liabilities on this

form. 3. The instructional guidelines in this section provide instructions as to the completion of

specific lines on the form. Instructions that are provided in respect of a particular category of current assets or liabilities are normally applicable also (with the appropriate changes) to the corresponding category of non-current assets or liabilities, and vice versa.

4. The completion of this form requires Insurers to make estimates, for example, in assigning

assets and liabilities as current or non-current. As an example, the settlement date of outstanding claims, particularly IBNR, is often uncertain. An Insurer may make a reasonable estimate of the amount that is expected to be settled within twelve months, and record that amount as a current liability, with the balance being recorded as non-current. A similar approach would be acceptable for the assets representing reinsurance and other recoveries that would not normally become due and receivable until the underlying claim has been settled.

5. Insurers are required to disclose the amount included in certain totals with respect to parties

Related to the Insurer. These disclosures exclude amounts due to or from the Insurer under Contracts of Insurance.

6. This form is required for each reporting unit in respect of which the Insurer must prepare a

Return, except for a DIFC Business Return.

7. Assets and liabilities must be reported as current or non-current. Current assets and liabilities are those expected to mature or be realised within a twelve-month period from the date as at which the return is drawn up. Where an asset or a liability includes elements that are current as well as elements that are non-current, the asset or liability must be separated into the current and non-current components, if necessary by means of an estimate.

Structure of the form in the EPRS 8. IN10 is a single form which has three sections. The first section seeks information on assets

of an Insurer with further classification into current and non-current assets. In a similar vein, the second section seeks information on liabilities of an Insurer with further classification into current and non-current liabilities. The third section covers the equity of an Insurer.


PRU-EPRS/VER1/12-07

Section Instructional Guidelines Cash and Liquid Assets

This section includes only cash and liquid assets. Insurers must have regard to the following principles: a. Item N100_1120 includes only deposits available within 24 hours that are used by the

Insurer for daily purposes of liquidity and operations. Deposits that form part of the Insurer’s investments are reported under section Investments (Current) or section Receivables; and

b. Bank overdrafts must be reported at item N100_3630, not netted against any of the

items under this section unless there is a legal right of offset. Receivables This section includes only receivables. In completing this item, Insurers must have

regard to the following principles: a. Receivables must be stated net of any provision for doubtful debt or impairment of

asset; b. Recoveries other than reinsurance includes items such as subrogation or salvage

recoveries in respect of claims that have been paid; c. Premiums Receivable includes instalment premiums on General Insurance contracts

that are not yet due for payment. It also includes premiums on General Insurance contracts that have been entered into but not yet recorded. It does not include premiums on Long-Term Insurance contracts that are not yet due for payment;

d. Amounts due under reinsurance contracts includes amounts due and receivable under

reinsurance contracts, including premiums due from cedants and deposits retained by cedants, as well as amounts due from reinsurers in respect of recoveries against claims that have been paid. Where there is a legal right of set-off, an Insurer may report the working balance on an account with a cedant or reinsurer as a net receivable or payable amount. However, if there is no legal right of set-off, amounts must be recorded gross as receivables and payables;

e. Expected reinsurance and other recoveries on outstanding claims includes amounts in

respect of reinsurance and other recoveries in respect of claims that have been incurred but not paid, up to the date to which the return is drawn up. This includes reinsurance and other recoveries in respect of IBNR. Because of the uncertainty of the outcome of outstanding claims and IBNR, it is necessary to estimate at least a part of this balance. The basis on which the estimate is made must be consistent with the basis of estimation of the related liability, reported at item N100_3300;

f. Reinsurance and other recoveries in respect of claims that have not yet been incurred

are reported at item N100_1260. It is necessary to estimate this balance. The basis on which the estimate is made must be consistent with the basis of estimation of the related liability, reported at item N100_3400; and

g. Where, in determining the amounts to be reported at item N100_1240 or N100_1250,

an Insurer has made or considered making a provision for doubtful debt in respect of recoveries due or potentially due from a reinsurer, the Insurer must take into account the potential need to make a provision when determining any estimate to be included at item N100_1250 or N100_1260.

It is common practice for Insurers to account for their exposures on General Insurance contracts in force by means of an unearned premium provision, an asset representing


PRU-EPRS/VER1/12-07

deferred reinsurance expense and (where necessary) a premium deficiency reserve. Insurers are referred to the instructional guidelines to item Premium liabilities under general insurance contracts(N100_3400). An insurer that uses an unearned premium provision and premium deficiency reserve as a proxy for Premium Liabilities may record its deferred reinsurance expense at item N100_1260 (for the current portion) and item N100_2160 (for the non-current portion).

Investments An Insurer’s current investments are reported in this section. This section does not include derivatives used to hedge investments reported here. Hedging derivatives are included under “Other Current Assets”. Insurers must have regard to the following principles when completing this section: a. Investments that are strategic in nature must be assumed to be non-current, and must be

reported under sections – Investments (other than Related entities ) or under section Investments in Related entities; and

b. Deposits that are of the nature of security deposits, or retentions under contracts, are

not reported as PSIAs at item N100_1310, but are reported as receivables. Investments that take the form of mudaraba or musharaka contracts must be reported in accordance with their nature. A contract that takes the form of a collective investment, where the Insurer is one of several investors providing capital to a mudarib who then provides the capital to the entrepreneur, should be reported as a collective investment (where it does not fall to be reported as a PSIA). Where however, a contract of mudaraba or musharaka is entered into by an Insurer as an investment directly with an entrepreneur, or through a mudarib with the Insurer as sole rab ul mal, the investment should be reported as a contract of mudaraba or musharaka as appropriate.

Deferred Tax Assets Deferred tax assets that are current assets are reported under this section. Insurers must have regard to the following principles when completing this section: a. Netting off of deferred tax assets and liabilities is permitted only where both the asset

and the liability relate to the same tax to which the Insurer is subject, and are expected to crystallise in the same taxation period; and

b. Amounts that represent refunds due from taxation authorities, that are not contingent

on earning future taxable income, are not deferred tax assets but are receivables. Other Current Assets This section includes current assets that do not fall to be reported under other items. In

completing this item, Insurers must have regard to the following principles: a. Acquisition costs in respect of General Insurance business must not be deferred, as the

basis on which the Premium Liability is determined requires immediate expensing of acquisition costs; and

b. Item N100_1520 does not include deferred reinsurance expense, as item N100_1260

stands in place of this asset. Total Current Assets This item is calculated by EPRS as the sum of the total for all 5 preceding sections - cash

& liquid assets, receivables, current investments, deferred tax assets and other current assets classified as current assets. The total of amounts due from, balances with or investments in Related parties that form a part of the total of current assets, excluding the amounts due under insurance contracts is reported against the memo item - Current assets representing amounts due from, balances with or investments in related parties, excluding amounts due under insurance contracts reports.


PRU-EPRS/VER1/12-07

Receivables (non-current)

In completing this section, Insurers should have regard to the principles set out in this section for the equivalent categories of current assets.

Investments (other than related entities)

In completing this section, Insurers should have regard to the principles set out in this section for the equivalent categories of current assets.

Investments in Related Entities

In this section, investments in Related parties must be recognised and measured in accordance with the principles of PIN chapter 5. PIN Rule 5.7 requires an Insurer to make allowance for any minimum capital requirement or equivalent to which a Subsidiary or Associate is subject in the jurisdiction in which it is incorporated.

Plant and Equipment In this section, an Insurer must exclude any properties of the Insurer, whether or not occupied. Properties must be reported at item N100_1360 or N100_2260 as appropriate.

Intangible Assets In this section, an Insurer must report intangible assets after deducting any amortisation or impairment charge in respect of those assets.

Deferred Tax Assets In completing this section (non-current deferred tax assets) Insurers should have regard to the principles set out in this section for the equivalent categories of current assets.

Other Assets In completing this section (other non-current assets) Insurers should have regard to the principles set out in this section for the equivalent categories of current assets.

Total Non-Current Assets

This item is calculated by EPRS as the sum of the total for all 7 preceding sections - receivables, investments, investments in related entities, plant & equipment, intangible assets, deferred tax assets and other assets classified as Non-Current Assets. The total of amounts due from, balances with or investments in Related parties that form a part of the total of non-current assets, excluding the amounts due under insurance contracts is reported against the memo item - current assets representing amounts due from, balances with or investments in related parties, excluding amounts due under insurance contracts reports.

Total Assets This item is calculated by EPRS and must equal the total of current assets and non-current assets.

Amounts due on reinsurance contracts

N100_3200 must include premiums payable but not yet due for payment under the terms of reinsurance contracts, and deposits withheld from reinsurers. Other items attributable to reinsurance contracts such as the reinsurer’s portion of recoveries and salvage and commissions due to reinsurers must also be included under this item.

Outstanding Claims Provision (including IBNR)

Item N100_3300 reports the current portion of the Insurer’s provision for outstanding claims. This item must be completed having regard to the following principles: a. The liability must represent the estimated cost to the Insurer of settling claims which it

has incurred at the reporting date but which have not been finalised. The liability is in respect of both direct business and inward reinsurance business and must take into account unpaid claims, unreported claims, adjustments for claims development and the direct and indirect claims settlement costs that the Insurer expects to incur in settling its outstanding claims;

b. In the case of Long-Term Insurance Business, this item must include all claims liabilities in respect of Contracts of Insurance that are no longer included in the calculation of the net policy benefits at item N100_3500;

c. The liability must be stated without deducting reinsurance and other recoveries (these are disclosed as an asset as reinsurance receivables);

d. The requirements for recognition and measurement of this liability are set out in PIN Rules 5.4 and 5.6; and

e. The liability does not include any amounts for catastrophe reserve, equalisation reserve or similar provisions that an Insurer may be required to maintain to satisfy regulatory requirements in a jurisdiction other than the DIFC.


PRU-EPRS/VER1/12-07

Premium liabilities under General Insurance contracts

This item represents the current portion of the cost of providing insurance service over the unexpired period of General Insurance contracts in force at the balance date. This item must be completed having regard to the following principles: a. The Premium Liability reported is required to cover the value of future claims

payments and associated direct and indirect settlement costs arising during the unexpired portion of the contracts in question;

b. This item must be recorded without deducting reinsurance and other recoveries (these are disclosed as an asset as reinsurance receivables); and

c. The requirements for recognition and measurement of this liability are set out in PIN Rule 5.4.

As stated in the Guidance to PIN Rule 5.4.7, it is common practice for Insurers to account for their exposures on General Insurance contracts in force by means of an unearned premium provision and (where necessary) a premium deficiency reserve. Where the aggregate of the unearned premium provision and the premium deficiency reserve (both gross of reinsurance) can be shown to be not less than the amount of Premium Liability determined in accordance with PIN Rule 5.4, an Insurer may use that aggregate as a proxy for Premium Liability for the purposes of recording items N100_3400 and N100_4250 on this form.

Net policy benefits under Long-Term insurance contracts in force

This item represents the net value of future Policy Benefits under Long-Term Insurance contracts that are in force as at the date to which the return is made up. The amount reported here must be determined in accordance with PIN Rule 5.6.

Provisions This section, must be completed having regard to the following principles: a. A provision must be made at item N100_3810 in respect of dividends payable out of

past and current year profit, to the extent that profit has been recognised; b. Employee entitlements at item N100_3820 include annual leave, gratuity, accrued

allowances, staff housing and loan benefits, healthcare, pension and other employee entitlements; and

c. A provision must be made at item N100_3830 in respect of any costs that the Insurer expects to incur as a result of restructuring, including severance, termination and redundancy payments, and integration costs.

Total Current Liabilities

This item is calculated by EPRS as the sum of the total for all 9 preceding sections – N100_3100, N100_3200, N100_3300, N100_3400, N100_3500, total borrowings, total tax liability, total provisions and total other liabilities classified as current liabilities. The total of amounts due to Related parties, other than amounts due under insurance contracts is reported against the memo item under this section.

Amounts due on reinsurance contracts

In completing this item, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.



Premium liabilities under General Insurance contracts


Net policy benefits under Long-Term Insurance contracts in force


Provisions In completing this item, Insurers should have regard to the principles set out in these instructional guidelines for the equivalent categories of current liabilities.

Loan Capital and Hybrid Securities

This section includes all loan capital and hybrid securities that have been issued by the Insurer and have a residual term to maturity of more than one year. Any loan capital or hybrid securities that have a residual term to maturity of less than one year should be


PRU-EPRS/VER1/12-07

reported as Borrowings, under Current Liabilities. Total Non-Current Liabilities

This item is calculated by EPRS as the sum of the total for all 10 preceding sections – N100_4100, N100_4150, N100_4200, N100_4250, N100_4300, total borrowings, total tax liability, total provisions, total other liabilities and total loan capital & hybrid securities classified as non-current liabilities. The amount of non-current liabilities representing amounts due to Related parties, other than amounts due under insurance contracts and included under Non-current liabilities is reported against the memo item – N100_410M. The interest of Related parties in loan capital or hybrid securities issued by the Insurer is reported against the memo item –N100_420M.

Total Liabilities This item is calculated by EPRS and must equal the sum of total current liabilities assets and total non-current liabilities.

Net Assets This item is calculated by EPRS and must equal total assets less total liabilities. Equity In completing this section, Insurers must have regard to the following principles:

a. Total Equity must be equal to Net Assets; b. Hybrid securities and loan capital are reported under loan capital and hybrid

securities and, not under this section; c. Item N100_7100 is not used in a Fund Return; d. Item N100_7300 is used only in a Fund Return, to record amounts of capital

transferred into the Long-Term Insurance Fund; and e. Where an Insurer makes use of item N100_7600, the Insurer must state in a

Supplementary Note the nature of the amount recorded at this item. Insurers must record at item N100_700M the amount included at item N100_7100 meeting the following descriptions:

a. in the case of a Global Return of an Insurer that is not a Protected Cell Company, the amount of ordinary share capital meeting the description at PIN Rule A3.5.1(d);

b. in the case of a Global Return of an Insurer that is a Protected Cell Company, the amount of ordinary share capital meeting the description at PIN Rule A5.5.1(e); and

c. in the case of a Cell Return, the amount of ordinary share capital meeting the description at PIN Rule A5.10.1(d).

No amount must be recorded at item N100_700M in the case of a Fund Return. An Insurer must provide the following information in a Supplementary Note to this form: a. any amount included in Total Equity that is not available to meet the Insurance

Liabilities of the Insurer; b. the amount and details of any guarantees (apart from guarantees arising under

Contracts of Insurance) given by the Insurer; c. the amount and details of any contingent liabilities existing as at the date to which

the return is made up; and d. where the amount of item N100_7400 is not equal to the sum of items N100_7400

and N100_7500 for the comparative reporting period, a reconciliation of the differences. This applies only when the form forms a part of the Annual Regulatory Return.


PRU-EPRS/VER1/12-07

3.2 Instructional Guidelines – Form IN20 – Statement of Capital Adequacy

1. This form summarises the capital adequacy position of the Insurer so far as concerns the reporting unit for which it is prepared (Global, Cell, or Fund).

2. The same form is used for all types of Return, although in the calculation of the capital

requirements applicable to different Insurers and to their Cells and Long-Term Insurance Funds, different terminology is used. The terms on the face of the form need to be replaced with the specific equivalent terms from the relevant section (as set out below in the interpretation table), depending on the nature of the Insurer and the type of Return.

3. This form lists a number of adjustments to arrive at the figure to be compared to the

minimum capital requirement applicable to the reporting unit. The purpose of these adjustments is to remove significant anomalies that may arise due to the flexibility available to Insurers in selecting their accounting bases. Therefore, not all of these adjustments will be applicable to all Insurers. An item must not be added to the base capital figure if it is already included in the base capital figure because of the accounting basis adopted.

4. The effect of the instructions, in line with the Rules in PIN, on the Return of a Takaful

Insurer is to exclude from equity any element of equity that is not available to participate in the surpluses or deficits of the Insurance Business of the Takaful Insurer, either directly or by loan to the Insurance Fund. Loans that have been made from the Owners’ Equity to the Insurance Fund are included in base capital without restriction, while amounts that are available for loan are treated as hybrid capital.

5. This form is required for each reporting unit in respect of which the Insurer must prepare a

Return, except for a DIFC Business Return. A Global Return for a Branch must be submitted in writing as set out in PIN Rule 6.5.

6. Insurers must follow the requirements of PIN chapter 4 when preparing this form. 7. For the purposes of this form, the meaning that must be given to each of the terms set out in

the leftmost column of the interpretation table below for each type of Return is contained in the column headed by that type of Return.

8. Where a term does not apply to a type of Return, this is denoted by the characters ‘N/A’ and

this item must be left blank on the form. Structure of the form in the EPRS 9. IN20 is a simple form which covers all the items in a single section.


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Section Instructional Guidelines Base Capital Base Capital, represents the starting-point for the calculation of the capital resources of the

Insurer to be compared to the minimum capital requirement applicable to the Insurer. This section must be completed having regard to the following principles:

a. Item N200_1110, Equity, must be equal to Total Equity reported on form IN10, less debt-financed equity reported at item N100_700M on form IN10;

b. Item N200_1120, must be equal to the amount of Owners’ Equity in a Takaful Insurer that is available for loan to the Insurance Fund. It does not include any amount of loans made from Owners’ Equity to the Insurance Fund and not repaid. This item applies only to Takaful Insurers;

c. Any amount recorded at item N200_1131 must not exceed the amount recorded at item N100_4810 on form IN10;

d. Any amount recorded at item N200_1132 must not exceed the amount recorded at item N100_4820 on form IN10;

e. Item N200_1133 may only be used by a Takaful Insurer. This item must equal item N200_1120; and

f. Item N200_1134 may not exceed the amount total equity reported on form IN10. Adjustments to Base Capital in Accordance with PIN

Adjustments to Base Capital in Accordance with PIN, must be completed having regard to the following principles: a. Amounts referred to under Additions to Base Capital (where not included in capital) must

not be reported if those amounts are included at item N200_1134; b. Amounts referred to under Subtractions from Base Capital must not be reported if those

amounts are excluded from item N200_1134; c. N200_1211 - minority interests in subsidiaries, applies only where an Insurer excludes

from its equity an amount representing minority interests in a controlled entity that is not accounted for as an investment;

d. Item N200_1212, liability for dividends to be paid in the form of shares, applies only where an Insurer has recorded as a liability a provision for dividends that are to be paid by issuing shares. This item does not apply to a Fund Return;

e. Item N200_1221 applies to the liability referred to in PIN Rule A3.4.3(a) and equivalent provisions in PIN Rules A5.4.3(a), A5.8.3(a) and A7.4.2(a). This item does not apply to a Fund Return;

f. Item N200_1222 applies only to a Return of a Takaful Insurer. This item represents amounts of Owners’ Equity that are not available for loan to the Insurance Fund or to participate in surpluses or deficits of the Insurance Fund;

g. Item N200_1223 represents investments of the Insurer or by any Subsidiary of the Insurer in the total base capital of the Insurer;

h. Item N200_1224 represents the amount of any tax on capital gains, that was not recognised as a liability on form IN10, and that would be incurred by the Insurer if the investments reported on form were realised at the values shown on that form;

i. Item N200_1225 must be equal to the amount of any deferred acquisition costs included on form IN10, whether as a separate asset or as a reduction from liabilities;

j. Item N200_1226 must be equal to the sum of total deferred tax assets under both current and non-current assets on form IN10;

k. Item N200_1227 must be equal to the sum of any asset recorded on form IN10 and representing the value of in-force Long-Term Insurance Business;

l. Item N200_1228 must be equal to the total intangible assets recorded on form IN10 and


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not otherwise excluded from base capital; m. Item N200_1229 applies only to a Return of a Takaful Insurer. This item represents any

amount of Zakah or charity fund of a Takaful Insurer that is not otherwise excluded from base capital;

n. Item N200_1231 must be equal to the amount reported as total plant & equipment on form IN10; and

p. Item N200_1232 must record the amount of any other assets, not otherwise excluded from base capital, that are not available to meet the Insurance Liabilities of the Insurer recorded on form IN10.

This section, adjustments to base capital in accordance with PIN would normally be expected to include assets that are subject to mortgages or other charges, or than cannot for some other reason be realised for the benefit of policyholders.

Adjusted Equity

This item is calculated by EPRS and must equal the total of base capital and net adjustments to base capital in accordance with PIN referred above.

Hybrid Capital Adjustment

Item N200_1410, Hybrid capital adjustment before DFSA approval, must be calculated as the amount by which the sum of items N200_1131 to N200_1134 exceeds 15/85 of the amount arrived at by deducting item N200_1120 from item N200_1110. Item N200_1420, additional hybrid capital approved by DFSA, may only be used to record additional amounts of hybrid capital that have been approved in writing by the DFSA, in accordance with PIN Rules A3.5.2, A5.5.4, A5.10.4 or A7.5.3. The amount under this item may not exceed the amount of item N200_1410. Item N200_1410 deducts hybrid capital that would normally be inadmissible because it exceeds the prescribed percentage. Item N200_1420 reinstates hybrid capital that had been disallowed by item N200_1410.. Item N200_1420 does not show the total amount of admissible hybrid capital, only that portion that exceeds the 15% ceiling.

Adjusted Capital Resources

This item is calculated by EPRS and must equal the total of adjusted equity and net hybrid capital adjustment, which is the difference between items N200_1410 and N200_1420.

Minimum Capital Requirement

This section sets out the components of the Minimum Capital Requirement applicable to the reporting unit of the Insurer in respect of which the Return is completed. For each reporting unit, the components must be calculated in accordance with the chapter applicable to that reporting unit.

Absolute minimum requirement applicable to reporting unit

Absolute minimum requirement applicable to reporting unit, must be interpreted in accordance with the interpretation table below.

Applicable result

This item is calculated by EPRS and must equal the higher of the amounts reported under calculated capital requirement and Absolute minimum requirement applicable to reporting unit.

Capital adequacy result

This item is calculated by EPRS and must equal Adjusted Capital Resources less applicable result as calculated in item N100_4000.


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Meaning of term for each type of Return Section no.

Term used in form Global Return (all Insurers except Protected Cell Companies)

Global Return (Protected Cell Companies)

Cell Return Fund Return

1. Base Capital Base capital as defined in PIN Rule A3.3.1

Base non-cellular capital as defined in PIN Rule A5.3.1

Base cellular capital as defined in PIN Rule A5.7.1

Base fund capital as defined in PIN Rule A7.3.2

3. Adjusted Equity AE as defined in PIN Rule A3.2.1

ANE as defined in PIN Rule A5.2.1

ACE as defined in PIN Rule A5.6.1

AFE as defined in PIN Rule A7.2.1

4. Hybrid Capital Adjustment HCA as defined in PIN Rule A3.2.1

HNCA as defined in PIN Rule A5.2.1

HCCA as defined in PIN Rule A5.6.1

FHCA as defined in PIN Rule A7.2.1

5. Adjusted Capital Resources ACR as defined in PIN Rule A3.2.1

ANCR as defined in PIN Rule A5.2.1

ACCR as defined in PIN Rule A5.6.1

AFCR as defined in PIN Rule A7.2.1

6. Minimum Capital Requirement

MCR as defined in PIN Rule A4.2.1

MSCR as defined in PIN Rule A6.2.2

MSCR as defined in PIN Rule A6.2.2

MFCR as defined in PIN Rule A8.2.1

6.1 Default risk component DRC as defined in PIN Rule A4.2.1

DRC as defined in PIN Rule A6.2.2



6.2 Investment volatility risk component

IVRC as defined in PIN Rule A4.2.1




6.3 Off-balance sheet asset risk component

OARC as defined in PIN Rule A4.2.1




6.4 Off-balance sheet liability risk component

OLRC as defined in PIN Rule A4.2.1




6.5 Concentration risk component

CRC as defined in PIN Rule A4.2.1




6.6 Size factor adjustment SFAC as defined in PIN Rule A4.2.1

SFAC as defined in PIN Rule A6.2.2



6.7 Underwriting risk component

URC as defined in PIN Rule A4.2.1

N/A URC as defined in PIN Rule A6.2.2

N/A

6.8 Reserving risk component RRC as defined in PIN Rule A4.2.1

N/A RRC as defined in PIN Rule A6.2.2

N/A


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6.9 Long-Term Insurance risk component

LIRC as defined in PIN Rule A4.2.1

N/A LIRC as defined in PIN Rule A6.2.2

LIRC as defined in PIN Rule A8.2.1

6.10 Asset management risk component

AMRC as defined in PIN Rule A4.2.1




7. Absolute minimum requirement applicable to reporting unit

The amount set out in PIN Rule A4.2.3, applicable to the Insurer

The amount set out in PIN Rule A6.2.4 or, if higher, the MSCR as defined in PIN Rule A6.2.2 plus any amount that must be added to that amount pursuant to PIN Rule A6.2.6

The amount set out in PIN Rule A6.2.5

The amount set out in PIN Rule A8.2.3


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3.3 Instructional Guidelines – Form IN30 – Statement of Financial Performance

1. This form summarises the financial performance of the Insurer. 2. This form is required for each reporting unit in respect of which the Insurer must prepare a Return,

except for a DIFC Business Return. A Global Return for a Branch must be submitted in writing as set out in PIN Rule 6.5.

3. This form must agree with other forms in the Return (where those forms are prepared for the same

reporting unit) in the following respects:

a. Item N300_0110 must agree to Total Gross Written Premiums in part I of form IN40; b. Item N300_0120 must agree to Total Gross Written Premiums in part II of form IN40; c. Item N300_0210 must agree to Total Reinsurance Ceded in part I of form IN40; d. Item N300_0220 must agree to Total Reinsurance Ceded in part II of form IN40

e. Item N300_0410 must agree to Total Gross Claims Paid reported in part I of form IN50

f. Item N300_0420 must agree to Total Gross Claims Paid reported in part II of form IN50 g. Item N300_0510 must agree to Total Reinsurance and other recoveries received in respect of

paid claims reported in part I of form IN50

h. Item N300_0520 must agree to Total Reinsurance and other recoveries received in respect of paid claims reported in part II of form IN50

i. Item N300_1010 must agree to the sum of Total Commissions and Brokerage reported in

both parts I & II of form IN80 j. Item N300_1020 must agree to the sum of Total Other Acquisition Costs reported in both

parts I & II of form IN80 k. Item N300_1310 must agree to Total Other Investment Income less total changes in value

reported in form IN70; and l. Item N300_1320 must agree to Total changes in value reported in form IN70.

4. Movements in Insurance Liabilities (Gross): Under this section, an Insurer must report the amount of the movement in the balance of Insurance Liabilities over the reporting period.

5. Movements in Recoveries Against Insurance Liabilities: Under this section, an Insurer must report

the amount of the movement in the balance of reinsurance and other recoveries in respect of Insurance Liabilities over the reporting period.

6. Insurance Liabilities are reported gross of reinsurance and other recoveries. Reinsurance and other

recoveries that are recorded in respect of Insurance Liabilities are reported as assets. An increase in Insurance Liabilities is reported on this form as an expense. In the same manner, an increase in the reinsurance and other recoveries in respect of Insurance Liabilities is recorded as revenue.


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7. The other expenses disclosed at item N300_1040 must be only those attributable to a Long-Term Insurance Fund. Expenses that are not so attributable are disclosed at item N300_1050. By virtue of PIN Rule 3.5.5, expenses that do not relate to the Insurer’s Long-Term Insurance Business may not be attributed to a Long-Term Insurance Fund.

8. An Insurer must present the following information in a Supplementary Note to this form:

a. the amount if any included in item N300_1120 that represents other operating income

receivable from Related parties, and a description of the nature of that income; b. the amount if any included in item N300_1330 that represents investment expenses payable

to Related parties; and c. where item N300_1800 18 does not agree to form IN10 item N100_7500, a reconciliation

showing the differences between the two figures.

Net Income Before Taxation: This item is calculated by EPRS and must equal the total of operating income and net investment income reported above. Net Income After Taxation: This item is calculated by EPRS and must equal net income before taxation less tax expenses. Net Income After Dividends: This item is calculated by EPRS and must equal net income after taxation less dividend in respect of current reporting period.

Structure of the form in the EPRS 9. IN30 is a simple form which covers all the items in a single section.

3.4 Instructional Guidelines – Form IN40 – Statement of Premium

Revenue and Reinsurance Expenses

1. This form is required for each reporting unit in respect of which the Insurer must prepare an Annual Regulatory Return, except for the Global Return of an Insurer that is a Protected Cell Company. A Global Return for a Branch must be submitted in writing as set out in PIN Rule 6.5.

2. A Protected Cell Company is prevented by COB from carrying on Insurance Business other than

through a Cell. Because this form would always be blank for such a company in its Global Return, there is no need for it to submit the form or to complete a Supplementary Note to explain its absence.

3. An Insurer must record premiums and reinsurance premiums relating to its Insurance Business on

this form as follows:

a. An Insurer that is carrying on General Insurance Business must complete part I of this form; b. An Insurer that is carrying on Long-Term Insurance Business must complete part II of this

form;


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c. Subject to d. an Insurer that is carrying on Long-Term Insurance Business and General Insurance Business of Class 1 or Class 2 may elect either to record the General Insurance Business in part I of this form, or to include that business in Class I on part II of this form. An Insurer may not, between successive Returns, change its election without the written approval of the DFSA; and

d. A DIFC Incorporated Insurer undertaking Direct Long-Term Insurance business and General

Insurance Business of Class 1 or Class 2 that is Direct business must record that General Insurance Business as Direct Long-Term Insurance Business in Class I.

4. An Insurer must record its Gross Written Premium for the reporting period in respect of different

classes of business and for different types of insurance contracts, using the first table in parts I & II of this form.

5. An Insurer must record the reinsurance premium ceded for the reporting period in respect of

different classes of business and for different types of insurance contracts, using the second table in parts I & II of this form. Reinsurance premiums recorded as ceded must be gross of any commissions or brokerage, and must be recognised on a basis consistent with the recognition of Gross Written Premium on this form.

6. Reinsurance premiums ceded must be analysed between the four columns referring to the different

types of insurance contracts on the basis of the underlying insurance contracts that they are protecting, not on the basis of the reinsurance contracts themselves. Where reinsurance arrangements protect more than one type of business (for example both direct and facultative business) or more than one Class of Business, the Insurer must make a reasonable allocation of the reinsurance premiums between the types or Classes of Business covered.

7. An Insurer must disclose the aggregate amount of its insurance and reinsurance transactions with its

Related parties as follows:

a. at item N400_110M, the amount of Gross Written Premium accepted from Related parties that has been included in the total Gross Written Premiums for General Insurance Business;

b. at item N400_120M, the amount of reinsurance premium ceded to Related parties that has

been included in the total reinsurance premium ceded for General Insurance Business; c. at item N400_210M, the amount of Gross Written Premium accepted from Related parties

that has been included in the total Gross Written Premiums for Long-Term Insurance Business; and

d. at item N400_220M, the amount of reinsurance premium ceded to Related parties that has

been included in the total reinsurance premium ceded for Long-Term Insurance Business.

Structure of the form in the EPRS 8. IN40 is a simple form with two sequential parts in a table format, covering the General Insurance

Business and Long-Term Insurance Business.


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3.5 Instructional Guidelines – Form IN50 - Statement of Claims Expense and Recovery Revenue




3. An Insurer must record claims paid and reinsurance and other recoveries in respect of claims paid

relating to its Insurance Business on this form as follows:


form; c. An Insurer that is carrying on Long-Term Insurance Business and General Insurance

Business of Class 1 or Class 2 must record the General Insurance Business in a manner consistent with that adopted in respect of form 4 or determined in accordance with the instructional guidelines 3c under section 3.4; and

d. A DIFC Incorporated Insurer that carries on Direct Long-Term Insurance Business must

complete part III of this form in addition to any other part that this rule requires it to complete. Part III of this form is completed in respect of Direct Long-Term Insurance Business only.

4. An Insurer must record its gross claims paid for the reporting period in respect of different classes of

business and for different types of insurance contracts, using the first table in parts I & II of this form. For the purposes of this form, the amount of claims paid includes expenses incurred by the Insurer in the settlement of the claims.

5. An Insurer must record the reinsurance and other recoveries receivable for the reporting period in

respect of different classes of business and for different types of insurance contracts, using the second table in parts I & II of this form.

6. Reinsurance recoveries must be analysed between columns 1 and 4 on the basis of the underlying

insurance contracts that they relate to, not on the basis of the reinsurance contracts themselves. Where the nature of the reinsurance contract is such that the Insurer cannot identify individual claims benefiting from the recoveries (for example, in the case of an aggregate excess of loss contract, or a stop loss contract) the Insurer must make a reasonable allocation of the recoveries across the types and classes of business that have benefit of the reinsurance contracts.

7. n Insurer must disclose the aggregate amount of its insurance and reinsurance transactions with its

Related parties as follows:

a. at item N500_110M, the amount of gross claims paid to Related parties that has been included in the total Gross Claims Paid for General Insurance Business;


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b. at item N500_120M, the amount of reinsurance and other recoveries in respect of paid claims from Related parties that has been included in the total reinsurance and other recoveries in respect of paid claims for General Insurance Business;

c. at item N500_210M, the amount of gross claims paid to Related parties that has been

included in the total Gross Claims Paid for Long-Term Insurance Business; d. at item N500_220M, the amount of reinsurance and other recoveries in respect of paid claims

from Related parties that has been included in the total reinsurance and other recoveries in respect of paid claims for Long-Term Insurance Business;

8. An Insurer required to complete part III must record its Gross Claims Paid for the reporting period

in respect of Direct Long-Term Insurance Business across different types of insurance contracts, using the first table in part III of this form.

9. An Insurer required to complete part III must record, for each type of claim as set out in columns 1

to 4, at item N500_310M the amount of Gross Claims Paid to Related parties that has been included in the total above.

10. For the purposes of this form, the amount of claims paid includes expenses incurred by the Insurer

in the settlement of the claims. 11. An Insurer required to complete part III must record the reinsurance and other recoveries receivable

for the reporting period in respect of different classes of business and for different types of insurance contracts, using the second table in part III of this form.

12. An Insurer required to complete part III must record, for each type of claim as set out in columns 1

to 4, at item N500_320M the amount of reinsurance and other recoveries receivable from Related parties that has been included in the total above.

13. The amounts in the far right column, referring to the total amounts in part III of the form must equal

the amounts in the first column (Direct insurance) in part II of the form in respect of Gross Claims Paid across different classes of business, total claims paid to Related parties, reinsurance and other recoveries in respect of paid claims and total recoveries from Related parties.

14. Part III of the form is completed only by DIFC Incorporated Insurers that undertake Direct Long-

Term Insurance Business. This part provides an analysis of the information provided in column 1 of part II.

Structure of the form in the EPRS 15. IN50 has three sequential parts in a table format. Part I covers the General Insurance Business, part

II covers the Long-Term Insurance Business and part III addresses the Direct Long-term Insurance Business.

3.6 Instructional Guidelines – Form IN60 – Statement of Movements in Insurance Provisions

1. This form is required for each reporting unit in respect of which the Insurer prepares an Annual Regulatory Return, or a part of an Annual Regulatory Return, in respect of General Insurance Business.


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2. A Protected Cell Company is prevented by COB from carrying on Insurance Business other than through a Cell. Because this form would always be blank for such a company in its Global Return, and it is exempted from the requirement to complete other forms relating to General Insurance Business, there is no need for it to submit the form, or to complete a Supplementary Note to explain its absence.

3. A Global Return of an Insurer that does not carry on General Insurance Business, or a Cell Return,

Fund Return or DIFC Business Return of such an Insurer, also omits this form, without the need for a Supplementary Note to explain its absence. However, if an Insurer that carries on Long-Term Insurance Business together with Class 1 or Class 2 General Insurance Business elects to report that Class 1 or Class 2 business as General Insurance Business for the purposes of form 4 or form 5, it must also complete this form in respect of that business. A Global Return for a Branch must be submitted in writing as set out in PIN Rule 6.5.

4. An Insurer must record separately, in parts I to IV and parts V to VIII respectively of this form, the

information required in respect of claims outstanding (including IBNR) gross of reinsurance and other recoveries, and reinsurance and other recoveries in respect of those claims outstanding. This information must be presented for each Class of Business.

5. Reinsurance recoveries must be analysed between parts V to VIII on the basis of the underlying

insurance contracts that they relate to, not on the basis of the reinsurance contracts themselves. Where the nature of the reinsurance contract is such that the Insurer cannot identify individual claims benefiting from the recoveries (for example, in the case of an aggregate excess of loss contract, or a stop loss contract) the Insurer must make a reasonable allocation of the recoveries across the types and Classes of Business that have benefit of the reinsurance contracts.

Parts I, II, III and IV:

6. PIN chapter 5 requires an Insurer to record its Insurance Liabilities on a discounted basis. A

liability for an outstanding claim increases between the beginning and end of a reporting period, because the amount of discount applied at the later is less. The expense represented by this increase is referred to in the form as release of discount.

Parts I, II, III and IV must be prepared on the following basis:

a. At column 1 (starting from the left) in each part, the Insurer must record the amount of claims

outstanding (including IBNR), at the end of the reporting period and in respect of claims incurred during the reporting period;

b. At column 2 in each part, the Insurer must record the amount of claims outstanding

(including IBNR), at the beginning of the reporting period and in respect of claims incurred during the previous reporting period;

c. At column 3 in each part, the Insurer must record the amount of the movement during the

reporting period in the provision for claims outstanding (including IBNR), in respect of claims incurred during the previous reporting period, that arises from those claims being one year closer to settlement;

d. At column 4 in each part, the Insurer must record the amount of claims paid during the

reporting period, in respect of claims incurred during the previous reporting period;


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e. At column 5 in each part, the Insurer must record the amount of other movements in the provision for claims outstanding (including IBNR), in respect of claims incurred during the previous reporting period;

f. At column 7 in each part, the Insurer must record the amount of claims outstanding

(including IBNR), at the beginning of the reporting period and in respect of claims incurred before the beginning of the previous reporting period;

g. At column 8 in each part, the Insurer must record the amount of the movement during the

reporting period in the provision for claims outstanding (including IBNR), in respect of claims incurred before the beginning of the previous reporting period, that arises from those claims being one year closer to settlement;

h. At column 9 in each part, the Insurer must record the amount of claims paid during the

reporting period, in respect of claims incurred before the beginning of the previous reporting period; and

i. At column 10 in each part, the Insurer must record the amount of other movements in the

provision for claims outstanding (including IBNR), in respect of claims incurred before the beginning of the previous reporting period.

Parts V, VI, VII and VIII 7. PIN chapter 5 requires an Insurer to record its Insurance Liabilities and associated assets on a

discounted basis. The asset representing reinsurance and other recoveries against outstanding claims increases between the beginning and end of a reporting period, because the amount of discount applied at the later is less. The revenue represented by this increase is referred to in the form as release of discount.

Parts V, VI, VII and VIII must be prepared on the following basis:

a. At column 1 in each part, the Insurer must record the amount of the asset representing

reinsurance and other recoveries in respect of outstanding claims (including IBNR), at the end of the reporting period and in respect of claims incurred during the reporting period;

b. At column 2 in each part, the Insurer must record the amount of the asset representing

reinsurance and other recoveries in respect of outstanding claims (including IBNR), at the beginning of the reporting period and in respect of claims incurred during the previous reporting period;

c. At column 3 in each part, the Insurer must record the amount of the movement during the

reporting period in the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), in respect of claims incurred during the previous reporting period, that arises from those recoveries being one year closer to settlement;

d. At column 4 in each part, the Insurer must record the amount of recoveries received during

the reporting period, in respect of claims incurred during the previous reporting period; e. At column 5 in each part, the Insurer must record the amount of other movements in the asset

representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), in respect of claims incurred during the previous reporting period;


PRU-EPRS/VER1/12-07

f. At column 7 in each part, the Insurer must record the amount of the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), at the beginning of the reporting period and in respect of claims incurred before the beginning of the previous reporting period;

g. At column 8 in each part, the Insurer must record the amount of the movement during the

reporting period in the asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), in respect of claims incurred before the beginning of the previous reporting period, that arises from those claims being one year closer to settlement;

h. At column 9 in each part, the Insurer must record the amount of reinsurance and other

recoveries received during the reporting period, in respect of claims incurred before the beginning of the previous reporting period; and

i. At column 10 in each part, the Insurer must record the amount of other movements in the

asset representing reinsurance and other recoveries in respect of outstanding claims (including IBNR), in respect of claims incurred before the beginning of the previous reporting period.

8. The aggregate provision for outstanding claims (including IBNR) reported in the first four tables of

this form must together equal the sum on form IN10 of items N100_3300 and N100_4200, except in the case of a Return that does not include form IN10.

9. The aggregate provision for outstanding claims (including IBNR) reported in the fifth to eighth

tables of this form must together equal the sum on form IN10 of items N100_1250 and N100_2150, except in the case of a Return that does not include form IN10.

10. An Insurer must present, as a Supplementary Note to this form, the following information:

a. the assumed inflation and discount rates, expressed as an annualised percentage, used by the

Insurer in determining the amounts reported on this form, distinguishing between the rates assumed for the periods:

i. up to two calendar years after the end of the reporting period; ii. more than two and up to five calendar years after the end of the reporting period; and iii. more than five calendar years after the end of the reporting period;

b. the basis on which those assumed inflation and discount rates were determined; and

c. the estimated weighted average term to settlement of:

i. claims incurred in the reporting period; ii. claims incurred in the previous reporting period; and iii. claims incurred in earlier reporting periods.


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Structure of the form in the EPRS 9. IN60 comprises of two linked forms. The main form consists of only the two links to the linked

forms. The first linked form presents the parts I, II, III and IV of the form while the second linked form presents the parts V, VI, VII and VIII of the form. The linked forms can be accessed by following the instructions on the main form.

3.7 Instructional Guidelines – Form IN70 – Statement of Investment

Income

1. This form is required for each reporting unit in respect of which the Insurer must prepare an Annual Regulatory Return, except for a DIFC Business Return. A Global Return for a Branch must be submitted in writing as set out in PIN Rule 6.5.

2. This form summarises the investment income earned by the Insurer. Structure of the form in the EPRS 3. IN70 is structured as a simple form which covers all the items in a single section.

Section Instructional Guidelines Interest Receivable The Insurer must disclose in this section interest receivable, measured on an accruals

basis, on securities and loans bearing a fixed or variable rate of interest. This item should include interest receivable on cumulative preference shares

Dividends Receivable The Insurer must disclose under this section dividends receivable on equity Securities. Rental Income Rreceivable

The Insurer must disclose here rental income receivable, on an accruals basis, for the use of real property.

Income Under Investment Contracts of Mudaraba and Musharaka

The Insurer must disclose under this section income receivable, on an accruals basis, under investment contracts of mudaraba and musharaka other than Profit Sharing Investment Accounts (PSIAs) or contracts of the nature of collective investments; This section should include income receivable under contracts of mudaraba and musharaka where the nature of the investment is that the Insurer provides capital to the counterparty either directly or through a mudarib, but not in the form of a PSIA, mutual fund or other collective investment. Collective investments including PSIAs are disclosed under income from collective investments.

Income from Collective Investments

The Insurer must disclose under this section income receivable, on an accruals basis, from collective investments, including mutual funds, PSIAs and contracts taking the form of collective investments; This section should include income receivable under contracts that by their nature are collective investments, where the Insurer stands as one of several rab ul mal providing capital to a mudarib who in turn invests that capital. The rab ul mal may receive a Sukuk or certificate which may be transferable. Investments in PSIAs will normally be disclosed here.

Changes in Value in Invested Assets

The Insurer must disclose under this section the aggregate amount of changes in value in its invested assets. Where the aggregate amount of changes in value for either of the items in this section represents a reduction in value, the Insurer must record that item as a negative figure.


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Other investment income

The Insurer must disclose under this section the aggregate amount of any investment income that does not fall into any of the sections above. Where an Insurer uses this item, it must provide details of the item in question in a Supplementary Note to this form. This section will normally be used only by Insurers with income on investments that do not readily fall into any of the categories described in this Rule. An Insurer reporting an amount under this item will normally be expected to provide sufficient information to explain to the DFSA the nature of the investment and the nature of the income arising from it.

3.8 Instructional Guidelines – Form IN80 – Statement of Acquisition

Expenses




3. An Insurer must record acquisition expenses relating to its Insurance Business on this form as

follows:


form; c. An Insurer that is carrying on Long-Term Insurance Business and General Insurance

Business of Class 1 or Class 2 must record that business consistently with the election made pursuant to form IN50;

d. A DIFC Incorporated Insurer that carries on Direct Long-Term Insurance Business must

complete part III of this form in addition to any other part that this rule requires it to complete. Part III of this form is completed in respect of Direct Long-Term Insurance Business only; and

e. Commissions receivable by insurers from their reinsurers (often referred to as exchange

commissions, overriders or ceded acquisition costs) must not be netted against acquisition costs disclosed on this form but must be recorded as income on form IN30 at item N300_1110.

4. Part III only of this form provides additional disclosures in respect of expenses recovered from

reinsurers, in the case of Direct Long-Term Insurance Business. Those disclosures are not limited to commissions.

5. An Insurer must record commissions and brokerage payable by it for the reporting period in respect

of different classes of Business and for different types of insurance contracts, using the first table in parts I & II of this form.


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6. An Insurer must record acquisition expenses other than commissions and brokerage payable by it for the reporting period in respect of different classes of business and for different types of insurance contracts, using the second table in parts I & II of this form.

7. An Insurer must disclose the aggregate amount of acquisition costs payable to related parties as

follows:

a. The amount of commissions and brokerage payable to Related parties that has been included in the total above;

b. The amount of other acquisition expenses payable to Related parties that has been included in

the total above; c. The amount of commissions and brokerage payable to Related parties that has been included

in the total above; and d. The amount of other acquisition expenses payable to Related parties that has been included in

the total above. 8. An Insurer required to complete part III must record the Insurer’s commission and management

expenses paid for the reporting period in respect of different classes of business and for different types of insurance contracts in the table in section I of part III.

9. An Insurer required to complete part III must record the amount of each type of expense as set out in

columns 1 to 4 and included in the total above that is payable to Related parties. 10. An Insurer required to complete part III must record the amount of each type of expense as set out in

columns 1 to 4 and included in the total above that is recoverable from reinsurers.

11. An Insurer required to complete part III must record the amount of each type of expense as set out in columns 1 to 4 and included in the total above that is recoverable from Related parties.

12. The amounts in the far right column, referring to the Total amounts in part III of the form must

equal the amounts in the first column (Direct insurance) in part II of the form in respect of commissions and brokerage expenses, total expenses payable to Related parties, other acquisition costs, total acquisition costs payable to Related parties.

13. An Insurer must present by way of Supplementary Note a reconciliation between the sum of

management-maintenance expenses and management –other expenses across different classes of direct long-term businesses (amounts in third and fourth columns of table in part III of this form), and item N300_1050 in form IN30.

14. An Insurer must present by way of Supplementary Note a description of the method by which

management expenses have been allocated between columns 2, 3 and 4 of part III. 15. This part of the form is completed only by DIFC Incorporated Insurers that undertake Direct Long-

Term Insurance Business. This part provides an analysis of the information provided in left-most column of tables in part II, with additional information on management expenses not disclosed elsewhere on this form.

16. In allocating management expenses between columns 2, 3 and 4, Insurers should follow generally

accepted practice in the life insurance industry. Costs that are not attributable to the Direct Long-Term Insurance Business will not be included on this form as by virtue of PIN Rule 3.5.5 they may not be paid out of the Long-Term Insurance Fund. In general, an Insurer should observe the


PRU-EPRS/VER1/12-07

following principles when making the allocation:

a. Acquisition costs include those incurred in writing new business or amendments to existing business, such as underwriting, issue of contracts, and setting up policy records. Expenses attributable to the sales and marketing organisation also fall within this heading;

b. Maintenance costs include those incurred in maintaining the business, for example the cost of

issuing periodic reports to policyholders and investment management expenses; and c. Costs of a non-recurring nature should be recorded as ‘other’. Costs of this nature include the

costs of establishing an operation or developing new systems. 17. The Supplementary Note required by instructional guideline 14 in this section should provide

particulars of reconciling items. Where the only difference between the two figures is management expenses attributable to Long-Term Insurance Business other than Direct, no further explanation is required.

Structure of the form in the EPRS 18. IN80 has three sequential parts in a table format. Part I covers the General Insurance Business, part

II covers the Long-Term Insurance Business and part III addresses the Direct Long-term Insurance Business.

3.9 Instructional Guidelines – Form IN90 – Reconciliation to Financial

Statements

1. This form is required only for an Insurer’s Global Return. This form is not subject to audit. A

Global Return for a Branch must be submitted in writing as set out in PIN Rule 6.5. .

2. The purpose of this is to provide a reconciliation between the net assets of the Insurer as recorded on form IN10 and the net assets of the Insurer as recorded in its financial statements prepared under relevant companies legislation for the same reporting period.

3. Where an Insurer’s financial statements prepared under relevant companies legislation are not

available at the time of lodgement of the Annual Regulatory Return, the Insurer will be expected to complete this form based on the draft financial position of the Insurer as at the end of the reporting period. Where the financial statements are subsequently provided to the DFSA as permitted by PIN Rule 6.5.7, the Insurer should consider whether it is necessary to draw the attention of the DFSA to any significant changes between the draft financial statements on which this form was based and the financial statements subsequently provided.

4. An Insurer must disclose the amounts making up the difference between the Insurer’s net assets

reported as total equity (item N100_700T) on form IN10 and the Insurer’s net assets (or equivalent designation) reported on the balance sheet, statement of financial position or equivalent document (referred to in this section as the ‘statutory balance sheet’) forming part of the financial statements that the Insurer is required to complete under the Companies Law 2004 (or equivalent legislation in jurisdictions other than the DIFC), made up as at the same date as the information contained in form IN10.


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Structure of the form in the EPRS

5. IN90 is a simple form which covers all the items in a single section.

Section Instructional Guidelines Net assets according to Form IN10 item N100_700T

This item 1 must agree to form IN10 item N100_700T.

Differences between item 1 and Net Assets according to Financial Statements

Differences constituting differences in recognition of assets and liabilities must be disclosed at item 2.1. Where an asset is recognised in the statutory balance sheet but not in form IN10, the item must be disclosed as a positive amount, and vice versa. Where a liability is recognised in the statutory balance sheet but not in form IN10, the item must be disclosed as a negative amount, and vice versa. Differences constituting differences in valuation of assets and liabilities that are recognised in both the statutory balance sheet and form IN10 must be disclosed in this section. Where an asset is valued at more in the statutory balance sheet than in form 1, the item must be disclosed as a positive amount, and vice versa. Where a liability is valued at more in the statutory balance sheet than in form IN10, the item must be disclosed as a negative amount, and vice versa. The information presented in this section must include: a. the amount of each material difference; and b. a description of each material difference.

Net Assets according to Financial Statements

This item must agree to the amount of net assets (or equivalent designation) in the Insurer’s statutory balance sheet.

6. Where this form does not contain sufficient space for the presentation of the information required by

this section, the Insurer must present a Supplementary Note containing that information.

7. Presenting a Supplementary Note does not relieve an Insurer from the obligation to prepare the form. However it will be acceptable for an Insurer to include on the form a reference to the Supplementary Note containing the information required to be presented, together with the aggregate amount covered in that Supplementary Note.

3.10 Instructional Guidelines – Form IN100 – Summary Statement to

Operations

1. This form is required only for a DIFC Business Return.

2. The Summary statement of operations provides the DFSA with information on the operations of a DIFC Branch of an Insurer that is not incorporated in the DIFC, on a quarterly and annual basis.

3. The instructional guidelines in this section provide instructions as to the completion of specific lines

on the form. The instructions are similar to those applicable to corresponding items on forms IN10 and IN30, which are not applicable to DIFC Business Returns.


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4. On this form, reinsurance premiums and reinsurance recoveries refer to amounts ceded and recovered in respect of insurance contracts entered into as part of the Insurer’s DIFC Insurance Business, regardless of where the reinsurance premiums and reinsurance recoveries are payable or receivable.

Structure of the form in the EPRS 5. IN100 is a single form with two parts, part I dealing with revenue and expense information and part

II dealing with asset and liability information.

Section Instructional Guidelines Gross Written Premiums

An Insurer must present under this section the amount of its Gross Written Premium in respect of its business conducted in the DIFC.

Reinsurance Premiums Ceded

An Insurer must present under this section the amount of Reinsurance Premium Ceded in respect of insurance contracts whose Gross Written Premium is recorded above.

Net Written Premiums

This item is calculated by EPRS and must equal Gross Written Premiums reported above less Reinsurance Premiums Ceded, as reported above.

Claims Paid An Insurer must report in this section the amount of Claims Paid in respect of its business conducted in the DIFC.

Reinsurance and Other Recoveries Received

An Insurer must report in this section the amount of reinsurance and other recoveries receivable in respect of claims reported in the previous section.

Net Claims Paid This item is calculated by EPRS and must equal gross claims paid reported above less reinsurance recoveries received, as reported above.

Movements in Insurance Liabilities (gross)

An Insurer must present in this section the amount of the movement in the balance of Insurance Liabilities for the reporting period.

Movements in Recoveries Against Insurance Liabilities

An Insurer must present in this section the amount of the movement in the balance of reinsurance and other recoveries in respect of Insurance Liabilities for the reporting period. Insurance Liabilities are reported gross of reinsurance and other recoveries. Reinsurance and other recoveries that are recorded in respect of Insurance Liabilities are reported as assets. An increase in Insurance Liabilities is reported on form IN100 as an expense. In the same manner, an increase in the reinsurance and other recoveries in respect of Insurance Liabilities is recorded as revenue.

Other Operating Revenue

Where an Insurer reports any amount as other revenue, the Insurer must present in a Supplementary Note the amount of any such income receivable from Related parties, and a description of the nature of that income.

Operating Income This item is calculated by EPRS and must equal the sum of Net Written Premiums and Other Operating Revenue less the total of Net Claims Paid, Net Movement in Provisions and Total Expenses, as reported above.


This section includes the Insurer’s provision for outstanding claims. This item must be completed having regard to the following principles: a. The liability must represent the estimated cost to the insurer of settling claims

which it has incurred at the reporting date but which have not been finalised. The liability is in respect of both direct business and inward reinsurance business and must take into account unpaid claims, unreported claims, adjustments for claims development and the direct and indirect claims settlement costs that the Insurer expects to incur in settling its outstanding claims;


PRU-EPRS/VER1/12-07

b. In the case of Long-Term Insurance Business, this item must include all claims liabilities in respect of Contracts of Insurance that are no longer included in the calculation of the net policy benefits at item 17;

c. The liability must be stated without deducting reinsurance and other recoveries

(these are disclosed as an asset as reinsurance receivables); d. The requirements for recognition and measurement of this liability are set out in PIN

Rules 5.4 and 5.6; and e. The liability does not include any amounts for catastrophe reserve, equalisation

reserve or similar provisions that an Insurer may be required to maintain to satisfy regulatory requirements in a jurisdiction other than the DIFC.

Expected Reinsurance and Other Recoveries in Respect of previous section item 13

This section includes amounts in respect of reinsurance and other recoveries in respect of claims that have been incurred but not paid, up to the date to which the return is drawn up. This includes reinsurance and other recoveries in respect of IBNR. Because of the uncertainty of the outcome of outstanding claims and IBNR, it is necessary to estimate at least a part of this balance. The basis on which the estimate is made must be consistent with the basis of estimation of the related liability, reported in the previous section. Where, in determining the amount to be reported in this section, an Insurer has made or considered making a provision for doubtful debt in respect of recoveries due or potentially due from a reinsurer, the Insurer must take into account the potential need to make a provision when determining any estimate to be included under this section or under item N101_1500. It is common practice for Insurers to account for their exposures on General Insurance contracts in force by means of an unearned premium provision, an asset representing deferred reinsurance expense and (where necessary) a premium deficiency reserve. Insurers are referred to the instructional guidelines to next item. An insurer that uses an unearned premium provision and premium deficiency reserve as a proxy for Premium Liabilities may record its deferred reinsurance expense at item N101_1600.

Premium Liabilities under General Insurance Contracts

Premium Liability, represents the current portion of the cost of providing insurance service over the unexpired period of general insurance contracts in force at the balance date. This item must be completed having regard to the following principles: a. The Premium Liability reported is required to cover the value of future claims

payments and associated direct and indirect settlement costs arising during the unexpired portion of the contracts in question;

b. This item must be recorded without deducting reinsurance and other recoveries

(these are disclosed as an asset as reinsurance receivables); and c. The requirements for recognition and measurement of this liability are set out in

PIN Rule 5.4. As stated in the Guidance to PIN Rule 5.4.7, it is common practice for Insurers to account for their exposures on General Insurance contracts in force by means of an unearned premium provision and (where necessary) a premium deficiency reserve. Where the aggregate of the unearned premium provision and the premium deficiency reserve (both gross of reinsurance) can be shown to be not less than the amount of Premium Liability determined in accordance with PIN section 5.4, an Insurer may use that aggregate as a proxy for Premium Liability for the purposes of recording this item.


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Expected Reinsurance and Other Recoveries in Respect of item N101_1500

Reinsurance and other recoveries in respect of claims that have not yet been incurred are reported under this section. It is necessary to estimate this balance. The basis on which the estimate is made must be consistent with the basis of estimation of the Related liability, reported at item N101_1500.

Net policy benefits under Long-Term insurance contracts in force

This item represents the net value of future Policy Benefits under Long-Term Insurance contracts that are in force as at the date to which the return is made up. The amount reported here must be determined in accordance with PIN section 5.6.

3.11 Instructional Guidelines – Form IN110 – Reconciliation of Direct to

Total Long-Term Insurance Business

1. This form is required only for a DIFC Incorporated Insurer that undertakes Direct Long-Term Insurance Business.

2. This form requires an Insurer that undertakes Direct Long-Term Insurance Business to identify (in

summary form) the assets and liabilities that are attributable to that business, and the amount of the Minimum Capital Requirement that is attributable to the business.

3. The Rules in this section provide instructions as to the completion of specific lines on the form. The

instructions are similar to those applicable to corresponding items on forms IN10 and IN20. 4. The disclosures at item N110_1000 in the column titled Direct Long-term Insurance must be

consistent with the disclosures made on forms IN140 and IN150. Forms IN140 and IN150 identify assets that are held to cover liabilities under Direct Long-Term Insurance Business. It would not be appropriate for an Insurer to disclose on this form assets that were less, either by type or in the aggregate, than the total amount of assets of each type and in the aggregate, that are reported on forms IN140 and IN150 to be held to meet liabilities under Direct Long-Term Insurance contracts and the Minimum Capital Requirement in respect of Direct Long-Term Insurance Business. The assets disclosed on form IN110 may on the other hand exceed the total amount of assets reported on forms IN140 and IN150 to be held to meet liabilities under Direct Long-Term Insurance contracts and the Minimum Capital Requirement in respect of Direct Long-Term Insurance Business.

5. An Insurer must present in sections 1 and 2 in the column titled Direct Long-Term Insurance the

amounts of its assets and liabilities that are attributable to its Direct Long-Term Insurance Business and that are otherwise attributable, respectively.

6. An Insurer must present in section 3 in the column titled Direct Long-Term Insurance the amounts of

the components of its Minimum Capital Requirement that are attributable to its Direct Long-Term Insurance Business and that are otherwise attributable, respectively.

7. Amounts reported in the column titled “Total” must agree to the current year column of form IN10 or

of form IN20, as follows:

a item N110_1000 must agree to item N100_110T in the current year column of form IN10; b item N110_1010 must agree to the sum of items N100_120T and N100_210T in the current

year column of form IN10;


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c item N110_1020 must agree to the sum of items N100_130T,, N100_220T and N100_230T in the current year column of form IN10;

d. item N110_1030 must agree to item N100_240T in the current year column of form IN10; e. item N110_1040 must agree to item N100_250T in the current year column of form IN10; f. item N110_1050 must agree to the sum of items N100_140T and N100_260T in the current

year column of form IN10; g. item N110_1060 must agree to the sum of items N100_150T and N100_260T in the current

year column of form IN10; h. item N110_1080 must agree to the sum of items N100_3100 and N100_4100T in the current

year column of form IN10; i. item N110_1090 must agree to the sum of items N100_3200 and N100_4150 in the current

year column of form IN10; j. item N110_1100 must agree to the sum of items N100_3300 , N100_3400, N100_4200 and

N100_4250 in the current year column of form IN10; k. item N110_1110 must agree to the sum of items N100_3500 and N100_4300 in the current

year column of form IN10; l. item N110_1120 must agree to the sum of amounts reported under Total borrowings reported

under the sections Current Liabilities and Non-current liabilities in the current year column of form IN10;

m. item N110_1130 must agree to the sum of amounts reported under Total tax liability reported

under the sections Current Liabilities and Non-current liabilities in the current year column of form IN10;

n. item N110_1140 must agree to the sum of amounts reported under Provisions reported under

the sections Current Liabilities and Non-current liabilities in the current year column of form IN10;

o. item N110_1150 must agree to the sum of amounts reported under other liabilites reported

under the sections Current Liabilities and Non-current liabilities in the current year column of form IN10; and

p. items under section 3 must agree to items under section titled “Minimum Capital

Requirement” respectively in the current year column of form IN20. Structure of the form in the EPRS 8. IN110 is a simple form which covers all the items in a single section.


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3.12 Instructional Guidelines – Form IN120 – Statement of Direct Long-Term Insurance Business

1. This form is required only for a DIFC Incorporated Insurer that undertakes Direct Long-Term Insurance Business, and is completed in respect only of Direct Long-Term Insurance Business.

2. When this form is presented as part of a Quarterly Regulatory Return, part III is not required to be

completed. 3. This form provides the DFSA with quarterly and annual information on the makeup of Direct

Long-Term Insurance premiums accounted for by a DIFC Incorporated Insurer, and new business underwritten, during the reporting period. When presented as part of the Annual Regulatory Return, it also provides information on persistency.

4. Because this part of the form is required only in the case of an Annual Regulatory Return, the

reporting periods covered in part III will only ever be financial years. The form will disclose the persistency rate (the contracts remaining in force expressed as a percentage of those written, less those terminating naturally) for the most recent financial year at the end of twelve months, and the three financial years beforehand at the end of, respectively, twenty-four, thirty-six and forty-eight months.

5. On this form, reinsurance is classified according to the underlying premiums accepted by the

Insurer, not on the basis of the form of the reinsurance contract. Thus, a reinsurance of a regular premium policy is classified in columns for regular premium policies, regardless of the form of the reinsurance contract.

6. On this form:

a. ‘regular premiums’ means premiums payable at regular intervals during the term of the contract; ‘single premiums’ means premiums that are not regular premiums. An additional premium payable on an existing regular premium contract is not a regular premium unless it constitutes one in a series of regular premiums;

b. ‘new business’ means premiums on new contracts of insurance effected during the reporting

period, together with additional premiums paid on existing contracts where those additional premiums have the characteristic of new business rather than representing a payment due on the original contract; and

c. ‘new policyholders/fund members’ means policyholders who have effected a new contract

of insurance during the reporting year or (in the case of Class VII business) persons who have joined a pension fund that is the subject of a contract of insurance in that Class, during the reporting year.

7. On this form, items in the second table of part II and the whole of part III must be presented in

whole numbers, not rounded, and with no decimal place. 8. An Insurer must present the gross Direct Long-Term Insurance Business premiums that it has

accounted for in the reporting period, for each Class of Business listed in the first table, analysed across the columns between participating business and non-participating business and between regular premium business and single premium business.

9. An Insurer must present at item N120_1080 the total amount included in item N120_107T that

represents premiums receivable from Related parties of the Insurer, for each of columns.


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10. An Insurer must present the reinsurance premiums that it has accounted for as ceded in the reporting period, for each Class of Business listed in the first table, analysed across the columns between participating business and non-participating business and between regular premium business and single premium business.

11. An Insurer must present at item N120_1170 the total amount included in item N120_116T that

represents reinsurance premiums ceded to Related parties of the Insurer, for each of columns. 12. Where an Insurer is required to complete this form, the total column of this form for items in the

first table – gross premiums must agree to column for direct insurance in form IN40 for items in part II of IN40, in respect of Long-Term Insurance Business.

13. An Insurer must present the gross Direct Long-Term Insurance new business premiums that it has

accounted for in the reporting period, for each Class of Business listed in the first table, analysed across the columns between participating business and non-participating business and between regular premium business and single premium business.

14. An Insurer must present the new policyholders/fund members that it recorded in the reporting

period, for each Class of Business listed in the first table, analysed across the columns between participating business and non-participating business and between regular premium business and single premium.

15. An Insurer must present at item N120_1360 for the reporting period and items N120_1370 ,

N120_1380 and N120_1390 respectively for the previous reporting period and the two immediately prior to that (in each case, the ‘reporting year in question’), the following information in respect of participating long-term contracts of insurance:

a. in the left most column, the number of Direct Long-Term Insurance contracts effected

during the reporting period in question; b. in column titled naturally terminated contracts, the number of contracts effected during the

reporting period in question that have, during the period from their inception up to the reporting date, terminated through expiry of the contract term, through occurrence of the insured event, or otherwise through an event contemplated in the policy document other than lapse, surrender or cancellation;

c. in column titled otherwise terminated, the number of contracts effected during the reporting

period that have, during the period from their inception up to the reporting date, terminated through lapse, surrender, or cancellation or otherwise through an event not contemplated in the policy document;

d. the column titled “In force on reporting date”, the number of contracts remaining in force on

the reporting date is calculated by EPRS, as the number of contract effected less the number of contracts naturally terminated and less the number of contracts otherwise terminated; and

e. the column titled “Persistency rate” is calculated by EPRS as the number of contracts

remaining in force on the reporting date divided by the number of contracts effected less the number of contracts naturally terminated, expressed as a percentage.

16. An Insurer must present at item N120_1410 for the reporting period and items N120_1420,

N120_1430 and N120_1440 respectively for the previous reporting period and the two immediately prior to that (in each case, the ‘reporting year in question’), the information set out in instructional guideline 15(a) to (c), in respect of linked long-term contracts of insurance.


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17. An Insurer must present at item N120_1460 for the reporting period and items N120_1470, N120_1480 and N120_1490 respectively for the previous reporting period and the two immediately prior to that (in each case, the ‘reporting year in question’), the information set out in instructional guideline 16(a) to (c), in respect of long-term contracts of insurance not already included in the disclosures under participating or linked long term contracts.

Structure of the form in the EPRS 18. IN120 comprises of two linked forms. The main form consists of only the two links to the linked

forms. The first linked form presents the parts I and II of the form while the second linked form presents part III of the form. The linked forms can be accessed by following the instructions on the main form.

3.13 Instructional Guidelines – Form IN130 – Statement of Direct Long-

Term Insurance Liabilities

1. This form is required only for an Annual Regulatory Return prepared by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business, and is required only in respect of that Direct Long-Term Insurance Business.

2. This form, which is prepared only by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business, provides the DFSA with an analysis of the breakdown of gross insurance liabilities in respect of those liabilities, and reinsurance recoverable in their respect.

3. An Insurer must present in the first table titled “Gross Policy Liabilities”, for each Class of

Business, the gross Direct Long-Term Insurance Business policy liabilities as at the reporting date, analysed across the columns in the table as follows:

a. in the left-most column titled “Vested-Direct participating”, the amount in respect of

participating business Direct Long-Term Insurance contracts, in respect of benefits that have vested in the policyholders;

b. in the column titled “Non-vested Direct participating”, the amount in respect of

participating business Direct Long-Term Insurance contracts, in respect of benefits that have not vested in the policyholders;

c. in the column titled “Direct Non-participating”, the amount in respect of all other Direct

Long-Term Insurance Contracts; and d. in the column titled “Additional Provisions”, the amount of any additional provisions made

by the insurer, that form part of gross policy liabilities but do not fall within the columns to the left.

4. Vested benefits are those to which policyholders are collectively or individually entitled as a result

of a guarantee in the insurance contract, and include bonuses that have been declared or allotted, The Rules in PIN5 on valuation of assets and liabilities require an Insurer also to make provision for benefits that are discretionary, for example bonuses that are expected to be declared in the future. The provision in respect of these items will be included under the column titled “Non-vested Direct participating”.

5. An Insurer must present at item N130_1080, for each of columns, the amount of the gross policy

liabilities that relates to liabilities in respect of parties that are Related to the Insurer.


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6. In practice, a valuation of Insurance Liabilities may include provisions that are not readily attributable to particular insurance contracts. Where this is the case, such provisions should be shown in column titled “Additional Provisions”. The Actuary’s Report prepared under section PIN 7.3 includes commentary on additional provisions. Insurers should ensure that disclosure on this form is consistent with the description in the Actuary’s Report. A reconciliation may be provided in a Supplementary Note to this form.

7. An Insurer must present in the second table titled “Reinsurance Recoverable”, for each Class of

Business, the amount of gross Direct Long-Term Insurance Business policy liabilities as at the reporting date that is recoverable under reinsurance arrangements, analysed across the columns in the table in the same manner as it applies to the first table (refer above paragraph 3 (a) to (d)).

8. An Insurer must present at item N130_1170, for each of columns, the amount of gross Direct Long-

Term Insurance Liabilities that is recoverable under reinsurance arrangements from parties that are Related to the Insurer.


9. IN130 is a simple form with the two tables in the form covering gross policy liabilities and

reinsurance recoverables. 3.14 Instructional Guidelines – Form IN140 – Statement of Assets

Covering Direct Linked Long-Term Insurance Liabilities

1. This form is required only for an Annual Regulatory Return prepared by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business of Class III, and is required only in respect of that Class of its Direct Long-Term Insurance Business.

2. This form, which is prepared only by a DIFC Incorporated Insurer conducting Direct Long-Term

Insurance Business of Class III, provides the DFSA with information on the assets held to cover policy liabilities under insurance contracts of that Class.

3. On this form, a reference to assets held to cover linked contract liabilities means assets that:

a. are held by the Insurer with the intention of meeting liabilities under Class III contracts of insurance effected by it;

b. are not reported by the Insurer on form IN150; and c. so far as concerns linked benefits that are vested in policyholders, are the assets to which the

contract is linked under the terms of the contract or assets that are closely equivalent to those assets, or, where the contract is linked to an index, are the assets on which that index is based or assets closely equivalent to those assets.

4. In this form an Insurer must report the amount of its assets disclosed on Form IN10 that are held to

cover linked contract liabilities under Direct Long-Term Insurance Business of Class III. The instructional guidelines at section 3.1 above apply to the completion of this form where an item on this form has the same description as an item on Form IN10, except that no distinction is made on this form between current and non-current assets.


PRU-EPRS/VER1/12-07

5. An Insurer must present at item N140_1280 the amount of any assets not falling within any of the other items in this form that are held to cover linked contract liabilities under Direct Long-Term Insurance Business of Class III. Where an Insurer includes an amount at this item, particulars of the asset must be included in a Supplementary Note, including a description of how that asset is disclosed on form IN10.

6. An Insurer must disclose at item N140_1310 the amount of assets included in total assets that

represent amounts due from, balances with or investments in Related parties, other than amounts due under insurance contracts.

7. The amount reported as total assets must be not less than the gross policy liabilities less the amount

of reinsurance recoverable in respect of linked long-term insurance business as reported in form IN130.


8. IN140 is a simple form which covers all the items in a single section.

3.15 Instructional Guidelines – Form IN150 – Statement of Assets

Covering Non-Linked Direct Long-Term Insurance Liabilities and Minimum Capital Requirement

1. This form is required only for an Annual Regulatory Return prepared by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business and is required only in respect of that business.


Insurance Business, provides the DFSA with information on the assets held to cover policy liabilities under insurance contracts other than Class III, and assets held to cover the Minimum Capital Requirement. This form also provides the DFSA with information on the yields of those assets, to assist in interpretation of the Actuary’s Report.

3. On this form, a reference in part I to assets held to cover participating contract liabilities, in part II

to assets held to cover non-participating contract liabilities and in part III to assets held to cover the Minimum Capital Requirement means assets that:

a. in the case of assets held to cover participating or non-participating contract liabilities, are

held by the Insurer with the intention of meeting those liabilities under contracts of insurance effected by it, and in the opinion of the Directors, formed on reasonable grounds, are appropriate assets for that purpose; and

b. are not reported by the Insurer on form IN140 or in any other part of this form.

4. In this form an Insurer must report the amount of its assets disclosed on form IN10 that are held to

cover contract liabilities under participating Direct Long-Term Insurance Business. The instructional guidelines at section 3.1 apply to the completion of this form where an item on this form has the same description as an item on form IN10, except that no distinction is made on this form between current and non-current assets.


PRU-EPRS/VER1/12-07

5. An Insurer must present at item N150_1300 the amount of any assets not reported under any of the other items in this form that are held to cover contract liabilities under participating Direct Long-Term Insurance Business. Where an Insurer includes an amount at this item, particulars of the asset must be included in a Supplementary Note, including a description of how that asset is disclosed on form IN10.

6. An Insurer must disclose at item N150_1330 the amount of assets included in total assets in this

form that represent amounts due from, balances with or investments in Related parties, other than amounts due under insurance contracts.

7. Total assets as reported in this form must be not less than the amount of gross policy liabilities less

the amount of reinsurance recoverable and any element of the amount reported under “Additional Provisions in respect of direct participating policies (both vested and non-vested) as reported in form IN130.

8. An Insurer must report in part II of this form which is presented as the second linked form in the

EPRS the amount of its assets disclosed on Form IN10 that are held to cover contract liabilities under non-participating Direct Long-Term Insurance Business other than Class III. The Rules at section 3.5 apply to the completion of this form where an item on this form has the same description as an item on form IN10, except that no distinction is made on this form between current and non-current assets.

9. An Insurer must present at item N150_1300 the amount of any assets not reported under any of the

other items in this form that are held to cover contract liabilities under non-participating Direct Long-Term Insurance Business other than Class III. Where an Insurer includes an amount at this item, particulars of the asset must be included in a Supplementary Note, including a description of how that asset is disclosed on form IN10.

10. An Insurer must disclose at item N150_1330 the amount of assets included total assets that

represent amounts due from, balances with or investments in Related parties, other than amounts due under insurance contracts.

11. Total assets reported in this form must be not less than the amount of gross policy liabilities less the

amount of reinsurance recoverable and any element of the amount reported under “Additional Provisions in respect of direct non-participating business other than Class III as reported in form IN130.

12. An Insurer must report in part III of this form which is presented as the third linked form in the

EPRS the amount of its assets disclosed on Form IN10 that are held to cover the Minimum Capital Requirement in respect of Direct Long-Term Insurance Business. The Rules at section 3.5 apply to the completion of this form where an item on this form has the same description as an item on form IN10, except that no distinction is made on this form between current and non-current assets.

13. An Insurer must present at item N150_1300 the amount of any assets not reported under any of the

other items in this form that are held to cover the Minimum Capital Requirement in respect of Direct Long-Term Insurance Business. Where an Insurer includes an amount at this item, particulars of the asset must be included in a Supplementary Note, including a description of how that asset is disclosed on form IN10.

14. An Insurer must disclose at item N150_1330 the amount of assets included in total assets as

reported in this form, that represent amounts due from, balances with or investments in Related parties, other than amounts due under insurance contracts.


PRU-EPRS/VER1/12-07

15. For each asset which an Insurer is required to disclose on this form, the Insurer must also disclose in the column titled “Expected yields”, the lower of the two following figures, expressed as a percentage:

a. the actual annual yield achieved on the assets disclosed under that item; and b. the annual yield expected to be achieved on the assets disclosed under that item, in the year

following the reporting date.

16. Where the figure in column 1 is derived as the result of a mathematical calculation expressed on the face of the Form. The amount to be disclosed in column 2 is not the sum of the values in column 2 for the items specified in the mathematical calculation expressed on the face of the form, but the yield in accordance with instrumental guideline 17 on the assets disclosed at the item in question in column 1.

Structure of the form in the EPRS 17. IN150 is comprised of three linked forms each of which present the three parts of IN150. The main

form consists of the links to the three linked forms. The first linked form includes part I – Assets covering participating contract liabilities. The second linked form includes part II – Assets covering non-participating contract liabilities. The third linked form includes part III – Assets covering minimum capital requirement.

3.16 Instructional Guidelines – Form IN160 – Calculation of Direct Long-

Term Insurance Element of Long- Term Insurance Component

1. This form is required only for an Annual Regulatory Return prepared by a DIFC Incorporated Insurer conducting Direct Long-Term Insurance Business, and is required only in respect of that business.


Insurance Business, provides an Insurer with a working schedule for the calculation of the element of the Long-Term Insurance Risk Component that is attributable to its Direct Long-Term Insurance Business, and permits the DFSA to assess the compliance of that calculation with the Rules in PIN A4.12.

3. In the first linked form A-Percentage of insurance provisions the Insurer must report, for each Class

of Business, or for each sub-division of a Class of Business as shown on the face of the form,

a. the amount of the Long-Term Insurance Liability, gross and net of reinsurance respectively b. Reinsurance ratio and the column titled “Result” are calculated by EPRS. The reinsurance

ratio is calculated as the net provisions divided by the gross provisions, except that if the result is less than 85%, the figure shall be 85%.

c. The result column is calculated by multiplying the gross provisions with the percentage factor

and with the reinsurance ratio.


PRU-EPRS/VER1/12-07

4. The total gross provisions reported in this linked form must agree to the amount of gross policy liabilities reported in form IN130 in respect of both vested and non-vested direct participating business less the reinsurance recoverables in respect of these classes of business as reported in IN 130.

5. In the second linked form B-Percentages of capital at risk, an Insurer must report, for all Direct

Long-Term Insurance Business, according to the extent of death risk borne by the Insurer as shown on the face of the form,

a. the amount of capital at risk, gross and net of reinsurance respectively, where capital at risk

has the meaning given in PIN Rule A4.12.2(c); b. Reinsurance ratio and the column titled “Result” are calculated by EPRS. The reinsurance

ratio is calculated as the net provisions divided by the gross provisions, except that if the result is less than 50%, the figure shall be 50%.

c. The result column is calculated by multiplying the gross provisions with the percentage factor

and with the reinsurance ratio.

6. At item N160_1190, the Insurer must report

a. the amount of net administrative expenses incurred in the reporting period in respect of linked Direct Long-Term Insurance Business where the Insurer bears no investment risk and expenses are not fixed for a period of more than five years.

b. the result in the right most column is determined by multiplying the expenses reported with

the applicable percentage factor.

7. At item N160_1210 the Insurer must report

a. the amount of gross premiums in the reporting period in respect of Class IV as reported in form IN120 in respect of permanent health business, multiplied by 18% so far as concerns the amount up to $50 million and by 16% so far as concerns any amount in excess of $50 million;

b. the reinsurance ratio, expressed as a percentage is calculated by EPRS by dividing the amount

of total gross premiums in respect of permanent health business as reported in form IN120 (across all policy types) less the amount of reinsurance premiums ceded in respect of that business with the amount of total gross premiums, except that if the result of this calculation is less than 50% the figure shall be 50%.


a. the amount of gross claims incurred in the reporting period in respect of Class IV, multiplied by 26% so far as concerns the amount up to $35 million and by 23% so far as concerns any amount in excess of $35 million.

b. the reinsurance ratio, expressed as a percentage is calculated by EPRS by dividing the gross

claims incurred minus claims recovered, by the gross claims incurred, except that if the result of this calculation is less than 50% the figure shall be 50%.


PRU-EPRS/VER1/12-07

c. gross claims incurred means the amount of gross claims paid in respect of linked long-term business as reported in form IN50 plus the amount, if any, in respect of Direct Long Term Insurance Business of Class IV reported in IN10 as outstanding claims provision (including IBNR) form IN10 and less any such amount included at those items for the prior year in that form: and

d. claims recovered means the amount of reinsurance and other recoveries in respect of paid

claims relating to linked long-term business as reported in form IN50 plus the amount, if any, in respect of Direct Long Term Insurance Business of Class IV reported in IN10 as recoveries other than insurance and amounts due under reinsurance contracts and less any such amount included at those items for the prior year in that form.


a. the amount of assets attributable to the Insurer’s Direct Long Term Insurance Business of Class V.

b. the result is determined by EPRS by multiplying the amount with the percentage factor.

10. The result of this form as calculated by EPRS and displayed in the fourth linked form – D - Result: Direct Long-Term Insurance Element of Long-Term Insurance Risk Component must equal the amount at form IN110 item N110_1260.

Structure of the form in the EPRS 11. IN160 is comprised of four linked forms each of which present the four sections of the form. The

main form consists of the links to the four linked forms. The first linked form includes section A – Percentage of Insurance Provisions and the second linked form includes the section B - percentage of Capital at Risk. The third linked form presents the section C - Percentage of other factors while the section D which gives the result is in the fourth linked form. The linked forms can be accessed by following the instructions on the main form.

3.17 Instructional Guidelines – Form IN170 – Financial Group Capital

Adequacy Report

1. An Authorised Firm that is required to prepare a Financial Group Capital Adequacy Report may use this form IN170 to submit that report. Use of this form is not mandatory.

2. Where an Authorised Firm chooses to use this form IN170 for its Financial Group Capital

Adequacy Report, it must do so in accordance with the instructional guidelines in this section. 3. An Authorised Firm completing this form must report:

a. in the header portion of the Form the information required by PIN Rule 6.6.2(2)(a), (b) and (c);

b. in the first linked form which contains part I of an Insurer, the Financial Group Capital

Resources, the Financial Group Capital Requirement and the surplus/deficit.


PRU-EPRS/VER1/12-07

4. An Authorised Firm completing this form must present in the second linked form which contains part II of the form:

a. the names of all Authorised Firms and Financial Institutions in the Financial Group; and b. where an entity disclosed at (a) is itself the Parent of a Financial Group, the Financial Group

Capital Resources of that group, and the Financial Group Capital Requirement of that group in the respective columns.

5. Where an entity is disclosed in accordance with instructional guideline 4(a) is not the Parent of a

Financial Group, there is no need to complete the columns to the right. 6. An Authorised Firm completing this form must report in the third linked form:

a. the names of all Authorised Firms and Financial Institutions meeting the conditions set out at PIN Rule 6.6.2(2)(i);

b. the Capital Resources or Adjusted Capital Resources as applicable of that entity; and c. the capital requirement of that entity calculated in accordance with PIN Rule 8.3.3.

Structure of the form in the EPRS 7. IN170 is comprised of three linked forms each of which present the three parts of IN170. The main

form consists of the links to the three linked forms. The first linked form includes Part I – Financial Group Capital Adequacy. The second linked form includes Part II – Authorised Firms and Financial Institutions in Financial Group. The third linked form includes the second section of Part II – Financial Group Members in regulatory capital deficit.


PRU-EPRS/VER1/12-07

4 PIN FORMS This chapter of PRU contains the following forms:

IN10 Statement of Financial Position IN20 Statement of Capital Adequacy IN30 Statement of Financial Performance IN40 Statement of Premium Revenue and Reinsurance Expenses IN50 Statement of Claims Expense & Recovery Revenue IN60 Statement of Movements in Insurance Provisions IN70 Statement of Investment Income IN80 Statement of Acquisition Expenses IN90 Reconciliation to Financial Statements IN100 Summary Statement to Operations IN110 Reconciliation of Direct to Total Long-Term Insurance Business IN120 Statement of Direct Long-Term Insurance Business IN130 Statement of Direct Long-Term Insurance Liabilities IN140 Statement of Assets Covering Direct Linked Long-Term Insurance Liabilities IN150 Statement of assets covering non-linked Long-Term Insurance Liabilities and

Minimum Capital Requirement IN160 Calculation of Direct Long-Term Insurance element of Long- Term Insurance

Component IN170 Financial Group Capital Adequacy Report


PRU-EPRS/VER1/12-07

4 Forms IN10-170

Reference number (For DFSA use only)


FORM IN10: STATEMENT OF FINANCIAL POSITION Current Year Prior Year

Assets:Current Assets:

Cash and Liquid Assets:N100_1110 - Notes and coinsN100_1120 - Money at short callN100_1130 - Securities purchased under agreements to resellTotal Cash and Liquid Assets:

Receivables:N010_010 - Investment income receivableN010_020 - Recoveries other than reinsuranceN010_030 - Premiums receivableN010_040 - Amounts due under reinsurance contractsN010_050 - Expected reinsurance and other recoveries on outstanding claimsN010_060 - Expected reinsurance and other recoveries on premium liabilities

N010_070 - Other reinsurance assets receivable from reinsurers

N010_080 - Other receivablesTotal Receivables

Investments (current):N011_010 - Profit Sharing Investment AccountsN011_020 - Deposits (not including Profit Sharing Investment Accounts)N011_030 - Debt securitiesN011_040 - GovernmentN011_050 - Non - GovernmentN011_060 - Equity securitiesN011_070 - public securitiesN011_080 - listed securitiesN011_090 - unlisted securitiesN011_100 - Investment contracts of mudaraba other than collective investmentsN011_110 - Investment contracts of musharaka other than collective investmentsN011_120 - Loans and advancesN011_130 - Collective investmentsN011_140 - PropertiesN011_150 - Investments held indirectlyN011_160 - Other investmentsTotal Investments:

FORM IN10: Statement of Financial Position PRU-EPRS/VER1/12-07


Deferred Tax Assets:N100_1410 - Carried forward unused tax lossesN100_1420 - OtherTotal Deferred Tax Assets:

Other Current Assets:N100_1510 - PrepaymentsN100_1520 - Deferred expensesN100_1530 - Unrealised gain on derivativesN100_1540 - OtherTotal Other Current Assets:

Total Current Assets:

Non-Current Assets:Receivables:N010_010 - Investment income receivableN010_020 - Recoveries other than reinsuranceN010_030 - Premiums receivableN010_040 - Amounts due under reinsurance contractsN010_050 - Expected reinsurance and other recoveries on outstanding claimsN010_060 - Expected reinsurance and other recoveries on premium liabilities

N010_070 - Other reinsurance assets receivable from reinsurers

N010_080 - Other receivablesTotal Receivables

Investments (other than related entities):N011_010 - Profit Sharing Investment AccountsN011_020 - Deposits (not including Profit Sharing Investment Accounts)N011_040 - Debt securitiesN011_070 - Equity securitiesN011_100 - Investment contracts of mudaraba other than collective investmentsN011_110 - Investment contracts of musharaka other than collective investmentsN011_120 - Loans and advancesN011_130 - Collective investmentsN011_140 - PropertiesN011_150 - Investments held indirectlyN011_160 - Other investmentsTotal Investments:



Investments in Related Entities:

N100_2310 - Parent entityN100_2320 - Controlled entitiesN100_2330 - Fellow subsidiariesN100_2340 - AssociatesN100_2350 - Joint venturesN100_2360 - OtherTotal Investments in Related Entities:

Plant and Equipment:N100_2410 - Plant and equipmentN100_2420 - Accumulated depreciation / amortisation - Plant and equipmentTotal Plant and Equipment:

Intangible Assets:N100_2510 - Goodwill (net of amortisation/impairment)N100_2520 - Identifiable intangible assets (net of amortisation/impairment)Total Intangible Assets:

Deferred Tax Assets:N100_2610 - Attributable to carried forward tax lossesN100_2620 - OtherTotal Deferred Tax Assets:

Other Assets:N100_2710 - PrepaymentsN100_2720 - Deferred expensesN100_2730 - Unrealised gain on derivativesN100_2740 - OtherTotal Other Assets:

Total Non-Current Assets:

Total Assets:

Liabilities:

Current Liabilities:

N100_3100 - Creditors and accruals

N100_3200 - Amounts due on reinsurance contracts



N100_3300 - Outstanding Claims Provision (including IBNR)

N100_3400 - Premium liabilities under General Insurance contracts

N100_3500 - Net policy benefits under Long-Term Insurance contracts in force

Borrowings:N100_3610 - Securities sold under agreements to repurchaseN100_3620 - Lease liabilityN100_3630 - OverdraftN100_3640 - Securities issued (eg Promissory Notes / Commercial Paper)N100_3650 - Term loansTotal Borrowings

Tax Liabilities:N100_3710 - Provision for income taxN100_3720 - Provision for deferred income taxN100_3730 - Provision for other taxesTotal Liability

Provisions:

N100_3810 - DividendsN100_3820 - Employee entitlementsN100_3830 - Restructuring CostsN100_3840 - OtherTotal Provisions

Other Liabilities:N100_3910 - Deferred incomeN100_3920 - Unrealised loss on derivativesN100_3930 - Other liabilitiesTotal Other Liabilities

Total Current Liabilities

Non Current Liabilities:N100_4100 - Non current Creditors and accruals

N100_4150 - Non current Amounts due on reinsurance contracts



N100_4200 - Non current Outstanding Claims Provision (including IBNR)

N100_4250 - Non current Premium liabilities under General Insurance contracts

N100_4300 - Non current Net policy benefits under Long-Term Insurance contracts in force

Borrowings:

N100_4410 - Lease liabilityN100_4420 - Non current Securities issued (eg Promissory Notes / Commercial Paper)N100_4430 - Non current Term loansTotal Borrowings

Tax Liability:

N100_4510 - Provision for deferred income taxN100_4520 - Non current Provision for other taxesTotal Liabilities

Provisions:

N100_4610 - Non current Employee entitlementsN100_4620 - Restructuring CostsN100_4630 - Other non currentTotal Provisions

Other Liabilities:

N100_4710 - Non current Deferred incomeN100_4720 - Non current Unrealised loss on derivativesN100_4730 - Non current Other liabilitiesTotal Other Liabilities

Loan Capital and Hybrid Securities:N100_4810 - Loan capitalN100_4820 - Hybrid securitiesTotal Loan Capital and Hybrid Securities

Total Non-Current Liabilities

Total Liabilities

Net Assets



EquityN100_7100 - Paid-up ordinary capitalN100_7200 - General reservesN100_7300 - Capital transferred to a Long-Term Insurance Fund (Funds only)

N100_7400 - Retained earnings from previous reporting periods

N100_7500 - Retained earnings - this reporting periodN100_7600 - OtherTotal Equity

N100_700M - Share Capital



FORM IN20: STATEMENT OF CAPITAL ADEQUACY Current Year Prior Year

Base Capital:N200_1110 - EquityN200_1120 - Owners Equity in a Takaful Insurer available for loan to the Insurance FundN200_113T - Hybrid capital:N200_1131 - Subordinated debtN200_1132 - Preference sharesN200_1133 - Owners equity available for loan to the Insurance FundN200_1134 - Debt-financed equityTotal Base Capital:

Adjustments to Base Capital in Accordance with PIN:

Additions to Base Capital (Where not Included in Capital):

N200_1211 - Minority interests in subsidiariesN200_1212 - Liability for dividends to be paid in shares

Subtraction from Base Capital (Where Included in Capital):

N200_1221 - Appropriations not provided for as liabilitiesN200_1222 - Non-participating owners equity (Takaful insurers only)N200_1223 - Investments in the insurers own sharesN200_1224 - Unprovided tax on unrealised capital gainsN200_1225 - Deferred acquisition costsN200_1226 - Deferred tax assetsN200_1227 - Value of in-force Long-Term insurance businessN200_1228 - Goodwill and other intangible itemsN200_1229 - Zakah or charity fund (Takaful insurers only)N200_1231 - Operating assetsN200_1232 - Other assets that may not be applied to meet insurance liabilities

Net Adjustments to Base Capital

N200_1300 - Adjusted Equity

FORM IN20: Statement of Capital Adequacy PRU-EPRS/VER1/12-07


Hybrid Capital Adjustment:

N200_1410 - Hybrid capital adjustment before DFSA approval

N200_1420 - Additional hybrid capital approved by DFSA

N200_1000 - Adjusted Capital Resources

Minimum Capital Requirement:N200_2010 - Default risk componentN200_2020 - Investment volatility risk componentN200_2030 - Off-balance sheet asset risk componentN200_2040 - Off-balance sheet liability risk componentN200_2050 - Concentration risk componentN200_2060 - Size factor adjustment componentN200_2070 - Underwriting risk componentN200_2080 - Reserving risk componentN200_2090 - Long-Term Insurance risk componentN200_2100 - Asset management risk componentN200_2110 - Adjustments to capital requirement

Calculated Capital Requirement

N100_3000 - Absolute minimum requirement applicable to reporting unit

N100_4000 - Applicable result

N100_5000 - Capital adequacy result

FORM IN20: Statement of Capital Adequacy PRU-EPRS/VER1/12-07


ANNUAL/QUARTERLY REGULATORY RETURNFORM IN30: STATEMENT OF FINANCIAL PERFORMANCE

Current Year Prior Year

1.Gross Written Premiums:N400_110T - General insurance businessN400_210T - Long-Term Insurance businessTotal Gross Written Premiums

2.Reinsurance Premiums Ceded:N400_120T - General insurance businessN400_220T - Long-Term Insurance businessTotal Reinsurance Premiums Ceded

3.Net Written Premiums

4.Claims Paid:N500_110T - General insurance businessN500_210T - Long-Term Insurance businessTotal Claims Paid

5.Reinsurance and Other Recoveries Received:

N500_120T - General insurance businessN500_220T - Long-Term Insurance businessTotal Recoveries Received

6.Net Claims Paid

7.Movements in Insurance Liabilities:N300_0710 - General insurance businessN300_0720 - Long-term Insurance business

Total Movements in Insurance Liabilities (Gross)

8.Movements in Recoveries Against Insurance Liabilities:

N300_0810 - General insurance businessN300_0820 - Long-term Insurance businessTotal Movements in Recoveries

9.Net Movement in Provisions

FORM IN30: Statement of Financial Performance PRU-EPRS/VER1/12-07


10.Expenses:N300_1010 - Commissions and brokerageN300_1020 - Other acquisition costsN300_1030 - Levies and chargesN300_1040 - Other expenses attributable to Long-Term Insurance FundN300_1050 - Other expensesTotal Expenses

11.Other Operating Revenue:N300_1110 - CommissionsN300_1120 - Other revenueTotal Other Operating Revenue

12.Operating Income

13.Investment Income:N300_1310 - Interest, surplus, dividends, rent and other investment income receivableN300_1320 - Changes in value of invested assetsN300_1330 - Investment expensesNet Investment Income

14.Net Income Before Taxation

15.Taxation Expense or Credit

16.Net Income After Taxation

17.Dividends in Respect of Current Reporting Period

18.Net income After Dividends

FORM IN30: Statement of Financial Performance PRU-EPRS/VER1/12-07


FORM IN40: STATEMENT OF PREMIUM REVENUE AND REINSURANCE EXPENSES

Direct insuranceFacultative reinsurance

Proportional treaty

Non-proportional treaty

Total

Part I: General Insurance Business:Gross Written PremiumClass of BusinessClass 1: AccidentClass 2: SicknessClass 3: Land VehiclesClass 4: Marine - Aviation - TransportClass 5: Fire and Other Property DamageClass 6: LiabilityClass 7(a): CreditClass 7(b): SuretyshipClass 8: OtherTotal

Total Accepted from Related Parties

Reinsurance CededClass of BusinessClass 1: AccidentClass 2: SicknessClass 3: Land VehiclesClass 4: Marine - Aviation - TransportClass 5: Fire and Other Property DamageClass 6: LiabilityClass 7(a): CreditClass 7(b): SuretyshipClass 8: OtherTotal

Total Ceded to Related Parties

Net Earned PremiumClass of BusinessClass 1: AccidentClass 2: SicknessClass 3: Land VehiclesClass 4: Marine - Aviation - TransportClass 5: Fire and Other Property DamageClass 6: LiabilityClass 7(a): CreditClass 7(b): SuretyshipClass 8:OtherTotal


Part II: Long-Term Insurance Business:Gross Written PremiumClass of BusinessClass I: Life and AnnuityClass II: Marriage and Birth

FORM IN40: Statement of Premium Revenue and Reinsurance Expenses PRU-EPRS/VER1/12-07


Class III: Linked Long TermClass IV: Permanent HealthClass V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal


Reinsurance CededClass of BusinessClass I: Life and AnnuityClass II: Marriage and BirthClass III: Linked Long TermClass IV: Permanent HealthClass V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal


Net Earned PremiumClass of BusinessClass I: Life and AnnuityClass II: Marriage and BirthClass III: Linked Long TermClass IV: Permanent HealthClass V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal


FORM IN40: Statement of Premium Revenue and Reinsurance Expenses PRU-EPRS/VER1/12-07


FORM IN50: STATEMENT OF CLAIMS EXPENSE AND RECOVERY REVENUE


Proportional treatyNon-proportional

treatyTotal

Part I: General Insurance Business:Gross Claims PaidClass 1: AccidentClass 2: SicknessClass 3: Land VehiclesClass 4: Marine - Aviation - TransportClass 5: Fire and Other Property DamageClass 6: LiabilityClass 7(a): CreditClass 7(b): SuretyshipClass 8: OtherTotal

Total Paid to Related Parties

Reinsurance and other recoveries in respect of paid claimsClass 1: AccidentClass 2: SicknessClass 3: Land VehiclesClass 4: Marine - Aviation - TransportClass 5: Fire and Other Property DamageClass 6: LiabilityClass 7(a): CreditClass 7(b): SuretyshipClass 8: OtherTotal

Total Recovered from Related Parties

Net Incurred ClaimsClass 1: AccidentClass 2: SicknessClass 3: Land VehiclesClass 4: Marine - Aviation - TransportClass 5: Fire and Other Property DamageClass 6: LiabilityClass 7(a): CreditClass 7(b): SuretyshipClass 8: OtherTotal


Part II: Long-Term Insurance Business:

Gross Claims PaidClass I: Life and AnnuityClass II: Marriage and BirthClass III: Linked Long TermClass IV: Permanent HealthClass V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal


FORM IN50: Statement of Claims Expense Recovery Revenue PRU-EPRS/VER1/12-07


Reinsurance and other recoveries in respect of paid claimsClass I: Life and AnnuityClass II: Marriage and BirthClass III: Linked Long TermClass IV: Permanent HealthClass V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal


Net Incurred ClaimsClass I: Life and AnnuityClass II: Marriage and BirthClass III: Linked Long TermClass IV: Permanent HealthClass V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal


Part III: Direct Long-Term Insurance Business:Gross Claims PaidClass I: Life and AnnuityClass II: Marriage and BirthClass III: Linked Long TermClass IV: Permanent HealthClass V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal


Reinsurance and other recoveries in respect of paid claimsClass I: Life and AnnuityClass II: Marriage and BirthClass III: Linked Long TermClass IV: Permanent HealthClass V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal


Net Incurred ClaimsClass I: Life and AnnuityClass II: Marriage and BirthClass III: Linked Long TermClass IV: Permanent HealthClass V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal


FORM IN50: Statement of Claims Expense Recovery Revenue PRU-EPRS/VER1/12-07


FORM IN60: STATEMENT OF MOVEMENTS IN INSURANCE PROVISIONS

Right Click on the required row (in EPRS)

to input the detail

Part I: Direct Business (Gross): Linked Form - 1Part II: Facultative Reinsurance Business (Gross):Part III: Proportional Treaty Reinsurance Business (Gross):Part IV: Non-Proportional Treaty Reinsurance Business (Gross):

Part V: Reinsurance and Other Recoveries in Respect of Direct Business: Linked Form - 2Part VI: Reinsurance and Other Recoveries in Respect of Facultative Reinsurance Business:Part VII: Reinsurance and Other Recoveries in Respect of Proportional Treaty Reinsurance:Part VIII: Reinsurance and Other Recoveries in Respect of Non-Proportional Treaty Reinsurance:

FORM IN60: Statement of Movements in Insurance Provisions PRU-EPRS/VER1/12-07


Total

Class 7(a): Credit

Last Reporting Period Previous Reporting Period

Linked Form - 1This Reporting

Period

Balance at Balance at Balance at Balance at FORM IN60: STATEMENT OF

Balance at End of the Reporting

Start of the Release of Claims Other

Increase or End of the Start of the Release of Claims

Other Increase or

End of the MOVEMENTS IN INSURANCE

PROVISIONSPeriod

Reporting Discount PaidDecrease

Reporting Reporting Discount PaidDecrease

Reporting Period Period Period Period

Part I: Direct Business (Gross):Provision for Outstanding Claims (including IBNR)Class 1: AccidentClass 2: SicknessClass 3: Land VehiclesClass 4: Marine - Aviation - TransportClass 5: Fire and Other Property DamageClass 6: Liability

Class 7(b): SuretyshipClass 8: OtherTotal

Part II: Facultative Reinsurance Business (Gross):

Class 1: AccidentProvision for Outstanding Claims (including IBNR)

Class 2: SicknessClass 3: Land VehiclesClass 4: Marine - Aviation - TransportClass 5: Fire and Other Property DamageClass 6: LiabilityClass 7(a): CreditClass 7(b): SuretyshipClass 8: OtherTotal



Class 1: Accident

Part III: Proportional Treaty Reinsurance Business (Gross):

Class 1: AccidentClass 2: SicknessClass 3: Land Vehicles

Provision for Outstanding Claims (including IBNR)

Class 4: Marine - Aviation - TransportClass 5: Fire and Other Property DamageClass 6: LiabilityClass 7(a): CreditClass 7(b): SuretyshipClass 8: OtherTotal

Part IV: Non-Proportional Treaty Reinsurance Business (Gross):Provision for Outstanding Claims (including IBNR)

Class 2: SicknessClass 3: Land VehiclesClass 4: Marine - Aviation - TransportClass 5: Fire and Other Property DamageClass 6: LiabilityClass 7(a): CreditClass 7(b): SuretyshipClass 8: OtherTotal



Total

Balance at Balance at Balance at Balance at

Class 7(a): CreditClass 7(b): Suretyship

Previous Reporting PeriodLast Reporting Period

Linked Form - 2This Reporting

PeriodFORM IN60: STATEMENT OF

Balance at End of Start of the Release of Claims

Other End of the Start of the Release of Claims

Other End of the

MOVEMENTS IN INSURANCE the Reporting

PeriodReporting Discount Paid

Increase or Decrease

Reporting Reporting Discount PaidIncrease or Decrease

Reporting PROVISIONS

Period Period Period Period

Part V: Reinsurance and Other Recoveriesin Respect of Direct Business:Provision for Outstanding Claims (including IBNR)Class 1: AccidentClass 2: SicknessClass 3: Land VehiclesClass 4: Marine - Aviation - TransportClass 5: Fire and Other Property DamageClass 6: Liability

Class 8: OtherTotal

Part VI: Reinsurance and Other Recoveriesin Respect of Facultative Reinsurance Business :Provision for Outstanding Claims (including IBNR)Class 1: AccidentClass 2: SicknessClass 3: Land VehiclesClass 4: Marine - Aviation - TransportClass 5: Fire and Other Property DamageClass 6: LiabilityClass 7(a): CreditClass 7(b): SuretyshipClass 8: OtherTotal



Total

Total

in Respect of Non-Proportional Treaty Reinsurance:Provision for Outstanding Claims (including IBNR)

in Respect of Proportional Treaty Reinsurance:Provision for Outstanding Claims (including IBNR)

Class 4: Marine - Aviation - TransportClass 5: Fire and Other Property Damage

Class 4: Marine - Aviation - TransportClass 5: Fire and Other Property Damage

Part VIII: Reinsurance and Other Recoveries

Part VII: Reinsurance and Other Recoveries





Class 6: Liability

Class 8: Other

Class 6: Liability

Class 8: Other



N700_0440 - Income from contracts of musharaka with other counterpartiesTotal Income from Mudarba and Musharakah

5.Income from Collective Investment:N700_0510 - Income from PSIAs with Related partiesN700_0520 - Income from PLIAs with other parties

6. Changes in Value in Invested Assets:N700_0610 - Changes in value of investments in or with Related partiesN700_0620 - Changes in value of other invested assetsTotal Changes in Value:

FORM IN70: STATEMENT OF INVESTMENT INCOME Current Year Prior Year

1.Interest Receivable:N700_0110 - Interest from Related partiesN700_0120 - Interest from other partiesTotal Interest Receivable

2.Dividends Receivable:N700_0210 - Dividends from Related partiesN700_0220 - Other dividendsTotal Dividends Receivable

3.Rental Income Receivable:N700_0310 - Rentals from Related partiesN700_0320 - Other rentalsTotal Rental Income Receivable

4. Income Under Investment Contracts of Mudarba and Musharakah:N700_0410 - Income from contracts of mudaraba with Related counterpartiesN700_0420 - Income from contracts of mudaraba with other counterpartiesN700_0430 - Income from contracts of musharaka with Related counterparties

N700_0530 - Income from other forms of collective investment with Related partiesN700_0540 - Income from other forms of collective investment with other partiesTotal Income from Collective Investments Gross)

FORM IN70: Statement of Investment Income PRU-EPRS/VER1/12-07


N700_0720 - Other investment income

7.Other Investment IncomeN700_0710 - Other investment income from Related parties

Total Other Investment Income

8.Total Investment Income

FORM IN70: Statement of Investment Income PRU-EPRS/VER1/12-07


Class 8:Other

Class I: Life and Annuity

Class IV: Permanent Health

Class VII: Pension Fund ManagementTotal

Total Payable to Related Parties

Commissions and Brokerage

FORM IN80: STATEMENT OF ACQUISITION EXPENSES


Proportional treaty

Non-proportional treaty

Total

Part I: General Insurance Business:

Commissions and BrokerageClass 1: AccidentClass 2: SicknessClass 3: Land VehiclesClass 4: Marine - Aviation - TransportClass 5: Fire and Other Property DamageClass 6: LiabilityClass 7(a): CreditClass 7(b): Suretyship

Total


Other Acquisition CostsClass 1: AccidentClass 2: SicknessClass 3: Land VehiclesClass 4: Marine - Aviation - TransportClass 5: Fire and Other Property DamageClass 6: LiabilityClass 7(a): CreditClass 7(b): SuretyshipClass 8:OtherTotal


Part II: Long-Term Insurance Business:

Class II: Marriage and BirthClass III: Linked Long Term

Class V: TontinesClass VI: Capital Redemption

FORM IN80: Statement of Acquisition Expenses PRU-EPRS/VER1/12-07


Class III: Linked Long Term

Class V: Tontines

Total

Class II: Marriage and BirthClass III: Linked Long TermClass IV: Permanent HealthClass V: Tontines

Class VII: Pension Fund Management


Recoverable from Related Parties

Commission and Management ExpensesPart III: Direct Long-Term Insurance Business:

Other Acquisition CostsClass I: Life and AnnuityClass II: Marriage and Birth


Class VI: Capital RedemptionClass VII: Pension Fund Management


Class I: Life and Annuity

Class VI: Capital Redemption

Total

Recoverable from Reinsurance

FORM IN80: Statement of Acquisition Expenses PRU-EPRS/VER1/12-07


Differences in Recognition of Assets and Liabilities:

Total

N900_3000 - Net Assets according to Financial Statements

FORM IN90: RECONCILIATION TO FINANCIAL Current Year Prior Year

STATEMENTS

Financial Position:

N900_1000 - Net assets from balance sheet

Differences between item 1 and Net Assets according to Financial Statements:

Differences in Valuation of Assets and Liabilities:

Total

FORM IN90: Reconciliation to Financial Statements PRU-EPRS/VER1/12-07


N400_120T - General insurance business

N500_110T - General insurance business

N500_220T - Long-Term Insurance business

6.Net Claims Paid

N300_0710 - General insurance businessN300_0720 - Long-term Insurance business

Total Movements in Recoveries

FORM IN100: SUMMARY STATEMENT TO Current Year Prior Year

OPERATIONS

Part I : Revenue and Expense Information:

1.Gross Written Premiums:N400_110T - General insurance businessN400_210T - Long-Term Insurance businessTotal Gross Written Premiums

2.Reinsurance Premiums Ceded:

N400_220T - Long-Term Insurance businessTotal Reinsurance Premiums Ceded

3.Net Written Premiums

4.Claims Paid:

N500_210T - Long-Term Insurance businessTotal Claims Paid

5.Reinsurance and Other Recoveries Received:N500_120T - General insurance business

Total Recoveries Received

7.Movements in Insurance Liabilities:

Total Movements in Insurance Liabilities (Gross)

8.Movements in Recoveries Against Insurance Liabilities:

N300_0810 - General insurance businessN300_0820 - Long-term Insurance business

9.Net Movement in Provisions

FORM IN100: Summary Statement to Operations PRU-EPRS/VER1/12-07


11.Other Operating Revenue:

Contracts in Force

10.Expenses:N300_1010 - Commissions and brokerageN300_1020 - Other acquisition costsN300_1030 - Levies and chargesN300_1040 - Other expenses attributable to Long-Term Insurance FundN300_1050 - Other expensesTotal Expenses

N300_1110 - CommissionsN300_1120 - Other revenueTotal Other Operating Revenue

12.Operating Income

Part II : Asset and Liability Information:

13.Outstanding Claims Provision (Including IBNR)

14.Expected Reinsurance and Other Recoveries in Respect of Item 13

15.Premium Liabilities under General Insurance Contracts

16.Expected Reinsurance and Other Recoveries in Respect of Item 15

17.Net Policy Benefits under Long-Term Insurance

FORM IN100: Summary Statement to Operations PRU-EPRS/VER1/12-07


Term Insurance Business:Direct Long-Term

Insurance BusinessOther Total

1.Assets:

N110_1030 - Plant and Equipment

Total Assets

N110_1130 - Tax liabilityN110_1140 - Provisions

component

FORM IN110: Reconciliation of Direct to Total Long-

Assets and Liabilities:

N110_1000 - Cash and Liquid AssetsN110_1010 - ReceivablesN110_1020 - Investments

N110_1040 - Intangible AssetsN110_1050 - Deferred Tax AssetsN110_1060 - Other Assets

2.Liabilities:N110_1080 - Creditors and accrualsN110_1090 - Amounts due on reinsurance contractsN110_1100 - Technical provisions (other)N110_1110 - Net policy benefits on long-term insurance contractsN110_1120 - Borrowings

N110_1150 - Other liabilitiesN110_1160 - Loan capital and hybrid securitiesTotal Liabilities

3.Minimum Capital Requirement:N110_1180 - Default risk componentN110_1190 - Investment volatility risk componentN110_1200 - Off-balance sheet asset risk componentN110_1210 - Off-balance sheet liability risk

N110_1220 - Concentration risk componentN110_1230 - Size factor adjustment componentN110_1240 - Underwriting risk componentN110_1250 - Reserving risk component

N110_1260 - Long-Term Insurance risk component

N110_1270 - Asset management risk componentN110_1280 - Adjustments to capital requirementMinimum Capital Requirement

FORM IN110: Reconciliation of Direct to Total Long-Term Insurance Business PRU-EPRS/VER1/12-07



Class II: Marriage and Birth

Part II: Analysis of New Business:Gross Premiums

FORM IN120: Statement of Direct Long-Term Insurance Business

Right Click on the required rowto input the detail

Part I: Analysis of Premiums & Part II: Analysis of New Business: Linked Form - 1

Part III: Persistency: Linked Form - 2

Linked Form - 1

FORM IN120: Statement of Direct Long- Regular Single Regular Non- Single Non-Term Insurance Business Participating Participating Participating Participating

Total

Part I: Analysis of Premiums:Gross PremiumsClass I: Life and AnnuityClass II: Marriage and BirthClass III: Linked Long Term

Class V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal

Total Effected with Related Parties

Reinsurance CededClass I: Life and Annuity

Class III: Linked Long TermClass IV: Permanent HealthClass V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal


AnnuityClass I: Life and AnnuityClass II: Marriage and BirthClass III: Linked Long TermClass IV: Permanent HealthClass V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal

FORM IN120: Statement of Direct Long-Term Insurance Business PRU-EPRS/VER1/12-07


Year Ended on Reporting date

Previous Financial Year

Previous Financial Year

Number of New Policy Holders / Fund MembersAnnuityClass I: Life and AnnuityClass II: Marriage and BirthClass III: Linked Long TermClass IV: Permanent HealthClass V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal

Linked Form - 2

FORM IN120: Statement of Direct Long- Contracts Naturally Otherwise In force on Persistency Term Insurance Business effected terminated terminated reporting date rate

Part III: Persistency:Number of Contracts - Participating

Previous Financial YearPrevious Financial Year

Total

Number of Contracts - Linked Long Term

Year Ended on Reporting datePrevious Financial YearPrevious Financial YearPrevious Financial YearTotal

Number of Contracts - Other-Non-ParticipatingYear Ended on Reporting date

Previous Financial YearPrevious Financial YearTotal

FORM IN120: Statement of Direct Long-Term Insurance Business PRU-EPRS/VER1/12-07


Term Insurance Liabilities Participating Participating Participating ProvisionsTotal

Reinsurance Recoverable

FORM IN130: Statement of Direct Long- Vested - Direct Non Vested - Direct Direct Non- Additional

Analysis of Direct Long-Term Insurance Liabilities:Gross Policy LiabilitiesClass I: Life and AnnuityClass II: Marriage and BirthClass III: Linked Long TermClass IV: Permanent HealthClass V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal

Total in Respect of Related Parties

Class I: Life and AnnuityClass II: Marriage and BirthClass III: Linked Long TermClass IV: Permanent HealthClass V: TontinesClass VI: Capital RedemptionClass VII: Pension Fund ManagementTotal

Total Recoverable from Related Parties

FORM IN130:Statement of Direct Long Term Insurance Liabilities PRU-EPRS/VER1/12-07


premium liabilitiesN140_1100 - Other reinsurance assets receivable from reinsurersN140_1110 - Other receivables

N140_1130 - Profit Sharing Investment AccountsN140_1140 - Deposits (not including Profit Sharing Investment Accounts)

N140_1200 - Collective investmentsN140_1210 - PropertiesN140_1220 - Investments held indirectlyN140_1230 - Other investmentsTotal Investments

FORM IN140: Statement of Assets Covering Direct Linked Long-Term Insurance Liabilities:

Current Year Prior Year

Assets Covering Direct Linked Long-Term Insurance Liabilities:1.Cash and Liquid Assets:N140_1000 - Notes and coinsN140_1010 - Money at short callN140_1020 - Securities purchased under agreements to resellTotal Cash and Liquid Assets

2.Receivables:N140_1040 - Investment income receivableN140_1050 - Recoveries other than reinsuranceN140_1060 - Premiums receivableN140_1070 - Amounts due under reinsurance contractsN140_1080 - Expected reinsurance and other recoveries on outstanding claimsN140_1090 - Expected reinsurance and other recoveries on

Total Receivables

3.Investments:

N140_1150 - Debt securitiesN140_1160 - Equity securitiesN140_1170 - Investment contracts of mudaraba, other than collective investmentsN140_1180 - Investment contracts of musharaka other than collective investmentsN140_1190 - Loans and advances

FORM IN140: Statement of Assets Covering Direct Linked

Long-Term Insurance Liabilities PRU-EPRS/VER1/12-07


N140_1280 - Other

4.Other Assets:N140_1250 - PrepaymentsN140_1260 - Deferred expensesN140_1270 - Unrealised gain on derivatives

Total Other Assets

Total Assets

N140_1310 - Tot assets (amts from, bals with or invests in RP, excl amts due under ins crts)

FORM IN140: Statement of Assets Covering Direct Linked

Long-Term Insurance Liabilities PRU-EPRS/VER1/12-07


N150_1020 - Securities purchased under agreements to

N150_1080 - Expected reinsurance and other recoveries on

premium liabilities

Total Receivables

FORM IN150: Statement of Assets Covering Non-Linked Long-Term Insurance Liabilities and Minimum Capital Requirements


Part I : Assets Covering Participating Contract Liabilities: Linked Form - 1Part II : Assets Covering Non-Participating Contract Liabilities: Linked Form - 2

Part III : Assets Covering Minimum Capital Requirement: Linked Form - 3

Linked Form - 1

FORM IN150: Statement of Assets Covering Non-Linked Long-Term Insurance Liabilities and Minimum Capital Asset Values Expected Yield %Requirements

Part I : Assets Covering Participating Contract Liabilities:

1.Cash and Liquid Assets:N150_1000 - Notes and coinsN150_1010 - Money at short call

resellTotal Cash and Liquid Assets

2.Receivables:N150_1040 - Investment income receivableN150_1050 - Recoveries other than reinsuranceN150_1060 - Premiums receivableN150_1070 - Amounts due under reinsurance contracts

outstanding claimsN150_1090 - Expected reinsurance and other recoveries on

N150_1100 - Other reinsurance assets receivable from reinsurersN150_1110 - Other receivables

FORM IN150: Statement of Assets Covering Non-Linked

Long-Term Insurance Liabilities and Minimum Capital Requirement PRU-EPRS/VER1/12-07


N150_1140 - Deposits (not including Profit Sharing

N150_1180 - Equity securities

3.Investments:N150_1130 - Profit Sharing Investment Accounts

Investment Accounts)N150_1150 - Debt securities rated AAA issued by Governments or Government agenciesN150_1160 - Debt securities rated BBB or better, not included in 3.3N150_1170 - Other debt securities

N150_1190 - Investment contracts of mudaraba, other than collective investmentsN150_1200 - Investment contracts of musharaka other than collective investmentsN150_1210 - Loans and advancesN150_1220 - Collective investmentsN150_1230 - PropertiesN150_1240 - Investments held indirectlyN150_1250 - Other investmentsTotal Investments

4.Other Assets:N150_1270 - PrepaymentsN150_1280 - Deferred expensesN150_1290 - Unrealised gain on derivativesN150_1300 - OtherTotal Other Assets

5.Total Assets





resell

N150_1050 - Recoveries other than reinsurance

N150_1090 - Expected reinsurance and other recoveries on

N150_1100 - Other reinsurance assets receivable from


Linked Form - 2FORM IN150: Statement of Assets Covering Non-Linked Long-Term Insurance Liabilities and Minimum Capital Asset Values Expected Yield %Requirements

Part II : Assets Covering Non-Participating Contract Liabilities:6.Cash and Liquid Assets:N150_1000 - Notes and coinsN150_1010 - Money at short callN150_1020 - Securities purchased under agreements to

Total Cash and Liquid Assets

7.Receivables:N150_1040 - Investment income receivable

N150_1060 - Premiums receivableN150_1070 - Amounts due under reinsurance contractsN150_1080 - Expected reinsurance and other recoveries on outstanding claims

premium liabilities

reinsurersN150_1110 - Other receivablesTotal Receivables


Investment Accounts)N150_1150 - Debt securities rated AAA issued by Governments or Government agenciesN150_1160 - Debt securities rated BBB or better, not included in 3.3N150_1170 - Other debt securitiesN150_1180 - Equity securitiesN150_1190 - Investment contracts of mudaraba, other than collective investmentsN150_1200 - Investment contracts of musharaka other than collective investmentsN150_1210 - Loans and advancesN150_1220 - Collective investments




N150_1230 - Properties

resell

outstanding claimsN150_1090 - Expected reinsurance and other recoveries on

N150_1100 - Other reinsurance assets receivable from

N150_1240 - Investments held indirectlyN150_1250 - Other investmentsTotal Investments

9.Other Assets:N150_1270 - PrepaymentsN150_1280 - Deferred expensesN150_1290 - Unrealised gain on derivativesN150_1300 - OtherTotal Other Assets

10.Total Assets


Linked Form - 3FORM IN150: Statement of Assets Covering Non-Linked Long-Term Insurance Liabilities and Minimum Capital Asset Values Expected Yield %Requirements

Part III : Assets Covering Minimum Capital Requirement:

11.Cash and Liquid Assets:N150_1000 - Notes and coinsN150_1010 - Money at short callN150_1020 - Securities purchased under agreements to

Total Cash and Liquid Assets

12.Receivables:N150_1040 - Investment income receivableN150_1050 - Recoveries other than reinsuranceN150_1060 - Premiums receivableN150_1070 - Amounts due under reinsurance contractsN150_1080 - Expected reinsurance and other recoveries on

premium liabilities

reinsurersN150_1110 - Other receivablesTotal Receivables





N150_1170 - Other debt securities

collective investments

N150_1270 - Prepayments

Total Other Assets


Investment Accounts)N150_1150 - Debt securities rated AAA issued by Governments or Government agenciesN150_1160 - Debt securities rated BBB or better, not included in 3.3

N150_1180 - Equity securitiesN150_1190 - Investment contracts of mudaraba, other than

N150_1200 - Investment contracts of musharaka other than collective investmentsN150_1210 - Loans and advancesN150_1220 - Collective investmentsN150_1230 - PropertiesN150_1240 - Investments held indirectlyN150_1250 - Other investmentsTotal Investments

14.Other Assets:

N150_1280 - Deferred expensesN150_1290 - Unrealised gain on derivativesN150_1300 - Other

15.Total Assets





Linked Form - 2

FORM IN160: Calculation of Direct Long-Term Net - Percentage Reinsurance

N160_1040 - Other linked long term, expenses fixed for more than 5 years

N160_1070 - Class V: TontinesN160_1080 - Class VI: Capital redemptionN160_1090 - Class VII:

Linked Form - 2

N160_1140 - NoneN160_1150 - Term assurance of not more than three

N160_1160 - Term assurance of not between three and five yearsN160_1170 - OtherTotal

FORM IN160: Calculation of Direct Long-Term Insurance Element of Long-Term Insurance Component


A - Percentage of Insurance Provisions:

B - Percentage of Capital at Risk:

Linked Form - 1

C - Percentage of Other Factors: Linked Form - 3

D - Result : Direct Long-Term Insurance Element of Long-Term Insurance Risk Component: Linked Form - 4

Linked Form - 1

Insurance Element of Long-Term Insurance Risk Component

Gross - ProvisionsProvisions factor ratio

Result

A- Percentage of Insurance Provisions:N160_1000 - Class I: Life and annuityN160_1010 - Class II: Marriage and birthN160_1020 - Class III:N160_1030 - Linked long term, Insurer bears investment risk

N160_1050 - Linked long-term, otherN160_1060 - Class IV: Permanent Health

N160_1100 - Pension fund mgt, insurer bears investment riskN160_1110 - Other pension fund mgt, expenses fixed for more than 5 yearsN160_1120 - Pension fund mgt, other

Total

FORM IN160: Calculation of Direct Long-Term Insurance Element of Long-Term Insurance Risk Component

Gross - Capital at Risk

Net - Capital at Risk

Percentage factor

Reinsurance ratio

Result

B - Percentage of Capital at Risk:

years

FORM IN160: Calculation of Direct Long-Term Insurance

Element of Long-Term Insurance Component PRU-EPRS/VER1/12-07


N160_1190 - Net admin expenses in the financial

N160_1230 - Result In respect of Class IV:N160_1210 - 18% of the first $50 million of Gross

N160_1220 - 26% of the first $35 million of gross

FORM IN160: Calculation of Direct Long-Term Insurance Element of Long-Term Insurance Risk Component

Gross - Capital at

N160_125T - Grand total

Linked Form - 3FORM IN160: Calculation of Direct Long-Term Insurance Element of Long-Term Insurance Risk Amount Factor ResultComponent

C - Percentage of Other Factors:

year relating to business in item 3.3

Written Premium and 16% thereafter

incurred claims and 23% thereafter

N160_1240 - Assets of business in Class V

Linked Form - 4

Risk

D - Result : Direct Long-Term Insurance Element of Long-Term Insurance Risk Component:

FORM IN160: Calculation of Direct Long-Term Insurance

Element of Long-Term Insurance Component PRU-EPRS/VER1/12-07


Financial Group Capital Resources Requirement

Surplus or Deficit


FORM IN170: Financial Group Capital Adequacy Report

Part I - Financial Group Capital AdequacyPart II - Authorised Firms and Financial Institutions in Financial Group

Part II - Financial Group Members in Regulatory Deficit

Linked Form - 1

FORM IN170: Statement of Group Capital Adequacy:

Linked Form - 1

Linked Form - 2

Linked Form - 3

Part I : Financial Group Capital Adequacy:

Financial Group Capital Resources

Linked Form - 2

FORM IN170: Statement of Group Capital Adequacy: FGCR FGCRRSurplus / (Deficit)

Part II : Financial Group Members:

Authorised Firms and Financial Institutions in Financial Group:

Insert Name of Authorised Firm or Financial Institution

FORM IN170: Financial Group Capital Adequacy Report PRU-EPRS/VER1/12-07


Linked Form - 3

FORM IN170: Statement of Group Capital Adequacy: Capital ResourcesCapital

RequirementDeficit

Part II : Financial Group Members:

Financial Group Members in Regulatory Deficit:

Insert Name of Authorised Firm of Financial Institution

FORM IN170: Financial Group Capital Adequacy Report PRU-EPRS/VER1/12-07

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