Supervision

Supervision refers to overseeing of AIFC Regulations and Rules. The AFSA Regulatory Office performs effective ongoing supervision of authorized institutions and individuals.

The AFSA Regulatory Office adopts a risk-based approach to the regulation and supervision of all regulated firms in order to concentrate its resources on the mitigation of risk to its objectives. The AFSA Regulatory Office will work with a regulated entity to identify, assess, mitigate and control these risks where appropriate.

The AFSA’s supervisory risk-based approach involves:

• The AFSA’s continuous risk management cycle, which utilizes macreo-prudential data, risk assessment and risk matrix to form risk-based classifications of firms;
• Where applicable, developing a strong relationship with firms and its senior management;
• Firms making notifications to the AFSA;
• Using appropriate supervisory tools.

The AFSA uses following Supervisory Tools:

• On-site and Off-site Supervision;
• Personal Meetings;
• Desk-Based Review
• Thematic Review
• Production of Information
• Reports
• Co-operation with other regulators
• Third Party Information
• Supervisory powers

Prudential supervision framework is outlined in following policies and rules:

• • Guidance Section for Authorised Firms
  • AIFC Banking Business Prudential Rules
  • AIFC Banking Prudential Guideline
  • AIFC Islamic Banking Business Prudential Rules
  • AIFC Prudential Rules for Investment Firms
  • AIFC Insurance and Reinsurance Prudential Rules
  • AIFC Takaful and Retakaful Prudential Rules
  • AIFC Prudential Rules for Insurance Intermediaries and Insurance Managers

Required Submission Reports and Relevant Materials:

• AIFC Quarterly Return Forms
• Manual for Preparation of Returns for Banking Business Firms, Islamic Banks, and Islamic Financing Companies
• Manual for Preparation of Returns for Investment Firms
• Manual for Preparation of Returns for Insurance and Reinsurance Firms
• Manual for Preparation of Returns for Insurance Intermediaries and Insurance Managing
• FAQs on Fin Conduct Sheets (Conduct Supervision Return Forms)