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:

1. AIFC Banking Business Prudential Rules
2. AIFC Banking Prudential Guideline
3. The Manual for Preparation of Returns for Authorised Firms
4. AIFC Insurance and Re-Insurance Prudential Rules
5. AIFC Prudential Rules for Investment Firms
6. AIFC Prudential Rules for Insurance Intermediaries and Insurance Managers
7. AIFC Islamic Banking Business Prudential Rules
8. AIFC Takaful and Retakaful Prudential Rules

Required Submission Reports and Relevant Materials:

1. AIFC Quarterly Report Forms
2. Manual for Preparation of Returns for Investment Firms
3. FAQs on FC Sheets (Business Conduct Supervision Reporting Templates)