1.4 .Banking Business firms
(1) Banking Business comprises the Regulated Activities of Accepting Deposits, Dealing in Investments as Principal and Providing Credit. An Authorised Firm that has a license from the AFSA to conduct any of those activities is a Banking Business firm.
(2) However, an Authorised Firm that is an Islamic Bank or an Islamic Broker dealer or an Islamic Financing Company (as defined in the IBB Rules) is not a Banking Business firm for the purposes of these Rules.
(3) A Banking Business firm may be a Bank or a Broker Dealer or a Credit Provider.
Guidance
A firm that conducts any of the activities that make up Banking Business, or a combination of those activities, will need to consider the extent to which its business model is subject to the prudential requirements set out in these rules.
These rules are designed to address the different prudential risks that could arise from the broad range of business models, risk appetites and risk profiles of Banking Business firms.
For example, a firm that solely conducts the activity of Dealing in Investments as Principal (that is, a Broker Dealer) will need to consider the extent to which its activities in buying, selling, subscribing to or underwriting investments attract prudential risks that are subject to the requirements of these rules.
In contrast, a firm that is a Bank and that also conducts the activity of Dealing in Investments as Principal would be subject to a broader range of prudential requirements.
In both examples, these rules apply in accordance with the nature, scale and complexity of the firm’s business.
- 1.8. Application of these rules — genera