Question 3: Define business Segments under 'Retail Brokerage' and 'Asset Management'?

1. •Retail Brokerage - Examples of activities:
   Execution and full service, such as:
   1. i.Reception and transmission of orders in relation to one or more financial instruments
   2. ii.Execution of orders on behalf of clients
2. •Asset Management- Examples of activities:
   1. i.Portfolio management
   2. ii.Managing of Investments funds, including: pooled funds, segregated funds, retail funds, institutional funds, closed funds, open funds, private equity funds

Question 4: What is the objective mapping criteria for mapping ancillary business function that supports more than one business line?
Such objective mapping criteria depends on the business and ancillary business mix of a bank. These criteria are not preset by the Central Bank. A bank should establish internally such criteria, reflecting its internal organisation, and these should be subject to independent review as per point (ix) of paragraph 12 of the Operational Risk section of Standards re Capital Adequacy in the UAE. The allocation can be done pro-rata based on the chosen criteria.
Examples of objective criteria include:

1. 1.number of full-time equivalent members of staff,
2. 2.time sheet man-hours,
3. 3.number of clients or transactions originated from each business line,
4. 4.volume of business originated from each business line.

Question 5: Business Segments/ functions that are to be mapped to 'Payment and Settlement' can be clearly articulated, as currently Level 2 defines the business segment as 'External Clients'
There is no fixed definition of external clients but all clients that the bank deals with externally with regards to Payment and Settlements need to be incorporated in this business line.