Entire Section

  • 2007

    • W002/07 PIB — Société Générale Bank & Trust

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      WAIVER AND MODIFICATION NOTICE

      To Société Générale Bank & Trust
      Address Level 4, Gate Village 6, DIFC
      PO Box 506642
      Dubai, United Arab Emirates
      DFSA Firm Reference No. F000401
      Notice No. W002/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      1. The Rules specified in Table A herein do not apply to the above mentioned Person.

      AND

      2. The Rules specified in the left hand column of Table B herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES WAIVED

      As a consequence of waiving the Rules below, Table 2 in PIB chapter 1 is to be construed accordingly.

      TABLE A
      PIB module Rule
      PIB Chapter 1 (General Requirements) All the Rules in PIB section 1.4 (Trading Book)
      PIB Chapter 2 (Capital) All the Rules in PIB Chapter 2

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      TABLE B
      Rule Modified Text
      PIB Rule 1.2.1 An Authorised Firm must:
      (a) have and maintain at all times financial resources of the kinds and amounts specified in, and calculated in accordance with, the Rules in this module; and
      (b) ensure that it maintains financial resources in addition to the requirement in (a) which are adequate in relation to the nature, size and complexity of its business to ensure that there is no significant risk that liabilities cannot be met as they fall due.

      CONDITIONS

      This notice waiving and modifying prudential Rules remains in effect for the duration or the period set out below on condition that the above named Person to whom this notice applies:

      (a) remains classified as a Category 4 Authorised Firm;
      (b) complies with its home state Financial Services Regulator’s prudential requirements and submits to the DFSA, a copy of every capital adequacy summary report submitted to the home state Financial Services Regulator within ten business days of the due date for submission to that regulator; and
      (c) in the event of any anticipated or actual breach of any prudential requirements which requires notification to the home state Financial Services Regulator, provides to the DFSA such notification forthwith with any relevant documents.

      If any one or more of the conditions stated above is breached, this notice ceases to have effect forthwith and the Rules specified in Table A and Table B herein apply to the above mentioned Person as set out in the applicable module of the Rulebook in force at the relevant time.

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue of this notice and remains in force until further notice.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalization of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE WAS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      This notice was issued by:

      Name : David Knott
      Position : Chief Executive

      DATE OF ISSUE:

      4th December 2007

    • W 003/07 PIB — Mizuho Corporate Bank, Ltd.

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      WAIVER NOTICE

      To Mizuho Corporate Bank, Ltd.
      Address Room 45, Level 15 Business Centre
      The Gate Building, Dubai International Financial Centre
      PO Box 506607, Dubai
      United Arab Emirates
      DFSA Firm Reference No. F000420
      Notice No. W003/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 30th May 2007 and remains in effect until further notice.

      RULES WAIVED

      The Rules waived are set out in the table below and Table 2 in PIB chapter 1 is to be construed accordingly.

      Module Version Rule
      PIB/VER8/02-07 PIB Chapter 1, Section PIB 1.2 & PIB 1.4 (Financial Resources & The Trading Book)
      PIB/VER8/02-07 PIB Chapter 2, all Sections (Capital)

      CONDITIONS

      The waivers in respect of the Rules specified above remain in effect on condition that the Authorised Firm submits to the DFSA, on a half yearly basis, a copy of its latest Capital Adequacy summary report to the Financial Services Agency of Japan, within ten business days of the due date for submission to the Financial Services Agency of Japan.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Joyce C. Maykut QC
      Position : General Counsel
      Date : 30th May 2007

    • W 004/07 GEN — CELF Investment Advisors Limited

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      MODIFICATION NOTICE

      To CELF Investment Advisors Limited
      Address Level 7 East, Precinct Building 3, PO Box 506564, DIFC, Dubai, UAE
      DFSA Firm Reference No. F000300
      Notice No. W004/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 9 January 2007 and remains in force until 29 November 2008 or until further notice, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is GEN/VER11/08-06.

      Rule Modified Text
      GEN 8.2.1
      (1) An Authorised Person must prepare and maintain all financial accounts and statements in accordance with:
      (a) the International Financial Reporting Standards (IFRS); or
      (b) the generally accepted accounting principles of the United Kingdom (UK GAAP);
      unless (2) or (3) applies.
      (2) If an Authorised Firm is an Islamic Financial Institution it must prepare and maintain all financial accounts and statements in accordance with the accounting standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
      (3) If an Authorised Person operates an Islamic Window it must prepare and maintain all financial accounts and statements in accordance with the IFRS, as supplemented by AAOIFI FAS 18 in respect of its Islamic Financial Business.
      GEN 8.6.1

      An Authorised Firm or Authorised Market Institution, as applicable, must in writing require its auditor to:

      (a) conduct an audit of the Authorised Person’s accounts in accordance with the requirements of the relevant standards published by:
      (i) the International Auditing and Assurance Standards Board (IAASB) or the Auditing Standards issued by the UK Auditing Practices Board (APB), in respect of conventional financial business; and
      (ii) the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in respect of any Islamic Financial Business undertaken;
      (b) produce a report on the audited accounts which states:
      (i) whether, in the auditor’s opinion, the accounts have been properly prepared in accordance with the requirements imposed by this chapter;
      (ii) in particular, whether the accounts give a true and fair view of the financial position of the Authorised Person for the financial year and of the state of the Authorised Person’s affairs at the end of the financial year end; and
      (iii) any other matter or opinion relating to the requirements of this chapter;
      (c) produce an Auditor’s Annual Report which states whether:
      (i) the auditor has audited the Authorised Person’s annual financial statements in accordance with the IAASB or APB and AAOIFI in respect of Islamic Financial Business;
      (ii) the auditor has carried out any other procedures considered necessary, having regard to the IAASB or APB, and to AAOIFI auditing standards in respect of Islamic Financial Business;
      (iii) the auditor has received all necessary information and explanations for the purposes of preparing this report to the DFSA;
      (iv) …………………………..and so on up to and including (h)…………………....

      CONDITIONS

      None

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : David Knott
      Position : Chief Executive
      Date : 9 January 2007

    • W 005/07 GEN — Mizuho Corporate Bank, Ltd.

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      MODIFICATION NOTICE

      To Mizuho Corporate Bank, Ltd.
      Address Room 45, Level 15 Business Centre
      The Gate Building, Dubai International Financial Centre
      PO Box 506607, Dubai
      United Arab Emirates
      DFSA Firm Reference No. F000420
      Notice No. W005/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in the table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 30th May 2007 and expires on 30th May 2009, or the date on which any Rule specified herein is amended, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is GEN/VER13/02-07.

      Rule Modified Text
      GEN 8.2.1
      (1) An Authorised Person must prepare and maintain all financial accounts and statements in accordance with:
      (a) the International Financial Reporting Standards (IFRS); or
      (b) the generally accepted accounting principles of Japan (Japanese GAAP)
      unless (2) or (3) applies.
      (2) If an Authorised Firm is an Islamic Financial Institution it must prepare and maintain all financial accounts and statements in accordance with the accounting standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
      (3) If an Authorised Person operates an Islamic Window it must prepare and maintain all financial accounts and statements in accordance with the IFRS or Japanese GAAP, as supplemented by AAOIFI FAS 18 in respect of its Islamic Financial Business.
      (4) In this rule Japanese GAAP means accounting and valuation principles in accordance with the guidelines of the Accounting Standards Board of Japan, including the statutory provisions and directives of the Financial Services Agency of Japan.
      GEN 8.6.1 An Authorised Firm or Authorised Market Institution, as applicable, must in writing require its auditor to:
      (a) conduct an audit of the Authorised Person's accounts in accordance with the requirements of the relevant standards published by:
      (i) the International Auditing and Assurance Standards Board (IAASB) or the Japanese Auditing Standards in respect of conventional financial business; and
      (ii) the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in respect of any Islamic Financial Business undertaken;
      (b) produce a report on the audited accounts which states:
      (i) whether, in the auditor's opinion, the accounts have been properly prepared in accordance with the requirements imposed by this chapter;
      (ii) in particular, whether the accounts give a true and fair view of the financial position of the Authorised Person for the financial year and of the state of the Authorised Person's affairs at the end of the financial year end; and
      (iii) any other matter or opinion relating to the requirements of this chapter;
      (c) produce an Auditor's Annual Report which states whether:
      (i) the auditor has audited the Authorised Person's annual financial statements in accordance with the IAASB or Japanese Auditing Standards or AAOIFI in respect of Islamic Financial Business;
      (ii) the auditor has carried out any other procedures considered necessary, having regard to the IAASB or Japanese Auditing Standards and or to AAOIFI auditing standards in respect of Islamic Financial Business;
      (iii) the auditor has received all necessary information and explanations for the purposes of preparing this report to the DFSA;
      (iv)………………………………………and so on up to and including
      (h)………………………………

      CONDITIONS

      None.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Joyce C. Maykut QC
      Position : General Counsel
      Date : 30th May 2007

    • W 006/07 AUT — Mizuho Corporate Bank, Ltd.

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      MODIFICATION NOTICE

      To Mizuho Corporate Bank, Ltd.
      Address Room 45, Level 15 Business Centre
      The Gate Building, Dubai International Financial Centre
      PO Box 506607, Dubai
      United Arab Emirates
      DFSA Firm Reference No. F000420
      Notice No. W006/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in the table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 30th May 2007 and is in effect until 30th November 2007, or the date on which any Rule specified herein is amended, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is AUT/VER7/02-07.

      Rule Modified Text
      AUT 10.3.2 The Authorised Individuals referred to in Rule 10.3.1(a), (c) and (d) must be ordinarily resident in the U.A.E.

      CONDITIONS

      None.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Joyce C. Maykut QC
      Position : General Counsel
      Date : 30th May 2007

    • W 007/07 AUT — IDS International Limited

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      MODIFICATION NOTICE

      To IDS International Limited
      Address Office 1004, 10th Floor, Al Safa Tower, Sheik Zayed Road, PO Box 73120, Dubai, UAE
      DFSA Firm Reference No. F000311
      Notice No. W007/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 30 January 2007 and expires on 30 March 2007 or the date on which any Rule specified herein is amended, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is AUT/VER6/08-06.

      Rule Modified Text
      AUT 10.3.2 The Authorised Individuals referred to in Rule 10.3.1(a), (c) and (d) must be ordinarily resident in the UAE.

      CONDITIONS

      The modifications in respect of the Rules specified above remain in effect for the duration of the period set out above on condition that:
      None

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director, Supervision
      Date : 30 January 2007

    • W 015/07 AUT — Goldman Sachs International

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      MODIFICATION NOTICE

      To Goldman Sachs International
      Address Business Centre, Level 12, The Gate, DIFC, P.O. Box 121208, Dubai, UAE
      DFSA Firm Reference No. F000297
      Notice No. W015/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to the Person in the modified form prescribed in that table.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective Date: This notice comes into effect on 05.02.2007 and remains in effect until 05.05.2007, or the date on which any Rule specified herein is amended, whichever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this part of the notice relates is AUT/VER5/06-06.

      Rule Modified Text
      AUT 10.3.2 The Authorised Individuals referred to in AUT rule 10.3.1(a), (c) and (d) must be ordinarily resident in the U.A.E.

      CONDITIONS

      None.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director Supervision
      Date : 05.02.2007

    • W 016/07 GEN — Guggenheim Capital Markets LLC

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      MODIFICATION NOTICE

      To Guggenheim Capital Markets LLC
      Address Villa 6, Cluster 36, Jumeirah Islands
      PO Box 506587, Dubai, United Arab Emirates
      DFSA Firm Reference No. F000332
      Notice No. W016/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 29 July 2007 and remains in force until 27 September 2009 or until further notice whichever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is GEN/VER15/07-07.

      Rule Modified Text
      GEN 8.2.1
      (1) An Authorised Person must prepare and maintain all financial accounts and statements in accordance with:
      (a) the International Financial Reporting Standards (IFRS); or
      (b) US GAAP;
      unless (2) or (3) applies.
      (2) ..................
      (3) …………...
      GEN 8.6.1 An Authorised Firm or Authorised Market Institution, as applicable, must in writing require its auditor to:
      (a) conduct an audit of the Authorised Person's accounts in accordance with the requirements of the relevant standards published by:
      (i) in respect of conventional financial business, the International Auditing and Assurance Standards Board (IAASB) or the Generally Accepted Auditing Standards as issued by American Institute of Certified Public Accountants Auditing Standards Board (GAAS); and
      (ii) in respect of any Islamic Financial Business,— the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI);
      (b) ..............
      (c) produce an Auditor's Annual Report which states whether:
      (i) the auditor has audited the Authorised Person's annual financial statements in accordance with the IAASB or PCAOB, and AAOIFI in respect of Islamic Financial Business;
      (ii) the auditor has carried out any other procedures considered necessary, having regard to the IAASB or PCAOB, and AAOIFI in respect of Islamic Financial Business;

      ………….and so on until and including… (h).

      CONDITIONS

      None

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : David Knott
      Position : Chief Executive
      Date : 29 July 2007

    • W 018/07 COB — ICICI Bank Limited

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      MODIFICATION NOTICE

      To ICICI Bank Limited
      Address Level 5
      The Gate Precinct Building 4
      East Wing
      PO BOX 506529
      DUBAI UAE
      DFSA Firm Reference No. F000068
      Notice No. W018/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 31 January 2007 and continues in effect until further notice or until the date on which any Rule specified herein is amended, whichever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is COB/VER7/08-06.

      Rule Modified Text
      COB 3.2.2
      Client
      (1) A Client is a Person who the Authorised Firm has determined, prior to the establishment of a relationship is:
      (a) an individual who:
      (i) has at least $1 million in liquid assets and has provided the Authorised Firm with written confirmation of this fact;
      (ii) appears to the Authorised Firm, after analysis, to have sufficient financial experience and understanding to participate in financial markets; and
      (iii) has consented in writing to being treated as a Client;
      (b) ……………and so on until and including (l)
      (2) A personal investment vehicle or the trustee of such a vehicle is a Client if it is established and operated for the sole purpose of providing a vehicle to facilitate efficient management of a Client's investment portfolio including, if applicable, the portfolio’s of any Close Relatives of that Client.
      (3) For the purposes of (2), the term Close Relative includes grandchildren of the Client.
      (4) For the purpose of (2) a personal investment vehicle must be a:
      (a) Body Corporate;
      (b) Partnership;
      (c) trust, or
      (d) foundation; and
      have net assets or share capital of at least $1 million.
      (5) A personal investment vehicle that is a Body Corporate or trust must be valued in accordance with the methodology specified in (1) (c) or (d) as applicable and if a foundation, must be valued in the same manner as a trust.
      (6) Any Person who does not meet the criteria in (1), or (2) is a Retail Customer.
      COB 3.2.6
      Record keeping
      (1) An Authorised Firm must keep records of the verification process undertaken for each Client including any documents which evidence the Client’s status.
      (2) If the Client in (1) is an individual the records must include the analysis undertaken, the reasons for the Authorised Firm concluding that the individual merits classification as a Client, and the Client’s written consent to be treated as a Client.
      (3) These records must be kept for at least six years from the date on which the business relationship has ended. If the date on which the business relationship ended remains unclear it may be taken to have ended on the date of the completion of the last transaction.
      (4) If an individual is classified as a Client by virtue of Rule 3.2.2(2) then the records must include documents which evidence that individual’s status as a Close Relative.

      CONDITIONS

      Nil

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director—Supervision
      Date : 31 January 2007

    • W 019/07 COB — Merrill Lynch Bank (Suisse) S.A

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      MODIFICATION NOTICE

      To Merrill Lynch Bank (Suisse) S.A
      Address The Gate Building 5th Floor
      DFSA Firm Reference No. F000010
      Notice No. W019/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below. This notice replaces notice W206/2006 which is hereby withdrawn.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 28th January 2007 and expires on 27rd January 2008 or the date on which any Rule specified herein is amended, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is [COB/VER7/08-06].

      Rule Modified Text
      COB 3.2.2
      (1) A Client is a Person who the Authorised Firm has determined, prior to the establishment of a relationship is:
      (a) an individual who :
      (i) has at least $1 million in liquid assets and has provided the Authorised Firm with written confirmation of this fact or any entity within the Authorised Firm’s Group has provided such confirmation;
      (ii) appears to the Authorised Firm after analysis, to have sufficient financial experience and understanding to participate in financial markets; and
      (iii) was a customer of the Authorised Firm’s Group immediately prior to the effective date of this notice, who fulfils the criteria in 1(a)(i) and (ii) or (2) or (4) and has been notified in writing (one way notification) by the Authorised Firm, that it will be providing specific Investment Business services to him and he has not objected to being treated as a Client prior to his account being transferred to the Authorised Firm; or
      (iv) has consented in writing to being treated as a Client;
      (b) ……………and so on upto and including (l)…
      (2) Where individuals have linked or joint bank accounts, a Client is a Close Relative of the primary account holder, where the primary account holder is a Client under (1), but only in circumstances where either:
      (a) that Close Relative fulfils the requirement in (1) (a) (ii); or
      (b) in accordance with the provisions of a legal document, the legal effect of which is, that all Financial Services transactions between the Authorised Firm and the Close Relative are agreed by the primary account holder.
      (3) For the purposes of (2) the defined term Close Relative includes grandchildren of the primary account holder.
      (4) A personal investment vehicle or the trustee of such a vehicle is a Client if it is established and operated for the sole purpose of providing a vehicle to facilitate efficient management of a Client's investment portfolio including, if applicable, the portfolio’s of any Close Relatives of that Client.
      (5) For the purposes of (4), the term Close Relative includes grandchildren of the Client.
      (6) For the purpose of (4) a personal investment vehicle must be a:
      (a) Body Corporate;
      (b) Partnership;
      (c) trust, or
      (d) foundation; and
      have net assets or share capital of at least $1 million.
      (7) A personal investment vehicle that is a Body Corporate or trust must be valued in accordance with (1) (c) or (d) as applicable and if a foundation, must be valued in the same manner as a trust.
      (8) Any Person who does not meet the criteria in (1), (2) or (4) is a Retail Customer.
      COB 3.2.6
      (1) An Authorised Firm must keep records of the verification process undertaken for each Client including any documents which evidence the Client’s status
      (2) If the Client in (1) is an individual the records must include the analysis undertaken, the reasons for the Authorised Firm concluding that the individual merits classification as a Client, and the Client’s written consent to be treated as a Client, and where an individual was a customer of the firm immediately prior to the effective date of this notice, a copy of the one way written notification, advising the customer that the customer will be treated as a Client for the purposes of the DFSA Rules.
      (3) These records must be kept for at least six years from the date on which the business relationship has ended. If the date on which the business relationship ended remains unclear it may be taken to have ended on the date of the completion of the last transaction.
      (4) If an individual is classified as a Client by virtue of Rule 3.2.2(2) or (4) then the records must include documents which evidence that individual’s status as a Close Relative and, where relevant, the legal documentations referred to in Rule 3.2.2(2)(b).
      COB 8.1.1
      (1) Subject to Rule 8.1.2, an Authorised Firm must before conducting Investment Business with a Client provide him with a client agreement containing the matters referred to in Rule 8.1.4 or if impractical to do so, provide it within a reasonable period.
      (2) The Authorised Firm must, for Clients who were customers of the Authorised Firm’s Group immediately prior to the effective date of this notice, advise the Clients by way of a one way notification, of the new regulatory status of the Authorised Firm and that the customer will be treated as a Client for the purposes of the DFSA Rules.

      CONDITIONS

      None

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director
      Date : 28th January 2007.

    • W 020/07 COB — Barclays Bank Plc

      Click herehere to view the PDF

      MODIFICATION NOTICE

      To Barclays Bank Plc
      Address The Gate Building, Level 9. West Wing. PO Box 1891.
      Dubai, UAE.
      DFSA Firm Reference No. F000013
      Notice No. W020/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: TThis notice comes into effect on 20th February 2007 and remains in effect until further notice or 21st February 2008 whichever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of the Rule to which this notice relates is [COB/VER7/08-06].

      Rule Modified Text
      COB 3.2.2
      (1) A client is a Person who the Authorised Firm has determined, prior to the establishment of a relationship is:
      (a) an individual who :
      (i) has at least $1 million in liquid assets and has provided the Authorised Firm with written confirmation of this fact or any entity within the Authorised Firm’s Group has provided such confirmation;
      (ii) appears to the Authorised Firm after analysis, to have sufficient financial experience and understanding to participate in financial markets; and
      (iii) has consented in writing to being treated as a Client or if the individual was a customer of the Authorised Firm’s Group immediately prior to the effective date of this notice, who fulfils the criteria in 1(a)(i) and (ii) or (2) or (4) and has been notified in writing (one way notification) by the Authorised Firm, that it will be providing specific Investment Business services to him and he has not objected to being treated as a Client prior to his account being transferred to the Authorised Firm;
      (b) ……………and so on upto and including (l)…
      (2) Where individuals have linked or joint bank accounts, a Client is a Close Relative of the primary account holder, where the primary account holder is a Client under (1), but only in circumstances where either:
      (a) that Close Relative fulfils the requirement in (1) (a) (ii); or
      (b) in accordance with the provisions of a legal document, the legal effect of which is, that all Financial Services transactions between the Authorised Firm and the Close Relative are agreed by the primary account holder.
      (3) For the purposes of (2) the defined term Close Relative includes grandchildren of the primary account holder.
      (4) A personal investment vehicle or the trustee of such a vehicle is a Client if it is established and operated for the sole purpose of providing a vehicle to facilitate efficient management of a Client's investment portfolio including, if applicable, the portfolio’s of any Close Relatives of that Client.
      (5) For the purposes of (4), the term Close Relative includes grandchildren of the Client.
      (6) For the purpose of (4) a personal investment vehicle must be a:
      (a) Body Corporate;
      (b) Partnership;
      (c) trust, or
      (d) foundation; and
      have net assets or share capital of at least $1 million.
      (7) A personal investment vehicle that is a Body Corporate or trust must be valued in accordance with the methodology in (1) (c) or (d) as applicable and if a foundation, must be valued in the same manner as a trust.
      (8) Any Person who does not meet the criteria in (1), (2) or (4) is a Retail Customer.
      COB 3.2.6
      (1) An Authorised Firm must keep records of the verification process undertaken for each Client including any documents which evidence the Client’s status
      (2) If the Client in (1) is an individual the records must include the analysis undertaken, the reasons for the Authorised Firm concluding that the individual merits classification as a Client, and the Client’s written consent to be treated as a Client, and where an individual was a customer of the firm immediately prior to the effective date of this notice, a copy of the one way written notification, advising the customer that the customer will be treated as a Client for the purposes of the DFSA Rules.
      (3) These records must be kept for at least six years from the date on which the business relationship has ended. If the date on which the business relationship ended remains unclear it may be taken to have ended on the date of the completion of the last transaction.
      (4) If an individual is classified as a Client by virtue of Rule 3.2.2(2) or (4) then the records must include documents which evidence that individual’s status as a Close Relative and, where relevant, the legal documentations referred to in Rule 3.2.2(2)(b).
      COB 8.1.1
      (1) Subject to Rule 8.1.2, an Authorised Firm must before conducting Investment Business with a Client provide him with a client agreement containing the matters referred to in Rule 8.1.4 or if impractical to do so, provide it within a reasonable period.
      (2) The Authorised Firm must, for Clients who were customers of the Authorised Firm’s Group immediately prior to the effective date of this notice, advise the Clients by way of a one way notification, of the new regulatory status of the Authorised Firm and that the customer will be treated as a Client for the purposes of the DFSA Rules.

      CONDITIONS

      None

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director, Supervision
      Date : 20th February 2007

    • W 021/07 COB — Kotak Mahindra (UK) Limited

      Click herehere to view the PDF

      MODIFICATION NOTICE

      To Kotak Mahindra (UK) Limited
      Address The Fairmont Dubai, Office No:515, PO Box: 16498, Dubai, UAE
      DFSA Firm Reference No. F000049
      Notice No. W021/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below. This notice replaces notice W206/2006 which is hereby withdrawn.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 1st February 2007 and expires on 1st February 2008 or the date on which any Rule specified herein is amended, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is [COB/VER7/08-06].

      Rule Modified Text
      COB 3.2.2
      (1) A Client is a Person who the Authorised Firm has determined, prior to the establishment of a relationship is:
      (a) an individual who :
      (i) has at least $1 million in liquid assets and has provided the Authorised Firm with written confirmation of this fact or any entity within the Authorised Firm’s Group has provided such confirmation;
      (ii) appears to the Authorised Firm after analysis, to have sufficient financial experience and understanding to participate in financial markets; and
      (iii) was a customer of the Authorised Firm’s Group immediately prior to the effective date of this notice, who fulfils the criteria in 1(a)(i) and (ii) or (2) or (4) and has been notified in writing (one way notification) by the Authorised Firm, that it will be providing specific Investment Business services to him and he has not objected to being treated as a Client prior to his account being transferred to the Authorised Firm; or
      (iv) has consented in writing to being treated as a Client;
      (b) ……………and so on upto and including (l)
      (2) Where individuals have linked or joint bank accounts, a Client is a Close Relative of the primary account holder, where the primary account holder is a Client under (1), but only in circumstances where either:
      (a) that Close Relative fulfils the requirement in (1) (a) (ii); or
      (b) in accordance with the provisions of a legal document, the legal effect of which is, that all Financial Services transactions between the Authorised Firm and the Close Relative are agreed by the primary account holder.
      (3) For the purposes of (2) the defined term Close Relative includes grandchildren of the primary account holder.
      (4) A personal investment vehicle or the trustee of such a vehicle is a Client if it is established and operated for the sole purpose of providing a vehicle to facilitate efficient management of a Client's investment portfolio including, if applicable, the portfolio’s of any Close Relatives of that Client.
      (5) For the purposes of (4), the term Close Relative includes grandchildren of the Client.
      (6) For the purpose of (4) a personal investment vehicle must be a:
      (a) Body Corporate;
      (b) Partnership;
      (c) trust, or
      (d) foundation; and
      have net assets or share capital of at least $1 million.
      (7) A personal investment vehicle that is a Body Corporate or trust must be valued in accordance with (1) (c) or (d) as applicable and if a foundation, must be valued in the same manner as a trust.
      (8) Any Person who does not meet the criteria in (1), (2) or (4) is a Retail Customer.
      COB 3.2.6
      (1) An Authorised Firm must keep records of the verification process undertaken for each Client including any documents which evidence the Client’s status
      (2) If the Client in (1) is an individual the records must include the analysis undertaken, the reasons for the Authorised Firm concluding that the individual merits classification as a Client, and the Client’s written consent to be treated as a Client, and where an individual was a customer of the firm immediately prior to the effective date of this notice, a copy of the one way written notification, advising the customer that the customer will be treated as a Client for the purposes of the DFSA Rules.
      (3) These records must be kept for at least six years from the date on which the business relationship has ended. If the date on which the business relationship ended remains unclear it may be taken to have ended on the date of the completion of the last transaction.
      (4) If an individual is classified as a Client by virtue of Rule 3.2.2(2) or (4) then the records must include documents which evidence that individual’s status as a Close Relative and, where relevant, the legal documentations referred to in Rule 3.2.2(2)(b).
      COB 8.1.1
      (1) Subject to Rule 8.1.2, an Authorised Firm must before conducting Investment Business with a Client provide him with a client agreement containing the matters referred to in Rule 8.1.4 or if impractical to do so, provide it within a reasonable period.
      (2) The Authorised Firm must, for Clients who were customers of the Authorised Firm’s Group immediately prior to the effective date of this notice, advise the Clients by way of a one way notification, of the new regulatory status of the Authorised Firm and that the customer will be treated as a Client for the purposes of the DFSA Rules.

      CONDITIONS

      None

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director
      Date : 1st February 2007.

    • W 024/07 COB — Clariden Leu Asset Management (Dubai) Limited

      Click herehere to view the PDF

      MODIFICATION NOTICE

      To Clariden Leu Asset Management (Dubai) Limited
      Address Office no. 20, Level 12, The Gate, DIFC,
      P O Box 506577, Dubai, UAE
      DFSA Firm Reference No. F000313
      Notice No. W024/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 12 March 2007 and remains in effect until further notice or 12 March 2008, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is COB/VER8/02-07.

      Rule Modified Text
      COB 3.2.2
      (1) Client is a Person who the Authorised Firm has determined, prior to the establishment of a relationship, is:
      (a) an individual who:
      (i) has at least $1 million in liquid assets and has provided the Authorised Firm with written confirmation of this fact;
      (ii) appears to the Authorised Firm, after analysis, to have sufficient financial experience and understanding to participate in financial markets; and
      (iii) has consented in writing to being treated as a Client;
      (b) …….. and so on until and including (l) ….
      (2) A personal investment vehicle or the trustee of such a vehicle is a Client if it is established and operated for the sole purpose of providing a vehicle to facilitate efficient management of the investment portfolio of a Client under (1).
      (3) For the purposes of (2) a personal investment vehicle must be a:
      (a) Body Corporate;
      (b) Partnership;
      (c) trust; or
      (d) foundation and
      have net assets or paid-up share capital of at least US$1 million.
      (4) A personal investment vehicle that is a Body Corporate or trust must be valued in accordance with the methodology in (1)(c) or (d) as applicable and if a foundation, must be valued in the same manner as a trust.
      (5) Where individuals have linked or joint bank accounts, a Close Relative of the primary accountholder is a Client, if the primary account holder is a Client under (1), but only in circumstances where either:
      (a) that Close Relative fulfils the requirement (1) (a) (ii); or
      (b) in accordance with the provisions of a legal document all Financial Services transactions between the Authorised Firm and the Close Relative are agreed by the primary account holder.
      (6) For the purposes of (5) the defined term Close Relative includes grandchildren of the primary account holder.
      (7) Any person who does not meet the criteria in (1), (2) or (5) is a Retail Customer.
      COB 3.2.6
      (1) An Authorised Firm must keep records of the verification process undertaken for each Client including any documents which evidence the Client’s status.
      (2) If the Client in (1) is an individual the records must include the analysis undertaken, the reasons for the Authorised Firm concluding that the individual merits classification as a Client, and the Client’s written consent to be treated as a Client.
      (3) The records must be kept for at least six years from the date on which the business relationship has ended. If the date on which the business relationship ended remains unclear it may be taken to have ended on the date of the completion of the last transaction.
      (4) If an individual is classified as a Client by virtue of Rule 3.2.2(2) or (5) then the records must include documents which evidence that individual’s status as a Close Relative and, where relevant, the legal documentations referred to in Rule 3.2.2(5)(b).

      CONDITIONS

      The modifications in respect of the Rules specified above remain in effect for the duration of the period set out above on condition that:

      NONE

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Ian A. Johnston
      Position : Managing Director, Policy & Legal Services
      Date : 15 March 2007

    • W 026/07 GEN — Killik & Co

      Click herehere to view the PDF

      MODIFICATION NOTICE

      To Killik & Co
      Address P.O. Box 71169,
      Dubai,
      U.A.E.
      DFSA Firm Reference No. F000421
      Notice No. W026/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 1 April 2007 and remains in force until further notice or 31 December 2008, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of the Rule to which this notice relates is GEN/VER13/02-07.

      Rule Modified Text
      GEN 8.2.1
      (1) An Authorised Person must prepare and maintain all financial accounts and statements in accordance with:
      (a) the International Financial Reporting Standards (IFRS); or
      (b) the generally accepted accounting principles of the United Kingdom (UK GAAP);
      unless (2) or (3) applies.
      (2) If an Authorised Firm is an Islamic Financial Institution it must prepare and maintain all financial accounts and statements in accordance with the accounting standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
      (3) If an Authorised Person operates an Islamic Window it must prepare and maintain all financial accounts and statements in accordance with the IFRS, as supplemented by AAOIFI FAS 18 in respect of its Islamic Financial Business.
      GEN 8.6.1

      An Authorised Firm or Authorised Market Institution, as applicable, must in writing require its auditor to:

      (a) conduct an audit of the Authorised Person’s accounts in accordance with the requirements of the relevant standards published by:
      (i) the International Auditing and Assurance Standards Board (IAASB) or the Auditing Standards issued by the UK Auditing Practices Board (APB), in respect of conventional financial business; and
      (ii) the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in respect of any Islamic Financial Business undertaken;
      (b) produce a report on the audited accounts which states:
      (i) whether, in the auditor’s opinion, the accounts have been properly prepared in accordance with the requirements imposed by this chapter;
      (ii) in particular, whether the accounts give a true and fair view of the financial position of the Authorised Person for the financial year and of the state of the Authorised Person’s affairs at the end of the financial year end; and
      (iii) any other matter or opinion relating to the requirements of this chapter;
      (c) produce an Auditor’s Annual Report which states whether:
      (i) the auditor has audited the Authorised Person’s annual financial statements in accordance with the IAASB or APB or AAOIFI in respect of Islamic Financial Business;
      (ii) the auditor has carried out any other procedures considered necessary, having regard to the IAASB or APB and to AAOIFI auditing standards in respect of Islamic Financial Business;
      (iii) the auditor has received all necessary information and explanations for the purposes of preparing this report to the DFSA;
      (iv) …………………………..and so on up to and including (h)…………………....

      CONDITIONS

      None.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Ian Johnston
      Position : Managing Director, Policy and Legal Services
      Date : 1 April 2007

    • W 027/07 AUT — Daiwa Securities SMBC Europe Limited

      Click herehere to view the PDF

      MODIFICATION NOTICE

      To Daiwa Securities SMBC Europe Limited
      Address DIFC, Office 17, Level 15, The Gate Building, P.O. Box
      121208, Dubai, United Arab Emirates
      U.A.E.
      DFSA Firm Reference No. F000498
      Notice No. W027/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to the Person in the modified form prescribed in that table.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 11 April 2007 and remains in effect until 10 October 2007, or the date on which any Rule specified herein is amended, whichever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this part of the notice relates is AUT/VER6/08-06.

      Rule Modified Text
      AUT 10.3.2 The Authorised Individuals referred to in AUT Rule 10.3.1(a), (c) and (d) must be ordinarily resident in the U.A.E.

      CONDITIONS

      None.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Jane Coakley
      Position : Managing Director
      Authorisation
      Date : 11 April 2007

    • W 028/07 CIR — Mashreq Capital (DIFC) Limited

      Click herehere to view the PDF

      MODIFICATION NOTICE

      To Mashreq Capital (DIFC) Limited
      Address Mashreq Bank Building
      Omar Bin Al Khattab Street, Deira
      Dubai, UAE
      DFSA Firm Reference No. F000178
      Notice No. W028/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 25 March 2007 and remains in force until further notice or 24 September 2007, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of the Rule to which this notice relates is CIR/VER4/02-07.

      Rule Modified Text
      CIR Rule 6.2.2(1)(a)
      (1) An Operator must ensure that the following activities, whether performed by the Operator itself or performed by a Fund Administrator appointed by the Operator under a Delegation Arrangement, are performed in the DIFC:
      (a) asset pricing and Fund valuation;
      (b) (a) issuing and redeeming the Fund’s Units; and
      (c) (b) record keeping and maintaining the Unitholders register.

      CONDITIONS

      Nil

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director, Supervision
      Date : 22 March 2007

    • W 029/07 CIR — NewDawn GSE Asset Management Limited

      Click herehere to view the PDF

      MODIFICATION NOTICE

      To NewDawn GSE Asset Management Limited
      Address Level 13, East Wing, The Gate
      Dubai International Financial Centre, Dubai, UAE
      DFSA Firm Reference No. F000301
      Notice No. W029/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 21 March 2007 and remains in force until further notice or 20 September 2007, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is CIR/VER2/08-06.

      Rule Modified Text
      Rule CIR 6.2.2(1)(a)
      (1) An Operator must ensure that the following activities, whether performed by the Operator itself or performed by a Fund Administrator appointed by the Operator under a Delegation Arrangement, are performed in the DIFC:
      (a) asset pricing and Fund valuation;
      (b) (a) issuing and redeeming the Fund’s Units; and
      (c) (b) record keeping and maintaining the Unitholders register.

      CONDITIONS

      Nil

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director, Supervision
      Date : 21 March 2006

    • W 030/07 AUT — IDS International Limited

      Click herehere to view the PDF

      MODIFICATION NOTICE

      To IDS International Limited
      Address Office 1004, 10th Floor, Al Safa Tower, Sheik Zayed Road,
      PO Box 73120, Dubai, UAE.
      DFSA Firm Reference No. F000311
      Notice No. W30/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in the table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 1 April 2007 and expires on 30 April 2007.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is AUT/VER7/02-07.

      Rule Modified Text
      AUT 10.3.2

      The Authorised Individuals referred to in AUT Rule 10.3.1(a), (c) and (d) must be ordinarily resident in the UAE.

      CONDITIONS

      The modifications in respect of the Rules specified above remain in effect for the duration of the period set out above on condition that:

      None.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Simon Gray
      Position : Director, Supervision
      Date : 29 March 2007

    • W 031/07 GEN — Volaw Trust & Corporate Services Limited

      Click herehere to view the PDF

      MODIFICATION NOTICE

      To Volaw Trust & Corporate Services Limited
      Address DIFC Branch
      PO Box 73120
      Dubai
      UAE.
      DFSA Firm Reference No. F000047
      Notice No. W31/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in the table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on the date of this Notice and expires on 31 December 2008 or the date on which any Rule specified herein is amended, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is GEN/VER13/02-07.

      Rule Modified Text
      GEN 8.2.1
      (1) An Authorised Person must prepare and maintain all financial accounts and statements in accordance with:
      (a) the International Financial Reporting Standards (IFRS); or
      (b) the generally accepted accounting principles of the United Kingdom (UKGAAP);
      unless (2) or (3) applies.
      (2) If an Authorised Firm is an Islamic Financial Institution it must prepare and maintain all financial accounts and statements in accordance with the accounting standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
      (3) If an Authorised Person operates an Islamic Window it must prepare and maintain all financial accounts and statements in accordance with IFRS, as supplemented by AAOIFI FAS 18 in respect of its Islamic Financial Business.
      GEN 8.6.1

      An Authorised Firm or Authorised Market Institution, as applicable, must in writing require its auditor to:

      (a) conduct an audit of the Authorised Person’s accounts in accordance with the requirements of the relevant standards published by:
      (i) the International Auditing and Assurance Standards Board (IAASB) or the Auditing Standards issued by the UK Auditing Practices Board (APB), in respect of conventional financial business; and
      (ii) the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in respect of any Islamic Financial Business undertaken;
      (b) produce a report on the audited accounts which states:
      (i) whether, in the auditor’s opinion, the accounts have been properly prepared in accordance with the requirements imposed by this chapter;
      (ii) in particular, whether the accounts give a true and fair view of the financial position of the Authorised Person for the financial year and of the state of the Authorised Person’s affairs at the end of the financial year end; and
      (iii) any other matter or opinion relating to the requirements of this chapter;
      (c) produce an Auditor’s Annual Report which states whether:
      (i) the auditor has audited the Authorised Person’s annual financial statements in accordance with the IAASB or APB, and AAOIFI in respect of Islamic Financial Business;
      (ii) the auditor has carried out any other procedures considered necessary, having regard to the IAASB or APB, and to AAOIFI auditing standards in respect of Islamic Financial Business;
      (iii) the auditor has received all necessary information and explanations for the purposes of preparing this report to the DFSA;
      (iv) …………………………..and so on up to and including (h)…………………....

      CONDITIONS

      None

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Simon Gray
      Position : Director, Supervision
      Date : 29 March 2007

    • W 032/07 AUT — VP Wealth Management (Middle East) Limited

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      MODIFICATION NOTICE

      To VP Wealth Management (Middle East) Limited
      Address Al Murooj Rotana Hotel & Suites, P.O. Box 214058, Dubai,
      U.A.E.
      DFSA Firm Reference No. F000447
      Notice No. W032/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 5 April 2007 and expires on 5 October 2007 or the date on which an individual meeting the requirements of AUT Rule 10.3.2 (unmodified) is appointed as the compliance/MLRO of the above named Person, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is AUT/VER7/02-07.

      Rule Modified Text
      AUT 10.3.2 The Authorised Individuals referred to in AUT Rule 10.3.1(a), (c) and (d) must be ordinarily resident in the U.A.E.

      CONDITIONS

      The modifications in respect of the Rules specified above remain in effect for the duration of the period set out above on condition that:

      (a)[]
      (b)[]
      (c)[]

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Jane Coakley
      Position : Managing Director
      Authorisation
      Date : 5 April 2007

    • W 033/07 GEN — Daiwa Securities SMBC Europe Limited

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      MODIFICATION NOTICE

      To Daiwa Securities SMBC Europe Limited
      Address DIFC, Office 17, Level 15, The Gate Building, P.O. Box
      121208, Dubai, United Arab Emirates
      DFSA Firm Reference No. F000498
      Notice No. W033/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to the Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 11 April 2007 and remains in force until further notice or 31 December 2008, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is GEN/VER13/02-07.

      Rule Modified Text
      GEN 8.2.1
      (1) An Authorised Person must prepare and maintain all financial accounts and statements in accordance with:
      (a) the International Financial Reporting Standards (IFRS); or
      (b) the generally accepted accounting principles of the United Kingdom (UK GAAP);
      unless (2) or (3) applies.
      (2) If an Authorised Firm is an Islamic Financial Institution it must prepare and maintain all financial accounts and statements in accordance with the accounting standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
      (3) If an Authorised Person operates an Islamic Window it must prepare and maintain all financial accounts and statements in accordance with the IFRS, as supplemented by AAOIFI FAS 18 in respect of its Islamic Financial Business.
      GEN 8.6.1

      An Authorised Firm or Authorised Market Institution, as applicable, must in writing require its auditor to:

      (a) conduct an audit of the Authorised Person’s accounts in accordance with the requirements of the relevant standards published:
      (i) the International Auditing and Assurance Standards Board (IAASB) or the Auditing Standards issued by the UK Auditing Practices Board (APB), in respect of conventional financial business; and
      (ii) the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in respect of any Islamic Financial Business undertaken;
      (b) produce a report on the audited accounts which states:
      (i) whether, in the auditor’s opinion, the accounts have been properly prepared in accordance with the requirements imposed by this chapter;
      (ii) in particular, whether the accounts give a true and fair view of the financial position of the Authorised Person for the financial year and of the state of the Authorised Person’s affairs at the end of the financial year end; and
      (iii) any other matter or opinion relating to the requirements of this chapter;
      (c) produce an Auditor’s Annual Report which states whether:
      (i) the auditor has audited the Authorised Person’s annual financial statements in accordance with the IAASB or APB or AAOIFI in respect of Islamic Financial Business;
      (ii) the auditor has carried out any other procedures considered necessary, having regard to the IAASB or APB and to AAOIFI auditing standards in respect of Islamic Financial Business;
      (iii) the auditor has received all necessary information and explanations for the purposes of preparing this report to the DFSA;
      (iv) …………………………..and so on up to and including (h)…………………....

      CONDITIONS

      None.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Jane Coakley
      Position : Managing Director
      Authorisation
      Date : 11 April 2007

    • W 035/07 COB — Standard Chartered Bank

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      MODIFICATION NOTICE

      To Standard Chartered Bank
      Address P O Box 999, Dubai, UAE
      DFSA Firm Reference No. F000003
      Notice No. W035/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 19 April 2007 and remains in effect until further notice or 19 April 2009 whichever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is COB/VER8/02-07.

      Rule Modified Text
      COB 3.2.2 Client
      (1) A Client is a Person who the Authorised Firm has determined, prior to the establishment of a relationship, is:
      (a) an individual who:
      (i) has at least $1 million in liquid assets and has provided the Authorised Firm with written confirmation of this fact or any entity within the Authorised Firm’s Group has provided such confirmation;
      (ii) appears to the Authorised Firm, after analysis, to have sufficient financial experience and understanding to participate in financial markets; and
      (iii) either:
      A. if the individual was a customer of the Authorised Firm’s Group immediately prior to the effective date of this notice, has been notified in writing (one way notification) by the Authorised Firm, that it will be providing specific Investment Business services to him and he has not objected to being treated as a Client prior to his account being transferred to the Authorised Firm; or
      B. has consented in writing to being treated as a Client;
      (b) …………………….. and so on up to and including (l) ….
      (2) Where individuals have linked or joint bank accounts, a Client is a Close Relative of the primary account holder, where the primary account holder is a Client under (1), but only in circumstances where either:
      (a) that Close Relative fulfils the requirement in (1) (a) (ii) and (iii); or
      (b) in accordance with the provisions of a legal document, the legal effect of which is, that all Financial Services transactions between the Authorised Firm and the Close Relative are agreed by the primary account holder.
      (3) A personal investment vehicle or the trustee of such a vehicle is a Client if it is established and operated for the sole purpose of providing a vehicle to facilitate efficient management of a Client's investment portfolio including, if applicable, the portfolio’s of any Close Relatives of that Client.
      (4) For the purposes of (3) a personal investment vehicle must be a:
      (a) Body Corporate;
      (b) Partnership;
      (c) trust; or
      (d) foundation and
      have net assets or paid-up share capital of at least US$1 million.
      (5) A personal investment vehicle that is a Body Corporate or trust must be valued in accordance with the methodology in (1) (c) or (d) as applicable and if a foundation, must be valued in the same manner as a trust.
      (6) For the purposes of (2) and (3) above, the defined term Close Relative includes grandchildren of the primary account holder.
      (7) Any person who does not meet the criteria in (1), (2) or (3) above is a Retail Customer.
      COB 3.2.6
      (1) An Authorised Firm must keep records of the verification process undertaken for each Client including any documents which evidence the Client’s status.
      (2) If the Client in (1) is an individual the records must include the analysis undertaken, the reasons for the Authorised Firm concluding that the individual merits classification as a Client, and the Client’s written consent to be treated as a Client, and where an individual was a customer of the firm immediately prior to the effective date of this notice, a copy of the one way written notification, advising the customer that the customer will be treated as a Client for the purposes of the DFSA Rules.
      (3) These records must be kept for at least six years from the date on which the business relationship has ended. If the date on which the business relationship ended remains unclear it may be taken to have ended on the date of the completion of the last transaction.
      (4) If an individual is classified as a Client by virtue of Rule 3.2.2(2) or (3) then the records must include documents which evidence that individual’s status as a Close Relative and, where relevant, the legal documentations referred to in Rule 3.2.2(2)(b).
      COB 8.1.1
      (1) Subject to Rule 8.1.2, an Authorised Firm must before conducting Investment Business with a Client provide him with a client agreement containing the matters referred to in Rule 8.1.4 or if impractical to do so, provide it within a reasonable period.
      (2) The Authorised Firm must, for Clients who were customers of the Authorised Firm’s Group immediately prior to the effective date of this notice, advise the Clients by way of a one way notification, of the new regulatory status of the Authorised Firm and that the customer will be treated as a Client for the purposes of the DFSA Rules.

      CONDITIONS

      NONE

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director, Supervision
      Date : 19 April 2007

    • W 036/07 COB — NBD Investment Bank Limited

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      MODIFICATION NOTICE

      To NBD Investment Bank Limited
      Address PO Box 777, Dubai, UAE
      DFSA Firm Reference No. F000253
      Notice No. W036/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in the table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 19 April 2007 and remains in force until 30 August 2007 or until the date on which NBD Sana Capital is granted a Licence, which ever is the sooner.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of the Rule to which this notice relates is COB/VER8/02-07.

      Rule Modified Text
      COB 6.9.5
      (1) An Authorised Firm may only undertake a Transaction in respect of the Units of a Foreign Fund not falling within COB Rule 6.9.4 where:
      [Amended][VER7/08-06]
      (a) both the custodian and the investment manager of the Fund meet one of the requirements set out under (4) or (5), as applicable; or
      (b) both the custody and investment management activities of the Fund are performed by a Person who meets the requirements in (6); or
      (c) the Fund has been rated in accordance with the requirement in (7);

      and, in any event
      (d) if the Fund is a Property Fund, the requirements in COB Rule 6.9.6 are met.
      (2) ……... and so on until and including (4)…..…
      (5) For the purposes of (1)(a), the investment manager must be a Person who is:
      (a) authorised or licensed and supervised by the DFSA or a Financial Services Regulator located in a Recognised Jurisdiction or who has submitted an application for a Licence to the DFSA seeking authorisation in relation to the carrying on of investment management activities;
      (b) a member of a Group that is subject to consolidated supervision by a Financial Services Regulator in a Recognised Jurisdiction and the activities of the investment manager are included within the scope of the regulation; or
      (c) appointed under an agreement by another Person who is authorised or licensed and supervised by the DFSA or another Person who is subject to regulation and supervision by a Financial Services Regulator in a Recognised Jurisdiction and the agreement is in accordance with the requirements of the regulator.
      (6) ……….. and so on until and including (7)……

      CONDITIONS

      None.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director
      Date : 19 April 2007

    • W 037/07 GEN — State Bank of India

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      MODIFICATION NOTICE

      To State Bank of India
      Address P O Box 2260
      201 Al Attar Towers
      Sheikh Zayed Road
      Dubai, UAE
      DFSA Firm Reference No. F000239
      Notice No. W037/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 21 April 2007 and expires on 21 April 2009 or the date on which any Rule specified herein is amended, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of the Rule to which this notice relates is GEN/VER13/02-07.

      Rule Modified Text
      GEN 8.2.1
      (1) An Authorised Person must prepare and maintain all financial accounts and statements in accordance with:
      (a) the International Financial Reporting Standards (IFRS); or
      (b) the generally accepted accounting principles of India (Indian GAAP)
      unless (2) or (3) applies.
      (2) If an Authorised Firm is an Islamic Financial Institution it must prepare and maintain all financial accounts and statements in accordance with the accounting standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
      (3) If an Authorised Person operates an Islamic Window it must prepare and maintain all financial accounts and statements in accordance with the IFRS or Indian GAAP, as supplemented by AAOIFI FAS 18 in respect of its Islamic Financial Business.
      (4) In this rule Indian GAAP means accounting and valuation principles in accordance with the guidelines of the Institute of Chartered Accountants of India, including the Indian National Accounting Standards, and the statutory provisions and directives of the Reserve Bank of India.
      GEN 8.6.1 An Authorised Firm or Authorised Market Institution, as applicable, must in writing require its auditor to:
      (a) conduct an audit of the Authorised Person’s accounts in accordance with the requirements of the relevant standards published by:
      (i) the International Auditing and Assurance Standards Board (IAASB) or the Indian Auditing Standards in respect of conventional financial business; and
      (ii) the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in respect of any Islamic Financial Business undertaken;
      (b) produce a report on the audited accounts which states:
      (i) whether, in the auditor’s opinion, the accounts have been properly prepared in accordance with the requirements imposed by this chapter;
      (ii) in particular, whether the accounts give a true and fair view of the financial position of the Authorised Person for the financial year and of the state of the Authorised Person’s affairs at the end of the financial year end; and
      (iii) any other matter or opinion relating to the requirements of this chapter;
      (c) produce an Auditor’s Annual Report which states whether:
      (i) the auditor has audited the Authorised Person’s annual financial statements in accordance with the IAASB or Indian Auditing Standards or AAOIFI in respect of Islamic Financial Business;
      (ii) the auditor has carried out any other procedures considered necessary, having regard to the IAASB or Indian Auditing Standards and or to AAOIFI auditing standards in respect of Islamic Financial Business;
      (iii) the auditor has received all necessary information and explanations for the purposes of preparing this report to the DFSA;
      (iv)………………………………………and so on up to and including (h)………………………………

      CONDITIONS

      None.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director
      Date : 21 April 2007

    • W 038/07 AUT — Invesco Asset Management Limited

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      MODIFICATION NOTICE

      To Invesco Asset Management Limited
      Address PO Box 31303, Dubai. U.A.E.
      DFSA Firm Reference No. F000070
      Notice No. W038/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 23 April 2007 and expires on 30 September 2007.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is AUT/VER7/02-07.

      Rule Modified Text
      AUT 9.4.1
      (1) An Authorised Firm, may, subject to (2) appoint an individual, who is not an Authorised Individual, to carry out the functions of an Authorised Individual where the following conditions are met:
      (a) the absence of the Authorised Individual is temporary or reasonably unforeseen;
      (b) the functions are carried out for 12 24 weeks maximum in any consecutive 12 months; and
      (c) the Authorised Individual has the relevant skills and experience to carry out these functions.
      (2) …and so on until and including (3)….

      CONDITIONS

      None.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director
      Date : 23 April 2007

    • W 039/07 GEN — Gilford Securities Incorporated

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      MODIFICATION NOTICE

      To Gilford Securities Incorporated
      Address Bur Juman Business Centre
      Suite 1800, 18th Floor
      P O Box 43659
      Bur Dubai, Dubai
      United Arab Emirates
      DFSA Firm Reference No. F000486
      Notice No. W039/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      GEN 8.2.1
      (1) An Authorised Person must prepare and maintain all financial accounts and statements in accordance with:
      (a) the International Financial Reporting Standards (IFRS); or
      (b) the generally accepted accounting principles of the United States (USGAAP) as defined under Auditing Standards of the American Institute of Certified Public Accounting of the United States (AICPA) standard SAS No. 69 and if repealed then as defined in the relevant standard as issued by the Financial Accounting Standards Board (FASB) that replaces SAS no. 69,
      unless (2) or (3) applies.
      (2) If an Authorised Firm is an Islamic Financial Institution it must prepare and maintain all financial accounts and statements in accordance with the accounting standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
      (3) If an Authorised Person operates an Islamic Window it must prepare and maintain all financial accounts and statements in accordance with the IFRS or USGAAP, as supplemented by AAOIFI FAS 18 in respect of its Islamic Financial Business.
      GEN 8.6.1

      An Authorised Firm or Authorised Market Institution, as applicable, must in writing require its auditor to:

      (a) conduct an audit of the Authorised Person's accounts in accordance with the requirements of the relevant standards published by:
      (i) the International Auditing and Assurance Standards Board (IAASB) or the Generally Accepted Auditing Standards as issued by American Institute of Certified Public Accountants Auditing Standards Board (US GAAS), that is, the Auditing Standards of the Public Company Accounting Oversight Board of the United States (PCAOB) or (AICPA) in respect of conventional financial business; and
      (ii) by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in respect of any Islamic Financial Business;
      (b) produce a report on the audited accounts which states:
      (i) whether, in the auditor's opinion, the accounts have been properly prepared in accordance with the requirements imposed by this chapter;
      (ii) in particular, whether the accounts give a true and fair view of the financial position of the Authorised Person for the financial year and of the state of the Authorised Person's affairs at the end of the financial year end; and
      (iii) any other matter or opinion relating to the requirements of this chapter;
      (c) produce an Auditor's Annual Report which states whether:
      (i) the auditor has audited the Authorised Person's annual financial statements in accordance with the IAASB or USGAAS or AAOIFI auditing standards in respect of Islamic Financial Business;
      (ii) the auditor has Audited the Authorised Person's annual financial statements in accordance with the IAASB, PCAOB or AICPA auditing standards and AAOIFI auditing standards in respect of Islamic Financial Business;
      (iii) the auditor has carried out any other procedures considered necessary, having regard to the IAASB, PCAOB or AICPA auditing standards and AAOIFI auditing standards in respect of Islamic Financial Business;
      (iv) …………………………..and so on as per the Rulebook text up to and including (h).

      CONDITIONS

      The Modification remains in effect for the duration of the period set out below on condition that the above named Person to whom this notice applies carries on Financial Services through a Branch in the DIFC.

      If any one or more of the conditions stated above is breached, this notice ceases to have effect forthwith and the Rules specified in the table herein apply to the above mentioned Person in their unmodified form as they appear in the applicable module of the Rulebook in force at the relevant time.

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue of this notice and remains in force until 31 December 2009 or until further notice, whichever is the earlier.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : Michael Zamorski
      Position : Managing Director, Supervision
      DATE OF ISSUE : 29 August 2007

    • W 040/07 PIB — Gilford Securities Incorporated

      Click herehere to view the PDF

      WAIVER AND MODIFICATION NOTICE

      To Gilford Securities Incorporated
      Address Bur Juman Business Centre
      Suite 1800, 18th Floor
      P.O. Box 43659
      Bur Dubai, Dubai
      United Arab Emirates
      DFSA Firm Reference No. F000486
      Notice No. W040/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      1. The Rules specified in Table A herein do not apply to the above mentioned Person.

      AND

      2. The Rules specified in the left hand column of Table B herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES WAIVED

      As a consequence of waiving the Rules below, Table 2 in PIB chapter 1 is to be construed accordingly.

      TABLE A
      PIB module Rule
      PIB Chapter 1 (General Requirements)All the Rules 1.4 (Trading Book)
      PIB Chapter 2 (Capital)All the Rules in Chapter 2
      PIB Chapter 4 (Credit Risk)All the Rules in sections 4.3 to 4.10 inclusive
      PIB Chapter 5 (Market Risk)All the Rules in section 5.6
      PIB Chapter 7 (Group Risk)All the Rules in sections 7.3 and 7.4

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      TABLE B
      Rule Modified Text
      PIB Rule 1.2.1

      An Authorised Firm must:

      (a) have and maintain at all times financial resources of the kinds and amounts specified in, and calculated in accordance with, the Rules in this module; and
      (b) ensure that it maintains financial resources in addition to the requirement in (a) which are adequate in relation to the nature, size and complexity of its business to ensure that there is no significant risk that liabilities cannot be met as they fall due.

      CONDITIONS

      This notice waiving and modifying prudential Rules remains in effect for the duration or the period set out below on condition that the above named Person to whom this notice applies:

      (a) remains classified as a Category 3 Authorised Firm;
      (b) complies with its home state Financial Services Regulator’s prudential requirements and submits to the DFSA, a copy of every capital adequacy summary report submitted to the home state Financial Services Regulator within ten business days of the due date for submission to that regulator; and
      (c) in the event of any anticipated or actual breach of any prudential requirements which requires notification to the home state Financial Services Regulator, provides to the DFSA such notification forthwith with any relevant documents.

      If any one or more of the conditions stated above is breached, this notice ceases to have effect forthwith and the Rules specified in Table A and Table B herein apply to the above mentioned Person as set out in the applicable module of the Rulebook in force at the relevant time.

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue of this notice and remains in force until further notice.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : David Knott
      Position : Chief Executive
      DATE OF ISSUE : 29 August 2007

    • W 041/07 PIB — Volaw Trust & Corporate Services Limited

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      WAIVER NOTICE

      To Volaw Trust & Corporate Services Limited
      Address Office 611, 6th Floor, Emaar Business Park, Building 4, Sheikh Zayed Rd, Dubai, UAE. P O Box 215068, Dubai—UAE
      DFSA Firm Reference No. F000047
      Notice No. W041/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 23 May 2007 and remains in effect for so long as the Gulf Investment Trust remains an unlisted Private Fund.

      RULES WAIVED

      The Rules waived are set out in the table below and Table 2 in PIB chapter 1 is to be construed accordingly.

      DFSA Rulebook Module Version Rule
      PIB/VER8/02-07 PIB Chapter 1, PIB Section 1.2 & PIB Section 1.4 (Financial Resources & The Trading Book)
      PIB/VER8/02-07 PIB Chapter 2, all Sections (Capital)
      PIB/VER8/02-07 PIB Chapter 4, PIB Section 4.3 to PIB Section 4.10 (Credit Risk)
      PIB/VER8/02-07 PIB Chapter 5, PIB Section 5.3 to PIB Section 5.9 (Market Risk)
      PIB/VER8/02-07 PIB Chapter 7, PIB Section 7.3 and PIB Section 7.4 (Group Risk)

      CONDITIONS

      The waivers in respect of the Rules specified above remain in effect on condition that:

      (a) Volaw submits to the DFSA, on a quarterly basis, a copy of its latest Capital Adequacy summary report to Jersey Financial Services Commission, within ten business days of the due date for submission to the Jersey Financial Services Authority;
      (b) Volaw maintains capital of not less than $4 million at all times;
      (c) Volaw is and remains authorised by the Jersey Financial Services Commission to act as a trustee for the Gulf Investment Trust;
      (d) Volaw appoints an Eligible Custodian, which is an Authorised Firm approved by the DFSA, to act as a sub-custodian and does not without the DFSA’s consent revoke that appointment.;
      (e) Volaw discloses to all Unitholders in the Gulf Investment Trust the effect of this modification notice;
      (f) Volaw does not act as trustee for any Domestic Fund other than Gulf Investment Trust; and
      (g) the minimum subscription for participation in the Gulf Investment Trust is not reduced below $20,000,000.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : David W. Knott
      Position : Chief Executive
      Date : 23 May 2007

    • W 043/07 CIR — NBD Investment Bank Limited

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      MODIFICATION NOTICE

      To NBD Investment Bank Limited
      Address Level 16, PO Box 777, Dubai, UAE
      DFSA Firm Reference No. F000253
      Notice No. W043/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 3 May 2007 and expires on 3 May 2008 or the date on which Gulf Investment Corporation becomes an Authorised Firm, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is CIR/VER4/02-07.

      Rule Modified Text
      CIR 6.3.2
      (1) An Eligible Custodian is a Person who is a separate legal entity to the Operator and is:
      (a) an Authorised Firm whose Licence authorises it to Provide Custody Services;
      (b) an Authorised Firm which is a Bank;
      (c) an Authorised Market Institution: or
      an Undertaking subject to equivalent regulation as provided in (2).
      (2) An Undertaking is subject to equivalent regulation for the purposes of (1) if:
      (a) it is authorised and supervised by a Financial Services Regulator in a Recognised Jurisdiction for providing custody services and is subject to a minimum capital requirement of $10 million or its equivalent in any other currency at the relevant time and has had surplus revenue over expenditure for the last two financial years;
      (b) it, or its holding company, is graded by an internationally recognised rating agency such as Moodys or Standard & Poors as at least “investment grade” in respect of its financial strength and which is subject to regulation by a Financial Services Regulator or banking Regulator, in another jurisdiction which is a Zone 1 country; or
      (c) it is authorised or recognised to by a Financial Services Regulator to operate as an exchange or a clearing house in a Recognised Jurisdiction.
      (3) A sovereign entity is an Eligible Custodian for the purposes only of providing custodial services for the National Bank of Dubai Gulf Balanced Fund and for the National Bank of Dubai MENA Fund. A ‘sovereign entity’ is an entity that:
      (a) is created and controlled by the Governments of the six GCC States;
      (b) is 100% owned by those Governments;
      (c) has been rated or graded as at least ‘investment grade’ by Moody’s, Fitch or Standard & Poor’s or such other international rating agency as may be recognised by the DFSA; and
      (d) is regulated by the Central Bank of Kuwait.

      CONDITIONS

      The modifications in respect of the Rules specified above remain in effect for the duration of the period set out above on condition that:

      None

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director, Supervision
      Date : 3 May 2007

    • W 044/07 CIR — MENA Infrastructure Fund (GP) Limited

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      MODIFICATION NOTICE

      To MENA Infrastructure Fund (GP) Limited
      Address Level 4, Building 4
      Dubai International Financial Centre, Dubai, UAE
      DFSA Firm Reference No. F000314
      Notice No. W044/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 2 May 2007 and expires on 2 November 2007 or the date on which any Rule specified herein is amended, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is CIR/VER2/08-06.

      Rule Modified Text
      CIR Rule 6.2.2(1)(a)
      (1) An Operator must ensure that the following activities, whether performed by the Operator itself or performed by a Fund Administrator appointed by the Operator under a Delegation Arrangement, are performed in the DIFC:
      (a) asset pricing and Fund valuation;
      (b) (a) issuing and redeeming the Fund’s Units; and
      (c) (b) record keeping and maintaining the Unitholders register.

      CONDITIONS

      Nil

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director
      Supervision
      Date : 2 May 2007

    • W 045/07 AUT — Mirabaud (Middle East) Limited

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      MODIFICATION NOTICE

      To Mirabaud (Middle East) Limited
      Address Level 18, Bur Juman Tower, Trade Centre Road, PO Box 43659, Dubai, UAE
      DFSA Firm Reference No. F000505
      Notice No. W045/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to the Person in the modified form prescribed in that table.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 21 June 2007 and remains in effect until 21 December 2007, or until further notice, whichever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this part of the notice relates is AUT/VER8/06-07.

      Rule Modified Text
      AUT 10.3.2 The Authorised Individuals referred to in AUT Rule 10.3.1(a), (c) and (d) must be ordinarily resident in the U.A.E.

      CONDITIONS

      None.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Jane Coakley
      Position : Managing Director, Authorisation
      Date : 21 June 2007

    • W 050/07 COB PIN GLO — Takaful Re Limited

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      MODIFICATION NOTICE

      To Takaful Re Limited
      Address -Office 3, Level 4, Gate District, Precinct Building 3, Dubai
      International Financial Centre, PO Box 211181, Dubai, UAE
      DFSA Firm Reference No. F000067
      Notice No. W050/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      COB 2.2.2
      (1) ……….and so on until and including (3)………….
      (4) An Insurer must ensure that it does not carry on, in or from the DIFC, both Long-Term Insurance Business and General Insurance Business unless it establishes one or more Long-Term Insurance Funds and one or more General Insurance Funds in accordance with the provisions of PIN Chapter 3 (as modified) the General Insurance Business is restricted to Class 1 or Class 2 or both.
      (5) …………………..
      PIN Chapter 3 All the text in this chapter is struck through and is replaced in its entirety by the text below:

      3 INSURANCE FUNDS

      3.1 Application and notification

      3.1.1 This chapter applies to all Insurers.
      3.1.2 An Insurer must notify the DFSA immediately upon becoming aware that its Gross Written Premium in respect of its Life business:
      (a) is likely to exceed; or
      (b) exceeds,
      $2 million in any one financial year.

      Guidance

      This chapter sets out requirements in respect of the establishment of Insurance Funds.

      3.2 Establishment of insurance funds

      3.2.1 An Insurer that is required, under the provisions of section 3.3, to establish or maintain an Insurance Fund in respect of a part of its business must identify separately in its books and records the assets, liabilities, revenues and expenses attributable to that business. Those assets, liabilities, revenues and expenses must be recorded separately and accounted for as an Insurance Fund.

      3.3 Attribution of contracts to a fund

      3.3.1 All contracts of Long-Term Insurance effected by a DIFC Incorporated Insurer must be attributed to a Long-Term Insurance Fund.
      3.3.2 Except as allowed in Rule 3.3.3, all contracts of General Insurance effected by a DIFC Incorporated Insurer must be attributed to a General Insurance Fund.
      3.3.3 An Insurer may attribute insurance contracts in General Insurance Class 1 or Class 2 to a Long-Term Insurance Fund.

      3.4 Segregation of assets and liabilities

      3.4.1 All assets, liabilities, revenues and expenses in respect of a Contract of Insurance that is attributed to an Insurance Fund must be recorded as assets, liabilities, revenues and expenses of that Insurance Fund.
      3.4.2 An Insurer may at any time attribute any of its assets to an Insurance Fund that were not previously attributed to an Insurance Fund.

      Guidance

      A transaction described in Rule 3.4.2 is sometimes described as a transfer of capital into the Insurance Fund.

      3.4.3 All revenues and expenses arising by way of earnings, revaluation or other change to the assets and liabilities of an Insurance Fund must be recorded as revenues and expenses, or movements in capital, of that Insurance Fund.
      3.4.4 An Insurer which is required to maintain an Insurance Fund must maintain adequate accounting and other records to identify the contracts and the assets, liabilities, revenues and expenses attributable to the Insurance Fund.

      3.5 Limitation on use of assets in insurance fund

      3.5.1 Except as provided in this section, assets that are attributable to an Insurance Fund must be applied only for the purposes of the business attributed to the Insurance Fund.
      3.5.2 Assets attributable to an Insurance Fund may not be transferred so as to be available for other purposes of the Insurer except:
      (c) where the transfer constitutes appropriation of a surplus determined in accordance with section 7.3, provided that the transfer is performed within four months of the Reference Date of the actuarial investigation referred to in that Rule;
      (d) where the transfer constitutes a payment of dividend or return of capital, in accordance with Rule 3.5.4;
      (e) where the transfer is made in exchange for other assets at fair value;
      (f) where the transfer constitutes reimbursement of expenditure borne on behalf of the Insurance Fund, and in respect of expenses attributable to the Insurance Fund; or
      (g) where the transfer constitutes reattribution of assets attributed to the Insurance Fund in error.
      (h) where the transfer constitutes payments under the terms of the Wakala or Mudaraba agreements between Takaful contributors and the shareholders.
      3.5.3 Assets attributable to an Insurance Fund must not be distributed by way of dividend or by way of return of capital.
      3.5.4 Assets attributable to an Insurance Fund must not be lent or otherwise made available for use for any other purposes of the Insurer or any purposes of any party Related to the Insurer.
      3.5.5 An Insurer may not enter into any arrangement, whether or not described as a contract of reinsurance, whereby an Insurance Fund of the Insurer stands in the same relation to the Insurer as though the Insurer were the reinsurer in a contract of reinsurance in which the Insurance Fund is the cedant.

      Guidance

      Rule 3.5.5 operates to prohibit reinsurance between Insurance Funds of the same Insurer, as well as arrangements of the nature of internal contracts of reinsurance where the cession transaction is attributed to an Insurance Fund but the corresponding reinsurance acceptance transaction is not.

      PIN 4.6

      4.6 Insurers that undertake long-term insurance business

      4.6.1 Subject to Rule 4.6.2, this section applies only to Insurers that undertake Long-Term Insurance Business through a Long-Term Insurance Fund.
      4.6.2 This section does not apply to either:
      (a) an Insurer that is deemed to constitute a single Long-Term Insurance Fund in accordance with Rule 3.2.2(b); or

      (1)

      (b) an Insurer that is a Protected Cell Company in respect of a Cell that is deemed to constitute a single Long-Term Insurance Fund in accordance with Rule 3.2.3(b).
      4.6.3 An Insurer that undertakes Long-Term Insurance Business through a Long-Term Insurance Fund must ensure that at all times, in respect of each Long-Term Insurance Fund maintained by it, the Insurer has Adjusted Fund Capital Resources equal to or higher than the amount of the Minimum Fund Capital Requirement in respect of that Long-Term Insurance Fund.
      4.6.4 The Adjusted Fund Capital Resources in respect of a Long-Term Insurance Fund maintained by an Insurer must be calculated in accordance with App7.
      4.6.5 The Minimum Fund Capital Requirement in respect of a Long-Term Insurance Fund maintained by an Insurer must be calculated in accordance with App8.

      4.6 Insurers that have established an insurance fund

      4.6.1 This section applies only to Insurers that undertake Insurance Business through Insurance Funds.
      4.6.2 An Insurer that undertakes Insurance Business through a Insurance Fund must ensure that at all times, in respect of each Insurance Fund maintained by it, the Insurer has Adjusted Fund Capital Resources equal to or higher than the amount of the Minimum Fund Capital Requirement in respect of that Insurance Fund.
      4.6.3 The Adjusted Fund Capital Resources in respect of a Long-Term Insurance Fund maintained by an Insurer must be calculated in accordance with App7.
      4.6.4 The Minimum Fund Capital Requirement in respect of a Long-Term Insurance Fund maintained by an Insurer must be calculated in accordance with App8.
      4.6.5 The Adjusted Fund Capital Resources in respect of a General Insurance Fund maintained by an insurer must be calculated in accordance with App11.
      4.6.6 The Minimum Fund Capital Requirement in respect of a General Insurance Fund maintained by an Insurer must be calculated in accordance with App12.
      PIN 7.2.3 Every Insurer must provide to the DFSA as at each reporting date a written report relating to its General Insurance Business, prepared by an Actuary who has the qualifications set out in section 7.5. Where an Insurer maintains one or more General Insurance Funds, a separate report must be provided in respect of each fund.
      PIN A10.2.5

      Except as provided otherwise in this Rule, aAn Insurer that maintains an Long-Term Insurance Fund must complete a Fund Return in respect of each Long-Term Insurance Fund that it maintains. A Fund Return includes all of the assets, liabilities, revenues and expenses attributable to the Fund, regardless of the residency status or location of the customer or of any asset or liability. An Insurer to which this Rule applies is not required to complete a Fund Return in the following cases:

      (a) where the Insurer is deemed to constitute a single, Long-Term Insurance Fund, such that the information contained in the Fund Return would be identical to that in the Global Return; and
      (b) where a Cell of the Insurer is deemed to constitute a single, Long- Term Insurance Fund, such that the information contained in the Fund Return would be identical to that in the Cell Return.
      PIN A10.2 Guidance
      PIN A10.4.4(c)(ii)
      PIN A10.4.6(g)
      PIN A10.4.8 (and associated Guidance)
      Form IN 110 line
      N110-1260
      Form IN 110
      Guidance for Form
      IN20 paragraph
      IN20
      Form IN10 line
      N100-7300

      The words "Long-Term Insurance Fund" are struck through and are replaced by "Insurance Fund" wherever they occur in the Rules and forms specified in the left hand column.

      PIN App 11 A new appendix is added to PIN as follows:

      App 11 CALCULATION OF ADJUSTED FUND CAPITAL RESOURCES

      1.2 A11.1 Purpose and general provisions

      A11.1.1 This appendix applies to all Insurers to which section 4.6 applies.

      Guidance

      1. This appendix sets out the manner in which an Insurer is required to calculate the Adjusted Fund Capital Resources in respect of each General Insurance Fund it maintains. The calculation is analogous to that applicable to Insurers other than Protected Cell Companies, so that (except where changes are necessary to reflect structural differences) the capital of a General Insurance Fund is determined as though it was an Insurer subject to App3.
      2. The Adjusted Fund Capital Resources are calculated by making adjustments to the equity of the fund, as at the Solvency Reference Date.

      A11.2 Adjusted fund capital resources

      A11.2.1 An Insurer must calculate the Adjusted Fund Capital Resources in respect of each General Insurance Fund maintained by it, according to the formula:

      AFCR = AFE – FHCA

      where:


      AFCR means the Adjusted Fund Capital Resources in respect of the fund;
      AFE means the adjusted fund equity in respect of that fund; and
      FHCA means the fund hybrid capital adjustment in respect of that fund.
      A11.2.2 Adjusted fund equity is calculated as set out in section A11.4. The fund hybrid capital adjustment is set out in section A11.5.

      A11.3 Base fund capital

      A11.3.1 The commencement point for calculating the adjusted fund equity in respect of a General Insurance Fund maintained by an Insurer is the base fund capital.
      A11.3.2 Subject to Rules A11.3.3, A11.3.4 and A11.3.5, the base fund capital in respect of a General Insurance Fund must consist of the following capital instruments and equity reserves of the Insurer, that are classified as capital instruments and equity reserves of the fund:
      (1) general reserves;
      (2) retained earnings;
      (3) amounts attributed to the General Insurance Fund by the Insurer in accordance with Rule 3.4.2;
      (4) in the case of a Takaful Insurer, amounts provided from the Owners’ Equity by loan to the General Insurance Fund and not repaid as at the Solvency Reference Date;
      (5) current year’s earnings after tax; and
      (6) hybrid capital (as defined in Rule A11.5.1).
      A11.3.3 Where an Insurer is not a DIFC Incorporated Insurer, base capital may include capital instruments and equity reserves that are approved in writing by the DFSA as equivalent to the capital instruments and equity reserves described in Rule A11.3.2.
      A11.3.4 Owners’ Equity in a Takaful Insurer, that has not been transferred to the General Insurance Fund, must be classified as hybrid capital for the purposes of this section if:
      (1) under the constitutional documents of the Insurer or the terms of insurance contracts or both, the owners do not participate in the surpluses and losses of Insurance Business; and
      (2) the Owners’ Equity is available for loan to the General Insurance Fund.
      A11.3.5 Hybrid capital having a term to maturity of less than five years may only be included in base fund capital with the written consent of the DFSA.

      A11.4 Adjusted fund equity

      A11.4.1 An Insurer must calculate its adjusted fund equity in respect of each General Insurance Fund as set out in this section.

      Guidance

      The purpose of these adjustments is to provide a consistent basis for the determination of the Insurer’s Adjusted Fund Capital Resources and to exclude from those resources assets that may not be readily realisable for the purposes of meeting Insurance Liabilities of the General Insurance Fund.

      A11.4.2 The following items must be deducted from base fund capital, to the extent that the Insurer has not excluded them in determining its base fund capital:
      (3) any amounts in respect of appropriations to be made from the General Insurance Fund in respect of the current year, including dividends, distributions by Takaful Insurers of surplus, bonuses, pensions and welfare charges that are determined on the basis of the current year’s profit, whether or not the amounts have been approved by the Insurer for payment;
      (4) the amount of any investment by the General Insurance Fund or by a Subsidiary of the General Insurance Fund, in the Insurer’s own capital;
      (5) the amount of any tax liability that would be attributable to unrealised gains on investments, if those gains were realised;
      (6) the amount of deferred acquisition costs;
      (7) the amount of any deferred tax asset;
      (8) the amount of any goodwill, patents, service rights, brands and any other intangible items;
      (9) the amount of any Zakah or charity fund of a Takaful Insurer, maintained within the General Insurance Fund;
      (10) the amount of any operating assets, including inventories, plant and equipment, and vehicles; and
      (11) the amount of any assets that may not be applied to meet Insurance Liabilities attributable to the General Insurance Fund (for example, assets that are subject to fixed or floating charges, mortgages or other security).

      A11.5 Fund hybrid capital adjustment

      Guidance

      1. This section acts to limit hybrid capital to 15% of the adjusted fund equity in respect of a fund.
      2. The purpose of the fund hybrid capital adjustment is to limit the extent to which an Insurer may rely for its Adjusted Fund Capital Resources in respect of any General Insurance Fund on instruments that do not or may not constitute permanent capital of that fund.
      A11.5.1 Fund hybrid capital includes the following items:
      (1) subordinated debt attributable to the fund; and
      (2) Owners’ Equity in a Takaful Insurer of the type described in Rule A11.3.4.
      A11.5.2 Subject to Rule A11.5.3, an Insurer must calculate its fund hybrid capital adjustment as the amount by which the total amount of hybrid capital exceeds 15% of adjusted fund equity.
      A11.5.3 The DFSA may at its discretion permit an Insurer to apply Rule A11.5.2 as though the figure of 15% was replaced with a higher figure approved in writing by the DFSA. The approved figure may not be more than the actual percentage which the fund hybrid capital represents of adjusted fund equity, and may not in any case exceed 30%.
      PIN App 12

      A new appendix is added to PIN as follows:

      App 12 CALCULATION OF MINIMUM FUND CAPITAL REQUIREMENT

      A12.1 Purpose and general provisions

      A12.1.1 This appendix applies to all Insurers to which section 4.6 applies.

      Guidance

      1. This appendix sets out the manner in which an Insurer that conducts General Insurance Business through a General Insurance Fund is required to calculate the Minimum Fund Capital Requirement in respect of each General Insurance Fund.
      2. The Minimum Fund Capital Requirement is calculated on a basis that is analogous to the basis of calculation of the Minimum Capital Requirement for Insurers other than Protected Cell Companies, as set out in App4.
      3. The effect therefore is as though each General Insurance Fund maintained by an Insurer were itself an Insurer that had to calculate a Minimum Capital Requirement in accordance with App4. Consequently, this appendix incorporates references to the provisions of App4.

      A12.2 Minimum fund capital requirement

      A12.2.1 Subject to Rule A12.2.3, an Insurer must calculate the Minimum Fund Capital Requirement in respect of each General Insurance Fund maintained by it, according to the formula:

      MFCR = DRC + IVRC + OARC + OLRC + CRC + SFAC + URC + RRC + AMRC


      where:

      Term Definition
      MFCR Minimum Fund Capital Requirement in respect of the fund;
      DRC Default risk component in respect of that fund;
      IVRC Investment volatility risk component in respect of the fund;
      OARC Off-balance sheet asset risk component in respect of the fund;
      OLRC Off-balance sheet liability risk component in respect of the fund;
      CRC Concentration risk component in respect of the fund;
      SFAC Size Factor Adjustment Component in respect of the fund;
      URC Underwriting risk component in respect of the fund;
      RRC Reserving risk component in respect of the fund;
      AMRC Asset management risk component in respect of the fund.
      A12.2.2 The methods of calculation of the components referred to in Rule A12.2.1 are set out in sections A12.4, A12.5, A12.6, A12.7, A12.8, A12.9, A12.10, A12.11, and A12.12.
      A12.2.3 The Minimum Fund Capital Requirement in respect of a General Insurance Fund must always be equal to or higher than $10,000,000.

      A12.3 Applicability of components to assets of the fund

      A12.3.1 Subject to Rule A12.3.2, an Insurer must calculate those components of the Minimum Fund Capital Requirement in respect of a General Insurance Fund, that are relevant to assets, in respect of every asset that is attributable to the General Insurance Fund.
      A12.3.2 Where an Insurer arranges its affairs such that Invested Assets attributable to a General Insurance Fund are held in a Related entity, the Insurer may, with the written approval of the DFSA, calculate components of the Minimum Fund Capital Requirement by reference to the interest of the General Insurance Fund in the assets that are held by the Related entity, instead of by reference to the interest that the General Insurance Fund has in that Related entity. In that case this appendix shall be interpreted as though the assets (representing the General Insurance Fund’s interest) held by the Related entity were held directly by the General Insurance Fund.

      Guidance

      The effect of Rule A12.3.2 is to provide flexibility for Insurers whose investments are managed on a pooled basis within a Group, or which establish specialist Subsidiaries to manage their investments. While the Insurer’s asset in such cases is a balance with, or investment in, a Related entity, this Rule permits the Insurer to ‘look through’ the corporate arrangement and apply this appendix to the assets of the Related entity as though they were the Insurer’s own. This flexibility extends to Invested Assets attributable to General Insurance Funds, though this provision does not provide any exemption from section 3.4 in respect of segregation of assets.

      A12.4 Default risk component

      Guidance

      The purpose of the default risk component is to require an Insurer to set aside capital to cover the risk that amounts receivable from counterparties will not be received. The basic calculation model for this component, as it applies to Insurers that are not Protected Cell Companies, is set out in section A4.4. The provisions in this section apply the relevant provisions of section A4.4 to each General Insurance Fund that an Insurer maintains.

      A12.4.1 An Insurer must calculate the default risk component in respect of a General Insurance Fund as the sum of the amounts obtained by multiplying the value of each asset attributed to the fund with the relevant percentage, in accordance with the following tables and subject to the provisions of Rules A12.4.2 and A12.4.3:
      (a) assets that are Invested Assets: the table set out in Rule A4.4.1(a); and
      (b) assets that are not Invested Assets: the table set out in Rule A4.4.1(b).
      A12.4.2 The provisions of Rules A4.4.2, A4.4.3, A.4.4.4, A4.4.5 and A4.4.6 must be applied, mutatis mutandis, to assets attributed to a General Insurance Fund as though references in those Rules to an Insurer were instead references to a General Insurance Fund.
      A12.4.3 Notwithstanding anything else in this section:
      (a) the default risk component in respect of any asset that is subject to a fixed or floating charge, mortgage or other encumbrance must be 100% of the value of the asset to the extent of that charge, mortgage or encumbrance. In the case of such assets, the percentages set out in the tables referred to above must be applied only to the amount, if any, by which the value of the asset exceeds the amount of the charge, mortgage or encumbrance; and
      (b) no default risk component must be calculated in respect of assets excluded from Adjusted Fund Capital Resources in accordance with Rules A11.4.2(d), A11.4.2(e), A11.4.2(f), A11.4.2(h), or A11.4.2(i).

      A12.5 Investment volatility risk component

      Guidance

      The purpose of the investment volatility risk component is to require an Insurer to set aside capital to cover the risk of deterioration in the values of Invested Assets. The basic calculation model for this component, as it applies to Insurers that are not Protected Cell Companies, is set out in section A4.5. The provisions in this section apply the relevant provisions of section A4.5 to each General Insurance Fund that an Insurer maintains.

      A12.5.1 An Insurer must calculate the investment volatility risk component in respect of a General Insurance Fund as the sum of the amounts obtained by multiplying the value of each Invested Asset attributable to the fund with the relevant percentage, in accordance with the table set out in Rule A4.5.1, but subject to the provisions of Rule A4.5.2.

      A12.6 Off-balance sheet asset risk component

      Guidance

      The purpose of the off-balance sheet asset risk component is to require an Insurer to set aside capital to cover the risk of default and deterioration in value in respect of exposures that the Insurer has because it is a party to a derivative contract. The provisions in this section apply the relevant provisions of section A4.6 to each General Insurance Fund that an Insurer maintains.

      A12.6.1 An Insurer is required to calculate an off-balance sheet asset risk component in respect of a General Insurance Fund, if the Insurer is, as at the Solvency Reference Date, a party to a derivative contract attributable to that fund, including a forward, future, swap, option or other similar contract, but not including:
      (a) a put option serving as a guarantee;
      (b) a foreign exchange contract having an original maturity of 14 days or less; or
      (c) an instrument traded on a futures or options exchange, which is subject to daily mark-to-market and margin payments.
      A12.6.2 An Insurer must calculate the off-balance sheet asset risk component in respect of a General Insurance Fund as the sum of the amounts obtained by applying the calculations set out in Rule A12.6.3 in respect of each derivative contract entered into by the Insurer and attributable to that fund, that meets the description in Rule A12.6.1.
      A12.6.3 The amount in respect of a derivative contract is obtained by calculating, for an asset equivalent amount as determined in Rule A12.6.4, a default risk component as set out in section A12.4 and an investment volatility risk component as set out in section A12.5, as though the asset equivalent amount were a debt obligation due from the derivative counterparty.
      A12.6.4 The asset equivalent amount in respect of a derivative is calculated as the sum of the current mark-to-market exposure of the derivative (where this is positive) and the amount obtained by multiplying the notional principal amount of the derivative by the factors specified in the table set out in Rule A4.6.4 according to the nature and residual maturity of the derivative.

      A12.7 Off-balance sheet liability risk component

      Guidance

      The purpose of the off-balance sheet liability risk component is to require an Insurer to set aside capital to cover the risk that it will be required to perform on a guarantee, letter of credit or other credit substitute that it has entered into. Although such items are not liabilities of the Insurer as at the Solvency Reference Date, they have the capacity to crystallise as liabilities at a subsequent date and therefore to affect the Insurer’s capital position. The provisions in this section apply the relevant provisions of section A4.7 to each General Insurance Fund that an Insurer maintains.

      A12.7.1 An Insurer must calculate an off-balance sheet liability risk component in respect of a General Insurance Fund if the Insurer has issued guarantees, including put options serving as guarantees, letters of credit or any other credit substitute in favour of another party, so that the General Insurance Fund is exposed to the risk of having to make payment on those instruments should the guaranteed party default.
      A12.7.2 An Insurer must calculate its off-balance sheet risk component as the sum of the amounts obtained by applying the calculations set out in Rule A12.7.3 in respect of each guarantee, letter of credit or other credit substitute.
      A12.7.3 The amount in respect of a guarantee, letter of credit or other credit substitute is obtained by calculating, for the nominal amount of the guarantee, letter of credit or other credit substitute, a default risk component as set out in section A8.4 and an investment volatility risk component as set out in section A8.5 in respect of the obligation or asset over which the guarantee, letter of credit or other credit substitute is written, as though that obligation or asset were an obligation or asset of the Insurer.

      A12.8 Concentration risk component

      Guidance

      The purpose of the concentration risk component is to require an Insurer to set aside capital to cover the sensitivity that it has to default or volatility in respect of assets and exposures to single counterparties or groupings of connected counterparties, or single properties. The provisions in this section apply the relevant provisions of section A4.8 to each General Insurance Fund that an Insurer maintains.

      A12.8.1 An Insurer is required to calculate a concentration risk component in respect of a General Insurance Fund if that fund has, as at the Solvency Reference Date, an investment exposure to a single counterparty or group of Related counterparties, or to a single property, that exceeds 10% of the Adjusted Fund Capital Resources.
      A12.8.2 For the purposes of the calculation referred to in Rule A12.8.1:
      (a) ‘investment exposure’ means the aggregate value of all equity, bond or other investments in or in respect of the counterparty or group of Related parties or property in question, together with off-balance sheet exposures to the same counterparty or group of Related counterparties or property that that fund has because the Insurer has issued guarantees, letters of credit or other credit substitutes (other than insurance contracts), or because it has entered into derivative contracts, but excluding any assets excluded from base fund capital in accordance with any of the Rules referred to in Rule A12.4.3(b); and
      (b) ‘AAA’-Rated Governments and Government agencies are not counterparties.
      A12.8.3 An Insurer must calculate its concentration risk component in respect of a General Insurance Fund as the sum of the amounts obtained by multiplying each investment exposure of that fund that exceeds 10% of the adjusted segmental capital resources, by the relevant factor percentage set out in the table set out in Rule A4.8.3, reading that table as though all references to Adjusted Capital Resources were references to Adjusted Fund Capital Resources, and subject to Rule A8.8.4.
      A12.8.4 If the concentration risk component in respect of an investment exposure of a General Insurance Fund, aggregated with the sum of the default risk component, investment volatility risk component and off-balance sheet asset risk component (so far as concerns that fund), in respect of the assets and off-balance sheet exposures comprising that investment exposure, exceeds 100% of that investment exposure, the concentration risk component in respect of that investment exposure must be reduced so that the total of the three components in respect of that investment exposure is equal to 100% of that investment exposure.

      A12.9 Size factor component

      Guidance

      The effect of the size factor component is to provide a relatively higher capital requirement in respect of General Insurance Funds with smaller portfolios of Invested Assets. The provisions in this section apply the relevant provisions of section A 4.9 to each General Insurance Fund that an Insurer maintains.

      A12.9.1 The base figure for the size factor component is determined by aggregating the following components, for the General Insurance Fund:
      (a) the aggregate of the default components determined in accordance with section A12.4, in respect of Invested Assets;
      (b) the investment volatility risk component determined in accordance with section A12.5; and
      (c) the concentration risk component determined in accordance with section A12.8.
      A12.9.2 An Insurer must calculate the size factor component in respect of General Insurance Fund by multiplying the base figure for that fund as determined in accordance with Rule A12.9.1 by the factor derived by applying the following formula, where x represents the total Invested Assets attributable to that fund, expressed in millions of dollars:
      (a) if x < 100, the factor is 1.5;
      (b) if 100 < x < 200, the factor is (150 + 0.5(x-100))/x;
      (c) if 200 < x < 1,200, the factor is (200 – 0.2(x-200))/x; and
      (d) if x > 1,200, the factor is zero.

      A12.10 Underwriting risk component

      Guidance

      The purpose of the underwriting risk component of the Minimum Capital Requirement is to require an Insurer to set aside capital to address the risk that the cost of claims in respect of General Insurance Business will vary from the cost implicit in the premiums being charged. The basic calculation model set out in Rule A4.10.2 applies different factors to the premium in respect of different Classes of Business, based on the different perceived risk of variability associated with each. The model is modified by additional provisions dealing with certain Classes of Business. This section also restricts the extent to which reinsurance may be taken into account when calculating the underwriting risk component. The provisions in this section apply the relevant provisions of section A4.10 to each General Insurance Fund that an Insurer maintains.

      A12.10.1 An Insurer must calculate an underwriting risk component in respect of a General Insurance Fund according to the method set out in section A4.10, applied as though all references in that section to an Insurer were instead references to that fund.

      A12.11 Reserving risk component

      Guidance

      The purpose of the reserving risk component of the Minimum Capital Requirement is to require an Insurer to set aside capital to address the risk that the cost of claims in respect of General Insurance Business will vary from the amounts recorded as liabilities in the Insurer’s balance sheet. This calculation applies only to liabilities in respect of outstanding claims (the risk of deterioration in Premium Liability is addressed in the underwriting risk component in section A12.10). The principles of the calculation are similar to those in section A12.10, and apply the relevant provisions of section A4.11 to each General Insurance Fund that an Insurer maintains.

      A12.11.1 An Insurer must calculate a reserving risk component in respect of a General Insurance Fund according to the method set out in section A4.11, applied as though all references in that section to an Insurer were instead references to that fund.

      A12.12 Asset management risk component

      Guidance

      This section requires an Insurer to set aside capital in respect of assets that it manages. The provisions in this section apply the relevant provisions of section A4.13 to each General Insurance Fund that an Insurer maintains.

      A12.12.1 An Insurer must calculate the asset management risk component in respect of a General Insurance Fund according to the method set out in section A4.13, applied as though all references in that section to an Insurer were instead references to that fund.

      Two new definitions are added to GLO as follows

      GLO General Insurance Fund A fund in respect of General Insurance Business established and maintained in accordance with PIN 3 (as modified).
        Insurance Fund A General Insurance Fund or a Long-Term Insurance Fund.

      CONDITIONS

      In the event that the Gross Written Premium in respect of Life business exceeds or is likely to exceed $2M in any one financial year the firm must notify the DFSA as soon as reasonably possible.

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue and remains in force until further notice.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : David Knott
      Position : Chief Executive
      DATE OF ISSUE: 4 December 2007

    • W 052/07 CIR — Gulf Fund Management Limited

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      MODIFICATION NOTICE

      To Gulf Fund Management Limited
      Address 3rd East building, 4th Floor, Dubai Airport Free Zone, Dubai, United Arab Emirates
      DFSA Firm Reference No. F000428
      Notice No. W052/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in the table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 18 June 2007 and remains in force until further notice.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      Rule Modified Text
      CIR 13.5.2

      Permitted Investment Vehicles and Listing

      (1) An Operator of a Domestic Fund which is a Property Fund must use only a closed-ended legal structure for the investment vehicle. However, subject to the requirements under (2)–(7) an Operator may in the Constitution and the Prospectus of a Private Property Fund:
      (a) permit Unitholders to make a written request to the Trustee 18 months after the close of the subscription period set out in the initial private placement memorandum of the Fund to offer their Units for resale to existing Unitholders of the Fund;
      (b) require the Trustee to comply with such a request in accordance with the requirements in (2);
      (c) permit Unitholders to make a written request to the Trustee 18 months after the close of the subscription period set out in the initial private placement memorandum of the Fund to buy back any Units not sold to other Unitholders following the process specified in (2); and
      (d) require the Trustee to comply with such a request in accordance with the requirements of (3)–(8).
      (2) The Trustee must:
      (a) offer the Units which are the subject of a request under (1)(a) by means of an open bidding process to existing Unitholders within 3 months of the date of the request; and
      (b) give effect to a transfer of one or more of the offered Units, following the acceptance by the offering Unitholder of a bid in respect of a Unit to which the offer relates.
      (3) If any of the Units offered in (2) remain unsold then the Trustee may, subject to the conditions specified under (4) and applying the deductions specified under (5), upon receiving a request from the relevant Unitholder, buy back such Units by paying a sum equal to the value of the relevant Units calculated in accordance with the most recently available net asset valuation for those Units where such valuation is not more than 3 months old.
      (4) The buy-back in (3) is subject to the following conditions:
      (a) the Trustee’s oversight committee and the Operator are satisfied that adequate liquid assets of the type referred to under (7) will be maintained and such buy-back does not adversely affect the Fund and the remaining Unitholders; and
      (b) the number of the Units in respect of which payment is to be made does not, when aggregated with any Units bought back during the 6 month period occurring immediately before such buy-back, exceed 10% of the Units of the Fund at the beginning of the said 6 month period.
      (5) The buy-back in (3) is subject to the following deductions:
      (a) the deduction of 15% of the value of the price of the Units calculated in accordance with (3); and
      (b) the deduction of any reasonable costs incurred by the Operator and the Trustee when dealing with a request under (1)(c).
      (6) If more than one request is received by the Operator under (1)(c) during any particular 6 month period the Operator must, give priority to each request in accordance with the terms of the Constitution and Prospectus.
      (7) The type of liquid assets referred to in (4)(a) are cash or assets which can be readily converted into cash, including but not limited to marketable securities, government bonds, treasury bills and notes that mature within 90 days.
      (8) If the Fund in (1) is a Public Fund, then the Operator must use either an Investment Company or Investment Trust as the investment vehicle.
      (9) If the Fund in (1) is a Public Fund, then the Operator must ensure that it is listed and traded on an Authorised Market Institution or is listed and traded on an exchange in a Recognised Jurisdiction.
      CIR 13.5.3
      (1) An Operator of a Property Fund must, subject to (2), call a meeting of Unitholders to vote on the election of at least three experts who are independent of the Operator to sit on an investment committee of the Fund.
      (2) An Operator of a Private Fund which is constituted as an Investment Trust need not must appoint an investment committee comprising at least three experts who are independent of the Operator.
      (3) The committee members in (1) and (2) are appointed to review investment opportunities and must not involve themselves in the day to day management of the Fund.
      (4) The Trustee of a Private Fund which is an Investment Trust, must appoint an oversight committee comprising at least three individuals who are independent of the Operator.
      (5) A Person is independent of the Operator for the purposes of this Rule if that Person meets the requirements under Article 34 of the Law.
      CIR 13.5.11

      Use of Special Purpose Vehicles

      (1) The Operator of a Property Fund may hold Real Property for the Fund:
      (a) through a Special Purpose Vehicle, subject to (2) and (3), only if the Fund or the Trustee, as the case may be, has majority ownership and control of the Special Purpose Vehicle; or
      (b) in accordance with the arrangements for ownership and control in (4).
      (2) A Special Purpose Vehicle set up by the Operator of a Fund under (1) may itself hold Real Property through another Special Purpose Vehicle (the second Special Purpose Vehicle) for the sole purpose of directly holding Real Property for the Fund or arranging financing for the Fund but the second Special Purpose Vehicle must not hold Real Property for the Fund or Trustee, as the case may be, through another Special Purpose Vehicle
      (3) The Operator of the Fund must ensure that:
      (a) neither the Constitution of any Special Purpose Vehicle nor the organisation, transactions or activities of such vehicles must under any circumstance contravene any requirements of the Rules in this section;
      (b) the board of directors of each of the Special Purpose Vehicles must be appointed by the Operator in agreement with the Trustee or Persons performing oversight functions of the Fund and where elected, the investment committee; and
      (4) For the purposes of (1)(b), where the Special Purpose Vehicles is wholly owned by the Operator of the Property Fund the Operator and Trustee must ensure that the following safeguards have been implemented before the Trustee issues any of the Fund’s Units:
      (a) a declaration of trust has been executed by the Special Purpose Vehicles declaring that all assets of any nature whatsoever are held on behalf of the Trustee of the Fund;
      (b) a declaration of trust has been executed by the Operator declaring that the Shares it holds in respect of the Special Purpose Vehicles are held on behalf of the Trustee of the Fund and declaring that it will not deal with the such Shares in any way without express instructions from the Trustee and will not pass any resolutions contrary to the express wishes of the Trustee;
      (c) the Trust Deed contains an indemnity provision, the effect of which is that the Operator agrees to use any powers and rights vested through its ownership of the Special Purpose Vehicles’ Shares in accordance with the express wishes of the Trustee, failing which it shall indemnify the Investment Trust;
      (d) a resolution has been passed by the Governing Body of the Operator, the effect of which is that the signing authority for the Special Purpose Vehicles rests legally with one or more representatives of the Trustee; and
      (e) a resolution has been passed by the Governing Body of the Operator stating that the original documents including but not limited to certificates of title and Special Purpose Vehicles share certificates which are required to complete any transaction concerning Real Property or other assets of the Fund, remain in the possession of the Trustee at all times, unless the documents are to be dealt with in accordance with transactions approved by the Trust, specifically including the Investment Trust’s Oversight Committee.
      (5) The Trustee of a Private Property Fund with arrangements falling within (4) must provide the DFSA with a legal opinion addressed to the DFSA stating that the trusts and resolutions prescribed under (4) are legally effective within the DIFC and in compliance with the requirements of this Rule.
      CIR 13.5.18
      (1) The Operator and, if appointed, the Trustee must not engage Affected Persons as property agents for rendering services to the Fund, including advisory or agency services in property transactions except in the case of:
      (a) locating suitable assets for acquisition;
      (b) designing leasing programmes for newly acquired vacant buildings; or
      (c) property management services;.
      but only where such services are contracted on normal commercial terms and subject to the prior approval of the Trustee in accordance with CIR Rule 6.4.1.
      CIR 13.5.22
      (1) The Operator must ensure that the property is acquired within a reasonable time from the date of the report and in any event not later than six months from the date of valuation and, subject to (2) at a price no more than 5% above the valuation price.
      (2) The Operator of a Private Fund may acquire Real Property at a price more than 5% above the independent valuation price but only in the following circumstances:
      (a) if the purchase price represents an amount which is greater than 5% but less than 10% of the most recently calculated Net Asset Value of the Fund, the Operator may acquire the property where the purchase has been recommended by the Operator’s investment committee, no objection has been raised by the Trustee’s oversight committee and it has notified all the Unitholders in writing of the proposed purchase and received no request within 10 days of such notice being issued from any Unitholder to call a Unitholder meeting;
      (b) if the purchase price represents an amount which is greater than 10% but less than 20% of the most recently calculated Net Asset Value of the Fund, Operator may acquire the property where it has obtained an ordinary resolution of the Unitholders agreeing to the relevant purchase; or
      (c) if the purchase price represents an amount which is greater than 20% of the most recently calculated Net Asset Value of the Fund, Operator may acquire the property where it has obtained a Special Resolution of the Unitholders agreeing to the relevant purchase.
      CIR 13.5.23
      (1) An Operator must ensure that any valuation report prepared by the Independent Valuer:
      (a) includes all material details in relation to the basis of valuation and the assumptions used;
      (b) describes and explains the valuation methodologies adopted;
      (c) outlines the overall structure and condition of the relevant market including an analysis of the supply and demand situation, the market trend and investment activities;
      (d) includes a brief description of the property, its location, the nature of the interest the Fund holds in the property, existing use, any encumbrances concerning or affecting the property, lease expiry profile, the capital value in existing state at the date the valuation was performed, net monthly income from the property, and any other matters which may affect the property or its value;
      (e) confirms the independent status of the valuer and that the valuation report is prepared on a fair and unbiased basis; and
      (f) explains the rationale for choosing the particular valuation method if more than one method is adopted.
      (2) In relation to a Private Fund, the Operator’s investment committee and the Trustee’s oversight committee must be satisfied on reasonable grounds that the independent valuation report contains sufficient detail and rationale in respect of the matters under (1) for the purpose of making an informed judgment about the merits of the proposed acquisition or disposal of the relevant Real Property.
      CIR 17.1.1
      (1) This chapter applies to a Person in accordance with the application provisions under Chapter 1 but only in relation to a Domestic Fund which is a Public Fund.
      (2) Sections CIR 17.4 to CIR 17.11 apply to a Person in accordance with Chapter 1 in relation to a Private Fund which has implemented oversight arrangements pursuant to CIR Rule 13.5.3(4).

      CONDITIONS

      The modifications in respect of the Rules specified above remain in effect for the duration of the period set out above on condition that:

      (a) every Prospectus, in respect of a Fund which takes advantage of the relief set forth above, contains this notice; and
      (b) if a request is made by a Unitholder under CIR Rule 13.5.2(1)(a) or (c), the Operator informs the DFSA forthwith of such a request being received and prior to carrying out any action in relation to such a request.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : David Knott
      Position : Chief Executive
      Date : 18 June 2007

    • W 054/07 COB — FFA (Dubai) Limited

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      MODIFICATION NOTICE

      To FFA (Dubai) Limited
      Address Office # 37, Level 15, Business Centre, The Gate, DIFC, P.O. Box: 506567, Dubai, UAE.
      DFSA Firm Reference No. F000240
      Notice No. W054/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in the table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 14 June 2007 and remains in effect until further notice or the date on which any Rule specified herein is amended, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is [COB/VER9/06-07].

      Rule Modified Text
      COB 3.2.2. (1) A Client is a Person who the Authorised Firm has determined, prior to the establishment of a relationship, is:
      (a) an individual who:
      (i) has at least $1 million in liquid assets and has provided the Authorised Firm with written confirmation of this fact;
      (ii) appears to the Authorised Firm , after analysis, to have sufficient financial experience and understanding to participate in financial markets; and
      (iii) has consented in writing to being treated as a Client ;
      (b) an individual who:
      (i) is an employee of the Authorised Firm ; and
      (ii) meets the conditions in (1)(a)(ii) and (iii);
      (c) an Undertaking which has had, or any of whose Holding Companies or Subsidiaries has had, in the last two years, called up share capital or net assets of at least $5 million. In the case of a limited liability partnership calculated without deducting loans owing to any of the partners;
      (d) a trustee of a trust or pension fund which has had in the last two years assets of at least $5 million calculated by aggregating the value of the cash and investments forming part of the trust's or fund's assets, but before deducting its liabilities;
      (e) a properly constituted government, government agency, central bank or other national monetary authority of any country or jurisdiction;
      (f) a public authority or state investment body;
      (g) a supranational organisation whose members are either countries, central banks or national monetary authorities;
      (h) an Authorised Firm or Regulated Financial Institution ;
      (i) an Authorised Market Institution , regulated exchange or regulated clearing house;
      (j) an Undertaking which is a Holding Company or Subsidiary of an Undertaking in (h) or (i) with that undertakings consent;
      (k) a Body Corporate whose shares are listed or admitted to trading on any regulated exchange of an IOSCO member country; or
      (l) a Collective Investment Fund or Special Purpose Vehicle .
      (2) Where individuals have linked or joint bank accounts, a Client is a Close Relative of the primary account holder, where the primary account holder is a Client under (1), but only in circumstances where either:
      (a) that Close Relative fulfils the requirement in (1)(a)(ii); or
      (b) in accordance with the provision of a legal document the legal effect of which is that all the Financial Services transactions between the Authorised Firm and the Close Relative are agreed by the primary account holder.
      (3) For the purpose of (2) the defined term Close Relative includes grandchildren of the primary account holder.
      (4) Any Person who does not meet the criteria in (1) or (2) is a Retail Customer.
      COB 3.2.6
      (1) An Authorised Firm must keep records of the verification process undertaken for each Client including any documents which evidence the Client's status.
      (2) If the Client in (1) is an individual the records must include the analysis undertaken, the reasons for the Authorised Firm concluding that the individual merits classification as a Client and the Client's written consent to being treated as a Client .
      (3) These records must be kept for at least six years from the date on which the business relationship has ended. If the date on which the business relationship ended remains unclear it may be taken to have ended on the date of the completion of the last transaction.
      (4) if an individual is classified as a Client by virtue of Rule 3.2.2(2) then the records must include documents which evidence that individual’s status as a Close Relative of the primary account holder and, where relevant, the legal documentations referred to in Rule 3.2.2(2)(b).

      CONDITIONS

      The modifications in respect of the Rules specified above remain in effect for the duration of the period set out above on condition that:

      None

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : David W. Knott
      Position : Chief Executive
      Date : 14 June 2007

    • W 055/07 COB — Fortis Banque (Suisse S.A.)

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      MODIFICATION NOTICE

      To Fortis Banque (Suisse S.A.)
      Address The Gate—Level 5, East Wing, P.O. Box 211104, Dubai, United Arab Emirates
      DFSA Firm Reference No. F000050
      Notice No. W055/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 26 June 2007 and remains in force until further notice.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is [COB/VER9/06-07].

      Rule Modified Text
      COB 3.2.2
      (1) Client is a Person who the Authorised Firm has determined, prior to the establishment of a relationship, is:
      (a) an individual who:
      (i) has at least $1 million in liquid assets and has provided the Authorised Firm with written confirmation of this fact;
      (ii) appears to the Authorised Firm, after analysis, to have sufficient financial experience and understanding to participate in financial markets; and
      (iii) has consented in writing to being treated as a Client;
      (b) …….. and so on until and including (l) ….
      (2) A personal investment vehicle or the trustee of such a vehicle is a Client if it is established and operated for the sole purpose of providing a vehicle to facilitate efficient management of the investment portfolio of a Client under (1) including, if applicable, the investment portfolio of any Close Relative of that Client.
      (3) For the purposes of (2) a personal investment vehicle must be a:
      (a) Body Corporate;
      (b) Partnership;
      (c) trust; or
      (d) foundation and
      have net assets or paid-up share capital of at least US$1 million.
      (4) A personal investment vehicle that is a Body Corporate or trust must be valued in accordance with the methodology in (1)(c) or (d) as applicable and if a foundation, must be valued in the same manner as a trust.
      (5) Where individuals have linked or joint bank accounts, a Close Relative of the primary accountholder is a Client, if the primary account holder is a Client under (1), but only in circumstances where either:
      (a) that Close Relative fulfils the requirement (1) (a) (ii) and (iii); or
      (b) in accordance with the provisions of a legal document all Financial Services transactions between the Authorised Firm and the Close Relative are agreed by the primary account holder.
      (6) For the purposes of (2) and (5) the defined term Close Relative includes grandchildren of the Client.
      (7) Any Person who does not meet the criteria in (1), (2) or (5) is a Retail Customer
      COB 3.2.6
      (1) An Authorised Firm must keep records of the verification process undertaken for each Client including any documents which evidence the Client’s status.
      (2) If the Client in (1) is an individual the records must include the analysis undertaken, the reasons for the Authorised Firm concluding that the individual merits classification as a Client, and the Client’s written consent to be treated as a Client.
      (3) The records must be kept for at least six years from the date on which the business relationship has ended. If the date on which the business relationship ended remains unclear it may be taken to have ended on the date of the completion of the last transaction.
      (4) If an individual is classified as a Client by virtue of Rule 3.2.2(2) or (5) then the records must include documents which evidence that individual’s status as a Close Relative and, where relevant, the legal documentations referred to in Rule 3.2.2(5)(b).

      CONDITIONS

      The modifications in respect of the Rules specified above remain in effect for the duration of the period set out above on condition that:

      None

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Michael Zamorski
      Position : Managing Director, Supervision
      Date : 27 June 2007

    • W 057/07 COB — UBS AG

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      MODIFICATION NOTICE

      To UBS AG
      Address Level 5, Building 6, DIFC District
      P.O.Box—506542, Dubai, UAE
      DFSA Firm Reference No. F000321
      Notice No. W057/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      COB 3.2.2
      (1) A Client is a Person who the Authorised Firm has determined, prior to the establishment of a relationship is:
      (a) an individual who :
      (i) has at least $1 million in liquid assets and has provided the Authorised Firm with written confirmation of this fact;
      (ii) appears to the Authorised Firm after analysis, to have sufficient financial experience and understanding to participate in financial markets; and
      (iii) has consented in writing to being treated as a Client;
      (b) ……………and so on as per the Rulebook text up to and including (l).
      (2) A personal investment vehicle or the trustee of such a vehicle is a Client if it is established and operated for the sole purpose of providing a vehicle to facilitate efficient management of the investment portfolio of an individual who is a Client under (1) including, if applicable, the investment portfolio of any Close Relative of that Client.
      (3) For the purposes of (2), the term Close Relative includes grandchildren of the Client.
      (4) For the purpose of (2) a personal investment vehicle must be a:
      (a) Body Corporate;
      (b) Partnership;
      (c) Trust, or
      (d) foundation;
      (5) (2) Any Person who does not meet the criteria in (1) or (2) is a Retail Customer.
      COB 3.2.6
      (1) An Authorised Firm must keep records of the verification process undertaken for each Client including any documents which evidence the Client’s status.
      (2) If the Client in (1) is an individual the records must include the analysis undertaken, the reasons for the Authorised Firm concluding that the individual merits classification as a Client, the Client’s written consent to be treated as a Client.
      (3) These records must be kept for at least six years from the date on which the business relationship has ended. If the date on which the business relationship ended remains unclear it may be taken to have ended on the date of the completion of the last Transaction.
      (4) If an individual is classified as a Close Relative for the purposes of Rule 3.2.2(2) then the records must include documents which evidence that individual's status as a Close Relative.

      CONDITIONS

      None

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue of this notice and remains in force until further notice.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : David Knott
      Position : Chief Executive
      DATE OF ISSUE : 19 August 2007

    • W 062/07 AUT — The Bank of Tokyo Mitsubishi UFJ, Ltd

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      MODIFICATION NOTICE

      To The Bank of Tokyo Mitsubishi UFJ, Ltd
      Address Office No. 607, 6th Floor
      Union House Building
      PO Box 43659, Dubai
      United Arab Emirates
      DFSA Firm Reference No. F000470
      Notice No. W062/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 30th July 2007 and remains in effect until 30th January 2008, or the date on which any Rule specified herein is amended, whichever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is AUT/VER8/06-07.

      Rule Modified Text
      AUT 10.3.2 The Authorised Individuals referred to in Rule 10.3.1(a), (c) and (d) must be ordinarily resident in the U.A.E.

      CONDITIONS

      None.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : David Knott
      Position : Chief Executive
      Date : 30th July 2007

    • W 063/07 GEN — The Bank of Tokyo Mitsubishi UFJ, Ltd

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      MODIFICATION NOTICE

      To The Bank of Tokyo Mitsubishi UFJ, Ltd
      Address Office No. 607, 6th Floor
      Union House Building
      PO Box 43659, Dubai
      United Arab Emirates
      DFSA Firm Reference No. F000470
      Notice No. W063/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in that table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 30th July 2007 and expires on 30th May 2009 or the date on which any Rule specified herein is amended, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is GEN/VER15/07-07.

      Rule Modified Text
      GEN 8.2.1
      (1) An Authorised Person must prepare and maintain all financial accounts and statements in accordance with:
      (a) the International Financial Reporting Standards (IFRS); or
      (b) the generally accepted accounting principles of Japan (Japanese GAAP)
      unless (2) or (3) applies.
      (2) If an Authorised Firm is an Islamic Financial Institution it must prepare and maintain all financial accounts and statements in accordance with the accounting standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
      (3) If an Authorised Person operates an Islamic Window it must prepare and maintain all financial accounts and statements in accordance with the IFRS or Japanese GAAP, as supplemented by AAOIFI FAS 18 in respect of its Islamic Financial Business.
      (4) In this rule Japanese GAAP means accounting and valuation principles in accordance with the guidelines of the Accounting Standards Board of Japan, including the statutory provisions and directives of the Financial Services Agency of Japan.
      GEN 8.6.1 An Authorised Firm or Authorised Market Institution, as applicable, must in writing require its auditor to:
      (a) conduct an audit of the Authorised Person’s accounts in accordance with the requirements of the relevant standards published by:
      (i) the International Auditing and Assurance Standards Board (IAASB) or the Japanese Auditing Standards in respect of conventional financial business; and
      (ii) the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in respect of any Islamic Financial Business undertaken;
      (b) produce a report on the audited accounts which states:
      (i) whether, in the auditor’s opinion, the accounts have been properly prepared in accordance with the requirements imposed by this chapter;
      (ii) in particular, whether the accounts give a true and fair view of the financial position of the Authorised Person for the financial year and of the state of the Authorised Person’s affairs at the end of the financial year end; and
      (iii) any other matter or opinion relating to the requirements of this chapter;
      (c) produce an Auditor’s Annual Report which states whether:
      (i) the auditor has audited the Authorised Person’s annual financial statements in accordance with the IAASB or Japanese Auditing Standards or AAOIFI in respect of Islamic Financial Business;
      (ii) the auditor has carried out any other procedures considered necessary, having regard to the IAASB or Japanese Auditing Standards and or to AAOIFI auditing standards in respect of Islamic Financial Business;
      (iii) the auditor has received all necessary information and explanations for the purposes of preparing this report to the DFSA;
      (iv)………………………………………and so on up to and including (h)………………………………

      CONDITIONS

      The modifications in respect of the Rules specified above remain in effect for the duration of the period set out above on condition that:

      None.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : David Knott
      Position : Chief Executive
      Date : 30th July 2007

    • W 066/07 COB — Credit Suisse

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      MODIFICATION NOTICE

      To Credit Suisse
      Address The Gate Building, 9th Floor East, DIFC, PO Box 33660, Dubai, UAE
      DFSA Firm Reference No. F000011
      Notice No. W066/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      COB 8.2.1
      (1) When an Authorised Firm Executes a Transaction in an Investment for a Client, it must, subject to (4) and (5), ensure a confirmation note is sent to the Client as soon as possible and in any case no later than 2 business days following the date of Execution of the Transaction.
      (2) Where an Authorised Firm has executed a Transaction or series of Transactions in accordance with COB Rule 7.5.4, the Authorised Firm must, subject to (4) and (5), send a confirmation note relating to those Transactions as soon as possible, but no later than 2 business days following the last Transaction.
      (3) The confirmation note must include the details of the Transaction in accordance with App3 section A3.1.
      (4) An Authorised Firm is not required to issue a confirmation note where:
      (a) the Client has advised in writing that he does not wish to receive such confirmation notes; or
      (b) separate arrangements are in place for the Client relating to the purchase of units or shares in a Collective Investment Fund.
      (5) Where the Transaction in (1) or (2) involves a Unit, the Authorised Firm must ensure a confirmation note is sent to the Client as soon as practicable, but in any event no later than the business day following receipt from the relevant third party.

      CONDITIONS

      NONE

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue and remains in force until further notice.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : David Knott
      Position : Chief Executive
      DATE OF ISSUE : 26 August 2007

    • W 068/07 COB — Morgan Stanley & Co International plc

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      MODIFICATION NOTICE

      To Morgan Stanley & Co International plc
      Address Level 5, The Gate — West Wing, PO BOX 506501
      DFSA Firm Reference No. F000168
      Notice No. W068/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      COB 6.5.2 When an Authorised Firm publishes Investment Research it must take reasonable steps to ensure that the Investment Research:
      (a) identifies the types of Clients for whom it is principally intended;
      (b) distinguishes fact from opinion or estimates, and includes references to sources of data used;
      (c) specifies the date when it was first published;
      (d) specifies the period the ratings or recommendations are intended to cover;
      (e) contains a clear and unambiguous explanation of the rating or recommendation system used;
      (f) includes a price chart or line graph depicting the performance of the Investment for the period that the Authorised Firm has assigned a rating or recommendation for that investment, which must also show the dates on which the ratings were revised; and
      (g) includes a distribution of the different ratings or recommendations, in percentage terms:
      (i) for all Investments; and
      (ii) for Investments in each sector covered; and
      (iii) for Investments, if any, where the Authorised Firm has undertaken corporate finance business with or for the Issuer over the past 12 months.

      CONDITIONS

      NONE.

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue and remains in force until further notice.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : Jane Coakley
      Position : Acting Chief Executive
      DATE OF ISSUE: 23 August 2007

    • W 076/07 PIB — Kaupthing Bank hf.

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      WAIVER AND MODIFICATION NOTICE

      To Kaupthing Bank hf.
      Address Office No. 48, Level 15, Gate Building, DIFC,
      P.O. Box 506634, Dubai, UAE
      DFSA Firm Reference No. F000605
      Notice No. W076/07

      THE DFSA HEREBY GIVES NOTICE THAT:

      1. The Rules specified in Table A herein do not apply to the above mentioned Person.

      AND

      2. The Rules specified in the left hand column of Table B herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES WAIVED

      As a consequence of waiving the Rules below, Table 2 in PIB chapter 1 is to be construed accordingly.

      TABLE A
      PIB module Rule
      PIB Chapter 1 (General Requirements) All the Rules in section 1.4 (Trading Book)
      PIB Chapter 2 (Capital) All the Rules in Chapter 2

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      TABLE B
      Rule Modified Text
      PIB Rule 1.2.1

      An Authorised Firm must:

      (a) have and maintain at all times financial resources of the kinds and amounts specified in, and calculated in accordance with, the Rules in this module; and
      (b) ensure that it maintains financial resources in addition to the requirement in (a) which are adequate in relation to the nature, size and complexity of its business to ensure that there is no significant risk that liabilities cannot be met as they fall due.

      CONDITIONS

      This notice waiving and modifying prudential Rules remains in effect for the duration or the period set out below on condition that the above named Person to whom this notice applies:

      (a) remains classified as a Category 4 Authorised Firm;
      (b) complies with its home state Financial Services Regulator’s prudential requirements and submits to the DFSA, a copy of every capital adequacy summary report submitted to the home state Financial Services Regulator within ten business days of the due date for submission to that regulator; and
      (c) in the event of any anticipated or actual breach of any prudential requirements which requires notification to the home state Financial Services Regulator, provides to the DFSA such notification forthwith with any relevant documents.

      If any one or more of the conditions stated above is breached, this notice ceases to have effect forthwith and the Rules specified in Table A and Table B herein apply to the above mentioned Person as set out in the applicable module of the Rulebook in force at the relevant time.

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue of this notice and remains in force until further notice.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : Michael Zamorski
      Position : Acting Chief Executive
      DATE OF ISSUE : 13 September 2007

    • W 077/07 AUT — Kaupthing Bank hf.

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      MODIFICATION NOTICE

      To Kaupthing Bank hf.
      Address Office No. 48, Level 15, Gate Building, DIFC
      P.O. Box 506634, Dubai, UAE
      DFSA Firm Reference No. F000605
      Notice No. W077/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      AUT 10.3.2 The Authorised Individuals referred to in AUT Rule 10.3.1(a), (c) and (d) must be ordinarily resident in the U.A.E.

      CONDITIONS

      None.

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue and remains in force for 6 months thereafter or until further notice, whichever is the earlier.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : Michael Zamorski
      Position : Acting Chief Executive
      DATE OF ISSUE: 13 September 2007

    • W 079/07 COB — Menafactors Limited

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      MODIFICATION NOTICE

      To Menafactors Limited
      Address Office no. 207, Level 2,
      Twin Towers, Beniyas Street
      Deira, Dubai, United Arab Emirates
      DFSA Firm Reference No. F000261
      Notice No. W079/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      COB 3.2.2
      (1) Subject to (2) and (3) a Client is a Person who the Authorised Firm has determined, prior to the establishment of a relationship, is:
      (a) an individual who:
      (i) has at least $1 million in liquid assets and has provided the Authorised Firm with written confirmation of this fact;
      (ii) appears to the Authorised Firm, after analysis, to have sufficient financial experience and understanding to participate in financial markets; and
      (iii) has consented in writing to being treated as a Client;
      (b) an individual who:
      (i) is an employee of the Authorised Firm; and
      (ii) meets the conditions in (1)(a)(ii) and (iii);
      (c) an Undertaking which has had, or any of whose Holding Companies or Subsidiaries has had, in the last two years, called up share capital or net assets of at least $5 million. In the case of a limited liability partnership calculated without deducting loans owing to any of the partners;
      (d) a trustee of a trust or pension fund which has had in the last two years assets of at least $5 million calculated by aggregating the value of the cash and investments forming part of the trust’s or fund’s assets, but before deducting its liabilities;
      (e) a properly constituted government, government agency, central bank or other national monetary authority of any country or jurisdiction;
      (f) a public authority or state investment body;
      (g) a supranational organisation whose members are either countries, central banks or national monetary authorities;
      (h) an Authorised Firm or Regulated Financial Institution;
      (i) an Authorised Market Institution, regulated exchange or regulated clearing house;
      (j) an Undertaking which is a Holding Company or Subsidiary of an Undertaking in (h) or (i) with that undertakings consent;
      (k) a Body Corporate whose shares are listed or admitted to trading on any regulated exchange of an IOSCO member country; or
      (l) a Collective Investment Fund or Special Purpose Vehicle.
      (2)
      (a) For the purposes only of giving advice of the kind specified in (b) (i) or the making of arrangements of the kind specified in (b) (ii), a Client is a Person who appears to the Authorised Firm on reasonable grounds to be:
      (i) an individual who has at least $1 million in liquid assets; or
      (ii) an Undertaking.
      (b) For the purposes of (a):
      (i) the advice is limited to generic advice as defined under GEN Rule 2.11.1 (3); or
      (ii) the arrangements as defined under GEN Rule 2.9.1 are limited to the making of a referral to an Authorised Firm or to an entity authorised or licensed and supervised by a Financial Services Regulator.
      (3) For the purposes only of providing factoring or forfaiting services, a Client is a Person who is an Undertaking.
      (4) Any Person who does not meet the criteria in (1) or, (2) or (3) is a Retail Customer.

      CONDITIONS

      None

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue and remains in force until further notice.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : David Knott
      Position : Chief Executive
      DATE OF ISSUE: 16 September 2007

    • W 080/07 AUT — Flagstone Underwriters Middle East

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      MODIFICATION NOTICE

      To Flagstone Underwriters Middle East
      Address Unit 13, Level 12, The Gate, DIFC, Dubai, UAE
      DFSA Firm Reference No. F000626
      Notice No. W080/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      AUT 10.3.2 The Authorised Individuals referred to in Rule 10.3.1(a), (c) and (d) must be ordinarily resident in the U.A.E.

      CONDITIONS

      None.

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue and remains in force for 6 months thereafter or until further notice, whichever is the earlier.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : Joyce Maykut QC
      Position : Acting Chief Executive
      DATE OF ISSUE: 24 September 2007

    • W 081/07 COB — Merrill Lynch Bank (Suisse) S.A

      Click herehere to view the PDF

      MODIFICATION NOTICE

      To Merrill Lynch Bank (Suisse) S.A
      Address The Gate Building, 5th Floor, East Block, PO Box 3911, Dubai, United
      Arab Emirates
      DFSA Firm Reference No. F000010
      Notice No. W081/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      COB 3.2.2
      (1) Subject to (2), a Client, is a Person who the Authorised Firm has determined, prior to the establishment of a relationship is:
      (a) an individual who :
      (i) has at least $1 million in liquid assets and, if such assets are not held with the Authorised Firm, has provided the Authorised Firm with written confirmation that he has such assets of this fact or an approved entity has provided such confirmation;
      (ii) appears to the Authorised Firm after analysis, to have sufficient financial experience and understanding to participate in financial markets; and
      (iii) either:
      A. has consented in writing to being treated as a Client; or
      B. if he was a customer of the Authorised Firm or a customer of a member of the Authorised Firm’s Group immediately prior to the firm’s authorisation by the DFSA has received, from the firm, a one way written notification advising him that he will be treated as a Client for the purposes of the DFSA Rules and has not objected to being treated as such prior to his business being transferred to the Authorised Firm;
      (b)……….and so on as per the Rulebook text up to and including (l).
      (2)……as per the Rulebook text….
      (3) For the purposes of (1)(a)(i), an ‘approved entity" means:
      B. a Regulated Financial Institution in a Zone 1 country;
      B. a Bank regulated by the Central Bank of the UAE;
      B. an Authorised Firm;
      B. an Ancillary Services Provider providing Accountancy Services;
      B. an Auditor; or
      B. an auditor entitled to practice that profession in a Zone 1 country.
      (4) A personal investment vehicle or the trustee of such a vehicle is a Client if it is established and operated for the sole purpose of providing a vehicle to facilitate efficient management of the investment portfolio of an individual who is a Client under (1) including, if applicable, the investment portfolio of any Close Relative of that Client.
      (5) For the purposes of (4), the term Close Relative includes grandchildren of the Client.
      (6) For the purposes of (4), a Personal Investment Vehicle must be a:
      (a) Body Corporate;
      (b) Partnership;
      (c) Trust; or
      (d) foundation;
      (7) Where individuals have linked or joint Bank accounts, a Close Relative of the primary accountholder is a Client, if the primary account holder is a Client under (1), but only in circumstances where either:
      (a) that Close Relative fulfils the requirement (1)(a)(ii) and (iii); or
      (b) in accordance with the provisions of a legal document all Transactions between the Authorised Firm and the Close Relative are agreed by the primary account holder.
      (8) (3) Any Person who does not meet the criteria in (1), or (2), (4) or (7) is a Retail Customer.
      COB 3.2.6
      (1) An Authorised Firm must keep records of the verification process undertaken under COB Rule 3.2.5 for each Client including any documents which evidence the Client’s status
      (2) If the Client in (1) is an individual the records must include the analysis undertaken, the reasons for the Authorised Firm concluding that the individual merits classification as a Client, and the Client’s written consent to be treated as a Client, and where an individual was a customer of the Authorised Firm’s Group immediately prior to the effective date of this notice, a copy of the one way written notification, advising the customer that the customer will be treated as a Client for the purposes of the DFSA Rules.
      (3) These records must be kept for at least six years from the date on which the business relationship has ended. If the date on which the business relationship ended remains unclear it may be taken to have ended on the date of the completion of the last Transaction.
      (4) If an individual is classified as a Close Relative for the purposes of COB Rule 3.2.2(4) or (7) then the records must include documents which evidence that individual’s status as a Close Relative and, where relevant, the legal documentations referred to in COB Rule 3.2.2(7)(b).
      COB 8.1.1
      (1) Subject to Rules COB 8.1.2 and COB 8.1.3 an Authorised Firm must before conducting Investment Business with a Client provide him with a client agreement containing the matters referred to in COB Rule 8.1.4 or if impractical to do so, provide it within a reasonable period.
      (2) The Authorised Firm must, for Clients who were customers of the Authorised Firm’s Group immediately prior to the effective date of this notice, advise the Clients by way of a one way notification, of the new regulatory status of the Authorised Firm and that the customer will be treated as a Client for the purposes of the DFSA Rules.

      CONDITIONS

      None

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue of this notice and remains in force until further notice.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : Michael Zamorski
      Position : Managing Director—Supervision
      DATE OF ISSUE: 8 October 2007

    • W 082/07 PIB — Lehman Brothers International (Europe)

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      WAIVER AND MODIFICATION NOTICE

      To Lehman Brothers International (Europe)
      Address Building 6, Level 6
      DIFC, P.O.Box 506535
      Dubai, UAE
      DFSA Firm Reference No. F000278
      Notice No. W082/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      1. The Rules specified in Table A herein do not apply to the above mentioned Person.

      AND

      2. The Rules specified in the left hand column of Table B herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES WAIVED

      As a consequence of waiving the Rules below, Table 2 in PIB chapter 1 is to be construed accordingly.

      TABLE A
      PIB module Rule
      PIB Chapter 1 (General Requirements) All the Rules in section 1.4 (Trading Book)
      PIB Chapter 2 (Capital) All the Rules in Chapter 2
      PIB Chapter 4 (Credit Risk) All the Rules in section 4.3 to section 4.10 inclusive
      PIB Chapter 5 (Market Risk) All the Rules in section 5.3 to section 5.9 inclusive
      PIB Chapter 7 (Group Risk) All the Rules in section 7.3 and section 7.4

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      TABLE B
      Rule Modified Text
      PIB Rule 1.2.1

      An Authorised Firm must:

      (a) have and maintain at all times financial resources of the kinds and amounts specified in, and calculated in accordance with, the Rules in this module; and
      (b) ensure that it maintains financial resources in addition to the requirement in (a) which are adequate in relation to the nature, size and complexity of its business to ensure that there is no significant risk that liabilities cannot be met as they fall due.

      CONDITIONS

      This notice waiving and modifying prudential Rules remains in effect for the duration or the period set out below on condition that the above named Person to whom this notice applies:

      (a) remains classified as a Category 1 or 2 Authorised Firm;
      (b) complies with its home state Financial Services Regulator’s prudential requirements and submits to the DFSA, a copy of every capital adequacy summary report submitted to the home state Financial Services Regulator within ten business days of the due date for submission to that regulator; and
      (c) in the event of any anticipated or actual breach of any prudential requirements which requires notification to the home state Financial Services Regulator, provides to the DFSA such notification forthwith with any relevant documents.

      If any one or more of the conditions stated above is breached, this notice ceases to have effect forthwith and the Rules specified in Table A and Table B herein apply to the above mentioned Person as set out in the applicable module of the Rulebook in force at the relevant time.

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue of this notice and remains in force until further notice.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : Michael Zamorski
      Position : Managing Director Supervision
      DATE OF ISSUE : 8 October 2007

    • W 083/07 GEN — Argent Financial Group International LLP

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      MODIFICATION NOTICE

      To Argent Financial Group International LLP
      Address DIFC Building 3, Floor 3. The Gate. PO Box 50650.
      Dubai.UAE
      DFSA Firm Reference No. F000116
      Notice No. W083/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      GEN 8.2.1
      (1) An Authorised Person must prepare and maintain all financial accounts and statements in accordance with:
      (a) the International Financial Reporting Standards (IFRS); or
      (b) the generally accepted accounting principles of United Kingdom (UK GAAP);

      unless (2) or (3) applies.
      (2) If an Authorised Firm is an Islamic Financial Institution it must prepare and maintain all financial accounts and statements in accordance with the accounting standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
      (3) If an Authorised Person operates an Islamic Window it must prepare and maintain all financial accounts and statements in accordance with the IFRS, as supplemented by AAOIFI FAS 18 in respect of its Islamic Financial Business.
      GEN 8.6.1 An Authorised Firm or Authorised Market Institution, as applicable, must in writing require its auditor to:
      (a) conduct an audit of the Authorised Person’s accounts in accordance with the requirements of the relevant standards published by:
      (i) the International Auditing and Assurance Standards Board (IAASB) or the Auditing Standards issued by the UK Auditing Practices Board (APB), in respect of conventional financial business; and
      (ii) the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in respect of any Islamic Financial Business undertaken;
      (b) produce a report on the audited accounts which states:
      (i) whether, in the auditor’s opinion, the accounts have been properly prepared in accordance with the requirements imposed by this chapter;
      (ii) in particular, whether the accounts give a true and fair view of the financial position of the Authorised Person for the financial year and of the state of the Authorised Person’s affairs at the end of the financial year end; and
      (iii) any other matter or opinion relating to the requirements of this chapter;
      (c) produce an Auditor’s Annual Report which states whether:
      (i) the auditor has audited the Authorised Person’s annual financial statements in accordance with the IAASB or APB auditing standards or AAOIFI auditing standards in respect of Islamic Financial Business;
      (ii) the auditor has carried out any other procedures considered necessary, having regard to the IAASB or APB auditing standards and to AAOIFI auditing standards in respect of Islamic Financial Business;
      (iii) the auditor has received all necessary information and explanations for the purposes of preparing this report to the DFSA;
      (iv) …………………………..and so on as per the Rulebook text up to and including (h).

      CONDITIONS

      The Modification remains in effect for the duration of the period set out below on condition that the above named Person to whom this notice applies carries on Financial Services through a Branch in the DIFC.

      If any one or more of the conditions stated above is breached, this notice ceases to have effect forthwith and the Rules specified in the table herein apply to the above mentioned Person in their unmodified form as they appear in the applicable module of the Rulebook in force at the relevant time.

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue of this notice and remains in force until 31 December 2009 or until further notice, whichever is the earlier.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : Michael Zamorski
      Position : Managing Director, Supervision
      DATE OF ISSUE: 10th October 2007

    • W 084/07 AUT — Lazard Middle East Limited

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      MODIFICATION NOTICE

      To Lazard Middle East Limited
      Address The Gate Building, DIFC
      Level 15 Business Centre, Office 46
      PO Box 506644, Dubai
      United Arab Emirates
      DFSA Firm Reference No. F000567
      Notice No. W084/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      AUT 10.3.2 The Authorised Individuals referred to in AUT Rule 10.3.1(a), (c) and (d) must be ordinarily resident in the U.A.E.

      CONDITIONS

      None.

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue and remains in force for 6 months thereafter or until further notice, whichever is the earlier.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : Joyce C Maykut QC
      Position : Acting Chief Executive
      DATE OF ISSUE: 15th October 2007

    • W 085/07 COB — FFA (Dubai) Limited

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      MODIFICATION NOTICE

      To FFA (Dubai) Limited
      Address Office #37, Level 15, The Gate Building, Dubai International
      Financial Centre, Dubai, United Arab Emirates
      DFSA Firm Reference No. F000240
      Notice No. W085/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      COB 3.2.2
      (1) Subject to (2), a Client, is a Person who the Authorised Firm has determined, prior to the establishment of a relationship is:
      (a) an individual who :
      (i) has at least $1 million in liquid assets and, if such assets are not held with the Authorised Firm, has provided the Authorised Firm with written confirmation that he has such assets of this fact or an approved entity has provided such confirmation;
      (ii) appears to the Authorised Firm after analysis, to have sufficient financial experience and understanding to participate in financial markets; and
      (iii) either:
      A. has consented in writing to being treated as a Client; or
      B. if he was a customer of the Authorised Firm or a customer of a member of the Authorised Firm’s Group immediately prior to the firm’s authorisation by the DFSA has received, from the firm, a one way written notification advising him that he will be treated as a Client for the purposes of the DFSA Rules and has not objected to being treated as such prior to his business being transferred to the Authorised Firm;
      (b)……….and so on as per the Rulebook text up to and including (l).
      (2)……as per the Rulebook text….
      (3) For the purposes of (1)(a)(i), an ‘approved entity’ means:
      B. a Regulated Financial Institution in a Zone 1 country;
      B. a Bank regulated by the Central Bank of the UAE;
      B. an Authorised Firm;
      B. an Ancillary Services Provider providing Accountancy Services;
      B. an Auditor; or
      B. an auditor entitled to practice that profession in a Zone 1 country.
      (4) A personal investment vehicle or the trustee of such a vehicle is a Client if it is established and operated for the sole purpose of providing a vehicle to facilitate efficient management of the investment portfolio of an individual who is a Client under (1) including, if applicable, the investment portfolio of any Close Relative of that Client.
      (5) For the purposes of (4), the term Close Relative includes grandchildren of the Client.
      (6) For the purposes of (4), a Personal Investment Vehicle must be a:
      (a) Body Corporate;
      (b) Partnership;
      (c) Trust; or
      (d) foundation;
      (7) Where individuals have linked or joint Bank accounts, a Close Relative of the primary accountholder is a Client, if the primary account holder is a Client under (1), but only in circumstances where either:
      (a) that Close Relative fulfils the requirement (1)(a)(ii) and (iii); or
      (b) in accordance with the provisions of a legal document all Transactions between the Authorised Firm and the Close Relative are agreed by the primary account holder.
      (8) (3) Any Person who does not meet the criteria in (1), or (2), (4) or (7) is a Retail Customer.
      COB 3.2.6
      (1) An Authorised Firm must keep records of the verification process undertaken under COB Rule 3.2.5 for each Client including any documents which evidence the Client’s status.
      (2) If the Client in (1) is an individual the records must include the analysis undertaken, the reasons for the Authorised Firm concluding that the individual merits classification as a Client, and the Client’s written consent to be treated as a Client, and where an individual was a customer of the Authorised Firm’s Group immediately prior to the effective date of this notice, a copy of the one way written notification, advising the customer that the customer will be treated as a Client for the purposes of the DFSA Rules.
      (3) These records must be kept for at least six years from the date on which the business relationship has ended. If the date on which the business relationship ended remains unclear it may be taken to have ended on the date of the completion of the last Transaction.
      (4) If an individual is classified as a Close Relative for the purposes of COB Rule 3.2.2(4) or (7) then the records must include documents which evidence that individual’s status as a Close Relative and, where relevant, the legal documentations referred to in COB Rule 3.2.2(7)(b).
      COB 8.1.1
      (1) Subject to COB Rule 8.1.2 and COB Rule 8.1.3 an Authorised Firm must before conducting Investment Business with a Client provide him with a client agreement containing the matters referred to in COB Rule 8.1.4 or if impractical to do so, provide it within a reasonable period.
      (2) The Authorised Firm must, for Clients who were customers of the Authorised Firm’s Group immediately prior to the effective date of this notice, advise the Clients by way of a one way notification, of the new regulatory status of the Authorised Firm and that the customer will be treated as a Client for the purposes of the DFSA Rules.

      CONDITIONS

      None

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue of this notice and remains in force until further notice.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : Joyce Maykut QC
      Position : Acting Chief Executive
      DATE OF ISSUE: 16 October 2007

    • W 086/07 AUT — Tokio Marine Middle East Limited

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      MODIFICATION NOTICE

      To Tokio Marine Middle East Limited
      Address Office 6, Level 1, GV5
      PO Box 506616
      The Gate Village, DIFC, Dubai
      United Arab Emirates
      DFSA Firm Reference No. F000609
      Notice No. W086/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to the Person in the modified form prescribed in that table.

      RULES MODIFIED

      The Rules specified in the left hand column below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. The entire Rule may not be reproduced in the table. In such circumstances un-altered parts of the Rule will be referred to by the relevant paragraph numbers or letters, as the case may be.

      Rule Modified Text
      AUT 10.3.2 The Authorised Individuals referred to in Rule 10.3.1(a), (c) and (d) must be ordinarily resident in the U.A.E.

      CONDITIONS

      None.

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue of this notice and remains in force for 6 months thereafter or until further notice, whichever is the earlier.

      If any one or more of the conditions stated above are breached, this notice ceases to have effect forthwith and the Rules specified in the left hand column of the table herein apply to the above mentioned Person in their unmodified form as they appear in the applicable module of the Rulebook in force at the relevant time. It is the above mentioned Person’s responsibility to take any action it deems appropriate in reasonable time before, or when, this notice ceases to have effect to ensure compliance with the applicable unmodified Rules.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : Joyce C Maykut QC
      Position : Acting Chief Executive
      DATE OF ISSUE: 22nd October 2007

    • W 087/07 AUT — BNY Mellon Asset Management International Limited

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      MODIFICATION NOTICE

      To BNY Mellon Asset Management International Limited,
      (formerly Mellon Global Investments Limited
      Address Suite 9, Level 5, West Precinct 3
      The Gate District
      DIFC, P O Box 506522, Dubai
      United Arab Emirates
      DFSA Firm Reference No. F00007
      Notice No. W087/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      AUT 10.3.2 The Authorised Individuals referred to in Rule 10.3.1(a), (c) and (d) must be ordinarily resident in the U.A.E.

      CONDITIONS

      None.

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue and remains in force for 6 months thereafter or until further notice, whichever is the earlier.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : Michael Zamorski
      Position : Managing Director, Supervision
      DATE OF ISSUE: 29 October 2007

    • W 093/07 COB — Société Générale Bank & Trust

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      MODIFICATION NOTICE

      To Société Générale Bank & Trust
      Address Level 4, Gate Village 6, DIFC
      PO Box 506642
      Dubai, United Arab Emirates
      DFSA Firm Reference No. F000401
      Notice No. W093/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains un-altered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      COB 3.2.2
      (1) Subject to (2), a Client, is a Person who the Authorised Firm has determined, prior to the establishment of a relationship is:
      (a) an individual who :
      (i) has at least $1 million in liquid assets and, if such assets are not held with the Authorised Firm, has provided the Authorised Firm with written confirmation that he has such assets of this fact or an approved entity has provided such confirmation;
      (ii) appears to the Authorised Firm after analysis, to have sufficient financial experience and understanding to participate in financial markets; and
      (iii) either:
      A. has consented in writing to being treated as a Client; or
      B. if he was a customer of the Authorised Firm or a customer of a member of the Authorised Firm’s Group immediately prior to the firm’s authorisation by the DFSA has received, from the firm, a one way written notification advising him that he will be treated as a Client for the purposes of the DFSA Rules and has not objected to being treated as such prior to his business being transferred to the Authorised Firm;
      (b)……….and so on as per the Rulebook text up to and including (l).
      (2)……as per the Rulebook text….
      (3) For the purposes of (1)(a)(i), an ‘approved entity’ means:
      (a) a Regulated Financial Institution in a Zone 1 country;
      (b) a Bank regulated by the Central Bank of the UAE;
      (c) an Authorised Firm;
      (d) an Ancillary Services Provider providing Accountancy Services;
      (e) an Auditor; or
      (f) an auditor entitled to practice that profession in a Zone 1 country.
      (4) A personal investment vehicle or the trustee of such a vehicle is a Client if it is established and operated for the sole purpose of providing a vehicle to facilitate efficient management of the investment portfolio of an individual who is a Client under (1) including, if applicable, the investment portfolio of any Close Relative of that Client.
      (5) For the purposes of (4), the term Close Relative includes grandchildren of the Client.
      (6) For the purposes of (4), a Personal Investment Vehicle must be a:
      (a) Body Corporate;
      (b) Partnership;
      (c) Trust; or
      (d) foundation;
      (7) Where individuals have linked or joint Bank accounts, a Close Relative of the primary accountholder is a Client, if the primary account holder is a Client under (1), but only in circumstances where either:
      (a) that Close Relative fulfils the requirement (1)(a)(ii) and (iii); or
      (b) in accordance with the provisions of a legal document all Transactions between the Authorised Firm and the Close Relative are agreed by the primary account holder.
      (8) (3) Any Person who does not meet the criteria in (1), or (2), (4) or (7) is a Retail Customer.
      COB 3.2.6
      (1) An Authorised Firm must keep records of the verification process undertaken under Rule 3.2.5 for each Client including any documents which evidence the Client’s status.
      (2) If the Client in (1) is an individual the records must include the analysis undertaken, the reasons for the Authorised Firm concluding that the individual merits classification as a Client, and the Client’s written consent to be treated as a Client, and where an individual was a customer of the Authorised Firm’s Group immediately prior to the effective date of this notice, a copy of the one way written notification, advising the customer that the customer will be treated as a Client for the purposes of the DFSA Rules.
      (3) These records must be kept for at least six years from the date on which the business relationship has ended. If the date on which the business relationship ended remains unclear it may be taken to have ended on the date of the completion of the last Transaction.
      (4) If an individual is classified as a Close Relative for the purposes of Rule 3.2.2(4) or (7) then the records must include documents which evidence that individual’s status as a Close Relative and, where relevant, the legal documentations referred to in Rule 3.2.2(7)(b).
      COB 8.1.1
      (1) Subject to Rules 8.1.2 and 8.1.3 an Authorised Firm must before conducting Investment Business with a Client provide him with a client agreement containing the matters referred to in Rule 8.1.4 or if impractical to do so, provide it within a reasonable period.
      (2) The Authorised Firm must, for Clients who were customers of the Authorised Firm’s Group immediately prior to the effective date of this notice, advise the Clients by way of a one way notification, of the new regulatory status of the Authorised Firm and that the customer will be treated as a Client for the purposes of the DFSA Rules.

      CONDITIONS

      None

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue of this notice and remains in force until further notice.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : David Knott
      Position : Chief Executive
      DATE OF ISSUE: 4th December 2007

    • W GIC-07 COB — Gulf Investment Corporation

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      MODIFICATION NOTICE

      To Gulf Investment Corporation
      Address Sharq Jaber Al Mubarak Street, P O Box 3402, Safat 13035
      DFSA Firm Reference No. N/A
      Notice No. WGIC/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in the table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 23 May 2007 and expires on 23 May 2008 or the date on which Gulf Investment Corporation becomes an Authorised Firm, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is CIR/VER5/06/07.

      Rule Modified Text
      CIR 6.3.2
      (1) An Eligible Custodian is a Person who is a separate legal entity to the Operator and is:
      (a) an Authorised Firm whose Licence authorises it to Provide Custody Services;
      (b) an Authorised Firm which is a Bank;
      (c) an Authorised Market Institution: or
      an Undertaking subject to equivalent regulation as provided in (2).
      (2) An Undertaking is subject to equivalent regulation for the purposes of (1) if:
      (a) it is authorised and supervised by a Financial Services Regulator in a Recognised Jurisdiction for providing custody services and is subject to a minimum capital requirement of $10 million or its equivalent in any other currency at the relevant time and has had surplus revenue over expenditure for the last two financial years;
      (b) it, or its holding company, is graded by an internationally recognised rating agency such as Moody’s or Standard & Poor’s as at least “investment grade” in respect of its financial strength and which is subject to regulation by a Financial Services Regulator or banking Regulator, in another jurisdiction which is a Zone 1 country; or
      (c) it is authorised or recognised to by a Financial Services Regulator to operate as an exchange or a clearing house in a Recognised Jurisdiction.
      (3) The Gulf Investment Corporation is an Eligible Custodian for the purposes only of providing custodial services for Foreign Funds as long as it remains a ‘sovereign entity’ that is, an entity that is and remains:
      (a) controlled by the Governments of the six GCC States;
      (b) 100% owned by those Governments;
      (c) rated or graded as at least ‘investment grade’ by Moody’s, Fitch or Standard & Poor’s or such other international rating agency as may be recognised by the DFSA; and
      (d) regulated by the Central Bank of Kuwait.

      CONDITIONS

      The modifications in respect of the Rules specified above remain in effect for the duration of the period set out above on condition that:

      (a) Gulf Investment Corporation discloses this modification notice to the Operator of any Fund for which it intends to act in circumstances where the Units of the Fund are to be offered in or from the DIFC.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : David W Knott
      Position : Chief Executive
      Date : 23 May 2007

    • W 048/07 AUT — FIMBank p.l.c.

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      MODIFICATION NOTICE

      To FIMBank p.l.c.
      Address Dubai International Financial Centre
      Business Centre Office 12
      Level 12, The Gate, PO Box 506554
      Dubai, United Arab Emirates
      DFSA Firm Reference No. F000262
      Notice No. W048/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in the table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 29 May 2007 and expires on 29 August 2007 or the date on which any Rule specified herein is amended, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is AUT/VER7/02-07.

      Rule Modified Text
      AUT 10.3.2 The Authorised Individuals referred to in Rule 10.3.1(a), (c) and (d) must be ordinarily resident in the U.A.E.

      CONDITIONS

      The modifications in respect of the Rules specified above remain in effect for the duration of the period set out above on condition that:

      None.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : David W. Knott
      Position : Chief Executive
      Date : 29 May 2007

    • W 051/07 GEN — Merrill Lynch International

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      MODIFICATION NOTICE

      To Merrill Lynch International
      Address Level 5 East Wing, The Gate Building. PO Box 3911. Dubai.
      UAE
      DFSA Firm Reference No. F000216
      Notice No. W051/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply to that Person in the modified form prescribed in the table below.

      This notice is issued by the DFSA under Article 25 of the Regulatory Law 2004.

      Effective date: This notice comes into effect on 30th May 2007 and expires on 29 November 2008 or the date on which any Rule specified herein is amended, which ever is the earlier.

      RULES MODIFIED

      The Rules listed in the left hand column of the table below are modified as shown in the right hand column of the table. In this table, underlining indicates new text and striking through indicates deleted text.

      The version of Rules to which this notice relates is GEN/VER13/02-07.

      Rule Modified Text
      GEN 8.2.1
      (1) An Authorised Person must prepare and maintain all financial accounts and statements in accordance with:
      (a) the International Financial Reporting Standards (IFRS); or
      (b) the generally accepted accounting principles of the United Kingdom (UK GAAP);
      unless (2) or (3) applies.
      (2) If an Authorised Firm is an Islamic Financial Institution it must prepare and maintain all financial accounts and statements in accordance with the accounting standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
      (3) If an Authorised Person operates an Islamic Window it must prepare and maintain all financial accounts and statements in accordance with the IFRS, as supplemented by AAOIFI FAS 18 in respect of its Islamic Financial Business.
      GEN 8.6.1 An Authorised Firm or Authorised Market Institution, as applicable, must in writing require its auditor to:
      (a) conduct an audit of the Authorised Person’s accounts in accordance with the requirements of the relevant standards published by:
      (i) the International Auditing and Assurance Standards Board (IAASB) or the Auditing Standards issued by the UK Auditing Practices Board (APB), in respect of conventional financial business; and
      (ii) the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in respect of any Islamic Financial Business undertaken;
      (b) produce a report on the audited accounts which states:
      (i) whether, in the auditor’s opinion, the accounts have been properly prepared in accordance with the requirements imposed by this chapter;
      (ii) in particular, whether the accounts give a true and fair view of the financial position of the Authorised Person for the financial year and of the state of the Authorised Person’s affairs at the end of the financial year end; and
      (iii) any other matter or opinion relating to the requirements of this chapter;
      (c) produce an Auditor’s Annual Report which states whether:
      (i) the auditor has audited the Authorised Person’s annual financial statements in accordance with the IAASB or APB and AAOIFI in respect of Islamic Financial Business;
      (ii) the auditor has carried out any other procedures considered necessary, having regard to the IAASB or APB and to AAOIFI auditing standards in respect of Islamic Financial Business;
      (iii) the auditor has received all necessary information and explanations for the purposes of preparing this report to the DFSA;
      (iv) …………………………..and so on up to and including (h)…………………....

      CONDITIONS

      None

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      This notice was issued by:

      Name : Joyce C. Maykut QC
      Position : General Counsel
      Date : 30 May 2007

    • W 069/07 GEN — Concord Energy Dubai Limited

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      MODIFICATION NOTICE

      To Concord Energy Dubai Limited
      Address Level 41,
      Emirates Towers,
      P.O Box 31303,
      Dubai, UAE
      DFSA Firm Reference No. F000536
      Notice No. W069/2007

      THE DFSA HEREBY GIVES NOTICE THAT:

      The Rules specified in the left hand column of the table herein do not apply to the above mentioned Person in the form appearing in the Rulebook but instead apply as modified in the right hand column of the table.

      RULES MODIFIED

      The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.

      Rule Modified Text
      GEN 2.3.2
      (1) Subject to GEN Rule 2.3.5, a Person does not carry on an activity specified under paragraphs (a), (b), (c), (d), (e), (f), (g), (h), (j), (k), (p), (q) and (r) of GEN Rule 2.2.2 by way of business if:
      (a) the Person enters into transactions solely as a nominee for another Person and is bound to and does act on that other Person’s instructions;
      (b) the Person is a Body Corporate and carries on that activity solely as principal with or for other Bodies Corporates:
      (i) which are within the same Group as that Person; or
      (ii) which are or propose to become participators in a joint enterprise and the transaction is entered into for the purposes of or in connection with that enterprise;
           and for the purposes of the activities specified in paragraphs (g), (j), (k) and (r) of GEN Rule 2.2.2 the assets in question belong to a Body Corporate falling within (i) or (ii); or
      (c) the Person carries on the activity solely for the purposes of or in connection with the sale of goods or the supply of services to a customer of the Person or a member of the same Group, provided that:
      (i) the supplier’s main business is to sell goods or supply services and not to carry on any Financial Service; and
      (ii) the customer is not an individual;
           and for the purposes of the activities specified in paragraphs (g), (j), (k) and (r) of GEN Rule 2.2.2 the assets in question belong to that customer or member.
      (2) A Person who is a Body Corporate that is constituted in the DIFC does not carry on the activity specified under paragraph (d) or (e) of GEN Rule 2.2.2. by way of business, provided that the Person:
      (a) carries on that activity as a member of an Authorised Market Institution or Recognised Body;
      (b) carries on that activity for its own account or for another Body Corporate which is in the same Group as the Person, provided that any such member of the Group for which the Person acts is a wholly-owned Subsidiary of the Holding Company or is the Holding Company itself;
      (c) is and continues to be of good standing and repute and has and continues to have adequate and relevant expertise in relation to such activity; and
      (d) restricts that activity to transactions involving or relating only to Commodity Derivatives on that Authorised Market Institution or Recognised Body.

      CONDITIONS

      The modification in respect of the Rules specified above remain in effect for the duration of the period set out below on condition that the Person to whom this notice applies immediately informs the DFSA in writing of any matter which affects or will affect its good standing and repute or that of its Holding Company or any of its corporate controllers.

      If any one or more of the conditions stated above is breached, this notice ceases to have effect forthwith and the Rules specified in the table herein apply to the above mentioned Person in their unmodified form as they appear in the applicable module of the Rulebook in force at the relevant time.

      EFFECTIVE PERIOD

      This notice comes into effect on the date of issue of this notice and remains in force until further notice.

      INTERPRETATION

      The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.

      Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

      THIS NOTICE IS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:

      Name : David Knott
      Position : Chief Executive Officer
      DATE OF ISSUE: 30 August 2007