Entire Section

  • GEN 7.5 GEN 7.5 Mandatory appointments

    • GEN 7.5.1 GEN 7.5.1

      (1) An Authorised Firm must, subject to (2) and (3), make the following appointments and ensure that they are held by one or more Authorised Individuals at all times:
      (a) Senior Executive Officer;
      (b) Finance Officer;
      (c) Compliance Officer; and
      (d) Money Laundering Reporting Officer.
      (2) An Authorised Firm which is a Credit Rating Agency:
      (a) need not make the appointment referred to in (1)(b) and (d); and
      (b) must ensure that the appointments referred to in 1(a) and (c) are held by separate Authorised Individuals at all times.
      (3) An Authorised Firm need not make the appointment referred to in (1)(b) if the only Financial Service it carries on is Managing a Venture Capital Fund.
      Derived from Notice of Amendments to Legislation April 2011 [VER27/02-11]
      [Amended] DFSA RM96/2012 (Made 24th July 2012). [VER30/07-12]
      [Amended] DFSA RM278/2020 (Made 28th October 2020). [VER49/11-20]

      • GEN 7.5.1 Guidance

        1. This Guidance addresses a range of circumstances:
        a. one individual performing more than one function in a single firm, as contemplated in Rule 7.5.1;
        b. more than one individual performing one function in a single firm, not addressed by that Rule;
        c. one individual performing a single function in more than one firm, also not addressed by that Rule.
        2. The DFSA will only authorise an individual to perform more than one Licensed Function or combine Licensed Functions with other functions where it is satisfied that the individual is fit and proper to perform each Licensed Function or combination of Licensed Functions.
        3. In the above situation the DFSA will need to be satisfied that the individual will be able to carry out his role effectively, is fit and proper to do so, and that there are no conflicts of interest or that any actual or potential conflicts of interest are appropriately managed.
        4. Notwithstanding this Rule, an Authorised Firm would generally be expected to separate the roles of Compliance Officer and Senior Executive Officer. In addition, the roles of Compliance Officer, Finance Officer and Money Laundering Reporting Officer would not be expected to be combined with any other functions unless appropriate monitoring and control arrangements independent of the individual concerned will be implemented by the Authorised Firm. This may be possible in the case of a Branch, where monitoring and controlling of the individual (carrying out more than one role in the Branch) is conducted from the firm's home state by an appropriate individual for each of the relevant Licenced Functions. However, it is recognised that, on a case by case basis, there may be exceptional circumstances in which this may not always be practical or possible.
        5. In what it considers to be exceptional circumstances, the DFSA may register more than one individual to perform the Licensed Function of Compliance Officer in respect of different internal business divisions within a large Authorised Firm. In this regard the DFSA may consider, amongst other things, the nature, scale and complexity of the activities of the firm, the clarity of demarcation between areas of responsibility, the potential for gaps in responsibility, and processes of communication with the DFSA.
        6. The DFSA may also register an individual as the Compliance Officer for more than one Authorised Firm. The DFSA will only do this where it is satisfied that the individual is able to carry out his functions effectively in each firm taking into consideration factors such as the amount and nature of business conducted by the firms. Each Authorised Firm has a duty under GEN 5 to monitor its compliance arrangements to ensure, as far as reasonably practicable, that it complies with all legislation applicable in the DIFC.

    • GEN 7.5.2 GEN 7.5.2

      The Authorised Individuals referred to in Rule 7.5.1(1)(a), (c) and (d) must be resident in the U.A.E.

      Derived from Notice of Amendments to Legislation April 2011 [VER27/02-11]
      [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]

      • GEN 7.5.2 Guidance

        1. In appropriate circumstances, the DFSA may waive the requirement for a Compliance Officer or MLRO to be resident in the UAE. In determining whether to grant a waiver, the DFSA will consider a range of factors on a case by case basis focused on whether the firm can demonstrate that it has appropriate compliance arrangements (see GEN section 5.3). These factors may include, but are not limited to: the nature, scale and complexity of the activities of the firm; the ability of a remote officer to carry out his functions in differing time zones and a differing working week; the size, resourcing and capabilities of a remote compliance function; the ability of a remote officer to liaise and communicate readily with the DFSA; and the competency and capability of a remote officer and whether the remote officer is able effectively to undertake or supervise regular compliance monitoring and keep up to date with applicable Rules.
        2. The DFSA will also take into account factors such as the relevant regulatory experience of the proposed Authorised Individual and whether the applicant firm has previously been subject to financial services regulation.

    • GEN 7.5.4

      An Authorised Firm which is a Body Corporate (other than a Limited Liability Partnership) whose head office and registered office are located in the DIFC, must register with the DFSA all of its Directors as Licensed Directors.

    • GEN 7.5.5 GEN 7.5.5

      (1) In the case of an Authorised Firm which is a partnership established under either the DIFC General Partnership Law or Limited Liability Partnership Law, the Licensed Partner function must be carried out by:
      (a) each individual Partner who must be registered as a Licensed Partner; and
      (b) in the case of a Partner which is a Body Corporate, by an individual nominated by that Body Corporate and registered as a Licensed Partner to act on its behalf.
      (2) In the case of an Authorised Firm which is a partnership established under the DIFC Limited Partnership Law, the Licensed Partner function must be carried out by:
      (a) each individual General Partner who must be registered as a Licensed Partner; and
      (b) in the case of a General Partner which is a Body Corporate, by an individual nominated by that Body Corporate and registered as a Licensed Partner to act on its behalf.
      Derived from Notice of Amendments to Legislation April 2011 [VER27/02-11]
      [Amended] DFSA RM105/2012 (Made 23rd December 2012). [VER32/12-12]

      • GEN 7.5.5 Guidance

        An Authorised Firm that is a Branch is not required to register its Directors as Licensed Directors under Rule 7.5.4 or its Partners as a Licensed Partner under Rule 7.5.5.

        [Added] DFSA RM105/2012 (Made 23rd December 2012). [VER32/12-12]