Permitted Financial Services for Authorised Firms
Pursuant to Article 42(1)(a) of the Regulatory Law 2004 an
Authorised Firm, subject to the Rules, may carry on any one or more Financial Services.Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
[Amended] DFSA RM34/2006 [VER11/08-06]
[Amended] DFSA RM68/2009 (Made 3rd January 2010). [VER24/01-10]
[Amended] DFSA RM72/2010 (Made 11th July 2010) [VER26/07-10]
Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]
[Amended] DFSA RMI266/2020 (Made 26th February 2020). [VER48/04-20]
Financial Servicesof Effecting Contracts of Insuranceand Carrying Out Contracts of Insurancemay be carried on only by an Authorised Firmwhich by virtue of its Licenceis permitted to carry on such Financial Servicesand no other Financial Services.
Financial Serviceof Managing a Profit Sharing Investment Accountmay be carried on only by an Authorised Firmwhich by virtue of an appropriate endorsement on its Licenceis permitted to conduct Islamic Financial Business.
Financial Serviceof Managinga Collective Investment Fundmay be carried on in respect of an Islamic Fundonly by an Operatorwhich by virtue of an appropriate endorsement on its Licenceis permitted to conduct Islamic Financial Business.
GEN 2.2.7A GEN 2.2.7A(1) An
Authorised Firmmay use a Fund Platform only if it:(a) is a Fund Manager; and(b) has an endorsement on its Licencepermitting it to use the Fund Platform.(2) In (1), an Authorised Firmuses a Fund Platformif it uses an Incorporated Cell Company (ICC) to provide infrastructure that facilitates the establishment, management, operation or winding up of a Fund that is an Incorporated Cell of the ICC.Derived from DFSA RMI247/2019 (Made 18th December 2019). [VER45/12-19]
GEN 2.2.7A Guidance1. A Fund Platform is an Incorporated Cell Company (ICC) that provides infrastructure to one or more Funds that are Incorporated Cells of the ICC.2. Infrastructure that facilitates a Fund Manager to manage Funds may include common rules and procedures, technical facilities, human resources, risk management tools and procedures, compliance and oversight facilities and other infrastructure relating to fund administration and asset management activities.3. Both CIR and the ICC Regulations contain additional requirements that apply to a Fund Manager using a Fund Platform.Derived from DFSA RMI247/2019 (Made 18th December 2019). [VER45/12-19]
GEN 2.2.8(1) An Authorised Firm may carry on a Financial Service with or for a Retail Client only if it is permitted to do so by an endorsement on its Licence.(2) An endorsement under (1) is not required by an Authorised Firm when:(a) Operating an Employee Money Purchase Scheme; or(b) Acting as the Administrator of an Employee Money Purchase Scheme.
Authorised Firmwhich is licenced to carry on the Financial Serviceof Operating a Representative Officemay not be licenced to carry on any other Financial Service.
Authorised Firm(other than a Representative Office) may carry on an activity of the kind described in GEN Rule 2.26.1 that constitutes marketing without the need for any additional authorisation to do so.
GEN 2.2.10A(1) An
Authorised Firmmay hold or control Client Assetsonly if it is permitted to do so by an endorsement on its Licence.(2) In (1), the expression "hold or control Client Assets" has the meaning given in COB Rule 6.11.4.(3) An endorsement under (1) is not required by an Authorised Firmthat has an authorisation for Providing Custody.Derived from DFSA RM166/2016 (Made 10th February 2016). [VER36/04-16]
Insurance Intermediaryor Insurance Managermay hold Insurance Moniesonly if it is permitted to do so by an endorsement on its Licence.Derived from DFSA RM166/2016 (Made 10th February 2016). [VER36/04-16]
Insurance Intermediarymay conduct Insurance Intermediationactivities in respect of a contract of Long-Term Insurance, that is not a contract of reinsurance, only if it is permitted to do so by an endorsement on its Licence.Derived from DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]
Financial Serviceof Operating a Crowdfunding Platformmay be carried on only by a Body Corporateincorporated under the DIFC Companies Law.[Added] DFSA RMI201/2017 (Made 14th June 2017). [VER40/08-17]
Crowdfunding Operatormust not carry on the following activities:(a) Managing Assets;(b) Advising on Financial Products;(c) Managing a Collective Investment Fund; or(d) Advising on Credit.[Added] DFSA RMI201/2017 (Made 14th June 2017). [VER40/08-17]
Crowdfunding Operatormust not Operate a Crowdfunding Platformthat facilitates a Personinvesting in the following kinds of Investmentsthrough the platform:a) Warrants, Unitsor Structured Products; orb) Derivatives.
GEN 2.2.10G GEN 2.2.10G
An Authorised Firm must not carry on currency exchange in the DIFC unless that activity is in connection with, and a necessary part of, providing another Financial Service, including another Money Service activity referred to in paragraphs (b) to (f) of GEN Rule 2.6.1(1).Derived from DFSA RMI266/2020 (Made 26th February 2020). [VER48/04-20]
GEN 2.2.10G Guidance1. Providing currency exchange, although a specified Money Service under GEN Rule 2.6.1(1)(a), cannot be provided as a stand-alone financial service in or from the DIFC. An Authorised Firm may however provide currency exchange where it is in connection with, and a necessary part of, providing another Money Service or another Financial Service (see GEN Rule 2.2.10G). An Authorised Firm may also arrange for another person outside the DIFC to provide a currency exchange service if the Authorised Firm is authorised to Arrange or Advise on Money Services (see GEN Rule 2.32.1).2. An Authorised Firm that Provides Money Services is also subject to further restrictions relating to not using physical cash and the settlement of Dirham transactions (see COB section 13.2).Derived from DFSA RMI266/2020 (Made 26th February 2020). [VER48/04-20]
GEN 2.2.10H GEN 2.2.10H(1) An Authorised Firm must not Operate or Act as the Administrator of an Employee Money Purchase Scheme to which this Rule applies, unless the Scheme is established in the DIFC.(2) This Rule applies to an Employee Money Purchase Scheme if the Scheme receives contributions that are required to be made by an employer under:(a) the Employment Law; or(b) another Dubai law.Derived from DFSA RMI301/2021 (Made 30th June 2021). [VER52/09-21]
GEN 2.2.10H Guidance
An Authorised Firm can act as the Operator or Administrator of two types of Employee Money Purchase Schemes: a scheme established in the DIFC (a “DIFC Scheme”) or a scheme established outside the DIFC (a “Non-DIFC Scheme”). However, under GEN Rule 2.2.10H, an Authorised Firm is prohibited from Operating or Acting as the Administrator of a Non-DIFC Scheme where that Scheme receives employer contributions required to be made under the Employment Law or another Dubai law. The prohibition does not apply to the operation or administration of Non-DIFC Schemes that fall within the exclusion in GEN Rule 2.3.7.Derived from DFSA RMI301/2021 (Made 30th June 2021). [VER52/09-21]