GEN 3.2 GEN 3.2 Overview
GEN 3.2.1 GEN 3.2.1
Rulesin this chapter are made for the purposes of the Financial Promotions Prohibitionin Article 41A of the Regulatory Law.
GEN 3.2.1 Guidance1. Article 41A(3) of the Regulatory Law defines a
"Any communication, however made, which invites or induces a
Personto:(a) enter into, or offer to enter into, an agreement in relation to the provision of a financial service; or(b) exercise any rights conferred by a financial product or acquire, dispose of, underwrite or convert a financial product."2. The Guidancein this chapter is designed to help explain the scope of the Financial Promotions Prohibition.3. The definition of a Financial Promotionis very broad and encompasses the definitions of a "financial promotion" in Article 19(3) of the Collective Investment Law 2010. A Financial Promotionalso includes "marketing material" as defined elsewhere in the Rulebook.4. The DFSAconsiders that a Financial Promotionmay be made in any manner and by any form including, but not limited to, an oral, electronic or written communication and includes an advertisement, or any form of promotion or marketing. A disclaimer stating that a communication is not a Financial Promotionwould not, on its own, prevent a communication from being a Financial Promotion.5. A Personwho is permitted to make a Financial Promotionin the DIFCpursuant to these Rulesshould ensure that in making such a Financial Promotionhe does not breach the Financial Services Prohibitionin Article 41 of the Regulatory Law.6. Depending on the nature and scale of the activities, if a Personmakes Financial Promotionson a regular basis or for a prolonged period while physically located in the DIFC, for example by way of a booth, meetings or conferences, the DFSAmay consider such activities as constituting the carrying on of a Financial Service, such as Operating a Representative Office. The DFSAconsiders that in the context of Financial Promotions, "a regular basis" would be anything more than occasional and "a prolonged period" would usually be anything more than 3 consecutive days.