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  • RPP 1 RPP 1 Introduction

    • RPP 1-1 RPP 1-1 Purpose

      • RPP 1-1-1

        The purpose of the Regulatory Policy and Process (RPP) Sourcebook is to provide readers with an understanding of how the Dubai Financial Services Authority (DFSA) functions and operates and what we expect from the regulated community.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-1-2

        The RPP contains:

        (a) statements of DFSA's regulatory policy;
        (b) descriptions of the regulatory processes that we follow when exercising our statutory powers;
        (c) information as to DFSA's risk based approach to authorisation, supervision and enforcement; and
        (d) information on matters which the DFSA may assess when considering to exercise specific discretionary powers. For example, this would include those matters which the DFSA may take into consideration when making an assessment of whether an Authorised Person or Authorised Individual is fit and proper.
        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-1-3

        RPP is therefore relevant to a Person who is:

        (a) seeking to be authorised or registered by the DFSA;
        (b) al subject to applicable Laws, Rules and policies administered by the DFSA such as Authorised Persons (i.e. Authorised Firms or Authorised Market Institutions), Ancillary Service Providers, Auditors, Authorised Individuals, Principal Representatives and any other Persons subject to the DFSA's regulatory oversight; and
        (c) otherwise subject to the jurisdiction of the DFSA such as by reason of the DFSA's authority under delegated powers.
        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]
        Amended by Notice of Updates (Made 5th July 2012). July 2012 Edition

      • RPP 1-1-4

        RPP also concerns Persons who have made or intend to make:

        (a) an Offer of Securities; or
        (b) a Financial Promotion;

        in or from the DIFC.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-1-5

        The types of Person mentioned above to whom RPP is relevant are not intended to be exhaustive.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

    • RPP 1-2 RPP 1-2 Status

      • RPP 1-2-1

        The information in RPP is issued under Article 116(2) of the Regulatory Law 2004. RPP is for information purposes only and forms one of the DFSA's Sourcebook modules. RPP contains policy and process information which is indicative and non-binding.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-2-2

        RPP is not an exhaustive source of the DFSA's policy on the exercise of its statutory powers and discretion. To the extent that it sets out how the DFSA may act in certain circumstances, the information in RPP does not bind the DFSA and nor does it necessarily create a legitimate expectation for Persons who might reasonably seek to rely upon it. RPP should not be relied upon as a safe harbour by any Person.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-2-3

        Anyone reading RPP should also refer to the:

        (a) DIFC Laws, including DFSA administered Laws ("Laws");
        (b) DFSA Rulebook ("Rules"); and
        (c) other parts of the DFSA Sourcebook ("Sourcebook");

        that may impact on them.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-2-4

        The Laws and Rules set out the precise scope and effect of any particular provision referred to in RPP. If you have any doubt about a legal or other provision or your responsibilities under the Law, Rules or other relevant requirements, you should seek appropriate legal advice.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-2-5

        The Sourcebook comprises a number of modules such as the Prudential Returns (PRU) module and the Application, Forms and Notices (AFN) module.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

    • RPP 1-3 RPP 1-3 Updating the RPP

      • RPP 1-3-1

        We shall take reasonable steps to review the RPP to ensure that it remains current. We shall also make amendments where there are changes in our policy or processes in light of our regulatory experience and to reflect legal and market developments in the DIFC or in the relevant standards and practices set by international regulatory bodies. This may result in new chapters being added or existing chapters being amended or merged or deleted, as is necessary.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

    • RPP 1-4 RPP 1-4 Defined Terms

      • RPP 1-4-1

        In order to be consistent and accurate when referring to terms that have specific meaning elsewhere, defined terms are identified throughout RPP by the capitalisation of the initial letter of a word or each word of a phrase and are defined in the Glossary module (GLO) of the DFSA's Rulebook. Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

    • RPP 1-5 RPP 1-5 DFSA's Regulatory Mandate

      • RPP 1-5-1

        The DFSA is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-5-2

        The DFSA's regulatory oversight includes asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities and derivatives exchange and an international commodities derivatives exchange.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-5-3

        The DFSA's mandate is to ensure that the DIFC is one of the best regulated international financial centres in the world, a centre based on principles of integrity, transparency and efficiency.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-5-4

        The international standards adopted and applied by the DFSA in the DIFC are those set by leading international organisations such as IOSCO (International Organisation of Securities Commissions), BCBS (Basel Committee on Banking Supervision), IAIS (International Association of Insurance Supervisors) and FATF (Financial Action Task Force).

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

    • RPP 1-6 RPP 1-6 DFSA's Objectives and Guiding Principles

      • RPP 1-6-1

        In discharging its regulatory mandate, the DFSA has a statutory obligation under Article 8(3) of the Regulatory Law 2004 to pursue the following objectives:

        (a) to foster and maintain fairness, transparency and efficiency in the financial services industry (namely, the financial services and related activities carried on) in the DIFC;
        (b) to foster and maintain confidence in the financial services industry in the DIFC;
        (c) to foster and maintain the financial stability of the financial services industry in the DIFC, including the reduction of systemic risk;
        (d) to prevent, detect and restrain conduct that causes or may cause damage to the reputation of the DIFC or the financial services industry in the DIFC, through appropriate means, including the imposition of sanctions;
        (e) to protect direct and indirect users and prospective users of the financial services industry in the DIFC;
        (f) to promote public understanding of the regulation of the financial services industry in the DIFC; and
        (g) to pursue any other objectives as the Ruler of Dubai may from time to time set under DIFC Law.
        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-6-2

        In exercising its powers and performing its functions, the DFSA has regard to the following guiding principles as set out in Article 8(4) of the Regulatory Law 2004, being the desirability of:

        (a) pursuing the objectives of the DIFC as set out under Dubai Law in so far as it is appropriate and proper for the DFSA to do so;
        (b) fostering the development of the DIFC as an internationally respected financial centre;
        (c) co-operating with and providing assistance to regulatory authorities in the United Arab Emirates and other jurisdictions;
        (d) minimising the adverse effects of the activities of the DFSA on competition in the financial services industry;
        (e) using its resources in the most efficient way;
        (f) ensuring the cost of regulation is proportionate to its benefit;
        (g) exercising its powers and performing its functions in a transparent manner; and
        (h) complying with relevant generally accepted principles of good governance.
        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

    • RPP 1-7 RPP 1-7 DFSA's Regulatory Structure

      • RPP 1-7-1

        The DFSA is structured into a number of divisions and departments. For the purpose of this Sourcebook, the most relevant are as follows:

        Supervision

        (a) The Supervision Division authorises firms and individuals to conduct Financial Services in or from the DIFC. This Division also registers Ancillary Service Providers and Auditors (see Chapter 2).
        (b) This Division also conducts supervisory oversight on all Authorised Firms, Ancillary Service Providers and Auditors, including by conducting risk assessments. The scope and frequency of such assessments are dictated by the nature of the firm's activities and its perceived risks. From time to time, Supervision carries out thematic reviews inspired by topical events which have both local and international relevance (see Chapter 3).

        Markets

        (c) The Markets Division licenses and supervises Authorised Market Institutions in the DIFC (see Chapters 2 and 3).
        (d) The Division also recognises those financial markets who operate an exchange or clearing house outside the DIFC without having a physical presence in the DIFC but make their services available to Persons in the DIFC. Trading and Clearing members of an Authorised Market Institution who operate in a jurisdiction other than the DIFC and do not have a physical presence in the DIFC are also recognised by the Division.
        (e) The Division is also responsible for regulating Offers of Securities in or from the DIFC, and supervises Reporting Entities by monitoring their ongoing market disclosures and compliance with Rules.

        Enforcement

        (f) The primary function of the Enforcement Division is to prevent, detect and restrain conduct that causes or may cause damage to the reputation of the DIFC or the financial services industry in the DIFC. Consequently, the Enforcement Division is responsible for:
        (i) liaising and co-operating with international regulatory and enforcement agencies pursuant to a relevant multilateral memorandum of understanding or bi-lateral arrangement in relation to investigation and enforcement matters;
        (ii) conducting investigations commenced pursuant to Article 78 of the Regulatory Law 2004 in respect of contraventions of DFSA administered Laws and Rules; and
        (iii) the taking of enforcement action in circumstances where contraventions of DFSA administered Laws and Rules pose an unacceptable risk to the DIFC.
        (g) The DFSA has a range of remedies to enforce the legislation that we administer (see Chapters 4 and 5).

        Policy and Legal

        (h) The Policy and Legal Services Division is responsible for developing DFSA administered Laws, Rules and policies, as approved by the DFSA Board of Directors. The Division also assists in the drafting of certain DIFC Laws. This Division is also responsible for providing regulatory legal advice and managing the business of the Regulatory Policy Committee and the Rules and Waivers Committee and advises on the disclosure of confidential regulatory information.
        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]
        Amended by Notice of Updates (Made 5th July 2012). July 2012 Edition
        Amended by Notice of Updates (Made 20th December 2012). December 2012 Edition