Branch of a Non-DIFC Firm
Authorised Firmcarrying on Financial Servicesthrough a Branchwill be subject to supervision by both the DFSAand the regulator in its head office jurisdiction.
DFSAwill have regard to any lead or consolidated prudential supervision arrangements to which a Branchis subject. The DFSAmay place appropriate reliance on a Branch'slead regulator in another jurisdiction and, where appropriate, its consolidated prudential regulator if it is satisfied that it meets appropriate regulatory criteria and standards. Where an Authorised Firmis subject to lead regulation arrangements with a foreign regulator, the DFSAwill usually not seek to impose consolidated prudential supervision on the Authorised Firm's Group.
During the authorisation process the
DFSAwill take into account the nature and scope of the regulation and supervision to which the applicant is subject in its head office jurisdiction. Notwithstanding that an Authorised Firmmay be subject to lead or consolidated regulatory arrangements, the DFSArequires it to remain fit and proper in respect of its Groupand Controllers. Certain changes or events will require notification to, or prior approval from, the DFSA.
DFSAwill determine the level of regulatory and supervisory oversight which is subsequently required for a specific Branch. As part of DFSA'srisk assessment process, during the authorisation process the DFSAundertakes a two-tier approach to the risks to its objectives posed by the Branch, thereby taking into account the characteristics of the applicant and its head office. The first part of this assessment includes a judgement on the degree of home country supervision and considers the strength of support, both financial and managerial, which the head office is capable of providing to the Branch, taking into account the Branch'sactivities and the adequacy of, among other things, the corporate governance framework and practices and remuneration structure and strategies adopted at the head office. The second part of the assessment considers the risk and control mechanisms within the Branchitself.
As a result of the assessment, the
DFSAmay consider granting a waiver or modification notice in respect of specific prudential or other regulatory requirements relating to a Branch.