Entire Section

  • GEN 2.5 GEN 2.5 Providing credit

    • GEN 2.5.1

      In GEN Rule 2.2.2 Providing Credit means providing a Credit Facility to a Person in his capacity as a borrower or potential borrower.


      Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]

    • Exclusions

      • GEN 2.5.2

        A Person who is an Authorised Firm does not Provide Credit where the provision of the Credit Facility is incidental to or in connection with the trading of Investments, or conducting Insurance Business.


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]

      • GEN 2.5.3 GEN 2.5.3

        A Crowdfunding Operator does not Provide Credit to the extent that it Operates a Loan Crowdfunding Platform.

        [Amended] DFSA RMI201/2017 (Made 14th June 2017). [VER38/02-17]

        • GEN 2.5.3 Guidance

          1. Where an Authorised Firm is providing brokerage services pursuant to its Financial Service of Dealing in Investments as Agent, it may in the ordinary course of that business also be necessary to provide margin lending facilities to its Clients. In doing so the Authorised Firm will not be considered to be Providing Credit to its Client.
          2. Where an Authorised Firm is Effecting Contracts of Insurance or Carrying Out Contracts of Insurance, it may in the ordinary course of that Insurance Business be necessary to provide an instalment contract to a Client with respect to the payment of an insurance premium. In doing so the Authorised Firm will not be considered to be Providing Credit to its Client.
          [Added] DFSA RMI201/2017 (Made 14th June 2017). [VER40/08-17]