Entire Section

  • GEN 5.3.19 GEN 5.3.19

    (1) An Authorised Firm must ensure, as far as reasonably practical, that its Employees are:
    (a) fit and proper;
    (b) competent and capable of performing the functions which are to be assigned to those Employees; and
    (c) trained in the requirements of the legislation applicable in the DIFC.
    (2) An Authorised Firm must establish and maintain systems and controls to comply with (1). An Authorised Firm must be able to demonstrate that it has complied with these requirements through appropriate measures, including the maintenance of relevant records.
    Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
    [Amended] [VER10/06-06]
    [Amended] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]

    • GEN 5.3.19 Guidance

      1.  When considering whether an Employee is fit and proper, competent and capable, an Authorised Firm should consider any training undertaken or required by an Employee, the nature of the Clients to whom an Employee provides Financial Services, and the type of activities performed by an Employee in the provision of such Financial Services including any interface with Clients.
      2.  When assessing the fitness and propriety of Employees, an Authorised Firm should be guided by the matters set out in section 2.3 of the RPP Sourcebook and should also monitor conflicts or potential conflicts of interest arising from all of the individual's links and activities.
      3.  When assessing the competence and capability of an Authorised Firm should:
      a.  obtain details of the skills, knowledge and experience of the Employee relevant to the nature and requirements of the role;
      b.  take reasonable steps to verify the relevance, accuracy and authenticity of any information obtained;
      c.  determine, in light of the Employee's relevant skills, knowledge and experience, that the Employee is competent and capable of fulfilling the duties of the role; and
      d.  consider the level of responsibility that the Employee will assume within the Authorised Firm, including whether the Employee will be providing Financial Services to Retail Clients in an interfacing role.
      4.  An Authorised Firm should also satisfy itself that an Employee:
      a.  continues to be competent and capable of performing its the role;
      b.  has kept abreast of market, product, technology, legislative and regulatory developments that are relevant to the role, through training or other means; and
      c.  is able to apply his knowledge.
      5. Refer to section 2.2.13 of the RPP Sourcebook for criteria for suitability of members of the Governing Body of the Authorised Firm.
      Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] [VER10/06-06]
      [Amended] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]
      Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]
      [Amended] DFSA RM95/2012 (Made 14th June 2012). [VER29/06-12]