Entire Section

  • GEN 7.2 GEN 7.2 Application for a Licence

    • GEN 7.2.1

      A Person, who intends to carry on one or more Financial Services in or from the DIFC must apply to the DFSA for a Licence, in accordance with the Rules in this section.

    • GEN 7.2.2 GEN 7.2.2

      (1) The DFSA will only consider an application for a Licence from a Person who, subject to (2), (4), (5) and (6), is:
      (a) a Body Corporate; or
      (b) a Partnership;
      and who is not an Authorised Market Institution.
      (2) If the application is in respect of either or both of the following Financial Services:
      (a) Effecting Contracts of Insurance; or
      (b) Carrying Out Contracts of Insurance,
      the applicant must be a Body Corporate.
      (3) Deleted.
      (4) If the application is in respect of the Financial Service of Managing a Collective Investment Fund or Acting as the Trustee of a Fund, the applicant must be a Body Corporate.
      (5) If the application is for the Financial Service of Operating or Acting as the Administrator of an Employee Money Purchase Scheme, the applicant must be a Body Corporate incorporated under the DIFC Companies Law.
      (6) If the application is for Managing a Venture Capital Fund, the applicant must be a Body Corporate incorporated under the DIFC Companies Law.
      Derived from Notice of Amendments to Legislation April 2011 [VER27/02-11]
      [Amended] DFSA RM105/2012 (Made 23rd December 2012). [VER32/12-12]
      [Amended] DFSA RM229/2018 (Made 6th June 2018). [VER42/08-18]
      [Amended] DFSA RMI260/2019 (Made 18th December 2019). [VER47/01-20]
      [Amended] DFSA RM278/2020 (Made 28th October 2020). [VER49/11-20]
      [Amended] DFSA RMI301/2021 (Made 30th June 2021). [VER52/09-21]

      • GEN 7.2.2 Guidance

        (1) Section 2.2.8 of the RPP Sourcebook sets out matters which the DFSA takes into consideration when making an assessment under Rule 7.2.2.
        (2) A Body Corporate incorporated under the DIFC Companies Law can be a Private Company or a Public Company.
        [Added] DFSA RM105/2012 (Made 23rd December 2012). [VER32/12-12]
        [Added] DFSA RMI260/2019 (Made 18th December 2019). [VER47/01-20]

    • GEN 7.2.3

      A Person licensed by the Emirates Securities and Commodities Authority to trade on an U.A.E. exchange will not be granted a Licence by the DFSA unless that Person has the prior approval of the Emirates Securities and Commodities Authority.

    • GEN 7.2.4 GEN 7.2.4

      A Person applying for a Licence must complete and submit the appropriate form or forms in AFN.

      • GEN 7.2.4 Guidance

        A Person submitting an application under Rule 7.2.4 is required to:

        a. pay the appropriate application fee as set out in FER; and
        b. include information relating to its Controllers, completed by the relevant Controllers themselves, in the appropriate form in AFN.
        Derived from Notice of Amendments to Legislation April 2011 [VER27/02-11]
        [Amended] DFSA RM105/2012 (Made 23rd December 2012). [VER32/12-12]

    • Consideration and assessment of applications

      • GEN 7.2.5

        In order to become authorised to carry on one or more Financial Services, the applicant must demonstrate to the satisfaction of the DFSA that it:

        (a) has adequate resources, including financial resources;
        (b) is fit and proper; and
        (c) has adequate compliance arrangements, including policies and procedures, that will enable it to comply with all the applicable legal requirements, including the Rules.
        [Amended] DFSA RM105/2012 (Made 23rd December 2012). [VER32/12-12]

    • Adequate resources

      • GEN 7.2.6 GEN 7.2.6

        In assessing whether an applicant has adequate resources, the DFSA will consider:

        (a) how the applicant will comply with the applicable provisions of PIB or PIN;
        (b) the provision the applicant makes in respect of any liabilities, including contingent and future liabilities;
        (c) the means by which the applicant and members of its Group manage risk in connection with their business; and
        (d) the rationale for, and basis of, the applicant's business plan.
        [Amended] DFSA RM105/2012 (Made 23rd December 2012). [VER32/12-12]

        • GEN 7.2.6 Guidance

          A Credit Rating Agency is not subject to any specific capital requirements in PIB. Instead, it is required, pursuant to Rules 4.2.4 and 7.2.6 to have and maintain adequate financial resources to manage its affairs prudently and soundly.

          Derived from Notice of Amendments to Legislation April 2011 [VER27/02-11]
          [Amended] DFSA RM105/2012 (Made 23rd December 2012). [VER32/12-12]

    • Fitness and propriety

      • GEN 7.2.7 GEN 7.2.7

        (1) In assessing whether an applicant is fit and proper, the DFSA will consider:
        (a) the fitness and propriety of the members of its Governing Body;
        (b) the suitability of the applicant's Controllers or any other Person;
        (c) the impact a Controller might have on the applicant's ability to comply with the applicable requirements;
        (d) the Financial Services concerned;
        (e) the activities of the applicant and any associated risks that those activities pose to the DFSA's objectives described under Article 8(3) of the Regulatory Law 2004;
        (f) whether the applicant's affairs will be conducted and managed in a sound and prudent manner;
        (g) any matter which may harm or may have harmed the integrity or the reputation of the DFSA or DIFC; and
        (h) any other relevant matters.
        (2) The DFSA will, in assessing the matters in (1), consider the cumulative effect of factors which, if taken individually, may be regarded as insufficient to give reasonable cause to doubt the fitness and propriety of an applicant.
        [Amended] DFSA RM105/2012 (Made 23rd December 2012). [VER32/12-12]

        • GEN 7.2.7 Guidance

          Section 2.2 of the RPP Sourcebook sets out matters which the DFSA takes into consideration when making an assessment under Rule 7.2.7.

          [Added] DFSA RM105/2012 (Made 23rd December 2012). [VER32/12-12]

    • Compliance arrangements

      • GEN 7.2.8

        In assessing whether an applicant has adequate compliance arrangements, the DFSA will consider whether it has:

        (a) clear and comprehensive policies and procedures relating to compliance with all applicable legal requirements including the Rules;
        (b) adequate means to implement those policies and procedures and monitor that they are operating effectively and as intended.
        [Amended] DFSA RM105/2012 (Made 23rd December 2012). [VER32/12-12]

      • GEN 7.2.9

        In assessing an application for a Licence, the DFSA may:

        (a) make any enquiries which it considers appropriate, including enquiries independent of the applicant;
        (b) require the applicant to provide additional information;
        (c) require the applicant to have information on how it intends to ensure compliance with a particular Rule;
        (d) require any information provided by the applicant to be verified in any way that the DFSA specifies; and
        (e) take into account any information which it considers relevant.

      • GEN 7.2.10

        (1) In assessing an application for a Licence the DFSA may, by means of written notice, indicate the legal form that the applicant may adopt to enable authorisation to be granted.
        (2) Where the DFSA thinks it appropriate it may treat an application made by one legal form or Person as having been made by the new legal form or Person.

      • GEN 7.2.11

        In assessing an application for a Licence authorising the applicant to Operate an Alternative Trading System, the DFSA will have regard to, but is not limited to, considering the following matters:

        (a) whether the establishment of an Alternative Trading System is, or is likely to be, in the interests of the Financial Services and Markets industry;
        (b) whether the Alternative Trading System will or is likely to lead to more efficient price discovery of, or deepen liquidity in, an Investment; and
        (c) whether there is any risk of market fragmentation, loss of liquidity or inefficiency in price discovery as a result of the proposed Alternative Trading System operation.