Entire Section

  • GEN 8 GEN 8 Accounting and Auditing

    • GEN 8.1 GEN 8.1 Application

      • GEN 8.1.1 GEN 8.1.1

        This chapter applies to every Authorised Person other than a Representative Office.

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM38/2006 (Made 28th November 2006). [VER12/11-06]
        [Amended] DFSA RM68/2009 (Made 3rd January 2010). [VER24/01-10]
        [Amended] DFSA RM95/2012 (Made 14th June 2012). [VER29/06-12]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.1.1 Guidance [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.1.2 GEN 8.1.2

        Pursuant to Article 99(5) of the Regulatory Law, an Authorised Person which is a Representative Office is hereby exempt from the requirements in Article 99 of the Regulatory Law relating to the appointment of an Auditor.

        [Added] DFSA RM38/2006 (Made 28th November 2006). [VER12/11-06]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.1.2 Guidance

          The DFSA has exercised its power under Article 99(5) of the Regulatory Law to exempt an Authorised Person which is a Representative Office from the requirements in that Article. As a result, in accordance with the terms of Article 99(5), the Representative Office also does not need to comply with other requirements in chapters 4, 5 and 6 of Part 8 of that Law.

          [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.2 GEN 8.2 Financial statements and financial reporting standards

      • GEN 8.2.1 GEN 8.2.1

        An Authorised Person must prepare financial statements for each financial year of the Authorised Person.

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM69/2010 (Made 1st March 2010). [VER25/03-10]
        [Amended] DFSA RM105/2012 (Made 23rd December 2012). [VER32/12-12]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.2.1 Guidance

          1. Chapter 4 of the Islamic Finance Rules (IFR) sets out specific disclosures an Authorised Person must include in its financial statements when carrying on Islamic Financial Business.
          2. The financial statements prepared by an Authorised Person which is a Branch may be the financial statements prepared for the Authorised Person's head office.
          [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.2.2

        An Authorised Person must, except as provided under Rule 8.2.3, prepare and maintain all financial statements in accordance with the International Financial Reporting Standards (IFRS).

        [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.2.3

        (1) An Authorised Firm specified in (2) may prepare and maintain its financial statements in accordance with IFRS for Small and Medium-Sized Entities (SMEs) where that standard applies to it.
        (2) Authorised Firms specified for the purposes of (1) are:
        (a) an Authorised Firm in Category 3B, Category 3C or Category 4, which does not hold or control Client Assets or Insurance Monies; and
        (b) an Authorised Firm in Category 4 which is not authorised under its Licence to carry on the Financial Service of Operating an Alternative Trading System.
        (3) The DFSA may by written notice direct that a particular Authorised Firm or a specified class of Authorised Firm specified in (2) must prepare and maintain financial statements in accordance with IFRS rather than IFRS for Small and Medium Sized Entities.
        (4) The DFSA may by written notice vary or revoke a direction under (3).
        (5) The procedures in Schedule 3 to the Regulatory Law apply to a decision of the DFSA to give a direction under (3) to a particular Authorised Firm.
        (6) If the DFSA decides to give a direction under (3) to a particular Authorised Firm, the Authorised Firm may refer the matter to the FMT for review.
        [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.2.4

        An Authorised Person must:

        (a) if it is a Body Corporate, have its financial statements approved by the Directors and signed on their behalf by at least one of the Directors; or
        (b) if it is a Partnership, have its financial statements approved by the Partners and signed on their behalf by at least one of the Partners.
        [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.3 GEN 8.3 Accounting records and regulatory returns

      • GEN 8.3.1

        Every Authorised Person must keep Accounting Records which are sufficient to show and explain transactions and are such as to:

        (a) be capable of disclosing the financial position of the Authorised Person on an ongoing basis; and
        (b) record the financial position of the Authorised Person as at its financial year end.

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]

      • GEN 8.3.2

        Accounting Records must be maintained by an Authorised Person such as to enable its Governing Body to ensure that any financial statements prepared by the Authorised Person comply with the legislation applicable in the DIFC.


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.3.3

        An Authorised Person's Accounting Records must be:

        (a) retained by the Authorised Person for at least six years from the date to which they relate;
        (b) at all reasonable times, open to inspection by the DFSA or the Auditor of the Authorised Person; and
        (c) if requested by the DFSA capable of reproduction, within a reasonable period not exceeding 3 business days, in hard copy and in English.

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM42/2007 (Made 15th February 2007). [VER13/02-07]
        [Amended] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.3.4

        All regulatory returns prepared by the Authorised Firm must be prepared and submitted in accordance with the requirements set out in PIB or PIN as applicable.

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER17/11-07]

      • Financial years

        • GEN 8.3.5

          (1) The first financial year of an Authorised Firm which is a Domestic Firm starts on the day on which it is incorporated and lasts for such period not exceeding 18 months as may be determined by its Directors or Partners.
          (2) An Authorised Firm which is a Domestic Firm must as soon as practicable after it has made a determination under (1) notify the DFSA of the end date determined for its first financial year.
          (3) The second and any subsequent financial year of an Authorised Firm which is a Domestic Firm shall, except as provided in Rule 8.3.6, start at the end of the previous financial year and shall last for 12 months or such other period which is within 7 days either shorter or longer than 12 months as may be determined by its Directors or Partners.
          Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
          [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.3.6

          (1) An Authorised Firm which is a Domestic Firm may only change its financial year end from a period provided for under Rule 8.3.5(3) with the DFSA's prior consent.
          (2) The application for consent must be in writing and include the reasons for the change.
          (3) The DFSA may require the Authorised Firm to obtain written confirmation from its Auditor that the change of financial year end would not result in any significant distortion of the financial position of the Authorised Firm.
          Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
          [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.3.7

          If an Authorised Firm is not a Domestic Firm and intends to change its financial year, it must provide the DFSA with reasonable advance notice prior to the change taking effect.

          [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.4 GEN 8.4 Appointment and termination of Auditors

      • GEN 8.4.1

        An Authorised Person must:

        (a) notify the DFSA of the appointment of an Auditor by completing and submitting the appropriate form in AFN;
        (b) prior to the appointment of the Auditor, take reasonable steps to ensure that the Auditor has the required skills, resources and experience to audit the business of the Authorised Person for which the auditor has been appointed; and
        (c) if it is a Domestic Firm, ensure that the Auditor, at the time of appointment and for the duration of the engagement, is registered with the DFSA as a Registered Auditor.

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        Amended DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.4.2

        An Authorised Person must notify the DFSA immediately if the appointment of the Auditor is or is about to be terminated, or on the resignation of its Auditor, by completing and submitting the appropriate form in AFN.


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        Amended DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.4.3

        An Authorised Person must appoint an Auditor to fill any vacancy in the office of Auditor and ensure that the replacement Auditor can take up office at the time the vacancy arises or as soon as reasonably practicable.


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.4.4 GEN 8.4.4

        (1) An Authorised Person must take reasonable steps to ensure that the Auditor and the relevant audit staff of the Auditor are independent of and not subject to any conflict of interest with respect to the Authorised Person.
        (2) An Authorised Person must notify the DFSA if it becomes aware, or has reason to believe, that the Auditor or the relevant audit staff of the auditor are no longer independent of the Authorised Person, or have a conflict of interest which may affect their judgement in respect of the Authorised Person.
        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        Amended DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.4.4 Guidance

          1. An Authorised Person should consider whether there is any financial or personal relationship between it or any of its relevant Employees and the Auditor or any of the relevant Employees of the Auditor that may affect the judgement of the Auditor when conducting an audit of the Authorised Person or complying with all its legal obligations, including the Regulatory Law, AUD, AML and other relevant modules of the DFSA Rulebook.
          2. An Authorised Person should consider rotating the appointed relevant staff of the Auditor on a regular basis to ensure that the relevant staff of the Auditor remain independent.
          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]
          Amended DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.4.5

        If requested by the DFSA, an Authorised Person which carries on Financial Services through a Branch must provide the DFSA with information on its appointed or proposed Auditor with regard to the Auditor's, skills, experience and independence.


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        Amended DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.4.6 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.4.7 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.4.8 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.5 GEN 8.5 Co-operation with Auditors

      • GEN 8.5.1

        An Authorised Person must take reasonable steps to ensure that it and its Employees:

        (a) provide any information to its Auditor that its Auditor reasonably requires, or is entitled to receive as Auditor;
        (b) give the Auditor right of access at all reasonable times to relevant records and information within its possession;
        (c) allow the Auditor to make copies of any records or information referred to in (b);
        (d) do not interfere with the Auditor's ability to discharge its duties;
        (e) report to the Auditor any matter which may significantly affect the financial position of the Authorised Person; and
        (f) provide such other assistance as the Auditor may reasonably request it to provide.
        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.6 GEN 8.6 Audit reports

      • GEN 8.6.1 GEN 8.6.1

        An Authorised Person must, in writing, require its Auditor to:

        (a) conduct an audit of and produce a Financial Statement Auditor's Report on the Authorised Person's financial statements in accordance with the International Standards on Auditing;
        (b) produce a Regulatory Returns Auditor's Report in accordance with the Rules in AUD App1 as relevant;
        (c) produce, if the Authorised Firm is permitted to control or hold Client Money, a Client Money Auditor's Report in accordance with the Rules in AUD App2;
        (d) produce, if the Authorised Firm is permitted to control or hold Insurance Monies, an Insurance Monies Auditor's Report in accordance with the Rules in AUD App3;
        (e) produce, if the Authorised Firm is permitted to hold or control Client Investments or Provide Custody in or from the DIFC, a Safe Custody Auditor's Report in respect of such business as applicable, in accordance with the Rules in AUD App4; and
        (f) provide a Money Services Auditor's Report in accordance with the Rules in AUD App7, if the Authorised Firm is Providing Money Services, Account Information Services or Payment Initiation Services.
        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM66/2009 (Made 1st August 2009). [VER23/08-09]
        [Amended] DFSA RM69/2010 (Made 1st March 2010). [VER25/03-10]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]
        [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]
        [Amended] DFSA RMI266/2020 (Made 26th February 2020). [VER48/04-20]

      • GEN 8.6.2

        An Authorised Person must submit any reports produced by its Auditor that are required by this chapter to the DFSA within four months of the Authorised Person's financial year end.


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.6.3 GEN 8.6.3

        (1) An Authorised Person must, subject to (2), upon request by any Person, provide a copy of its most recent audited financial statements, together with the Financial Statement Auditor's Report to the Person. If the copy is made available in printed form, the Authorised Person may make a charge to cover reasonable costs incurred in providing the copy.
        (2) The requirement in (1) does not apply to an Authorised Firm which:
        (a) is in Category 3B, Category 3C or Category 4; and
        (b) does not hold or control Client Assets or Insurance Monies.

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.6.3 Guidance

          An Authorised Person should be aware that there may be other legislation applicable to it that may require the Authorised Person to provide access to all or part of its financial statements.

          [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.7 GEN 8.7 [Deleted]

      • [Deleted]

        • GEN 8.7.1 GEN 8.7.1 [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

          • GEN 8.7.1 Guidance [Deleted]

            [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.7.2 GEN 8.7.2 [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

          • GEN 8.7.2 Guidance [Deleted]

            [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • [Deleted]

        • GEN 8.7.3 [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.7.4 [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.8 GEN 8.8 [Deleted]

      • GEN 8.8.1 GEN 8.8.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.8.1 Guidance [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.9 GEN 8.9 [Deleted]

      • GEN 8.9.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.9.2 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.9.3 GEN 8.9.3 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.9.3 Guidance [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.10 GEN 8.10 [Deleted]

      • GEN 8.10.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.11 GEN 8.11 [Deleted]

      • GEN 8.11.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.11.2 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.11.3 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.11.4 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.11.5 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.11.6 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.12 GEN 8.12 [Deleted]

      • GEN 8.12 Guidance [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.12.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.12.2 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.12.3 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.12.4 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.12.5 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.13 GEN 8.13 [Deleted]

      • GEN 8.13.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.13.2 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.13.3 GEN 8.13.3 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.13.3 Guidance [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.13.4 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.14 GEN 8.14 [Deleted]

      • GEN 8.14 Guidance [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.14.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.14.2 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.14.3 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.14.4 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.14.5 GEN 8.14.5 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.14.5 Guidance [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.15 GEN 8.15 [Deleted]

      • GEN 8.15.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.16 GEN 8.16 [Deleted]

      [Deleted] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]

      • GEN 8.16.1 [Deleted]

        [Deleted] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]

      • GEN 8.16.2 [Deleted]

        [Deleted] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]

      • GEN 8.16.3 [Deleted]

        [Deleted] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]

    • GEN 8.17 GEN 8.17 [Deleted]

      • GEN 8.17.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.17.2 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.17.3 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • [Deleted]

        • GEN 8.17.4 [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.18 GEN 8.18 [Deleted]

      • GEN 8.18.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]