Entire Section

  • GEN 2.28.1 GEN 2.28.1

    (1) In GEN Rule 2.2.2, Arranging Credit and Advising on Credit means:
    (a) making arrangements for another Person, whether as principal or agent, to borrow money by way of a Credit Facility; or
    (b) giving advice to a Person in his capacity as a borrower or potential borrower or as agent for a borrower or potential borrower on the merits of his entering into a particular Credit Facility.
    (2) Advice in (1)(b) includes a statement, opinion or report:
    (a) where the intention is to influence a Person, in making a decision, to enter into a particular Credit Facility; or
    (b) which could reasonably be regarded as being intended to have such an influence.
    [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]
    [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]

    • GEN 2.28.1 Guidance

      Activities that constitute 'Arranging Credit'

      1. Generally, the following activities constitute Arranging Credit:
      a. Introducing potential borrowers to a credit provider (who can be in the DIFC or outside the DIFC);
      b. Assisting a potential borrower to obtain credit, such as completing application forms and other processes relevant to the transaction;
      c. Negotiating terms of credit, including any fees payable to the arranger; and
      d. Arranging collateral or other assurances needed by the potential borrower to obtain credit.
      2. The Guidance under 'Arranging Deals in Investments' is generally relevant for 'Arranging Credit', although the activities relate to 'credit' in this context, instead of 'Investments'. Therefore, a reference to Investment in that Guidance should be read as 'credit' for the purposes of 'Arranging Credit'.
      Derived from DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]