Entire Section

  • COB 2.3.9 COB 2.3.9

    (1) An Authorised Firm may classify a Person as a Market Counterparty if:
    (a) that Person is:
    (i) a 'deemed' Professional Client pursuant to COB Rule 2.3.4;
    (ii) an 'assessed' Professional Client pursuant to COB Rule 2.3.8(2)(b) which is wholly owned by a Holding Company that is a 'deemed' Professional Client pursuant to COB Rule 2.3.4(1)(g) or (h); or
    (iii) a 'deemed' Market Counterparty pursuant to Rule (1A); and
    (b) in the case of Persons referred to in (a)(i) and (ii), the requirements in (2) have been met.
    (1A) An Insurer, Insurance Intermediary or Insurance Manager may 'deem' any one or more of the following Persons to be a Market Counterparty:
    (a) a ceding insurer; and
    (b) in respect of the services provided to that ceding insurer, any reinsurer, insurance agent or insurance broker that facilitates the provision of the services to the ceding insurer.
    (2) For the purposes of (1)(b), an Authorised Firm must, before classifying a Person as a Market Counterparty, ensure that:
    (a) the Person has been given a prior written notification of the classification as a Market Counterparty; and
    (b) that Person has not requested to be classified otherwise within the period specified in the notice.
    (3) The notification in (2)(a) may be given in respect of particular Financial Services or Transactions or in respect of all Financial Services and Transactions.
    (4) The notification in (2)(a) need only be given:
    (a) in the case of a Fund, either to the Fund or its Fund Manager; and
    (b) in the case of a pension fund, either to such fund or its management company.
    Derived from DFSA RM149/2015 (Made 11th February 2015) [VER24/04-15]
    [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

    • COB 2.3.9 Guidance

      When an Authorised Firm carries on, or provides or obtains, Financial Services with or from another Authorised Firm or a Regulated Financial Institution, as those entities are 'deemed' Professional Clients under Rule 2.3.4(1), they could be classified as Market Counterparties, provided the procedures set out in Rule 2.3.9(2) are complied with. For example, such services may include providing the Financial Services of custody, managing assets, or fund administration services to a Fund Manager of a Collective Investment Fund or a pension fund.

      Derived from DFSA RM149/2015 (Made 11th February 2015) [VER24/04-15]
      [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]