Entire Section

  • 10-5 10-5 The General Policy on Use of the Words "Bank", "Insurance" and "Trust"

    • 10-5-1

      Any applicant for incorporation or registration in the DIFC needs to seek DFSA consent to the use of certain names, including names which use the words "bank", "insurance" or "trust". The DFSA will generally consent to the use of a particular name if the use of the name would not be misleading. The DFSA will generally look at substance over form when considering requests to use a particular name.

      Derived from Notice of Updates (Made 14th July 2015). July 2015 Edition

    • 10-5-2

      The basis upon which the DFSA would consider a business name to be misleading would include:

      (a) where the use of a name is misleading because it does not accurately describe the actual activities of the firm; or
      (b) where the use of a name is misleading because it implies that the firm has a particular status that it in fact does not have.
      Derived from Notice of Updates (Made 14th July 2015). July 2015 Edition

    • "Bank"

      • 10-5-3

        The DFSA considers that if a firm name includes the word "bank" this can be misleading if the business does not, in fact, have the appropriate licence to carry out any banking activities. It may also mislead actual or potential clients about the quality and quantity of the firm's financial resources. The word "bank" also suggests that the firm may benefit from the protections afforded to banking customers by a depositor protection scheme or an express or implied government guarantee.

        Derived from Notice of Updates (Made 14th July 2015). July 2015 Edition

      • 10-5-4

        The DFSA policy approach set out above is the same, irrespective of whether a business uses a derivative word such as "banking", "banker", "investment bank/banking", "merchant bank/banking", "commercial bank" or "private bank/banking". The word "Bank" is defined in the DFSA Rulebook, Glossary Module (GLO) as:

        "An Authorised Firm which holds a Licence authorising it to carry on the Financial Services of Accepting Deposits"

        Derived from Notice of Updates (Made 14th July 2015). July 2015 Edition

      • 10-5-5

        The DFSA will, therefore, only permit a firm to use the word "bank" or any of its derivatives if the firm holds a Licence to Accept Deposits and/or Manage a Profit Sharing Investment Account on an Unrestricted basis. There are exceptions to this general policy, which we set out below in section 10-6.

        Derived from Notice of Updates (Made 14th July 2015). July 2015 Edition

    • "Insurance" and "Trust"

      • 10-5-6

        The same general principles in 10-5-2 (a) and (b) apply to the use of the words "insurance" and "trust" and any of their derivatives such as "insurer", "reinsurance", "reinsurer", "insurance/reinsurance company", "insurance/reinsurance broker", "trustee", or "trust company".

        Derived from Notice of Updates (Made 14th July 2015). July 2015 Edition

      • 10-5-7

        In the case of the use of the word "insurance" in a firm name, it should be noted that "Insurance Business" is defined in GLO as:

        "The business of Effecting Contracts of Insurance or Carrying Out Contracts of Insurance, including effecting or carrying out contracts of reinsurance (as reinsurer)."

        Derived from Notice of Updates (Made 14th July 2015). July 2015 Edition

      • 10-5-8

        The DFSA will, therefore, only permit a firm to use the word "insurance" or any of its derivatives if the firm holds a Licence to Effect Contracts of Insurance or Carry Out Contracts of Insurance. There are exceptions to this general policy which we set out below in section 10-6.

        Derived from Notice of Updates (Made 14th July 2015). July 2015 Edition