DIFC-incorporated companies and partnerships
The examples above would apply equally to insurance companies and intermediaries. In particular, the
DFSAwould expect an insurance broker or other intermediary which uses the word "insurance" in its name to ensure that its name adequately describes its permitted activities by, for example, appending the word "broker" in the name. The use of the word "insurance" by an insurance intermediary without further description could be misleading; consumers might assume that the firm is an insurer which benefits from a strong capital base.
A further exception to the general policy on the use of the terms "bank" and "insurance" set out in section 10-5 above applies to a
Domestic Firm. The DFSAwould permit a Domestic Firm, whose immediate parent is a Bankor Insurer, to refer to the parent's name in its name, provided that the name is not actually or potentially misleading.
In order to not be misleading, the
DFSAwould expect the firm to append words to their parent's name which describe the firm's DIFCactivities. For example, assuming that ABC Bank PLC has a DIFCsubsidiary which is a Category 3C firm, the DFSAwould accept the name "ABC Bank Asset Management Limited" for the firm.
For the avoidance of doubt, if the
DIFCentity does not itself hold a Licenceto Accept Deposits, it will not be able to use the name of its parent (which is a bank) without some qualification.
In some cases, a firm's immediate parent may be an intermediate company. In such cases, provided that the intermediate company is not an operating company (for example, because it has been established to hold the Group's Middle East subsidiaries or because it was established for tax purposes) the firm may refer to the intermediate company's parent's name in their name, provided that the name does not mislead in any way.
For example, assuming that ABC Bank PLC has a subsidiary, ABC Bank Middle East Holdings Ltd, which was established to hold ABC Bank PLC's Middle East subsidiaries, a Category 3C
DIFCsubsidiary of ABC Bank Middle East Holdings Ltd could use the name "ABC Bank Asset Management Limited".