Entire Section

  • GEN 10.1 GEN 10.1 Endorsements to hold client assets and insurance monies

    • Interpretation

      • GEN 10.1.1

        In this section:

        "commencement date" means the day on which Rule-Making Instrument No 166 of 2016 comes into force;

        "endorsement" means an endorsement under:

        (a) GEN Rule 2.2.10A permitting an Authorised Firm to hold or control Client Assets; or
        (b) GEN Rule 2.2.10B permitting an Authorised Firm to hold Insurance Monies;

        "transitional period" means the period starting on the commencement date and ending six months after that day.

        [Added] DFSA RM166/2016 (Made 10th February 2016). [VER36/04-16]
        [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]

    • Endorsement not required during transitional period

      • GEN 10.1.2

        An Authorised Firm is not required to hold an endorsement before the end of the transitional period.

        Derived from DFSA RM166/2016 (Made 10th February 2016). [VER36/04-16]

    • Grant of endorsement for Firms that al hold or control Client Assets

      • GEN 10.1.3

        (1) This Rule applies to an Authorised Firm that has, in the 12 months before the commencement date, submitted to the DFSA under GEN Rule 8.6.2:
        (a) an Auditor's Report referred to in GEN Rule 8.6.1(c) (a Client MoneyAuditor's Report); or
        (b) an Auditor's Report referred to in GEN Rule 8.6.1(e) (a Safe Custody Auditor's Report).
        (2) An Authorised Firm to which this Rule applies may, within the transitional period, send a written notification to the DFSA confirming that it:
        (a) wishes to obtain an endorsement to hold or control Client Assets;
        (b) has submitted to the DFSA an Auditor's Report referred to in (1) in the 12 months before the commencement date; and
        (c) has in place adequate systems and controls to meet the applicable requirements in COB sections 6.11 to 6.14.
        (3) The DFSA may require the notification in (2) to be in such form and verified in such manner as it thinks fit.
        (4) If an Authorised Firm provides a duly completed notification to the DFSA in accordance with (2) and (3) within the transitional period:
        (a) the DFSA must grant it an endorsement to hold or control Client Assets; and
        (b) it is not required to apply for an endorsement under GEN Rule 7.3.3 or pay the fee prescribed in FER 2.2.6 for such an application.
        Derived from DFSA RM166/2016 (Made 10th February 2016). [VER36/04-16]

    • Grant of endorsement for Firms that al hold Insurance Monies

      • GEN 10.1.4

        (1) This Rule applies to an Authorised Firm that has, in the 12 months before the commencement date, submitted to the DFSA under GEN Rule 8.6.2 an Auditor's Report referred to in GEN Rule 8.6.1(d) (an Insurance Monies Auditor's Report).
        (2) An Authorised Firm to which this Rule applies may, within the transitional period, send a written notification to the DFSA confirming that it:
        (a) wishes to obtain an endorsement to hold Insurance Monies;
        (b) has submitted to the DFSA an Auditor's Report referred to in (1) in the 12 months before the commencement date; and
        (c) has in place adequate systems and controls to meet the applicable requirements in COB section 7.12.
        (3) The DFSA may require the notification in (2) to be in such form and verified in such manner as it thinks fit.
        (4) If an Authorised Firm provides a duly completed notification to the DFSA in accordance with (2) and (3) within the transitional period:
        (a) the DFSA must grant it an endorsement to hold Insurance Monies; and
        (b) it is not required to apply for an endorsement under GEN Rule 7.3.4 or pay the fee prescribed in FER 2.2.6 for such an application.
        Derived from DFSA RM166/2016 (Made 10th February 2016). [VER36/04-16]

    • DFSA's powers not affected

      • GEN 10.1.5

        The grant of an endorsement under this section is without prejudice to the DFSA's ability to impose conditions or restrictions on the endorsement when it is granted or after it has been granted, or to suspend or withdraw the endorsement after it has been granted.

        Derived from DFSA RM166/2016 (Made 10th February 2016). [VER36/04-16]