GEN 2.7.4 GEN 2.7.4(1) A
Personwho is not an Authorised Firmor an Authorised Market Institutiondoes not Deal in Investments as Principalin relation to an Investmentby entering into a transaction with or through an Authorised Firmor a Regulated Financial Institution.(2) The exclusion in (1) does not apply if the Personholds itself out as:(a) willing to enter into transactions in Investmentsof the kind to which the transaction relates; or(b) engaging in the business of buying, selling, subscribing for or underwriting Investments.
Guidance1. The exclusion in GEN Rule 2.7.4 is intended to apply, for example, to a
Personwho executes proprietary trades through a duly authorised broker, or to a Personwho is carrying on a commercial business and enters into a transaction with a firm for a purpose related to that business, such as to hedge a risk. It does not apply to a Personthat holds itself out as willing to enter into transactions relating to Investmentsof that kind or as engaging in the business of dealing in Investments, such as a market maker or an online trading platform operator (even if it enters into transactions only with Authorised Firmsor Regulated Financial Institutions).2. A Personmay hold itself out as carrying on an activity by various means including, for example, on its webpage, in an advertisement or through representations made by its staff. However, merely placing orders with a broker or on a market will not amount to holding out.Derived from DFSA RM211/2018 (Made 22nd February 2018). [VER41/04-18]