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  • COB 12.1 Application and Interpretation COB 12.1 Application and Interpretation

    • COB 12.1 Guidance

      The terms “Member”, “Participating Employer” and “Scheme” are defined in GEN Rule 2.30.1 and the terms “DIFC Scheme” and “Non-DIFC Scheme” are defined in GLO.

      Derived from DFSA RMI261/2019 (Made 18th December 2019). [VER35/01-20]
      [Added] DFSA RMI302/2021 (Made 30th June 2021). [VER38/09-21]

    • Application Application

      • COB 12.1.1

        The Rules in this chapter apply to an Authorised Firm when:

        (a) Operating an Employee Money Purchase Scheme; or
        (b) Acting as the Administrator of an Employee Money Purchase Scheme.
        Derived from DFSA RMI261/2019 (Made 18th December 2019). [VER35/01-20]

        • COB 12.1.1 Guidance

          1. The Rules in this Chapter apply to an Operator or Administrator of a Scheme regardless of whether the Scheme is established in the DIFC (a DIFC Scheme) or outside the DIFC (a Non-DIFC Scheme), unless otherwise provided. For example, the requirements in COB Rule 12.2.3 apply only in relation to a Non-DIFC Scheme.
          2. GEN Rule 2.2.10H prohibits an Authorised Firm from Operating or Acting as the Administrator of a Non-DIFC Scheme if the Scheme receives contributions from:
          a. a DIFC employer in respect of its employees under the Employment Law; or
          b. an employer in respect of its employees under another Dubai law.

           

          Derived from DFSA RMI302/2021 (Made 30th June 2021). [VER38/09-21]

    • Interpretation Interpretation

      • COB 12.1.2

        In this Chapter:

        (a) “Administrator” means an Authorised Firm Acting as the Administrator of an Employee Money Purchase Scheme;
        (b) “Basic Wage” means an employee’s annual wage, excluding allowances and additional payments (such as bonuses);
        (c) “Beneficiary” means a Person nominated by a Member, or a Person legally entitled to a benefit if there is no valid nomination by a Member;
        (d) “Constitution”, in relation to an Employee Money Purchase Scheme, means:
        (i) if the Scheme uses a trust structure, the trust deed and trust rules of the trust;
        (ii) if the Scheme is a body corporate, the articles of association or other equivalent governing documents of the body corporate; or
        (iii) in any other case, the documents that set out the relevant terms of the scheme;
        (e) “Core Benefits” means the benefits required to be paid to an Employee Money Purchase Scheme by:
        (i) a DIFC employer in respect of its employees under the Employment Law; or
        (ii) an employer in respect of its employees under a Dubai law;
        (f) “Operator” means an Authorised Firm that is acting as the Operator of an Employee Money Purchase Scheme;
        (g) “Payment Schedule” has the meaning given in COB Rule 12.3.7; and
        (h) “Salary Sacrifice” means an amount that a Member has agreed in writing with the Member’s Participating Employer to have deducted from the Member’s Basic Wage; and
        (i) “Third Party Service Provider” means a Person to whom the Operator of a Scheme has delegated or outsourced an activity relating to the Scheme.
        Derived from DFSA RMI261/2019 (Made 18th December 2019). [VER35/01-20]
        [Amended] DFSA RMI302/2021 (Made 30th June 2021). [VER38/09-21]