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.
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 Guidance1. 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; orb. an employer in respect of its employees under another Dubai law.Derived from DFSA RMI302/2021 (Made 30th June 2021). [VER38/09-21]
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.