Entire Section

  • GEN 2.32 GEN 2.32 Arranging or Advising on Money Services

    • GEN 2.32.1

      (1) In GEN Rule 2.2.2, Arranging or Advising on Money Services means:
      (a) making arrangements for another Person to receive Money Services;
      (b) giving advice to another Person on the merits of using a particular Money Services Provider;
      (c) providing an Account Information Service; or
      (d) providing a Payment Initiation Service.
      (2) Advice in (1)(b) includes a statement, opinion or report:
      (a) intended to influence a Person, in making a decision, to use or select a particular Money Services Provider; or
      (b) which could reasonably be regarded as being intended to have such an influence.
      (3) In 1(c), “Account Information Service” means an online service that provides consolidated information on one or more accounts held by the User with one or more account providers, and includes such a service whether information is provided:
      (a) in its original form or after processing; and
      (b) to the User or to another person in accordance with the User’s instructions.
      (4) In 1(d), “Payment Initiation Service” means an online service that initiates a Payment Order at the request of the User with respect to a Payment Account held at another Payment Service Provider, but does not include:
      (a) a service that involves contact with any funds at any stage of the Payment Transaction; or
      (b) the issue of a Payment Instrument.
      Derived from RMI266/2020 (Made 26th February 2020). [VER48/04-20]

    • Exclusion

      • GEN 2.32.2 GEN 2.32.2

        An Authorised Firm does not Arrange or Advise on Money Services under GEN Rule 2.32.1(a) or (b) if it is the relevant Money Services Provider.
        Derived from RMI266/2020 (Made 26th February 2020). [VER48/04-20]

        • GEN 2.32.2 Guidance

          Activities that constitute ‘Arranging or Advising on Money Services’
          1. The following diagram summarises the activities that constitute Arranging and Advising on Money Services:

          2. Making arrangements for another Person to receive Money Services under GEN Rule 2.32.1(1)(a) includes the following activities:
          (a) introducing a potential user to a Money Services Provider (whether the provider is in the DIFC or outside the DIFC);
          (b) arranging currency exchange, including spot and forward contracts;
          (c) assisting a potential user to use Money Services, for example by completing application forms and other processes relevant to the transaction;
          (d) negotiating terms related to Money Services, including any fees payable to the arranger; and
          (e) arranging assurances, incidentals or other arrangements required from a potential user to use Money Services.
          3. A Person Arranging or Advising on Money Services should not be ‘holding or controlling’ Client Money (as defined in COB Rule 6.11.4), including any Stored Value or other funds.
          4. An Account Information Service enables users to have access to a single source of aggregated information so they can view information from various accounts in a single place. Users may also expressly consent to that information being shared with another person such as their financial adviser or a credit reference agency.
          5. A Payment Initiation Service is a service that establishes a software ‘bridge’ between the website of the merchant and the online banking platform of a payer’s Payment Account, which allows the user to initiate the payment. This type of service would typically be made available as a payment option on a merchant’s website.
          6. A provider of Payment Initiation Services should not receive funds at any stage of the Payment Transaction or issue Payment Instruments. The provider of a Payment Initiation Service provides independent verification to the relevant merchant that the user has sufficient funds in his Payment Account and has made a payment by selecting that account to make a payment to the merchant.
          Derived from RMI266/2020 (Made 26th February 2020). [VER48/04-20]