Entire Section

  • COB 14.4 COB 14.4 Provision of key features document for Investment Tokens

    • Application

      • COB 14.4.1

        This section applies to an Authorised Firm which carries on any one or more of the following Financial Services in respect of Investment Tokens:

        (a) Dealing in Investments as Principal;
        (b) Dealing in Investments as Agent;
        (c) Arranging Deals in Investments;
        (d) Managing Assets;
        (e) Advising on Financial Products;
        (f) Providing Custody; or
        (g) Arranging Custody.


        Derived from DFSA RMI311/2021 (Made 30th June 2021). [VER39/10-21]

      • COB 14.4.2

        (1) An Authorised Firm must not provide a Financial Service to which this section applies to a Person unless it has provided the Person with a key features document containing the information in (2).
        (2) The key features document must contain the following information relating to each Investment Token that is the subject of the Financial Services that the Authorised Firm will provide to the Person:
        (a) the risks associated with and essential characteristics of the Issuer (or other Person responsible for discharging the obligations associated with the rights conferred), and guarantor if any, of the Investment Token, including their assets, liabilities and financial position;
        (b) the risks associated with and essential characteristics of the Investment Token, including the rights and obligations conferred and the type or types of Investment which it constitutes;
        (c) whether the Investment Token is or will be admitted to trading and if so, the details relating to the admission, including details of the facility and whether the facility is within the DIFC;
        (d) whether the Client can directly access the trading facility, or whether access is only through an intermediary, and the process for accessing the facility;
        (e) risks associated with the use of DLT, particularly those relating to Digital Wallets and the susceptibility of private cryptographic keys to misappropriation;
        (f) whether the Client, the Authorised Firm or a third party is responsible for providing a Digital Wallet service in respect of the Investment Token, and any related risks (including at whose risk the Client’s Investment Tokens are held in the Digital Wallet, whether it is accessible online or stored offline, what happens if keys to the Digital Wallet are lost and what procedures can be followed in such an event);
        (g) how the Client may exercise any rights conferred by the Investment Tokens such as voting or participation in shareholder actions; and
        (h) any other information relevant to the particular Investment Token that would reasonably assist the Client to understand the product and technology better and to make informed decisions in respect of it.
        (3) The key features document must be provided in good time before the relevant Financial Service is provided to the Person, to enable that Person to make an informed decision about whether to use the relevant Financial Service.
        (4) The key features document does not need to be provided to a Person to whom the Authorised Firm has previously provided that information, if there has been no significant change since the information was previously provided.


        Derived from DFSA RMI311/2021 (Made 30th June 2021). [VER39/10-21]