Entire Section

  • Chapter 1 — Chapter 1 — The Framework of Regulation

    • 41. The Financial Services Prohibition

      (1) Subject to Article 41(9) and Article 42(3), a person shall not carry on a Financial Service in or from the DIFC.
      (2) The DFSA shall make Rules prescribing the activities which constitute a Financial Service.
      (3) The prohibition in Article 41(1) is referred to in the Law as the "Financial Services Prohibition".
      (4) The DFSA may make Rules adding to, removing activities from, or otherwise modifying the list of Financial Services made under Article 41(2).
      (5) A person shall, in engaging in activity constituting a Financial Service, or in engaging in any like activity that may constitute a Financial Service except for the form and manner in which the activity is carried out, comply with Federal Law to the extent that such law applies in the DIFC.
      (6) [DELETED]
      (7) [DELETED]
      (8) [DELETED]
      (9) A Fund is exempt from the Financial Services Prohibition with respect to any Financial Service which is carried on for the purposes of, or in connection with, the Fund if the Fund has a Fund Manager or External Fund Manager that falls within Article 42(3) (a) or (b). This exemption applies to a Fund even where it does not have legal personality.

    • 41A. Financial Promotions Prohibition

      (1) A person shall not make a Financial Promotion in or from the DIFC except as prescribed by the Rules made pursuant to this Article.
      (2) The prohibition in Article 41A(1) is referred to as the "Financial Promotions Prohibition".
      (3) For the purposes of the Financial Promotions Prohibition, a Financial Promotion is any communication, however made, which invites or induces a Person to:
      (a) enter into, or offer to enter into, an agreement in relation to the provision of a financial service; or
      (b) exercise any rights conferred by a financial product or acquire, dispose of, underwrite or convert a financial product.
      (4) For the purposes of the Financial Promotions Prohibition, the DFSA may make Rules as to:
      (a) a person or class of persons who may make a Financial Promotion in or from the DIFC and any requirements which apply to such persons when doing so; and
      (b) any other definition, requirement or matter which the DFSA considers necessary to give effect to the requirements or intent of the Financial Promotions Prohibition.

    • 41B. General prohibition against misconduct

      (1) A person must not, in or from the DIFC, engage in conduct in connection with a Financial Product or a Financial Service that is:
      (a) misleading or deceptive or likely to mislead or deceive;
      (b) fraudulent; or
      (c) dishonest.
      (2) The DFSA shall make Rules prescribing what constitutes a Financial Product for the purposes of Article 41B(1).
      (3) Nothing in this Article limits the scope or application of any other provision in legislation administered by the DFSA.

    • 42. Authorised Firms, Authorised Market Institutions and Financial Services

      (1) The DFSA shall make Rules prescribing which kinds of Financial Services, with such modifications or limitations as may be specified may be carried on by:
      (a) an Authorised Firm; and
      (b) an Authorised Market Institution.
      (2) The DFSA may make Rules adding to, removing activities from, or otherwise modifying the lists of Financial Services prescribed under Article 42(1).
      (3) A person may carry on one or more Financial Services in or from the DIFC if such person is:
      (a) an Authorised Firm whose Licence authorises it to carry on the relevant Financial Services;
      (b) an External Fund Manager as defined in Article 20(5) of the Collective Investment Law 2010, in so far as its activities relate to a particular Domestic Fund that falls within Article 41(9); or
      (c) an Authorised Market Institution whose Licence authorises it to carry on the relevant Financial Services.
      (4) An Authorised Firm or Authorised Market Institution shall:
      (a) act within the scope of its authority under its Licence; and
      (b) comply with any condition or restriction applicable to its Licence.
      (5) A person who is not an Authorised Firm or Authorised Market Institution shall not represent that he is such a person.

    • 43. Licensed Functions of Authorised Persons

      (1) The DFSA shall make Rules prescribing functions ("Licensed Functions") of an Authorised Person that shall be carried out by individuals who have been authorised by the DFSA to carry out those functions.
      (2) Licensed Functions prescribed under Article 43(1) may include the functions of senior officers or employees with material responsibility for both or either:
      (a) managing an Authorised Person; or
      (b) the carrying on by an Authorised Person of its Financial Services.
      (3) An individual who is authorised by the DFSA to carry out a Licensed Function:
      (a) for an Authorised Firm, shall be referred to as an Authorised Individual; and
      (b) for an Authorised Market Institution, shall be referred to as a Key Individual.
      (4) A person shall not carry out a Licensed Function for an Authorised Firm unless he is authorised by the DFSA as an Authorised Individual to carry out that Licensed Function for the Authorised Firm.
      (5) A person shall not carry out a Licensed Function for an Authorised Market Institution unless he is authorised by the DFSA as a Key Individual to carry out that Licensed Function for the Authorised Market Institution.
      (6) An Authorised Person shall take all reasonable steps to ensure that no officer, employee or agent performs a Licensed Function:
      (a) without being authorised by the DFSA as an Authorised Individual or as a Key Individual in relation to the relevant Licensed Function;
      (b) contrary to a restriction imposed by the DFSA under Article 58(1) or 59(1); or
      (c) where Authorised Individual or Key Individual status of that individual has been suspended or withdrawn under Article 58(1), (2), (3) or (5).
      (7) An Authorised Individual or Key Individual shall:
      (a) act within the scope of his authority granted under his Authorised Individual or Key Individual status; and
      (b) comply with any condition or restriction applicable to such status.
      (8) A person who is not:
      (a) an Authorised Individual; or
      (b) a Key Individual,
      shall not represent that he is such a person.

    • 44. Prohibition relating to Endorsements

      (1) The DFSA may make Rules prescribing activities that may be carried on only by an Authorised Person that has an appropriate Licence Endorsement authorising it to carry on that activity.
      (2) A person must not carry on an activity prescribed under Article 44(1) unless the person has an appropriate Licence Endorsement authorising it to carry on that activity.