Entire Section

  • Part 2: Part 2: Conduct of Islamic Financial Business

    • 9. Prohibition from conducting Islamic Financial Business

      (1) An Authorised Firm or Authorised Market Institution shall not hold itself out as conducting Islamic Financial Business unless it has an endorsed Licence authorising it to conduct Islamic Financial Business:
      (a) as an Islamic Financial Institution; or
      (b) by operating an Islamic Window.
      (2) The DFSA Board of Directors may make Rules prescribing circumstances in which an Authorised Firm or Authorised Market Institution will be taken to, or will be taken not to, hold itself out as conducting Islamic Financial Business.

    • 10. Islamic Financial Business

      (1) Conducting Islamic Financial Business means carrying on one or more Financial Services in accordance with Shari'a.
      (2) Islamic Financial Institution means an Authorised Firm or Authorised Market Institution whose entire business operations are conducted in accordance with Shari'a.
      (3) An Authorised Firm or Authorised Market Institution, other than an Islamic Financial Institution, operates an Islamic Window if it conducts Islamic Financial Business as part of its overall business operations.

    • 11. Application for an endorsement

      (1) An application for an endorsement on a Licence authorising an Authorised Person to conduct Islamic Financial Business as an Islamic Financial Institution or by operating an Islamic Window may be made to the DFSA by any:
      (a) body corporate; or
      (b) partnership;

      when applying for a Licence under Article 45 of the Regulatory Law 2004.
      (2) An Authorised Person may apply to the DFSA for an endorsement to conduct Islamic Financial Business as an Islamic Financial Institution or by operating an Islamic Window, or to vary such an endorsement.
      (3) The DFSA Board of Directors may make Rules providing that certain persons or categories of person may not be granted an endorsement in relation to Islamic Financial Business.
      (4) The DFSA Board of Directors may make Rules:
      (a) prescribing the requirements an applicant applying for an endorsement must meet before an endorsement can be granted by the DFSA. Such Rules may include requirements relating to the legal form an applicant must adopt;
      (b) providing for such requirements referred to in Article 11(4)(a) to be varied in cases where an application is made by a person which is, at the time of application, regulated in a jurisdiction other than the DIFC;
      (c) prescribing certain persons or categories of person to be exempted from the requirements referred to in Article 11(4)(a); and
      (d) providing for any such exemptions to be:
      (i) limited to certain Islamic Financial Business activities or specified circumstances; or
      (ii) subject to certain conditions and restrictions.
      (5) The DFSA may grant an application for an endorsement or for a variation to an endorsement if it is satisfied that the requirements for an endorsement or variation of an endorsement under this Article have been met.
      (5A) The DFSA may refuse an application if it not satisfied that the requirements for an endorsement or variation of an endorsement under this Article have been met.
      (6) The procedures in Schedule 3 to the Regulatory Law 2004 apply to a decision of the DFSA under Article 11(5A).
      (7) If the DFSA decides to exercise its power under Article 11(5A), the applicant may refer the matter to the FMT for review.

    • 12. Conditions, restrictions and withdrawal

      (1) The DFSA may at any time by written notice to an Authorised Person;
      (a) impose conditions and restrictions in relation to an endorsement;
      (b) vary or withdraw conditions and restrictions imposed in relation to an endorsement; or
      (c) withdraw an endorsement.
      (2) The DFSA may act under Article 12(1) on its own initiative or at the request of an Authorised Person.
      (3) The DFSA may withdraw an endorsement on its own initiative under Article 12(1)(c) if:
      (a) the Authorised Person is in breach of, or has been in breach of, one or more restrictions or conditions applicable to the endorsement;
      (b) the Authorised Person is in breach of, or has been in breach of, the Law or Rules or other legislation administered by the DFSA;
      (c) the Authorised Person is no longer fit and proper to carry on Islamic Financial Business; or
      (d) the DFSA considers that the exercise of the power is necessary or desirable in the pursuit of its objectives.
      (4) The procedures in Schedule 3 to the Regulatory Law 2004 apply to a decision of the DFSA under this Article.
      (5) If the DFSA decides to exercise its power under this Article, the Authorised Person may refer the matter to the FMT for review.

    • 13. Requirements to conduct Islamic Financial Business

      (1) An Authorised Firm or Authorised Market Institution which has an endorsed Licence authorising it to conduct Islamic Financial Business shall appoint a Shari'a Supervisory Board.
      (2) The DFSA Board of Directors may make Rules prescribing the appointment, formation, conduct and operation of a Shari'a Supervisory Board.