AFN SUP5 Application to add or remove an endorsement on a Licence to carry on Financial Services with Retail Clients

Set out here are the preliminary notes relating to the form, click here click here to download the specific AFN form above, press "Read only" and then enter details where the form permits you to.

Purpose of this form

This form must be submitted by an Authorised Firm (the "applicant") wishing to add or remove an endorsement on its Licence to carry on Financial Services with Retail Clients (the "Retail Endorsement").

The DFSA may require additional information or clarification in order to complete the processing of an application. In this respect, the DFSA will correspond with the applicant's contact person as detailed below.

Note for applicants

The DFSA will grant a Retail Endorsement only if is satisfied that the applicant has demonstrated that it has the ability to provide Financial Services to Retail Clients in conformity with the requirements set forth in the DFSA Rulebook.

When assessing an application for a Retail Endorsement, the DFSA will consider, among other things, the following:

1. The adequacy of an applicant's systems and controls for carrying on Financial Services with a Retail Client.

An applicant must also be able to demonstrate that its systems and controls (including policies and procedures) adequately provide for, among other things, compliance with the requirements specifically dealing with Retail Clients, in particular:
•   marketing materials intended for Retail Clients;
•   content requirements for Client Agreements for Retail Clients;
•   suitability assessment for recommending a financial product for a Retail Client;
•   disclosure of fees and commissions, and any inducements, to a Retail Client; and
•   segregation of Client Money and/or Client Assets, where relevant.

An applicant's systems and controls must be adequate to ensure on an ongoing basis, that its Employees remain competent and capable to perform the functions which are assigned to them, including any additional factors that may be relevant if their functions involve interfacing with Retail Clients.
2. The adequacy of the applicant's Complaints handling policies and procedures

An applicant must have Complaints handling policies and procedures that meet the requirements in GEN chapter 9 of the GEN Module. These require an Authorised Firm to have adequate written policies and procedures for the investigation and resolution of complaints made against it by a Retail Client, including any redress available to such a Client (e.g. compensation).

An applicant's policies and procedures must provide for fair, consistent and prompt handling of Complaints. In addition to the matters set out in chapter 9, the policies and procedures should explicitly deal with how the applicant ensures that:
•  Employees dealing with Complaints have adequate training and competencies to handle Complaints, as well as impartiality and sufficient authority (see Rules GEN 5.3.19, GEN 9.2.7 and GEN 9.2.8);
•  a Retail Client is made aware of the firm's Complaints handling policies and procedures before obtaining its services (see COB Rule A2.1.2(1)(h)); and
•  the applicant's Complaints handling policies and procedures are freely available to any Retail Client upon request.
Applicant's contact person for this application  
Correspondence address  
Telephone / fax number:  
E-mail address