GEN 1.2 Guidance

1.  GEN Chapter 2 prescribes, pursuant to Article 41(2) of the Regulatory Law, the activities which constitute a Financial Service and, pursuant to Article 42(1) of the Regulatory Law, the kind of Financial Services that may be carried on by Authorised Firms and Authorised Market Institutions. It also specifies various exclusions in relation to the 'by way of business' requirement and, where applicable, in relation to each Financial Service. Further, the appendices contain detailed definitions of what constitutes a Deposit, Investment, Collective Investment Fund and Contract of Insurance.
1A. GEN Chapter 2A defines a Financial Product for the purposes of the general prohibition against misconduct in Article 41B of the Regulatory Law.
2.  GEN Chapter 3 sets out the requirements for a Person making or intending to make a Financial Promotion in or from the DIFC.
3.  GEN Chapter 4 sets out the Principles for Authorised Firms and Authorised Individuals.
4.  GEN Chapter 5 specifies the requirements upon senior management to implement effective systems and controls. There are also requirements upon the Authorised Firm to apportion material responsibility among its senior management.
5.  GEN Chapter 6 contains mainly guidance in respect of: interpretation of the Rulebook, emergency procedures, disclosure, the location of offices, close links, complaints against the DFSA and the public register.
6.  GEN Chapter 7 specifies the DFSA's authorisation requirements for any applicant intending to become an Authorised Firm or Authorised Individual.
7.  GEN Chapter 8 specifies, in relation to Authorised Persons, the auditing and accounting requirements which deal with such matters as the appointment and termination of auditors, accounts and regulatory returns and the functions of an auditor. There are also requirements for auditors to register with the DFSA.
8.  GEN Chapter 9 prescribes the manner in which an Authorised Firm must handle Complaints made against it by Retail Clients or Professional Clients.
9.  GEN Chapter 10 contains three sets of transitional rules:
a. Section 10.1 contains transitional rules relating to endorsements to hold Client Assets and Insurance Monies.
b. Section 10.2 contains transitional rules relating to a Safe Custody Auditor's Report.
c. Section 10.3 contains transitional rules relating to the reclassification of the Financial Services of 'Arranging Credit or Deals in Investments' and 'Advising on Financial Products or Credit'.
10. Chapter 11 specifies the DFSA's supervisory requirements for any Authorised Person being regulated by the DFSA.
11. Chapter 12 sets out Rules relating to business transfer schemes under Part 9 of the Regulatory Law.
12. Chapter 13 contains guidance on the DFSA's approach to facilitating the testing and development of innovative financial technology (Fintech) in the DIFC..
Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
[Amended] DFSA RM56/2008 (Made 1st July 2008). [VER19/07-08]
[Amended] DFSA RM58/2008 (Made 1st July 2008). [VER19/07-08]
[Amended] DFSA RM62/2008 (Made 4th January 2009). [VER22/01-09]
[Amended] DFSA RM66/2009 (Made 1st August 2009). [VER23/08-09]
Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]
[Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]
Derived from DFSA GMI11/2017 (Made 24th May 2017) [VER39/05-17]