GEN 3.2.1 Guidance

1. Article 41A(3) of the Regulatory Law defines a Financial Promotion as:

"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."
2. The Guidance in this chapter is designed to help explain the scope of the Financial Promotions Prohibition.
3. The definition of a Financial Promotion is very broad and encompasses the definitions of a "financial promotion" in Article 19(3) of the Collective Investment Law 2010. A Financial Promotion also includes "marketing material" as defined elsewhere in the Rulebook.
4. The DFSA considers that a Financial Promotion may be made in any manner and by any form including, but not limited to, an oral, electronic or written communication and includes an advertisement, or any form of promotion or marketing. A disclaimer stating that a communication is not a Financial Promotion would not, on its own, prevent a communication from being a Financial Promotion.
5. A Person who is permitted to make a Financial Promotion in the DIFC pursuant to these Rules should ensure that in making such a Financial Promotion he does not breach the Financial Services Prohibition in Article 41 of the Regulatory Law.
6. Depending on the nature and scale of the activities, if a Person makes Financial Promotions on a regular basis or for a prolonged period while physically located in the DIFC, for example by way of a booth, meetings or conferences, the DFSA may consider such activities as constituting the carrying on of a Financial Service, such as Operating a Representative Office. The DFSA considers that in the context of Financial Promotions, "a regular basis" would be anything more than occasional and "a prolonged period" would usually be anything more than 3 consecutive days.
Added in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]
[Amended] DFSA RM95/2012 (Made 14th June 2012). [VER29/06-12]
[Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]