RPP 2-6-2

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

(a) the adequacy of an applicant's systems and controls for carrying on Financial Services with a Retail Client;
(b) whether the applicant is 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 the COB module, in particular:
(i) marketing materials intended for Retail Clients;
(ii) the content requirements for Client Agreements for Retail Clients;
(iii) the suitability assessment for recommending a financial product for a Retail Client;
(iv) the disclosure of fees and commissions, and any inducements, to a Retail Client; and
(v) the segregation of Client Money and/or Client Investments, where relevant;
(c) whether the applicant has adequate systems and controls 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; and
(d) the adequacy of the applicant's Complaints handling policies and procedures. 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 of the GEN module, the policies and procedures should explicitly deal with how the applicant ensures that:
(i) Employees dealing with Complaints have adequate training and competencies to handle Complaints, as well as impartiality and sufficient authority (see GEN Rules 5.3.19, 9.2.7 and 9.2.8);
(ii) 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
(iii) the applicant's Complaints handling policies and procedures are freely available to any Retail Client upon request (see COB Rule 9.2.11).
Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]