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(1 version)
Apr 23 2008 onwards

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

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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

Set out here are the preliminary notes relating to the form, 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 FirmG (the "applicant") wishing to add or remove an endorsement on its LicenceG to carry on Financial ServicesG with Retail ClientsG (the "Retail Endorsement").

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

Note for applicants

The DFSAG will grant a Retail EndorsementG only if is satisfied that the applicant has demonstrated that it has the ability to provide Financial ServicesG to Retail ClientsG in conformity with the requirements set forth in the DFSA RulebookG .

When assessing an application for a Retail EndorsementG , the DFSAG 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 ClientG .

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 ClientsG , in particular:
•   marketing materials intended for Retail ClientsG ;
•   content requirements for Client AgreementsG for Retail ClientsG ;
•   suitability assessment for recommending a financial product for a Retail ClientG ;
•   disclosure of fees and commissions, and any inducements, to a Retail ClientG ; and
•   segregation of Client MoneyG and/or Client AssetsG , where relevant.

An applicant's systems and controls must be adequate to ensure on an ongoing basis, that its EmployeesG 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 ClientsG .
2. The adequacy of the applicant's ComplaintsG handling policies and procedures

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

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