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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
Rulebook Modules
Conduct of Business Module (COB) [VER34/01-20]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases

Whole SectionText only Print Print Manager Link

(1 version)
Apr 1 2015 onwards

COB 2.4.1 Guidance

Whole Section PDF

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.

1. The obligation in Rule 2.4.1(1) applies to an Authorised FirmG when it first provides, or intends to provide, a Financial ServiceG to a Professional ClientG .
2. Once an Authorised FirmG has first classified a PersonG as a Professional ClientG , under the procedures in Rule 2.3.3(1), that Professional ClientG has a right at any subsequent time to ask, under Rule 2.4.1(3), to be re-classified as a Retail ClientG to obtain a higher level of protection. Although the right to ask the firm to be re-classified as a Retail ClientG is available to the Professional ClientG , as a matter of good practice:
a. the firm should also periodically review whether the circumstances relating to the particular ClientG remain the same; and
b. if the firm becomes aware of any circumstances which would warrant a re-classification of the ClientG , initiate the process with the ClientG to give that ClientG a more appropriate classification.
3. Where an existing Professional ClientG is offered a new Financial ServiceG or new financial product, a re-classification might be appropriate if:
a. the new Financial ServiceG or financial product is substantially different to those previously offered to that ClientG ; and
b. the Client'sG experience and understanding appears not to extend to the new Financial ServiceG or financial product.
4. An Authorised FirmG cannot provide Financial ServicesG to a Retail ClientG unless it has a Retail EndorsementG on its LicenceG . However, such a firm may refer to another appropriately licensed firm any PersonG who elects to opt-in as a Retail ClientG .
Derived from DFSA RM149/2015 (Made 11th February 2015) [VER24/04-15]