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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Conduct of Business Module (COB) [VER33/07-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices
Financial Markets Tribunal
Archive

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  • COB 3.3 Key Information and Client Agreement

    • Application

      • COB 3.3.1

        The Rules in this section do not apply to an Authorised FirmG when it is:

        (a) carrying on a Financial ServiceG with or for a Market CounterpartyG ;
        (b) Accepting DepositsG ;
        (c) Providing CreditG ;
        (d) carrying on an activity of the kind described in GEN Rule 2.26.1 that constitutes marketing; or
        (e) a Fund ManagerG of a Fund OfferingG the UnitsG of a FundG it manages.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
        [Amended] DFSA RM68/2009 (Made 3rd January 2010). [VER17/01-10]
        [Amended] DFSA RM72/2010 (Made 11th July 2010) [VER19/07-10]

      • COB 3.3.2

        (1) Subject to (2), an Authorised FirmG must not carry on a Financial ServiceG with or for a PersonG unless:
        (a) there is a Client AgreementG containing the key information specified in App2 which is either entered into:
        (i) between the Authorised FirmG and that PersonG ; or
        (ii) in accordance with the requirements in Rule 3.3.4; and
        (b) before entering into the Client AgreementG with the PersonG , the Authorised FirmG has provided to that PersonG the key information referred to in (a) in good time to enable him to make an informed decision relating to the relevant Financial ServiceG .
        (2) An Authorised FirmG may provide a Financial ServiceG to a ClientG without having to comply with the requirement in (1);
        (a) subject to (3), where it is, on reasonable grounds, impracticable to comply; or
        (b) where the ClientG has expressly agreed to dispense with the requirement in regard to a personal investment vehicle.
        (3) When (2)(a) applies, an Authorised FirmG providing the Financial ServiceG must:
        (a) first explain to the PersonG why it is impracticable to comply; and
        (b) enter into a Client AgreementG as soon as practicable thereafter.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
        [Amended] DFSA RM149/2015 (Made 11th February 2015) [VER24/04-15]

        • COB 3.3.2 Guidance

          1. App 2 sets out the core information that must be included in every Client AgreementG and additional disclosure for certain types of activities to which this chapter applies. The information content for Client AgreementsG with Retail ClientsG is more detailed than for Professional ClientsG .
          2. For the purposes of COB Rule 3.3.2(1)(b), an Authorised FirmG may either provide a PersonG with a copy of the proposed Client AgreementG , or give that information in a separate form. If there are any changes to the terms and conditions of the proposed agreement, the Authorised FirmG should ensure that the Client AgreementG to be signed with the PersonG accurately incorporates those changes.
          3. For the purposes of COB Rule 3.3.2(2)(a), an Authorised FirmG may consider it is reasonably impracticable to provide the key information to a PersonG if that PersonG requests the Authorised FirmG to execute a TransactionG on a time critical basis. Where an Authorised FirmG has given the explanation referred to in COB Rule 3.3.2(3)(a) verbally, it should maintain records to demonstrate to the DFSA that it has provided that information to the ClientG .
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • Changes to the Client Agreement

      • COB 3.3.3

        If the Client AgreementG provided to a Retail ClientG allows an Authorised FirmG to amend the Client AgreementG without the Client'sG prior written consent, the Authorised FirmG must give at least 14 days notice to the ClientG before providing a Financial ServiceG to that ClientG on any amended terms, unless it is impracticable to do so.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • Reliance on a Client Agreement made by another entity

      • COB 3.3.4

        (1) An Authorised FirmG may, for the purposes of Rule 3.3.2(1)(a)(ii), rely on a Client AgreementG executed in accordance with the requirements in either (2) or (3).
        (2) For the purposes of (1), an Authorised FirmG which is a BranchG may rely on a Client AgreementG , executed by its head office or any other branch of the same legal entity, if:
        (a) the Client AgreementG adequately and clearly applies to the Financial ServicesG provided by the BranchG ; and
        (b) the Authorised FirmG ensures that the Client AgreementG is available to the DFSAG on request.
        (3) For the purposes of (1), an Authorised FirmG may rely on a Client AgreementG , executed by a member of its GroupG if:
        (a) it is providing a Financial ServiceG pursuant to Rule 2.4.5;
        (b) the Client AgreementG clearly sets out:
        (i) the Financial ServiceG provided by the Authorised FirmG and;
        (ii) that the Client'sG rights in respect of (i) are enforceable against the Authorised FirmG ; and
        (c) the Authorised FirmG ensures that the Client AgreementG is available to the DFSAG on request.
        (4) An Authorised FirmG must notify the DFSAG immediately if, for any reason, it is no longer able to provide unrestricted access to a Client AgreementG as required under (2) or (3).
        [Added] DFSA RM149/2015 (Made 11th February 2015) [VER24/04-15]