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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 3.5.3

    (1) An Authorised FirmG must have systems and controls including policies and procedures to ensure that neither it, nor an EmployeeG or AssociateG of it, offers, gives, solicits or accepts inducements such as commissions or other direct or indirect benefits where such inducements are reasonably likely to conflict with any duty that it owes to its ClientsG .
    (2) Subject to (3), an Authorised FirmG must, before recommending a financial product as defined in GEN Rule 2.11.1(4) to, or Executing a TransactionG for, a Retail ClientG , disclose to that ClientG any commission or other direct or indirect benefit which it, or any AssociateG or EmployeeG of it, has received or may or will receive, in connection with or as a result of the firm making the recommendation or executing the TransactionG .
    (3) An Authorised FirmG need not disclose to a Retail ClientG under (2) any details about inducements where it:
    (a) believes on reasonable grounds that the Retail ClientG is already aware of the relevant inducements;
    (b) is undertaking an Execution-Only TransactionG for that Retail ClientG ; or
    (c) is executing a TransactionG pursuant to the terms of a Discretionary Portfolio Management AgreementG for that Retail ClientG .
    (4) An Authorised FirmG may provide the information required under (2) in summary form, provided it informs the ClientG that more detailed information will be provided to the ClientG upon request and complies with such a request.
    Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
    [Amended] DSFA RM185/2016 (Made 7th December 2016). [VER28/02-17]

    • COB 3.5.3 Guidance

      In relation to COB Rule 3.5.3 (1), in circumstances where an Authorised FirmG believes on reasonable grounds that the Client'sG interests are better served by a PersonG to whom the referral is to be made, any commission or other benefit which the firm or any of its EmployeesG or AssociatesG receives in respect of such a referral would not be a prohibited inducement under that Rule.

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