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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Conduct of Business Module (COB) [VER32/02-19]
COB 4 Additional Rules — Accepting Deposits and Providing Credit
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 4 Additional Rules — Accepting Deposits and Providing Credit

    • COB 4.1 Application

      • COB 4.1.1

        The Rules in this chapter apply to an Authorised FirmG with respect to Accepting DepositsG or Providing CreditG through an establishment maintained by it in the DIFC.

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

    • COB 4.2 Accepting Deposits

      • COB 4.2.1

        A BankG , in the course of Accepting DepositsG , must not:

        (a) Accept DepositsG from the State's markets;
        (b) Accept DepositsG in the U.A.E. Dirham;
        (c) undertake currency or foreign exchange transactions involving the U.A.E. Dirham; or
        (d) Accept DepositsG from Retail ClientsG .
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB 4.3 Providing Credit

      • COB 4.3.1

        (1) An Authorised FirmG may, subject to (2), Provide CreditG to a:
        (a) Professional ClientG ; and
        (b) Retail ClientG , but only where:
        (i) the Retail ClientG is an UndertakingG ; and
        (ii) the Credit FacilityG is provided to the Retail ClientG for a business purpose.
        (2) An Authorised FirmG , in the course of Providing CreditG , must not:
        (a) Provide CreditG in the U.A.E. Dirham; or
        (b) undertake currency or foreign exchange transactions involving the U.A.E. Dirham.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB 4.4 Depositor protection

      • COB 4.4.1

        (1) Subject to (2), to the extent that the Rules in this section are inconsistent with the Insolvency Law 2009 and any regulations made for the purposes of that law the Rules in this section will prevail.
        (2) The following provisions of laws, Rules and Regulations prevail over the Rules in this section:
        (a) parts A5.13.2 (a), (b), (c) and (d)(ii) of the Client Money Distribution Rules;
        (b) Article 65 of the Insolvency Law 2009;
        (c) the DIFC Preferential Creditor Regulations; and
        (d) Regulations 5.45.4 and 5.52 of the DIFC Insolvency Regulations.
        [Added] DFSA RM144/2014 (Made 24th August 2014). [VER23/08-14]

      • COB 4.4.2

        (1) In the event of:
        (a) the appointment of a provisional liquidator, liquidator, receiver or administrator, or trustee in bankruptcy, over a BankG which is a Domestic FirmG ; or
        (b) a direction by the DFSAG to a Bank which is a Domestic FirmG under Article 76 of the Regulatory Law 2004 to deal with all or substantially all its DepositsG in a specified manner,
        eligible depositors of the BankG have priority over, and shall be paid in priority to, all other unsecured creditors of the BankG .
        (2) In (1), an “eligible depositor” means, subject to (3), a PersonG who, at the relevant time, is a creditor of a BankG referred to in (1) by virtue of being owed an amount of Money held by the BankG as a DepositG .
        (3) In (2), eligible depositor excludes any creditor which is:
        (i) a Market CounterpartyG ; or
        (ii) a bank.
        [Added] DFSA RM144/2014 (Made 24th August 2014). [VER23/08-14]

      • COB 4.4 Guidance

        Article 101 of the DIFC Insolvency Law 2009 gives the DFSAG a power to modify the application of provisions of that law and the Regulations made for the purposes of it in particular cases or classes of case. It permits the DFSAG to make Rules which provide for the orderly conduct of affairs or winding up of an Authorised FirmG and to prescribe procedures and priorities for dealing with assets of the Authorised FirmG or other persons in the event of pending or actual insolvency or other default.

        [Added] DFSA RM144/2014 (Made 24th August 2014). [VER23/08-14]