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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

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  • Disclosures in Investment Research

    • COB 6.3.3

      When an Authorised FirmG publishes Investment ResearchG , it must take reasonable steps to ensure that the Investment ResearchG :

      (a) clearly identifies the types of ClientsG for whom it is principally intended;
      (b) distinguishes fact from opinion or estimates, and includes references to sources of data and any assumptions used;
      (c) specifies the date when it was first published;
      (d) specifies the period the ratings or recommendations are intended to cover;
      (e) contains a clear and unambiguous explanation of the rating or recommendation system used;
      (f) includes a distribution of the different ratings or recommendations, in percentage terms:
      (i) for all InvestmentsG ;
      (ii) for InvestmentsG in each sector covered; and
      (iii) for InvestmentsG , if any, where the Authorised FirmG has undertaken corporate finance business with or for the IssuerG over the past 12 months; and
      (g) if intended for use only by a Professional ClientG or Market CounterpartyG , contains a clear warning that it should not be relied upon by or distributed to Retail ClientsG .
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB 6.3.3 Guidance

        An Authorised FirmG may consider including a price chart or line graph depicting the performance of the InvestmentG for the period that the Authorised FirmG has assigned a rating or recommendation for that investment, including the dates on which the ratings were revised for the purposes of the requirements such as in (d) and (e) of COB Rule 6.3.3.

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

    • COB 6.3.4

      For the purposes of this section, an Authorised FirmG must take reasonable steps to ensure that when it publishes Investment ResearchG , and in the case where a representative of the Authorised FirmG makes a Public AppearanceG , disclosure is made of the following matters:

      (a) any financial interest or material interest that the Investment AnalystG or a Close RelativeG of the analyst has, which relates to the InvestmentG ;
      (b) the reporting lines for Investment AnalystsG and their remuneration arrangements where such matters give rise to any conflicts of interest which may reasonably be likely to impair the impartiality of the Investment ResearchG ;
      (c) any shareholding by the Authorised FirmG or its AssociateG of 1% or more of the total issued share capital of the Issuer;
      (d) if the Authorised FirmG or its AssociateG acts as corporate broker for the IssuerG ;
      (e) any material shareholding by the IssuerG in the Authorised FirmG ;
      (f) any corporate finance business undertaken by the Authorised FirmG with or for the IssuerG over the past 12 months, and any future relevant corporate finance business initiatives; and
      (g) that the Authorised FirmG is a Market MakerG in the InvestmentG , if that is the case.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DFSA RM97/2012 (Made 24th July 2012) [VER20/07-12]

      • COB 6.3.4 Guidance

        The requirements in COB Rule 6.3.4(a) and (b) apply to an Authorised FirmG in addition to other requirements in the DFSA Rulebook. For example, an Authorised FirmG is required to take reasonable steps to identify actual or potential conflicts of interest and then prevent or manage them under GEN Rule 4.2.7 (Principle 7 – Conflicts of Interest). Further, COB Rule 6.3.2 requires an Authorised FirmG to have adequate procedures and controls when it prepares or publishes Investment ResearchG .

        [Added] DFSA RM97/2012 (Made 24th July 2012) [VER20/07-12]