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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
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Rulebook Modules
General Module (GEN) [VER44/07-19]
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  • GEN 3.4 Scope of the Financial Promotions Prohibition

    • GEN 3.4.1

      (1) A PersonG shall not, subject to (2) and (3), make a Financial PromotionG in or from the DIFCG unless that PersonG is an Authorised PersonG .
      (2) A Representative OfficeG may make a Financial PromotionG in or from the DIFCG only in relation to a financial service or financial product offered:
      (a) in a jurisdiction other than the DIFCG ; and
      (b) by a related party (as defined in GEN Rule 2.26.1(3)) of the Representative OfficeG .
      (3) A PersonG other than an Authorised PersonG may make a Financial PromotionG in or from the DIFCG if, and only to the extent that, the PersonG :
      (a) is licensed and supervised by a Financial Services RegulatorG in the UAEG ;
      (b) is a Recognised BodyG or External Fund ManagerG ;
      (c) is a Reporting EntityG and makes a Financial PromotionG in or from the DIFCG exclusively for the purpose of discharging its mandatory disclosure requirements; or
      (d) makes an exempt Financial PromotionG as specified in (4).
      (4) For the purposes of (3)(d), a communication is an "exempt Financial PromotionG " if it is:
      (a) approved by an Authorised FirmG other than a Representative OfficeG ;
      (b) approved by a Representative OfficeG and it is a communication relating to a financial service or financial product offered by a related party (as defined in GEN Rule 2.26.1(3)) of the Representative OfficeG ;
      (c) directed at and capable of acceptance exclusively by a PersonG who appears on reasonable grounds to be a Professional ClientG of the type specified in COB Rule 2.3.4;
      (d) made to a PersonG in the DIFCG (the "recipient") as a result of an unsolicited request by the recipient to receive the Financial PromotionG ;
      (e) made or issued by or on behalf of a government or noncommercial government entity; or
      (f) made in the DIFCG by a PersonG in the course of providing legal or accountancy services and may reasonably be regarded as incidental to and a necessary part of the provision of such services.
      Added in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]
      [Amended] DFSA RM95/2012 (Made 14th June 2012). [VER29/06-12]
      [Amended] DFSA RM155/2015 (Made 9th December 2015) [VER35/02-16]
      [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]

      • GEN 3.4.1 Guidance

        If a PersonG proposes to conduct Financial PromotionsG in or from the DIFCG other than as permitted under (3) and (4), that PersonG should consider obtaining an appropriate LicenceG .

        Derived from DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]

    • GEN 3.4.2

      A PersonG does not breach the Financial Promotions ProhibitionG if:

      (a) the PersonG causes a Financial PromotionG to be made in the course of providing a facility which is a mere conduit for the making of the Financial PromotionG ;
      (b) the PersonG is located outside the DIFCG and makes a Financial PromotionG which appears, on reasonable grounds, to be a communication which is not directed at or intended to be acted upon by a PersonG in the DIFCG ; or
      (c) the Financial PromotionG is not made for a commercial or business purpose.
      Added in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]

      • GEN 3.4.2 Guidance

        1. Examples of a mere conduit would include a newspaper or magazine, a website carrying third-party banner ads, a postman or courier, a person paid to hand out promotional material to the public and an event venue - unless in each case they were the originator i.e the PersonG who makes the Financial PromotionG .
        2. In GEN Rule 3.4.2(b) the DFSAG considers that the following non-exhaustive list of factors may each be indicative of whether or not a Financial PromotionG is "intended to be acted upon by, or targeted at, PersonsG in the DIFCG ":
        a. whether it is expressed to be for a PersonG or type of PersonG in the DIFCG ;
        b. whether it is sent to an address (including a P.O. Box) in the DIFCG ;
        c. whether it is physically distributed to PersonsG in the DIFCG ;
        d. whether it takes place in the DIFCG ;
        e. whether it makes reference to the DIFCG ;
        f. whether it appears in a DIFCG publication;
        g. whether it appears on a DIFC-based or related website or other media;
        h. whether it is sent to the email of a PersonG in the DIFCG ; or
        i. whether it contains a prominent and clear disclaimer on its face that it is not intended to be acted upon by PersonsG in the DIFCG .
        3. The DFSAG in applying GEN Rule 3.4.2(c) will generally consider that for a communication to be made "for a commercial or business purpose" there must be a commercial element to the Financial PromotionG , whether or not the Financial PromotionG actually leads to the provision of any financial service. However, the DFSAG considers that "for a commercial or business purpose" requires a commercial or business interest on the part of the communicator and the nature of the communicator's business need not be related to any specific financial service.
        4. The DFSAG considers that a PersonG located outside the DIFCG who makes a Financial PromotionG into the DIFCG , makes that communication in the DIFCG . The DFSAG considers that the prohibition in Article 41A(1) applies irrespective of where the communicator of the Financial PromotionG is located.
        Added in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]