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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
General Module (GEN) [VER44/07-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices
Financial Markets Tribunal
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  • GEN 3.5 Additional Rules for Financial Promotions

    • GEN 3.5.1

      (1) A PersonG in GEN Rule 3.4.1(3) (a) to (d) must, subject to (2), take reasonable care to ensure that any Financial PromotionG it makes in or from the DIFCG :
      (a) is clear, fair and not misleading;
      (b) includes the Person'sG name, address and regulatory status;
      (c) if it is intended only for Professional ClientsG , is not sent or directed to any PersonG who appears on reasonable grounds not to be a Professional ClientG , and contains a clear statement that only a PersonG meeting the criteria for a Professional ClientG should act upon it; and
      (d) which is provided to or directed at a Retail ClientG and contains any information or representation relating to past performance, or any forecast based on past performance or on any other assumptions:
      (i) presents a balanced view of the financial products or financial services to which the Financial PromotionG relates;
      (ii) identifies, in an easy to understand manner, the information from which the past performance or forecast is derived and how any key facts and assumptions used in that context are drawn; and
      (iii) contains a prominent warning that past performance is not necessarily a reliable indicator of future performance.
      (2) A PersonG described in GEN Rule 3.4.1(3)(a) who makes a Financial PromotionG :
      (a) to an existing client in the DIFCG ; or
      (b) to a prospective client in the DIFCG relating to the Passported FundG for which the DIFCG is the Host JurisdictionG ,
      is not required to comply with (1) provided that in making the Financial PromotionG that PersonG complies with the requirements of the relevant Financial Services RegulatorG in the UAEG which relate to Financial PromotionsG .
      Added in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]
      [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]
      [Amended] DFSA RM234/2019 (Made 20th February 2019). [VER43/02-19]

      • GEN 3.5.1 Guidance

        1. In presenting information relating to past performance of a financial product or financial service, a PersonG should use a reputable independent actuarial, financial or statistical reporting service provider.
        2. The effect of GEN Rule 3.5.1(2) is that a PersonG who is licensed and regulated by a Financial Services RegulatorG in the UAEG is not required to comply with GEN Rule 3.5.1(1) when communicating with an existing client or with a prospective client in relation to a Passported FundG where the DIFCG is a Host JurisdictionG . However, when making any other Financial PromotionG to a prospective client in the DIFCG , GEN Rule 3.5.1(1) does apply to such PersonsG , as do the prohibitions on the making of offers contained in the Markets Law 2012 and Collective Investment Law 2010 respectively. The exclusion in GEN Rule 3.5.1(2) applies only if the PersonG is complying with the financial promotion requirements of its Financial Services RegulatorG in the UAEG .
        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 RM234/2019 (Made 20th February 2019). [VER43/02-19]

    • GEN 3.5.2

      A PersonG must not, in any Financial PromotionG , attempt to limit or avoid any duty or liability it may have under any DFSA-administered laws or the RulesG .

      Added in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]