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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
Archive
Rulebook Modules
General Module (GEN) [VER46/01-20]
GEN 2 Financial Services
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices

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  • GEN 2.2 Financial Service activities

    • GEN 2.2.1

      An activity constitutes a Financial ServiceG under the Regulatory Law and these RulesG where:

      (a) it is an activity specified in GEN Rule 2.2.2; and
      (b) such activity is carried on by way of business in the manner described in GEN section 2.3.

      Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]

    • GEN 2.2.2

      The following activities are specified for the purposes of GEN Rule 2.2.1:

      (a) Accepting DepositsG ;
      (b) Providing CreditG ;
      (c) Providing Money ServicesG ;
      (d) Dealing in Investments as PrincipalG ;
      (e) Dealing in Investments as AgentG ;
      (f) Arranging Deals in InvestmentsG ;
      (g) Managing AssetsG ;
      (h) Advising on Financial ProductsG ;
      (i) Managing a Collective Investment FundG ;
      (j) Providing CustodyG ;
      (k) Arranging CustodyG ;
      (l) Effecting Contracts of InsuranceG ;
      (m) Carrying Out Contracts of InsuranceG ;
      (n) Operating an ExchangeG ;
      (o) Operating a Clearing HouseG ;
      (p) Insurance IntermediationG ;
      (q) Insurance ManagementG ;
      (r) Managing a Profit Sharing Investment AccountG ;
      (s) Operating an Alternative Trading SystemG ;
      (t) Providing Trust ServicesG ;
      (u) Providing Fund AdministrationG ;
      (v) Acting as the TrusteeG of a FundG ;
      (w) Operating a Representative OfficeG ;
      (x) Operating a Credit Rating AgencyG ;
      (y) Arranging Credit and Advising on CreditG ; and
      (z) Operating a Crowdfunding PlatformG .
      Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] [VER4/08-05]
      [Amended] [VER6/12-05]
      [Amended] [VER7/01-06]
      [Amended] [VER8/04-06]
      [Amended] DFSA RM34/2006[VER11/08-06]
      [Amended] DFSA RM68/2009 (Made 3rd January 2010). [VER24/01-10]
      [Amended] DFSA RM72/2010 (Made 11th July 2010) [VER26/07-10]
      [Amended] DFSA RM96/2012 (Made 24th July 2012) [VER30/07-12]
      [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]
      [Amended] DFSA RMI201/2017 (Made 14th June 2017). [VER40/08-17]

    • GEN 2.2.3

      Each activity specified in GEN Rule 2.2.2:

      (a) is to be construed in the manner provided under these RulesG ; and
      (b) is subject to exclusions under these RulesG which may apply to such an activity.

      Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]

    • Permitted Financial Services for Authorised Firms

      • GEN 2.2.4

        Pursuant to Article 42(1)(a) of the Regulatory Law 2004 an Authorised FirmG , subject to the RulesG , may carry on any one or more Financial ServicesG other than Providing Money ServicesG .

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] [VER4/08-05]
        [Amended] [VER6/12-05]
        [Amended] [VER7/01-06]
        [Amended] [VER8/04-06]
        [Amended] DFSA RM34/2006 [VER11/08-06]
        [Amended] DFSA RM68/2009 (Made 3rd January 2010). [VER24/01-10]
        [Amended] DFSA RM72/2010 (Made 11th July 2010) [VER26/07-10]
        Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]

      • GEN 2.2.5

        The Financial ServicesG of Effecting Contracts of InsuranceG and Carrying Out Contracts of InsuranceG may be carried on only by an Authorised FirmG which by virtue of its LicenceG is permitted to carry on such Financial ServicesG and no other Financial ServicesG .

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]

      • GEN 2.2.6

        The Financial ServiceG of Managing a Profit Sharing Investment AccountG may be carried on only by an Authorised FirmG which by virtue of an appropriate endorsement on its LicenceG is permitted to conduct Islamic Financial BusinessG .

        Derived from DFSA RM01/2004(Made 16th September 2004). [VER1/09-04]
        Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]

      • GEN 2.2.7

        The Financial ServiceG of ManagingG a Collective Investment FundG may be carried on in respect of an Islamic FundG only by an OperatorG which by virtue of an appropriate endorsement on its LicenceG is permitted to conduct Islamic Financial BusinessG .

        [Added][VER8/04-06]
        [Amended] DFSA RM72/2010 (Made 11th July 2010) [VER26/07-10]
        Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]

      • GEN 2.2.8

        A Financial ServiceG may be carried on with or for a Retail ClientG only by an Authorised FirmG which is permitted to do so by endorsement on its LicenceG .

        [Added] DFSA RM56/2008 & DFSA RM58/2008 (Made 1st July 2008). [VER19/07-08]
        Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]

      • GEN 2.2.9

        An Authorised FirmG which is licenced to carry on the Financial ServiceG of Operating a Representative OfficeG may not be licenced to carry on any other Financial ServiceG .

        [Added] DFSA RM68/2009 (Made 3rd January 2010). [VER24/01-10]
        Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]

      • GEN 2.2.10

        An Authorised FirmG (other than a Representative OfficeG ) may carry on an activity of the kind described in GEN Rule 2.26.1 that constitutes marketing without the need for any additional authorisation to do so.

        [Added] DFSA RM68/2009 (Made 3rd January 2010). [VER24/01-10]
        Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]

      • GEN 2.2.10A

        (1) An Authorised FirmG may hold or control Client AssetsG only if it is permitted to do so by an endorsement on its LicenceG .
        (2) In (1), the expression "hold or control Client Assets" has the meaning given in COB Rule 6.11.4.
        (3) An endorsement under (1) is not required by an Authorised FirmG that has an authorisation for Providing CustodyG .
        Derived from DFSA RM166/2016 (Made 10th February 2016). [VER36/04-16]

      • GEN 2.2.10B

        An Insurance IntermediaryG or Insurance ManagerG may hold Insurance MoniesG only if it is permitted to do so by an endorsement on its LicenceG .

        Derived from DFSA RM166/2016 (Made 10th February 2016). [VER36/04-16]

      • GEN 2.2.10C

        An Insurance IntermediaryG may conduct Insurance IntermediationG activities in respect of a contract of Long-Term InsuranceG , that is not a contract of reinsurance, only if it is permitted to do so by an endorsement on its LicenceG .

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

      • GEN 2.2.10D

        The Financial ServiceG of Operating a Crowdfunding PlatformG may be carried on only by a Body CorporateG incorporated under the DIFC Companies Law.

        [Added] DFSA RMI201/2017 (Made 14th June 2017). [VER40/08-17]

      • GEN 2.2.10E

        A Crowdfunding OperatorG must not carry on the following activities:

        (a) Managing AssetsG ;
        (b) Advising on Financial ProductsG ;
        (c) Managing a Collective Investment FundG ; or
        (d) Advising on CreditG .
        [Added] DFSA RMI201/2017 (Made 14th June 2017). [VER40/08-17]

      • GEN 2.2.10F

        A Crowdfunding OperatorG must not Operate a Crowdfunding PlatformG that facilitates a PersonG investing in the following kinds of InvestmentsG through the platform:

        a) WarrantsG , UnitsG or Structured ProductsG ; or
        b) DerivativesG .
        [Added] DFSA RMI201/2017 (Made 14th June 2017). [VER40/08-17]
        [Amended] DFSA RMI253/2019 (Made 26th June 2019). [VER44/07-19]

    • Permitted Financial Services for Authorised Market Institutions

      • GEN 2.2.11

        Pursuant to Article 42(1)(b) of the Regulatory Law 2004 and subject to Rule 2.2.12, an Authorised Market InstitutionG may carry on any one or more of the following Financial ServicesG :

        (a) Operating an ExchangeG ;
        (b) Operating a Clearing HouseG ; or
        (c) Operating an Alternative Trading SystemG to the extent that such activities constitute operating a Multilateral Trading FacilityG as defined in Rule 2.22.1(1)(a).
        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        Amended in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]
        [Amended] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]

        • [Deleted]

          [Deleted] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]

      • GEN 2.2.12

        The Financial ServiceG of Operating an Alternative Trading SystemG , to the extent that such activities constitute operating a Multilateral Trading FacilityG , may be carried on by an Authorised Market InstitutionG which is permitted to do so by an endorsement on its LicenceG .

        [Added] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]

    • Other permitted activities

      • GEN 2.2.13

        (1) The activity of maintaining a Trade RepositoryG may be carried on by an Authorised PersonG which is permitted to do so by an endorsement on its LicenceG .
        (2) In (1), a Trade RepositoryG is a centralised registry that maintains an electronic database containing records of transactions in InvestmentsG and over-the-counter derivatives.
        [Added] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]

        • GEN 2.2.13 Guidance

          1. Maintaining a Trade RepositoryG is not a separately licensed Financial ServiceG , but may be carried on by an Authorised PersonG which has on its LicenceG an endorsement permitting it to do so. An Authorised PersonG maintaining a Trade RepositoryG is subject to some specific requirements relating to that activity, which are set out in App 5.
          2. The functions of a Trade RepositoryG promote increased transparency and integrity of information, particularly for centrally clearing over-the-counter derivatives. Currently there are no transaction reporting requirements in the DIFCG which require reporting to Trade RepositoriesG .
          3. An Authorised PersonG does not carry on the activities of a Trade RepositoryG to the extent that it maintains records of transactions pursuant to the record keeping requirements applicable to that firm (such as those relating to transactions carried out on behalf of its ClientsG by an Authorised FirmG , or transactions carried out on the facilities of an Authorised Market InstitutionG ).
          [Added] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]