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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Authorised Market Institutions (AMI) [VER18/02-17]
Part 3 Licensing Requirements
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices
Financial Markets Tribunal
Archive

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  • AMI 5.3 Licensed Functions and Key Individuals

    • Licensed Functions and Key Individuals

      • AMI 5.3.1

        (1) An Authorised Market InstitutionG must, for the purpose of proper discharge of its Regulatory FunctionsG , have at all times individuals appointed to carry out the functions of the:
        (a) Governing BodyG ;
        (b) Senior Executive OfficerG ;
        (c) Finance OfficerG ;
        (d) Compliance OfficerG ;
        (e) Risk OfficerG ;
        (f) Money Laundering Reporting OfficerG ; and
        (g) Internal AuditorG .
        (2) Each of the functions of an Authorised Market InstitutionG specified in (1)(a) to (g) are Licensed FunctionsG for the purposes of Article 43(1) of the Regulatory LawG .
        Derived from RM118/2013 [VER15/07-13]
        [Amended] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

      • AMI 5.3.2

        (1) An Authorised Market InstitutionG must not permit a Key IndividualG to carry on any Licensed FunctionG for or on behalf of the Authorised Market InstitutionG unless the particular individual has been assessed by the Authorised Market InstitutionG to be competent to perform the relevant Licensed FunctionG .
        (2) The Licensed FunctionsG specified in Rule 5.3.1 do not include a function performed by a registered insolvency practitioner (subject to the restrictions in Article 88 of the Insolvency Law 2009) if the practitioner is:
        (a) acting as a nominee in relation to a company voluntary arrangement within the meaning of Article 8 of the Insolvency Law 2009;
        (b) appointed as a receiver or administrative receiver within the meaning of Article 14 of the Insolvency Law 2009;
        (c) appointed as a liquidator in relation to a members' voluntary winding up within the meaning of Article 32 of the Insolvency Law 2009;
        (d) appointed as a liquidator in relation to a creditors' voluntary winding up within the meaning of Article 32 of the Insolvency Law 2009; or
        (e) appointed as a liquidator or provisional liquidator in relation to a compulsory winding up within the meanings of Articles 58 and 59 of the Insolvency Law 2009.
        (3) The Licensed FunctionsG specified in Rule 5.3.1 do not include a function performed by an insolvency practitioner in accordance with the applicable requirements equivalent to those specified in (2)(a)–(e) in another jurisdiction.
        (4) The Licensed FunctionsG specified in Rule 5.3.1 do not include a function of an individual appointed to act as a manager of the business of an Authorised Market InstitutionG as directed by the DFSAG under Article 88 of the Regulatory LawG .
        Derived from RM118/2013 [VER15/07-13]
        [Amended] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

        • AMI 5.3.2 Guidance

          1. See section 2.3 of the RPP sourcebook for details of the assessment that the Authorised Market InstitutionG and the DFSAG undertake to assess whether an individual is fit and proper to undertake Key IndividualG functions.
          2. An Authorised Market InstitutionG may apply for the DFSA'sG in-principle approval of an individual as soon as the individual is identified as a potential appointee to avoid any delays in formalising the appointment. However, an Authorised Market InstitutionG should submit to the DFSAG , as far as reasonably practicable, all the relevant information, including the results of its own assessment, when seeking such in-principle approval.
          Derived from RM118/2013 [VER15/07-13]

    • Members of the Governing Body

      • AMI 5.3.3

        Every member of the Governing BodyG of an Authorised Market InstitutionG carries on the function of a Key IndividualG .

        Derived from RM118/2013 [VER15/07-13]

    • Senior Executive Officer

      • AMI 5.3.4

        The Senior Executive OfficerG function is carried out by an individual who:

        (a) has, either alone or jointly with the other Key IndividualsG , the ultimate responsibility for the day-to-day management, supervision and control of one or more (or all) parts of an Authorised Market Institution'sG Financial ServicesG carried on in or from the DIFCG ; and
        (b) is either a member of the Governing BodyG or a Senior ManagerG of the Authorised Market InstitutionG .
        Derived from RM118/2013 [VER15/07-13]
        [Amended] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

    • Finance Officer

      • AMI 5.3.5

        The Finance OfficerG function is carried out by an individual who:

        (a) has the overall responsibility for the Authorised Market Institution'sG compliance with the financial resources requirements in Rule 5.5.4; and
        (b) is either a MemberG of the Governing BodyG or a Senior ManagerG of the Authorised Market InstitutionG .
        Derived from RM118/2013 [VER15/07-13]

    • Compliance Officer

      • AMI 5.3.6

        The Compliance OfficerG function is carried out by an individual who:

        (a) has the overall responsibility for the Authorised Market Institution'sG compliance with the Licensing RequirementsG and other applicable requirements in carrying out Financial ServicesG ; and
        (b) is either a MemberG of the Governing BodyG or a Senior ManagerG of the Authorised Market InstitutionG .
        Derived from RM118/2013 [VER15/07-13]

    • Risk Officer

      • AMI 5.3.7

        The Risk OfficerG function is carried out by an individual who:

        (a) has the overall responsibility for the risk management function in relation to the Financial ServicesG carried on by the Authorised Market InstitutionG ; and
        (b) is a member of the Governing BodyG or a Senior ManagerG of the Authorised Market InstitutionG .
        Derived from RM118/2013 [VER15/07-13]

    • Money Laundering Reporting Officer

      • AMI 5.3.8

        The Money Laundering Reporting OfficerG function is carried out by an individual who:

        (a) has the overall responsibility for the Authorised Market Institution'sG compliance with the requirements in Rule 5.11.2, AMLG and any other relevant anti money laundering legislation applicable in the DIFCG ; and
        (b) is either a member of the Governing BodyG or a Senior ManagerG of the Authorised Market InstitutionG .
        Derived from RM118/2013 [VER15/07-13]

    • Internal Auditor

      • AMI 5.3.9

        The Internal AuditorG function is carried out by an individual who is responsible for the internal audit matters in relation to the Financial ServicesG carried on by the Authorised Market InstitutionG .

        Derived from RM118/2013 [VER15/07-13]

    • Residency of Key Individuals

      • AMI 5.3.10

        The Key IndividualG functions of a Senior Executive OfficerG , Compliance OfficerG and Money Laundering Reporting OfficerG must be carried out by an individual resident in the U.A.E.G

        Derived from RM118/2013 [VER15/07-13]

    • Combining Roles

      • AMI 5.3.11

        (1) To the extent practicable, an Authorised Market InstitutionG must not assign to its Key IndividualsG any commercial functions which conflict with their Key IndividualG functions or which impair, or are likely to impair, their ability to perform the relevant functions.
        (2) Before an Authorised Market InstitutionG assigns to a Key IndividualG any commercial functions, the Authorised Market InstitutionG must:
        (a) form a view on a reasonable basis that the commercial functions to be assigned to any Key IndividualG do not, as far as reasonably practicable, conflict with the relevant Key IndividualG functions or impair his ability to discharge those functions effectively; and
        (b) to the extent there are such conflicts inherent in the relevant functions, there are adequate procedures and controls to mitigate such conflicts.
        (3) The Authorised Market InstitutionG must maintain records of its decisions and procedures as applicable under (2) above.
        Derived from RM118/2013 [VER15/07-13]

        • AMI 5.3.11 Guidance

          The DFSAG does not expect Key IndividualsG who are PersonsG undertaking control functions such as those relating to risk, compliance and audit to be assigned any functions or roles which are to further the Authorised Market Institution'sG commercial interests or objectives (such as business promotional activities) .

          Derived from RM118/2013 [VER15/07-13]