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  • RPP 1 Introduction

    • RPP 1-1 Purpose

      • RPP 1-1-1

        The purpose of the Regulatory Policy and Process (RPP) Sourcebook is to provide readers with an understanding of how the Dubai Financial Services Authority (DFSAG ) functions and operates and what we expect from the regulated community.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-1-2

        The RPP contains:

        (a) statements of DFSA'sG regulatory policy;
        (b) descriptions of the regulatory processes that we follow when exercising our statutory powers;
        (c) information as to DFSA'sG risk based approach to authorisation, supervision and enforcement; and
        (d) information on matters which the DFSAG may assess when considering using specific discretionary powers. For example, this would include those matters which the DFSAG may take into consideration when making an assessment of whether an Authorised PersonG or Authorised IndividualG is fit and proper.
        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]
        Amended (Made 21st August 2014). August 2014 Edition

      • RPP 1-1-3

        RPP is therefore relevant to a PersonG who is:

        (a) seeking to be authorised or registered by the DFSAG ;
        (b) already subject to applicable laws, RulesG and policies administered by the DFSAG such as Authorised PersonsG (i.e. Authorised FirmsG or Authorised Market InstitutionsG ), DNFBPsG , Registered AuditorsG , Audit PrincipalsG , Authorised IndividualsG , Key IndividualsG , Principal RepresentativesG and any other PersonsG subject to the DFSA'sG regulatory oversight; and
        (c) otherwise subject to the jurisdiction of the DFSAG such as by reason of the DFSA'sG authority under a delegated power.
        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]
        Amended by Notice of Updates (Made 5th July 2012). July 2012 Edition
        Amended by Notice of Updates (Made 14th July 2013). July 2013 Edition
        Amended (Made 21st August 2014). August 2014 Edition

      • RPP 1-1-4

        RPP also concerns PersonsG who have made or intend to make:

        (a) an OfferG of SecuritiesG ; or
        (b) a Financial PromotionG ;

        in or from the DIFCG .

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-1-5

        The types of PersonG mentioned above to whom RPP is relevant are not intended to be exhaustive and such PersonsG are generally referred to in this Sourcebook as a “firm” unless the context provides otherwise.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]
        Amended by Notice of Updates (Made 14th July 2013). July 2013 Edition

    • RPP 1-2 Status

      • RPP 1-2-1

        The information in RPP is issued under Article 116(2) of the Regulatory LawG 2004 (the Regulatory LawG ). RPP is for information purposes only and forms one of the DFSA'sG Sourcebook modules. RPP contains policy and process information which is indicative and non-binding.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]
        Amended (Made 21st August 2014). August 2014 Edition

      • RPP 1-2-2

        RPP is not an exhaustive source of the DFSA'sG policy on the exercise of its statutory powers and discretions. To the extent that it sets out how the DFSAG may act in certain circumstances, the information in RPP does not bind the DFSAG and nor does it necessarily create a legitimate expectation for Persons who might reasonably seek to rely upon it. RPP should not be relied upon as a safe harbour by any PersonG .

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]
        Amended (Made 21st August 2014). August 2014 Edition

      • RPP 1-2-3

        Anyone reading RPP should also refer to the:

        (a) DIFCG Laws, including DFSAG administered Laws ("Laws");
        (b) DFSAG Rulebook ("Rules"); and
        (c) other parts of the DFSAG Sourcebook ("Sourcebook");

        that may have an impact on them.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]
        Amended by Notice of Updates (Made 14th July 2013). July 2013 Edition

      • RPP 1-2-4

        The Laws and RulesG set out the precise scope and effect of any particular provision referred to in RPP. If you have any doubt about a legal or other provision or your responsibilities under the Law, RulesG or other relevant requirements, you should seek appropriate legal advice.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-2-5

        The Sourcebook comprises a number of modules such as the Prudential Returns (PRUG ) module and the Application, Forms and Notices (AFN) module.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

    • RPP 1-3 Updating the RPP

      • RPP 1-3-1

        We shall take reasonable steps to review the RPP to ensure that it remains current. We shall also make amendments where there are changes in our policy or processes in light of our regulatory experience and to reflect legal and market developments in the DIFCG or in the relevant standards and practices set by international regulatory bodies. This may result in new chapters being added or existing chapters being amended or merged or deleted, as is necessary.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

    • RPP 1-4 Defined Terms

      • RPP 1-4-1

        In order to be consistent and accurate when referring to terms that have specific meaning elsewhere, defined terms are identified throughout RPP by the capitalisation of the initial letter of a word or each word of a phrase and are defined in the Glossary module (GLO) of the DFSA'sG Rulebook. Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

    • RPP 1-5 DFSA's Regulatory Mandate

      • RPP 1-5-1

        The DFSAG is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFCG ), a purpose-built financial free-zone in Dubai.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-5-2

        The DFSA'sG regulatory oversight includes asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities and derivatives exchange and an international commodities derivatives exchange.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-5-3

        The DFSA'sG mandate is to ensure that the DIFCG is one of the best regulated international financial centres in the world, a centre based on principles of integrity, transparency and efficiency.

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]

      • RPP 1-5-4

        The international standards adopted and applied by the DFSAG in the DIFCG are those set by leading international organisations such as, BCBS (Basel Committee on Banking Supervision), IAIS (International Association of Insurance Supervisors), IOSCO (International Organisation of Securities Commissions) and FATF (Financial Action Task Force).

        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]
        Amended (Made 21st August 2014). August 2014 Edition

    • RPP 1-6 DFSA's Objectives and Guiding Principles

      • RPP 1-6-1

        In discharging its regulatory mandate, the DFSAG has a statutory obligation under Article 8(3) of the Regulatory LawG to pursue the following objectives:

        (a) to foster and maintain fairness, transparency and efficiency in the financial services industry (namely, the financial services and related activities carried on) in the DIFCG ;
        (b) to foster and maintain confidence in the financial services industry in the DIFCG ;
        (c) to foster and maintain the financial stability of the financial services industry in the DIFCG , including the reduction of systemic risk;
        (d) to prevent, detect and restrain conduct that causes or may cause damage to the reputation of the DIFCG or the financial services industry in the DIFCG , through appropriate means, including the imposition of sanctions;
        (e) to protect direct and indirect users and prospective users of the financial services industry in the DIFCG ;
        (f) to promote public understanding of the regulation of the financial services industry in the DIFCG ; and
        (g) to pursue any other objectives as the Ruler of Dubai may from time to time set under DIFCG Law.
        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]
        Amended (Made 21st August 2014). August 2014 Edition

      • RPP 1-6-2

        In exercising its powers and performing its functions, the DFSAG has regard to the following guiding principles as set out in Article 8(4) of the Regulatory LawG , being the desirability of:

        (a) pursuing the objectives of the DIFCG as set out under Dubai LawG in so far as it is appropriate and proper for the DFSAG to do so;
        (b) fostering the development of the DIFCG as an internationally respected financial centre;
        (c) co-operating with and providing assistance to regulatory authorities in the United Arab Emirates and other jurisdictions;
        (d) minimising the adverse effects of the activities of the DFSAG on competition in the financial services industry;
        (e) using its resources in the most efficient way;
        (f) ensuring the cost of regulation is proportionate to its benefit;
        (g) exercising its powers and performing its functions in a transparent manner; and
        (h) complying with relevant generally accepted principles of good governance.
        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]
        Amended (Made 21st August 2014). August 2014 Edition

    • RPP 1-7 DFSA's Regulatory Structure

      • RPP 1-7-1

        The DFSAG is structured into a number of divisions and departments. For the purpose of this Sourcebook, the most relevant are as follows:

        Supervision

        (a) The Supervision Division authorises firms and individuals to conduct Financial ServicesG in or from the DIFCG . This Division also registers DNFBPsG and Registered AuditorsG (see Chapter 2).
        (b) This Division also conducts supervisory oversight on all Authorised FirmsG , DNFBPsG and Registered AuditorsG , including by conducting risk assessments. The scope and frequency of such assessments are dictated by the nature of the firm's activities and its perceived risks. From time to time, Supervision carries out thematic reviews inspired by topical events which have both local and international relevance (see Chapter 3).

        Markets

        (c) The Markets Division licenses and supervises Authorised Market InstitutionsG in the DIFCG (see Chapters 2 and 3).
        (d) The Division also recognises those financial markets that operate an exchange or clearing house outside the DIFCG without having a physical presence in the DIFCG but make their services available to PersonsG in the DIFCG . Trading and Clearing members of an Authorised Market InstitutionG who operate in a jurisdiction other than the DIFCG and do not have a physical presence in the DIFCG are also recognised by the Division.
        (e) The Division is also responsible for regulating OffersG of SecuritiesG in or from the DIFCG , and supervises Reporting EntitiesG by monitoring their ongoing market disclosures and compliance with RulesG .

        Enforcement

        (f) The primary function of the Enforcement Division is to prevent, detect and restrain conduct that causes or may cause damage to the reputation of the DIFCG or the financial services industry in the DIFCG . Consequently, the Enforcement Division is responsible for:
        (i) liaising and co-operating with international regulatory and enforcement agencies under relevant multilateral memoranda of understanding or bilateral arrangements in relation to investigation and enforcement matters;
        (ii) conducting investigations commenced under Article 78 of the Regulatory LawG in respect of contraventions of DFSAG administered Laws and RulesG ; and
        (iii) the taking of enforcement action in circumstances where contraventions of DFSAG administered Laws and RulesG pose an unacceptable risk to the DIFCG .
        (g) The DFSAG has a range of remedies to enforce the legislation that we administer see Chapters 4 and 5.

        Policy and Strategy Division

        (h) The Policy and Strategy Division is responsible for the DFSA'sG policy framework, including its maintenance and development, as well as providing advice on the intent of the policy framework to Divisions of the DFSAG .
        (i) The Division also oversees the DFSA'sG risk framework and its approach to strategic planning.

        Legal Department

        (j) The Legal Department provides advice and legal opinions on matters affecting the DFSAG . This includes advising the operational divisions on the supervision and enforcement of the Laws and Rules administered by the DFSAG and on the application of legislation and associated jurisdiction issues. It is also responsible for drafting and maintaining the DIFC Laws and Rules administered by the DFSAG and for consulting with the Dubai Government and the DIFC Authority on DIFCG , Dubai and Federal legislation.
        (k) The Department also provides litigation management and advice for the DFSAG on matters which are, or could be, before the DIFC Courts or the Financial Markets TribunalG .
        (l) The General Counsel is responsible for managing and supervising the Legal Department, advising the DFSAG Board and its committees, investigating complaints against the DFSA and overseeing the DFSA'sG ethics programme.
        Derived from DFSA GM8/2011 (Made 28th April 2011). [VER 1/02-11]
        Amended by Notice of Updates (Made 5th July 2012). July 2012 Edition
        Amended by Notice of Updates (Made 20th December 2012). December 2012 Edition
        Amended by Notice of Updates (Made 14th July 2013). July 2013 Edition
        Amended (Made 21st August 2014). August 2014 Edition
        Amended by Notice of Updates (Made 28th January 2016). February 2016 Edition