Home   Browse contents   View updates   Search  
     Quick search
Go
   

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
Archive

BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player



  • GEN 8 Accounting and Auditing

    • GEN 8.1 Application

      • GEN 8.1.1

        This chapter applies to every Authorised PersonG other than a Representative OfficeG .

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM38/2006 (Made 28th November 2006). [VER12/11-06]
        [Amended] DFSA RM68/2009 (Made 3rd January 2010). [VER24/01-10]
        [Amended] DFSA RM95/2012 (Made 14th June 2012). [VER29/06-12]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.1.1 Guidance [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.1.2

        Pursuant to Article 99(5) of the Regulatory LawG , an Authorised PersonG which is a Representative OfficeG is hereby exempt from the requirements in Article 99 of the Regulatory LawG relating to the appointment of an Auditor.G

        [Added] DFSA RM38/2006 (Made 28th November 2006). [VER12/11-06]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.1.2 Guidance

          The DFSAG has exercised its power under Article 99(5) of the Regulatory LawG to exempt an Authorised PersonG which is a Representative OfficeG from the requirements in that Article. As a result, in accordance with the terms of Article 99(5), the Representative OfficeG also does not need to comply with other requirements in chapters 4, 5 and 6 of Part 8 of that Law.

          [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.2 Financial statements and financial reporting standards

      • GEN 8.2.1

        An Authorised PersonG must prepare financial statements for each financial year of the Authorised PersonG .

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM69/2010 (Made 1st March 2010). [VER25/03-10]
        [Amended] DFSA RM105/2012 (Made 23rd December 2012). [VER32/12-12]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.2.1 Guidance

          1. Chapter 4 of the Islamic Finance Rules (IFRG ) sets out specific disclosures an Authorised PersonG must include in its financial statements when carrying on Islamic Financial BusinessG .
          2. The financial statements prepared by an Authorised PersonG which is a BranchG may be the financial statements prepared for the Authorised Person'sG head office.
          [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.2.2

        An Authorised PersonG must, except as provided under Rule 8.2.3, prepare and maintain all financial statements in accordance with the International Financial Reporting Standards (IFRS).

        [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.2.3

        (1) An Authorised FirmG specified in (2) may prepare and maintain its financial statements in accordance with IFRS for Small and Medium-Sized Entities (SMEs) where that standard applies to it.
        (2) Authorised FirmsG specified for the purposes of (1) are:
        (a) an Authorised FirmG in Category 3B, Category 3C or Category 4, which does not hold or control Client AssetsG or Insurance MoniesG ; and
        (b) an Authorised FirmG in Category 4 which is not authorised under its LicenceG to carry on the Financial ServiceG of OperatingG an Alternative Trading SystemG .
        (3) The DFSAG may by written notice direct that a particular Authorised FirmG or a specified class of Authorised FirmG specified in (2) must prepare and maintain financial statements in accordance with IFRS rather than IFRS for Small and Medium Sized Entities.
        (4) The DFSAG may by written notice vary or revoke a direction under (3).
        (5) The procedures in Schedule 3 to the Regulatory Law apply to a decision of the DFSAG to give a direction under (3) to a particular Authorised FirmG .
        (6) If the DFSAG decides to give a direction under (3) to a particular Authorised FirmG , the Authorised FirmG may refer the matter to the FMT for review.
        [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.2.4

        An Authorised PersonG must:

        (a) if it is a Body CorporateG , have its financial statements approved by the DirectorsG and signed on their behalf by at least one of the DirectorsG ; or
        (b) if it is a PartnershipG , have its financial statements approved by the PartnersG and signed on their behalf by at least one of the PartnersG .
        [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.3 Accounting records and regulatory returns

      • GEN 8.3.1

        Every Authorised PersonG must keep Accounting RecordsG which are sufficient to show and explain transactions and are such as to:

        (a) be capable of disclosing the financial position of the Authorised PersonG on an ongoing basis; and
        (b) record the financial position of the Authorised PersonG as at its financial year end.

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]

      • GEN 8.3.2

        Accounting RecordsG must be maintained by an Authorised PersonG such as to enable its Governing BodyG to ensure that any financial statements prepared by the Authorised PersonG comply with the legislation applicable in the DIFCG .


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.3.3

        An Authorised Person'sG Accounting RecordsG must be:

        (a) retained by the Authorised PersonG for at least six years from the date to which they relate;
        (b) at all reasonable times, open to inspection by the DFSAG or the AuditorG of the Authorised PersonG ; and
        (c) if requested by the DFSAG capable of reproduction, within a reasonable period not exceeding 3 business days, in hard copy and in English.

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM42/2007 (Made 15th February 2007). [VER13/02-07]
        [Amended] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.3.4

        All regulatory returns prepared by the Authorised FirmG must be prepared and submitted in accordance with the requirements set out in PIB or PIN as applicable.

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER17/11-07]

      • Financial years

        • GEN 8.3.5

          (1) The first financial year of an Authorised FirmG which is a Domestic FirmG starts on the day on which it is incorporated and lasts for such period not exceeding 18 months as may be determined by its DirectorsG or PartnersG .
          (2) An Authorised FirmG which is a Domestic FirmG must as soon as practicable after it has made a determination under (1) notify the DFSA of the end date determined for its first financial year.
          (3) The second and any subsequent financial year of an Authorised FirmG which is a Domestic FirmG shall, except as provided in Rule 8.3.6, start at the end of the previous financial year and shall last for 12 months or such other period which is within 7 days either shorter or longer than 12 months as may be determined by its DirectorsG or PartnersG .
          Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
          [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.3.6

          (1) An Authorised FirmG which is a Domestic FirmG may only change its financial year end from a period provided for under Rule 8.3.5(3) with the DFSA's prior consent.
          (2) The application for consent must be in writing and include the reasons for the change.
          (3) The DFSA may require the Authorised FirmG to obtain written confirmation from its AuditorG that the change of financial year end would not result in any significant distortion of the financial position of the Authorised FirmG .
          Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
          [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.3.7

          If an Authorised FirmG is not a Domestic FirmG and intends to change its financial year, it must provide the DFSA with reasonable advance notice prior to the change taking effect.

          [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.4 Appointment and termination of Auditors

      • GEN 8.4.1

        An Authorised PersonG must:

        (a) notify the DFSAG of the appointment of an AuditorG by completing and submitting the appropriate form in AFN;
        (b) prior to the appointment of the AuditorG , take reasonable steps to ensure that the AuditorG has the required skills, resources and experience to audit the business of the Authorised PersonG for which the auditor has been appointed; and
        (c) if it is a Domestic FirmG , ensure that the AuditorG , at the time of appointment and for the duration of the engagement, is registered with the DFSAG as a Registered AuditorG .

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        Amended DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.4.2

        An Authorised PersonG must notify the DFSAG immediately if the appointment of the AuditorG is or is about to be terminated, or on the resignation of its AuditorG , by completing and submitting the appropriate form in AFN.


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        Amended DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.4.3

        An Authorised PersonG must appoint an AuditorG to fill any vacancy in the office of AuditorG and ensure that the replacement AuditorG can take up office at the time the vacancy arises or as soon as reasonably practicable.


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.4.4

        (1) An Authorised PersonG must take reasonable steps to ensure that the AuditorG and the relevant audit staff of the AuditorG are independent of and not subject to any conflict of interest with respect to the Authorised PersonG .
        (2) An Authorised PersonG must notify the DFSAG if it becomes aware, or has reason to believe, that the AuditorG or the relevant audit staff of the auditor are no longer independent of the Authorised PersonG , or have a conflict of interest which may affect their judgement in respect of the Authorised PersonG .
        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        Amended DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.4.4 Guidance

          1. An Authorised PersonG should consider whether there is any financial or personal relationship between it or any of its relevant EmployeesG and the AuditorG or any of the relevant EmployeesG of the AuditorG that may affect the judgement of the AuditorG when conducting an audit of the Authorised PersonG or complying with all its legal obligations, including the Regulatory LawG , AUDG , AMLG and other relevant modules of the DFSAG Rulebook.
          2. An Authorised PersonG should consider rotating the appointed relevant staff of the AuditorG on a regular basis to ensure that the relevant staff of the AuditorG remain independent.
          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 RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.4.5

        If requested by the DFSAG , an Authorised PersonG which carries on Financial ServicesG through a BranchG must provide the DFSAG with information on its appointed or proposed AuditorG with regard to the Auditor'sG , skills, experience and independence.


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        Amended DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.4.6 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.4.7 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.4.8 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.5 Co-operation with Auditors

      • GEN 8.5.1

        An Authorised PersonG must take reasonable steps to ensure that it and its EmployeesG :

        (a) provide any information to its Auditor that its AuditorG reasonably requires, or is entitled to receive as AuditorG ;
        (b) give the AuditorG right of access at all reasonable times to relevant records and information within its possession;
        (c) allow the AuditorG to make copies of any records or information referred to in (b);
        (d) do not interfere with the Auditor'sG ability to discharge its duties;
        (e) report to the AuditorG any matter which may significantly affect the financial position of the Authorised PersonG ; and
        (f) provide such other assistance as the AuditorG may reasonably request it to provide.
        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.6 Audit reports

      • GEN 8.6.1

        An Authorised PersonG must, in writing, require its AuditorG to:

        (a) conduct an audit of and produce a Financial Statement Auditor's ReportG on the Authorised Person'sG financial statements in accordance with the International Standards on Auditing;
        (b) produce a Regulatory Returns Auditor's ReportG in accordance with the Rules in AUD App1 as relevant;
        (c) produce, if the Authorised FirmG is permitted to control or hold Client MoneyG , a Client Money Auditor's ReportG in accordance with the Rules in AUD App2;
        (d) produce, if the Authorised FirmG is permitted to control or hold Insurance MoniesG , an Insurance Monies Auditor's ReportG in accordance with the Rules in AUD App3; and
        (e) produce, if the Authorised FirmG is permitted to hold or control Client InvestmentsG or Provide CustodyG in or from the DIFCG , a Safe Custody Auditor's ReportG in respect of such business as applicable, in accordance with the Rules in AUD App4.
        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM66/2009 (Made 1st August 2009). [VER23/08-09]
        [Amended] DFSA RM69/2010 (Made 1st March 2010). [VER25/03-10]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]
        [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]

      • GEN 8.6.2

        An Authorised PersonG must submit any reports produced by its AuditorG that are required by this chapter to the DFSAG within four months of the Authorised Person'sG financial year end.


        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.6.3

        (1) An Authorised PersonG must, subject to (2), upon request by any PersonG , provide a copy of its most recent audited financial statements, together with the Financial Statement Auditor's ReportG to the PersonG . If the copy is made available in printed form, the Authorised PersonG may make a charge to cover reasonable costs incurred in providing the copy.
        (2) The requirement in (1) does not apply to an Authorised FirmG which:
        (a) is in Category 3B, Category 3C or Category 4; and
        (b) does not hold or control Client AssetsG or Insurance MoniesG .

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.6.3 Guidance

          An Authorised PersonG should be aware that there may be other legislation applicable to it that may require the Authorised PersonG to provide access to all or part of its financial statements.

          [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.7 [Deleted]

      • [Deleted]

        • GEN 8.7.1 [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

          • GEN 8.7.1 Guidance [Deleted]

            [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.7.2 [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

          • GEN 8.7.2 Guidance [Deleted]

            [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • [Deleted]

        • GEN 8.7.3 [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.7.4 [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.8 [Deleted]

      • GEN 8.8.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.8.1 Guidance [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.9 [Deleted]

      • GEN 8.9.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.9.2 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.9.3 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.9.3 Guidance [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.10 [Deleted]

      • GEN 8.10.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.11 [Deleted]

      • GEN 8.11.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.11.2 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.11.3 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.11.4 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.11.5 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.11.6 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.12 [Deleted]

      • GEN 8.12 Guidance [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.12.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.12.2 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.12.3 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.12.4 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.12.5 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.13 [Deleted]

      • GEN 8.13.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.13.2 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.13.3 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.13.3 Guidance [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.13.4 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.14 [Deleted]

      • GEN 8.14 Guidance [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.14.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.14.2 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.14.3 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.14.4 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.14.5 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 8.14.5 Guidance [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.15 [Deleted]

      • GEN 8.15.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.16 [Deleted]

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

      • GEN 8.16.1 [Deleted]

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

      • GEN 8.16.2 [Deleted]

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

      • GEN 8.16.3 [Deleted]

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

    • GEN 8.17 [Deleted]

      • GEN 8.17.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.17.2 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • GEN 8.17.3 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

      • [Deleted]

        • GEN 8.17.4 [Deleted]

          [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • GEN 8.18 [Deleted]

      • GEN 8.18.1 [Deleted]

        [Deleted] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]