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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Conduct of Business Module (COB) [VER33/07-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices
Financial Markets Tribunal
Archive

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  • COB 2.6 Transitional Rules

    • COB 2.6.1

      An Authorised FirmG may continue to treat a PersonG as a Retail ClientG , Professional ClientG , or Market CounterpartyG , as the case may be, without having to re-classify the PersonG under section 2.3:

      (a) where the Authorised FirmG was treating that PersonG as such a ClientG (including under a waiver or modification in force) immediately prior to 1 April 2015; and
      (b) with regard to the Financial Services carried on with or for that ClientG prior to that date.
      Derived from DFSA RM149/2015 (Made 11th February 2015) [VER24/04-15]

    • COB 2.6.2

      Without limiting the generality of Rule 2.6.1, and for the avoidance of doubt, any client classification adopted, Transaction carried on with or for a ClientG , or Client AgreementG entered into with a ClientG for the purposes of section 3.3, prior to 1 April 2015, remains in force on and after that date.

      Derived from DFSA RM149/2015 (Made 11th February 2015) [VER24/04-15]

      • COB 2.6.2 Guidance

        1. The introduction of the new client classification regime does not trigger the need to re-classify existing ClientsG . However, with regard to an existing ClientG who has been grandfathered under Rule 2.6.1, the need for a re-classification may subsequently arise in a number of circumstances such as those set out in paragraphs 2, 3 and 4.
        2. Where a Professional ClientG grandfathered under Rule 2.6.1 subsequently requests to opt-in as a Retail ClientG under Rule 2.4.1(3), the Authorised FirmG will need to re-classify that ClientG in accordance with the requirements in that Rule.
        3. Where a grandfathered ClientG wishes to obtain a new Financial ServiceG after the new regime came into force, an Authorised FirmG will not be able to rely on the existing client classification relating to that ClientG in respect of the new Financial ServiceG . This is because Rule 2.6.1 only applies in respect of the Financial ServicesG carried on with or for a ClientG before the new regime came into force. Therefore, the firm will need to make a new classification relating to such a ClientG in respect of the new Financial ServiceG and do so under the new client classification regime.
        4. If an Authorised FirmG becomes aware that a grandfathered professional client no longer fulfils the requirements to remain classified as a Professional ClientG , it will need to comply with the requirements in Rule 2.3.3(2).
        Derived from DFSA RM149/2015 (Made 11th February 2015) [VER24/04-15]

    • COB 2.6.3

      (1) For the purposes of classifying a PersonG as an 'assessed' Professional ClientG under either Rule 2.3.7 or Rule 2.3.8, the reference to $1 million in each of Rules 2.3.7(1)(a) and 2.3.8(1)(a) is to be read as a reference to $500,000 on and before 31 March 2016.
      (2) An Authorised FirmG may continue to treat a PersonG as an 'assessed' Professional ClientG in reliance on the lower asset threshold specified in (1) on and after 1 April 2016 provided:
      (a) it is in respect of the Financial ServicesG carried on with or for the ClientG prior to that date; and
      (b) the firm continues to ensure that all the other applicable requirements in this chapter are met in respect of that ClientG .
      Derived from DFSA RM149/2015 (Made 11th February 2015) [VER24/04-15]