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Dubai Financial Services Authority (DFSA): Contents

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  • AMI 3 Authorisation

    • AMI 3.1 Application

      • AMI 3.1.1

        This chapter applies to every Person who is an applicant for:

        (a) a Licence to be an Authorised Market Institution;
        (b) an endorsement to:
        (i) maintain an Official List of Securities;
        (ii) operate a Multilateral Trading Facility; or
        (iii) act as a Trade Repository; or
        (c) Key Individual status.
        Derived from RM118/2013 [VER15/07-13]

        • AMI 3.1.1 Guidance

          1. This chapter outlines the DFSA's authorisation requirements for an Authorised Market Institution and its Key Individuals, as well as the process for an Authorised Market Institution to obtain an endorsement on its Licence to maintain an Official List of Securities, operate a Multilateral Trading Facility or act as a Trade Repository.
          2. This chapter should be read in conjunction with the RPP Sourcebook, which sets out the DFSA's general regulatory policy and processes. See chapter 2 of the RPP sourcebook.
          Derived from RM118/2013 [VER15/07-13]

    • AMI 3.2 Assessment

      • AMI 3.2.1

        (1) In order to become authorised to carry on one or both of the Financial Services of Operating an Exchange or Operating a Clearing House, the applicant must demonstrate to the satisfaction of the DFSA that it can meet the relevant Licensing Requirements specified in chapters 5, 6 and 7, as appropriate to the Financial Services it proposes to carry on, both at the point of the grant of the Licence and thereafter on an on-going basis.
        (2) In order to obtain an endorsement on its Licence to:
        (a) maintain an Official List of Securities;
        (b) operate a Multilateral Trading Facility; or
        (c) act as a Trade Repository,
        the applicant must demonstrate to the satisfaction of the DFSA that it can meet the requirements applicable to Persons undertaking the relevant activities, both at the point of the grant of the endorsement and thereafter on an on-going basis.
        Derived from RM118/2013 [VER15/07-13]

        • AMI 3.2.1 Guidance

          1. The Licensing Requirements are specified in chapters 5, 6 and 7 of Part 3 of this module. These include the general requirements applicable to all Authorised Market Institutions (chapter 5), and the additional requirements applicable to specific types of activities of Authorised Market Institutions (chapters 6 and 7).
          2. Where an Authorised Market Institution (or an applicant for a Licence) seeks to obtain an endorsement on its Licence, additional requirements relevant to the type of endorsement need to be satisfied (see, for example, App 5 of GEN for the requirements relating to Trade Repositories).
          3. Currently, the function of maintaining an Official List of Securities is performed by the DFSA. However, the DFSA has the power, pursuant to Article 29 of the Markets Law, to grant an Authorised Market Institution an endorsement on its Licence permitting it to maintain an Official List of Securities.
          4. Section 3.6 of the RPP Sourcebook sets out the matters which the DFSA takes into consideration when making an assessment under Rule 3.2.1.
          Derived from RM118/2013 [VER15/07-13]

      • Inquiries and Information

        • AMI 3.2.2

          In assessing an application for a Licence or an endorsement on a Licence, the DFSA may:

          (a) make any enquiries which it considers appropriate, including enquiries independent of the applicant;
          (b) require the applicant to provide additional information;
          (c) require the applicant to have information on how it intends to ensure compliance with a particular requirement;
          (d) require any information provided by the applicant to be verified in any way that the DFSA specifies; and
          (e) take into account any information which it considers relevant.
          Derived from RM118/2013 [VER15/07-13]

        • AMI 3.2.3

          (1) In assessing an application for a Licence, the DFSA may, by means of written notice, indicate the legal form that the applicant may adopt to enable authorisation to be granted.
          (2) Where the DFSA thinks it appropriate, it may treat an application made by one legal form or Person as having been made by the new legal form or Person.
          Derived from RM118/2013 [VER15/07-13]

    • AMI 3.3 Obtaining Key Individual Status

      • AMI 3.3 Guidance

        Under Article 43 of the Regulatory Law, every Authorised Market Institution must have Key Individuals appointed to perform Licensed Functions. Key Individuals appointed by an Authorised Market Institution to perform Licensed Functions must be approved by the DFSA before they are permitted to carry on such functions. This section sets out the matters that will be considered by the DFSA in approving such Key Individuals. The list of Licensed Functions for an Authorised Market Institution is in section 5.3 of this module.

        Derived from RM118/2013 [VER15/07-13]
        [Amended] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

      • AMI 3.3.1

        (1) In regard to an application for approval for an individual to be granted Key Individual status, both the Authorised Market Institution and the individual must complete the appropriate form in AFN.
        (2) An Authorised Market Institution must be satisfied that the individual with respect to whom an application is submitted:
        (a) is competent in his proposed role;
        (b) has kept abreast of relevant market, product, technology, legislative and regulatory developments; and
        (c) is able to apply his knowledge.
        Derived from RM118/2013 [VER15/07-13]

        • AMI 3.3.1 Guidance

          See paragraph 2.2.16(j) and section 2-3 of the RPP sourcebook for the details of the assessment which an Authorised Market Institution is expected to undertake.

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

      • AMI 3.3.2 [Deleted]

        [Deleted] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

        • AMI 3.3.2 Guidance [Deleted]

          [Deleted] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

      • Requirements for Key Individuals

        • AMI 3.3.2

          (1) To be authorised as a Key Individual an individual must demonstrate that he is fit and proper to perform the Licensed Function.
          (2) In assessing whether an individual is fit and proper to perform a Licensed Function under (1) the DFSA will consider:
          (a) the individual's integrity;
          (b) the individual's competence and capability;
          (c) the individual's financial soundness;
          (d) the individual's proposed role within the Authorised Market Institution; and
          (e) any other relevant matters.
          [Added] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

        • AMI 3.3.3

          Without limiting Rule 3.3.2, an individual shall not be considered fit and proper for the the purposes of that Rule if he:

          (a) is bankrupt;
          (b) has been convicted of a serious criminal offence; or
          (c) is incapable, through mental or physical incapacity, of managing his affairs.
          [Added] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

        • AMI 3.3.4

          In assessing whether an individual is fit and proper to be granted Key Individual Status to carry out a Licensed Function, the DFSA may:

          (a) make any enquiries which it considers appropriate, including enquiries independent of the applicant;
          (b) require the Authorised Market Institution or the individual to provide additional information;
          (c) require any information provided by the Authorised Market Institution or the individual to be verified in any way specified by the DFSA; and
          (d) take into account any information which it considers appropriate.
          [Added] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

          • AMI 3.3.4 Guidance

            Section 2.3 of the RPP Sourcebook sets out the matters which the DFSA takes into consideration when making an assessment referred to in this section.

            [Added] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]