Transcription of The DFSA Rulebook
1 GEN/VER53/10-21 The DFSA Rulebook General Module (GEN) GENERAL (GEN) GEN/VER53/10-21 Contents The contents of this module are divided into the following chapters, sections and appendices: 1 INTRODUCTION .. 1 Application .. 1 2 FINANCIAL SERVICES .. 3 Application .. 3 Financial Service activities .. 3 By way of business .. 8 Accepting 11 Providing credit .. 11 Providing money services .. 12 Dealing in investments as principal .. 15 Dealing in investments as agent .. 16 Arranging deals in investments.
2 16 Managing assets .. 21 Advising on financial products .. 21 Managing a collective investment fund .. 23 Providing custody .. 24 Arranging custody .. 26 Effecting contracts of insurance .. 27 Carrying out contracts of insurance .. 28 Operating an exchange .. 28 Operating a clearing house .. 28 Insurance 30 Insurance management .. 32 Managing a profit sharing investment account .. 34 Operating an alternative trading system .. 34 Providing Trust Services .. 35 Providing fund administration .. 36 Acting as the Trustee of a Fund.
3 36 Operating a Representative Office .. 37 Operating a Credit Rating Agency .. 38 Arranging Credit and Advising on Credit .. 39 Operating a Crowdfunding Platform .. 41 Operating an Employee Money Purchase Scheme .. 44 Acting as the Administrator of an Employee Money Purchase Scheme .. 45 Arranging or Advising on Money Services .. 47 2A. DEFINITION OF FINANCIAL PRODUCT IN THE GENERAL PROHIBITION AGAINST MISCONDUCT .. 50 3. FINANCIAL PROMOTIONS .. 51 Application .. 51 Overview .. 51 Definition of a Financial Product.
4 52 GENERAL (GEN) GEN/VER53/10-21 Scope of the Financial Promotions Prohibition .. 52 Additional Rules for Financial Promotions .. 54 4 CORE PRINCIPLES .. 58 Principles for Authorised Firms application .. 58 The Principles for Authorised Firms .. 59 Principles for Authorised Individuals 61 The Principles for Authorised Individuals .. 61 5 MANAGEMENT, SYSTEMS AND CONTROLS .. 63 Application .. 63 Allocation of significant responsibilities .. 63 Systems and controls .. 64 6 GENERAL PROVISIONS .. 77 Application.
5 77 Interpreting the Rulebook .. 77 Emergency .. 78 Disclosure of regulatory status .. 78 Location of offices .. 79 Close links .. 80 Complaints against the DFSA .. 80 Public register .. 81 Communication with the DFSA .. 81 Provision of information to the DFSA .. 81 7 AUTHORISATION .. 83 Application .. 83 Application for a Licence .. 83 Applications for endorsements .. 87 Licensed Functions and Authorised individuals .. 88 Mandatory appointments .. 91 Application for Authorised Individual status .. 93 8 ACCOUNTING AND AUDITING.
6 96 Application .. 96 Financial statements and financial reporting standards .. 96 Accounting records and regulatory returns .. 97 Appointment and termination of Auditors .. 98 Co-operation with Auditors .. 99 Audit reports .. 100 9 Complaints Handling and Dispute Resolution .. 102 Application .. 102 Complaints handling procedures for Retail Clients .. 102 Complaints recording procedures for Professional Clients .. 105 GENERAL (GEN) GEN/VER53/10-21 10 TRANSITIONAL RULES .. 107 Endorsements to hold client assets and insurance monies.
7 107 Safe Custody Auditor s Report .. 109 Re-classification of certain Financial Services .. 109 Transitional Rules relating to Employee Money Purchase Schemes .. 111 11 SUPERVISION .. 112 Information gathering and DFSA access to information .. 112 Waivers .. 113 Application to change the scope of a Licence .. 114 Withdrawal of a Licence at an Authorised Firm s request .. 114 Changes to an authorised individual status .. 115 Temporary cover .. 115 Dismissal or resignation of an Authorised Individual .. 116 Changes relating to control.
8 116 Deleted .. 124 Notifications .. 124 Requirement to provide a report .. 133 Imposing Restrictions on an Authorised Person s business or on an Authorised Person dealing with property .. 135 12 BUSINESS TRANSFER SCHEMES .. 136 Modifications applying to transfer schemes .. 136 13. FACILITATING FINTECH INNOVATION .. 139 App1 DEPOSITS .. 143 Definition of a deposit .. 143 App2 INVESTMENTS .. 145 General definition of investments .. 145 Definitions of specific securities .. 147 Definitions of specific derivatives.
9 149 Financial instrument declared as an investment .. 151 App3 Best Practice relating to corporate governaNce and remuneration 153 Best practice relating to corporate governance .. 153 Best practice relating to 155 App4 CONTRACTS OF INSURANCE .. 158 Definition of a contract of insurance .. 158 App5 TRADE REPOSITORY .. 161 Requirements applicable to Trade Repositories .. 161 GENERAL (GEN) GEN/VER53/10-21 App6 Investment tokens .. 162 GENERAL (GEN) 1 GEN/VER53/10-21 1 INTRODUCTION Application This module (GEN) applies to every Person to whom the Regulatory Law or Markets Law applies and to the same extent in relation to every such Person as that law, except to the extent that a provision of GEN provides for a narrower application.
10 Guidance Pursuant to the application provisions in each chapter, only chapters 1 to 3 inclusive and sections , , , , and of GEN apply to a Representative Office. Overview of the module Guidance 1. Chapter 2 prescribes, pursuant to Article 41(2) of the Regulatory Law, the activities which constitute a Financial Service and, pursuant to Article 42(1) of the Regulatory Law, the kind of Financial Services that may be carried on by Authorised Firms and Authorised Market Institutions. It also specifies various exclusions in relation to the by way of business requirement and, where applicable, in relation to each Financial Service.
