On
21st June 2016, the DFSA issued Consultation Paper 106 on the Regulation
of Arranging, Representative Office Activities and Financial Promotions.
One
of the outcomes of the Consultation Paper was the introduction of a new
Financial Service relating to credit and a related amendment to two other existing
Financial Services, all effective from 1st February 2017.
Financial Services up to
31st January 2017
|
Financial Services with effect from
1st February 2017
|
Arranging Credit and Deals in Investments
|
Arranging
Deals in Investments
|
Advising on Financial Products and Credit
|
Advising
on Financial Products
|
N/A
|
Arranging
Credit and Advising on Credit
|
The
Dubai Financial Services Authority (DFSA) has also introduced additional detailed guidance in its Rulebook to
describe what certain Financial Services (including the ones mentioned above)
do and do not entail. Based on this, if a company believes it needs to apply
for a fresh Licence from the DFSA, it will need to do so promptly.
The
new rules also confirm that those companies with existing authorisation to
conduct credit related advising and arranging will automatically be authorised
for this activity under the reclassified category of ‘Arranging credit and
advising on credit’.
In
light of the above, it is recommended that companies:
- Review the financial services that they offer and ensure the correct authorisations are held by them;
- Visit the DFSA’s Public Register to check that its listing shows the correct Financial Services; and
- Ensure that their internal policies and manuals are up to date to reflect the changes.
If
you require any assistance with applying to the DFSA for a new Licence or with
updating internal policies and manuals, we can help. Please email us at info@holtconsultancy.com or call us on +971 4 386 6360.
“We
are delighted to have joined the DIFC Insurance Association. HOLT
consultancy provides advice and outsourced compliance services to a number of
DIFC based (re)-insurance firms. Joining a professional body like the
DIFC Insurance Association enables us to represent the best interests of our
clients in a market that continues to grow and mature.”
