10 Leaves

This episode is also available as a blog post: https://10leaves.ae/publications/difc/difc-category-3a-brokerage-license

The DFSA, for the purposes of authorisation and supervision, categorises brokerage activities under Category 3A. These include forex, commodity and derivatives brokerages.

This license allows for ‘Dealing In Investments as Agent’ and ‘Dealing in Investments as Principal’ , or on a matched Principal basis. Due to the higher risks associated with these activities, the DFSA places higher entry-level requirements, namely the pedigree of the applicants and their regulated background. It also places restrictions on the license itself -professional clients only, lower leverage. Retail endorsement is possible, but requires a high degree of comfort from the regulator.

This episode is also available as a blog post: https://10leaves.ae/publications/difc/guide-to-providing-money-services-business-licenses-in-the-difc

Firms interested in carrying out money services business activities from the DIFC are required to submit applications to the Dubai Financial Services Authority, or DFSA.

The DFSA, for the purposes of authorisation and supervision, categorises money services business activities based on the type of money services being carried out, and the minimum base capital required.

The DFSA categorises the range of activities that comprise the Money Services Business into two groups: 1) Arranging and Advising on Money Services and 2) Providing Money Services.

Providing Money Services (includes issuing payment instruments, providing money transmission, issuing stored value and providing or operating a payment account).

This episode is also available as a blog post: https://10leaves.ae/publications/difc/guide-to-payment-service-provider-psp-licenses-in-the-difc

Firms interested in carrying out PSP activities from the DIFC are required to submit applications to the Dubai Financial Services Authority, or DFSA.

The DFSA, for the purposes of authorisation and supervision, categorises money services business activities based on the type of money services being carried out, and the minimum base capital required.

The DFSA categorises the range of activities that comprise the Money Services Business into two groups: 1) Arranging and Advising on Money Services and 2) Providing Money Services.

Providing Money Services (includes issuing payment instruments, providing money transmission, issuing stored value and providing or operating a payment account).

This episode is also available as a blog post: https://10leaves.ae/publications/difc/category-4-difc-investment-advisory-license-difc-license-categories

Firms interested in carrying out investment advisory activities from the DIFC are required to submit applications to the Dubai Financial Services Authority, or DFSA.

The DFSA, for the purposes of authorisation and supervision, categorises investment advisory, credit advisory and insurance advisory activities under Category 4. Other activities that come under a Category 4 license include crowdfunding. While the Category 4 license allows firms to deal with Professional Clients only, it is possible to seek a Retail Endorsement during, or after the licensing process.

This episode is also available as a blog post: https://10leaves.ae/publications/difc/guide-to-the-difc-fund-manager-license

Firms interested in managing funds from the DIFC are required to submit applications to the Dubai Financial Services Authority, or DFSA.

The DFSA has a fast-track process for Fund Manager licenses, which come under Category 3C. The Fund Manager, if approved, can manage domestic (Public, DIFC Exempt Fund and DIFC Qualified Investor Fund) and Foreign Funds in other jurisdictions as well. In case the firm wishes to also engage in discretionary portfolio management services, it has to go through a full-fledged license process.

DIFC Crowdfunding License:

Firms interested in carrying out crowdfunding activities from the DIFC are required to submit applications to the Dubai Financial Services Authority, or DFSA.

The DFSA, for the purposes of authorisation and supervision, categorises the crowdfunding business as a Category 4 entity, with the primary activity of “Operating a Crowdfunding Platform”. The base capital required for a DIFC Crowdfunding license is US$ 140,000.

This episode is also available as a blog post: https://10leaves.wordpress.com/2021/02/24/guide-to-the-difc-crowdfunding-business-license/

This episode is also available as a blog post: https://10leaves.ae/publications/difc/new-difc-venture-capital-funds-regime

With DIFC Funds, Fund Managers can target the GCC market, and the wider MENASA region, taking advantage of the numerous Double Taxation Avoidance Treaties that the UAE has in place. Zero-rate personal and corporate tax also make the DIFC an attractive destination to setup and manage investment funds.

The DIFC has also now proposed a Venture Capital Fund regime, that aims to attract VC firms from all over the world, into the centre.