AR

About Recognition
Recognised Body
Recognised Members
 

About Recognition

Article 41(1) of the Regulatory Law 2004 prohibits Financial Services from being carried out in or from the DIFC. Acquiring status as a Recognised Member or Recognised Body from the DFSA exempts a firm from this prohibition and enables it to conduct certain financial services on an Authorised Market Institution, for example NASDAQ Dubai or DME.
 

Becoming Recognised

Article 41(1) of the Regulatory Law 2004 prohibits a person from carrying on Financial Services in or from the DIFC unless such person is authorised or otherwise permitted. The DFSA does not consider that a person which meets the requirements to be recognised by the DFSA as a Recognised Body or Recognised Member, and which carries on its activities in accordance with the Rules in the Recognition module, would be conducting Financial Services in or from the DIFC.

For more information about obtaining recognition, please refer to the following sections:

recognised body

A Recognised Body is an exchange, clearing house or settlement facility that operates in or from the Dubai International Financial Centre (DIFC) without having a physical presence in the DIFC.A Recognised Body usually already operates in a jurisdiction located outside the DIFC.

The following is a guide for exchanges, clearing houses or settlement facilities seeking status as Recognised Bodies:

  • Tips for applicants
  • Applying for Recognised Member Status
  • Fees
  • Supervision As A Recognised Body
  • Getting Help



Tips for Applicants

  1. Read the relevant module of the DFSA Rulebook and the Regulatory Policy and Process Sourcebook before you begin your application.
  2. Check you are submitting the correct application form.
  3. Be as comprehensive as possible. If the DFSA needs to request further information, any delay in providing it will have an impact on the time it takes to process your application. Although processing time varies on a case-by-case basis, the DFSA endeavours to process all applications in a timely manner.
  4. Review your application, particularly when using consultants or legal advisers - you are the one who knows your business best.You are also responsible for any information contained in the application.
  5. Submit all your documents at once - your signed application and all the requested attachments.
  6. Where an application fee is applicable, ensure you have paid this.
  7. Nominate a contact person within your firm to be responsible for managing the application process and to assist the DFSA with any enquiries.

 

Apply for Recognised Body Status

An exchange, clearing house or settlement facility outside the DIFC seeking status as a Recognised Body, must:

  • Be licensed or otherwise authorised to operate an exchange, clearing house or settlement facility in a jurisdiction acceptable to the DFSA and Operate to a standard which would satisfy the Licensing Requirements for AMIs.
  • Operate to a standard which would satisfy the Licensing Requirements for AMIs.

If you have any queries regarding the application process, please contact our Markets division.


Fees

A Recognised Body must pay an application fee of $10,000. There is currently no periodic fee payable.



Supervision as a Recognised Body

A Recognised Body is required to deal with the DFSA and their home Financial Services Regulator/s in an open and co-operative manner. This includes keeping the DFSA promptly informed of significant events, as well as submitting a copy of annual reports and accounts.

The DFSA relies upon the home Financial Services Regulator to act as the primary regulator of the Recognised Body. The focus of the DFSA’s interest will be on activities carried on in the DIFC or activities which have an impact on the DIFC.

 

Getting Help

recognised members

A Recognised Member is a member of an Authorised Market Institution (AMI) and does not have a physical presence in the Dubai International Financial Centre (DIFC). A Recognised Member is usually already a member of an exchange or clearing house located in a jurisdiction outside the DIFC.

  • Tips for applicants
  • Applying for Recognised Member Status
  • Fees
  • Supervision as a Recognised Member
  • Getting Help


 

Tips for applicants

  1. Engage with the relevant AMI about membership prior to submitting your application to the DFSA.
  2. Read the relevant module of the DFSA Rulebook and the Regulatory Policy and Process Sourcebook before you begin your application.
  3. Check you are submitting the correct application form(s).
  4. Be as comprehensive as possible. If the DFSA needs to request further information, any delay in providing it will have an impact on the time it takes to process your application. Although processing time varies on a case-by-case basis, the DFSA endeavours to process all applications as quickly as possible.
  5. Review your application, particularly when using consultants or legal advisers - you are the one who knows your business best. You are also responsible for any information contained in the application.
  6. Submit all your documents at once - your signed application and all the requested attachments.
  7. Nominate a contact person within your firm to be responsible for managing the application process and to assist the DFSA with any enquiries.


 

Applying for Recognised Member status

Members of an exchange or clearing house outside of the DIFC seeking Recognised Member status from the DFSA must:

  • Have its head and registered offices outside the DIFC;
  • Be already licensed to perform the financial services it will carry on in the DIFC in a jurisdiction outside the DIFC;
  • Be regulated in that other jurisdiction to a standard satisfactory to the DFSA; and
  • Be a member of, or authorised to use the facilities of, either NASDAQ Dubai or the DME.

There are also different requirements for Recognised Members that wish to deal in commodity derivatives as principal only. These and other additional requirements are contained in the DFSA Rulebook.

An application form, Form REC1, is located in Chapter 8 of the Application Forms and Notices Module (AFN) of the DFSA Sourcebook, available on the DFSA website.


Fees

Recognised Members currently do not pay any application or periodic fees.

 

Supervision as a Recognised Member

Recognised Members are required to notify the DFSA immediately of any material changes which could impact their recognition status within the DIFC. This includes making copies available of any information provided to financial services regulators outside of the DIFC.



Getting Help