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 Bodies
  • Recognised Members

Recognised Body

Article 37 of the DIFC Markets Law prohibits a person which operates an exchange, clearing house or alternative trading system from a place of business outside the DIFC from providing direct access to its facilities to persons in the DIFC unless such operator is admitted to the list of recognised persons maintained by the DFSA pursuant to Article 37 of the Markets Law.

Article 37 of the Markets Law defines a Recognised Body as an exchange, clearing house or alternative trading system that operates in a jurisdiction outside the DIFC and which has been admitted to, and appears on, the list of Recognised Bodies maintained by the DFSA.

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

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

Tips for Applicants

  1. Read the Markets Law, the Recognition Module, the Fees Module, and the Regulatory Policy and Process Sourcebook before you begin your application.
  2. Contact the DFSA's Markets team at markets@dfsa.ae to inquire about the Recognition application process and the relevant Rec Body application to complete.
  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 alternative trading system outside the DIFC seeking status as a Recognised Body, must meet the recognition criteria that are set out in the DFSA's Recognition Module.

If you have any queries regarding the application process, please contact the DFSA's Markets team at markets@dfsa.ae.


Fees

According to the DFSA's Fees module, a person applying for a Recognised Body status must pay an application fee of $15,000. There is currently no periodic fee payable.
Effective 1 January 2018, the application fee will remain $15,000, however, each Recognised Body will also be required to pay an annual fee. The annual fee is $1,000. If a Body is initially recognised part way through a year, the fee for that initial year will be calculated on a pro rata basis (i.e. the initial fee is calculated as the annual fee, multipled by the number of whole calendar months between the date of recognition and the end of the year divided by 12).


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 certain significant events that are specified in the Recognition Module, 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 that have nexus to the DIFC. Markets Law.

 

Getting Help

Recognised Members

A firm located in a jurisdiction other than the DIFC can become a member of an Authorised Market Institution only if it has been granted recognition status by the DFSA. Article 37 of the DIFC Markets Law defines a Recognised Member as a person located in a jurisdiction other than the DIFC which has been admitted to, and appears on, the list of recognised members maintained by the DFSA.

  • 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 Markets Law, the Recognition Module, the Fees Module, and the Regulatory Policy and Process Sourcebook before you begin your application.
  3. Complete the REC1 Application for Recognised Member Status application form.
  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

A firm outside of the DIFC seeking Recognised Member status from the DFSA must meet the recognition criteria that are set out in the DFSA's Recognition Module.

If you have any queries regarding the applicatino process, please contact the DFSA's Markets team at markets@dfsa.ae.


Fees

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

Effective 1 January 2018, the Recognised Member application fee will be $1,000.


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

 

  • Enquiries: You can direct your questions about the Recognition process to our Markets Division.
  • NASDAQ Dubai and DME: For enquiries on the admission requirements for membership to these AMIs, contact the NASDAQ Dubai or DME.