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Obtaining DIFC Category 3C License | DFSA Category 3C Financial Licensing

June 26, 2021by Mohammed Rahali

Obtaining DIFC Category 3C License | DFSA Category 3C Financial Licensing

DUBAI INTERNATIONAL FINANCIAL CENTER [DIFC] is a broadly based recognized and renowned international financial center serving local, regional and international institutions, and serves in the obtainment of Financial License Categories 3C, 1, 2, 3A, 3B, 3D 4 & 5.

 

DIFC CATEGORY 3C LICENSE – MANAGING A COLLECTIVE INVESTMENT FUND / MANAGING ASSETS

An Authorised Firm in this category may be licensed to carry on one or more Financial Services of Managing a Collective Investment Fund, Managing Assets, Providing Trust Services as a trustee of an express trust, Providing Custody (other than for a fund) and Managing a Profit Sharing Investment Account (received on a restricted basis). An Authorised Firm that has a 3C license can also provide Financial Services in Category 4 but cannot provide Financial Services in Categories 1, 2, 3A or 3B.

  • Base Capital – US$ 500,000
  • Base capital requirement 3C Fund Manager – US$ 140,000 (to manage a Public Fund US$ 70,000 to manage exempt funds/QIFs).
  • Expenditure based capital requirement of 18/52 of annual operating expenditure (as the Fund Manager will hold or control Client Money)
  • Capital Plan must be captured in Internal Capital Adequacy Assessment Process Report.

Note that additional capital requirements may be imposed by DFSA on the review of the application. 

 

WHAT ARE THE REQUIRED APPOINTMENTS FOR A CATEGORY 3C AUTHORIZED FIRM IN DIFC?

  • Directors (at least 2, preferably 3-4) – can be outsourced (NEDs).
  • Senior Executive Officer (SEO) – In-house, UAE resident (can be a Director).
  • Risk Officer (RO) – can be outsourced.
  • Finance Officer (FO) – can be outsourced (can also be an Executive Director/Senior Manager).
  • Money Laundering Reporting Officer (MLRO) – can be outsourced, UAE resident (can be a CO).
  • Compliance Officer (CO) – can be outsourced, UAE resident (can be an MLRO).

 

HOW CAN WINCORE ASSIST YOU?

  • Introduction to the Regulator
  • Draft of Regulatory Business Plan (RBP) (Application Forms, Business flow processes & charts)
  • Preparation of Financial model for 3 years and draft of ICAAP and IRAP report.
  • Preparation of policies and manuals (Compliance, AML, Risk Management, Remuneration, Governance, Conflicts of Interests, Business Continuity Plan, etc.)
  • AUT – CORE this form must be submitted by all applicants applying for a license to carry out one or more financial services in or from DIFC. It covers information on the applicant, its activities, prospective clients and controllers;
  • AUT – IND this form must be submitted by the individuals holding a mandatory function including directors, senior executive officer, finance officer, compliance officer and money laundering reporting officer; and
  • AUT-AMS this form must be submitted by applicants applying to conduct financial services relating to arranging credit or deals in investment. The applicant will be required to submit this form as one of the Proposed Activities of DIFC CO includes arranging credits and deals in investment.
  • Draft of regulatory application for the company and individuals
  • Submission of Regulatory Application (with Policies and appointment of SEO, FO, MLRO, RO, CO)
  • Provision of full-time functions:

(*) SEO – Senior Executive Officer

(*) FO – Finance Officer

(*) RO – Risk Officer

(*) MLRO – Money Laundering Reporting Officer

(*) CO – Compliance Officer Initiation of the entity incorporation process

  • Office lease
  • Introduction to the UAE Bank for opening an Account
  • Issuance of Regulator’s financial services license

 

Wincore Advisory Group helps businesses to articulate their objectives and aspirations to set up DIFC Category 3C Financial Licence. Contact us at contact@wincoreadvisory.com.

 

 

mm

Mohammed Rahali

Managing Partner | E: m.rahali@wincoreadvisory.com | M: +971 (0) 55 138 9591

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