DIFC Financial License

DIFC Category 1 License Authorised Firm is a firm that is licensed to carry out the Financial Service of Accepting Deposits or Managing a Profit-Sharing Investment Account (received on an unrestricted basis). The Authorised Firm under this category may be authorised to conduct other Financial Services, but its authorisation for Accepting Deposits and/or Managing a Profit-Sharing Investment Account is what determines it as a Category 1 Authorised Firm, rather than another. A Category 1 firm may apply for an Islamic Window to conduct certain aspects of its business in a Sharia-compliant manner.

Base Capital – US$ 10,000,000.

Risk-based Capital minimum based on the totality of risks – CET1, 6%; Tier 1, 8%.

Capital Requirement is not applicable to a Branch set-up of existing regulated bank.

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.

This is an Authorised Firm licensed to carry out the Financial Service of Dealing In investments as Principal and Providing Credit. In addition to this activity, the Authorised Firm under this category may also be authorised to conduct other Financial Services found in Category 3A, 3B, 3C or 4, provided that it cannot be authorised to conduct the Financial Services set out in Category 1.

Base Capital – US$ 2,000,000

Risk-based Capital minimum based on the totality of risks – CET1, 6%; Tier 1, 8%.

Capital Requirement not applicable to a Branch set-up of existing regulated bank.

Capital Plan must be captured in Internal Capital Adequacy Assessment Process Report.

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

In this category, an Authorised Firm is licensed to carry on one or more of the Financial Services of: Dealing in Investments as Principal where it does only so as a Matched Principle; Dealing in Investments as Agent. An Authorised Firm grouped under this category may be authorised to conduct other Financial Services found in Category 3B, 3C or 4, but it cannot be authorised to conduct any of the Financial Services in Categories 1 or 2.

Base Capital – US$ 500,000

Risk-based Capital minimum based on the totality of risks – CET1, 6%; Tier 1, 8%.

Capital Requirement is not applicable to a Branch set-up of existing regulated bank.

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.

An Authorised Firm in this category is licensed to Provide Custody (but only for a Fund) and act as trustee for a Fund. An Authorised Firm in this category can carry on financial services in Category 3C and 4 but cannot carry on financial services in Categories 1, 2 or 3A.

Base Capital – US$ 4,000,000

Capital Requirement is not applicable to a Branch set-up of an existing regulated bank.

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.

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 licence 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.

An Authorised Firm in this category may be licensed to carry on one or more Financial Services of providing money services where the firm is providing or operating a payment account, executing payment transactions or issuing payment instruments. This includes creating and maintaining accounts for executing payment transactions, issuance of personalized sets of procedures agreed upon by the users and the provider, for initiation or execution of payment instructions. An Authorised Firm that has a 3D licence can also provide Financial Services in Category 4 but cannot provide Financial Services in Categories 1, 2, 3A or 3B, 3C or 5.

Base Capital – US$ 200,000

Expenditure based capital requirement –

9/52 of annual operating expenditure 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.

Authorised Firms in this category can do one or more of Arranging Deals in Investments, Advising on Financial Products, Arranging Custody, Insurance Intermediation, Insurance Management, Operating an Alternative Trading System, Providing Fund Administration, Arranging Credit and Advising on Credit, Operating a Crowdfunding Platform and/or Providing Trust Services (other than as a trustee of an express trust). In Categories 2-4, Authorised Firms may apply to conduct their business in a wholly Sharia Compliant manner or through an Islamic Window.

Base Capital – US$ 10,000

Operating a crowdfunding platform while holding client money –$140,000

Expenditure-based capital requirement of 6/52 of annual operating expenditure (18/52 if will holding or controlling Client Money).

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

An Islamic Financial Institution carries out its entire business in accordance with the principles of Sharia and manages a profit-sharing investment account (received on an unrestricted basis).

Base Capital – US$ 10,000,000

Risk-based Capital minimum based on the totality of risks –

CET1, 6%; Tier 1, 8%. Capital Requirement is not applicable to a Branch set-up of an existing regulated bank.

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.