Category 4 DIFC Investment Advisor & Arranger License

DIFC Investment Advisor License

A Category 4 DIFC Investment Advisor License is a license provided by the Dubai International Financial Centre (DIFC) to individuals or companies who wish to provide investment advice and arrange deals in investments. This license is regulated by the Dubai Financial Services Authority (DFSA) and is highly valued in the financial industry.

What is DIFC?

Dubai International Financial Centre (DIFC) is a leading financial hub in the Middle East, Africa, and South Asia (MEASA) region. It is home to a wide range of financial institutions, multinational corporations, and professional service providers. The DIFC license offers a business-friendly environment with world-class infrastructure, a regulatory framework, and access to a pool of skilled professionals.

How to Set Up a Financial Services Firm in DIFC:

Setting up a financial services firm in DIFC is a straightforward process that involves the following steps:

  1. Register a Company: Choose a company structure, fill out the registration forms, and submit the required documents to the DIFC authorities.
  2. Obtain a License: Apply for the appropriate license for your financial services firm, ensuring compliance with the regulatory requirements set by DIFC license.
  3. Set Up Office Space: Find a suitable office space within DIFC and customize it to meet your business needs.
  4. Hire Talent: Recruit skilled professionals to join your team and help you grow your financial services firm.
  5. Comply with Regulations: Ensure strict compliance with the regulatory framework in DIFC to maintain the reputation and integrity of your business.

Advantages of Setting Up in DIFC:

  1. Strategic Location: Dubai’s strategic location between East and West makes it an ideal gateway for businesses looking to tap into both regional and international markets.
  2. Regulatory Environment: DIFC boasts a business-friendly regulatory environment with a robust legal system based on English common law, providing certainty and stability for investors.
  3. Tax Benefits: Firms operating in DIFC enjoy zero percent tax on profits and no restrictions on capital repatriation, making it a tax-efficient jurisdiction for businesses.
  4. Access to Talent: DIFC offers access to a pool of skilled professionals, thanks to its vibrant business community and diverse workforce.
  5. Modern Infrastructure: The state-of-the-art infrastructure in DIFC license, including world-class office spaces and advanced technology, provides a conducive environment for businesses to thrive.

DIFC Investment Advisor & Arranger License

In investment advisory activities within the DIFC, firms must submit their applications to the Dubai Financial Services Authority (DFSA). The DFSA classifies investment advisory, credit advisory, and insurance advisory activities as Category 4, which requires authorization and supervision. Additionally, a Category 4 license covers other activities such as operating an Alternate Trading System and crowdfunding for unlisted securities, including security tokens.

Under a Category 4 license, firms are permitted to cater exclusively to Professional Clients. However, it is possible to apply for a Retail Endorsement during or after the licensing process. This endorsement incurs a one-time fee of US$ 20,000 upon application.

The activities falling under Category 4 include arranging deals in investments, arranging credit and advising on credit, advising on financial products, arranging custody, insurance intermediation, insurance management, operating an ATS, providing fund administration, providing trust services, operating a crowdfunding platform, and arranging or advising on money services.

Credit Arrangement and Credit Advisory

Credit Arrangement and Credit Advisory encompass the following:

(a) Facilitating the borrowing of funds through a Credit Facility on behalf of another party, whether as a principal or as an agent.

(b) Guiding individuals or entities, in their capacity as borrowers or potential borrowers, or as agents for borrowers or potential borrowers, regarding the merits of entering into a specific Credit Facility.

Custody Arrangement

Custody Arrangement involves the organization of custody services for one or more firms or individuals. This includes:

– Negotiating and finalizing the contractual terms between the custody provider and the client who requires custody services.

– Assisting the client in completing application forms and other necessary processes.

– Managing and processing the client’s payments.

– Facilitating the transmission of information (including instructions from the client and confirmations from the custody provider) between the customer and the custody provider.

Category 4 – Non-discretionary advice and arrangement of activities.

Base Capital – US$ 10,000

Base Funding for Running a Crowdfunding Network or Money Transfer Services: US$ 140,000

DIFC License Activities include arranging investment transactions, arranging credit and advising on credit, advising on financial products, arranging custody, insurance intermediation, insurance management, operating an ATS, providing fund administration, and trust services, operating a crowdfunding platform, and setting up or suggesting cash services.

The DFSA assumes the company to be properly staffed depending on the size, scope, and nature of the DIFC license categories proposed product offering. At the least, the DFSA would want to see the following appointments:

Board of Directors: an effective group with solid governance policies.

The Chair would have to be a non-executive Director.

Finance Officer (FO) – Senior and suitably qualified finance professional.

In case of a group, the FO can be from the parent company and does not have to be resident in the UAE. This role can also be outsourced.

Risk Officer – This role is typically outsourced and not required.

Compliance Officer (CO) – A senior compliance specialist with more than ten years of experience who typically lives in the UAE.

Money-Laundering Reporting Officer – A senior AML professional with over ten years of experience who typically resides in the UAE. This position can be coupled with Conformity, and one person can handle both of the duties.

The CO and MLRO roles can also be outsourced.

Internal Auditor – Senior and suitably qualified internal audit professional. Usually outsourced to a professional firm.

How Can We Help You?

With our expertise and guidance, obtaining your DIFC Investment Advisor License is a straightforward process. Here’s how we can assist you:

  • Initial Consultation: We will start by conducting an initial consultation to assess your specific requirements and goals.
  • Documentation Preparation: Our team will assist you in preparing all the necessary documentation required for the license application.
  • Regulatory Compliance: We will guide you through the regulatory requirements of the DIFC license to ensure that your application meets all necessary standards.
  • Application Submission: Once all documentation is in order, we will submit your application for the DIFC Investment Advisor License on your behalf.

Who We Are?

As a leading Corporate Service Provider in the DIFC, we offer a complete solution of services to support all stages of your business lifecycle. From company formation and registration to ongoing compliance and governance, we are here to assist you every step of the way.

Our services include:

  • Company formation and registration
  • Corporate governance
  • Compliance and regulatory services
  • Business advisory services
  • PRO services
  • Accounting and bookkeeping
  • VAT registration and filing
  • And much more!

By outsourcing your corporate services to us, you can focus on growing your business while we take care of the administrative tasks and regulatory requirements. Our team of experts will ensure that your business operates smoothly and efficiently, giving you peace of mind and the freedom to concentrate on what you do best.

In conclusion, obtaining a Category 4 DIFC Investment Advisor License is an important step for those looking to start themselves in the financial industry. With this license, individuals or companies can showcase their expertise and credibility, leading to more opportunities and growth in their business. If you are considering obtaining this license, make sure to follow the necessary steps and requirements set forth by the DFSA.

Connect with Neeja Corporate Services

Are you looking to start your company in Dubai but feeling overcome by the registration process? Don’t worry, you’re not alone. Setting up a business in a foreign country can be challenging, but with the right guidance and support, it doesn’t have to be a stressful experience. Neeja’s business setup services offer complete support and serve as a one-stop shop for company setup in Dubai. We provide a wide range of value-added services, such as Category 4 DIFC Investment Advisor License and VAT registration. Over the years, we have successfully advised many new entrepreneurs to make their business dreams a reality.

To book a free consultation, call on +971 43243031. You can also send a WhatsApp message at +971 50 465 2843. To connect over email, send us your query at [email protected].

error: Content is protected !
Scroll to Top