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WorksheetsThe Financial Free Zone Law Quiz 3
Total questions: 25
Worksheet time: 13mins
A person who feels he has been adversely affected by the manner in which the DFSA has carried
out its functions may addressed to:
DIFC court
the chief executive of the DFSA
The DFSA relationship manager
DIFC appellate tribunal
the DFSA rule change introduced a new customer classification, and widened the potential
customer base to include retail clients, effective from :
1 Jan 2018
1 Jan 2008
1 July 2018
1 July 2008
The DFSA will only consider applications for a licence from a person who is
a body corporate, a partnership or an individual
a body corporate, a trust; or an unincorporated association
a body corporate; a joint venture; or a trust
a body corporate, a partnership, or an unincorporated association
Which of the following is true:
only a body corporate can effect contracts of insurance or carry out contracts of insurance;
prior approval of the Emirates Securities and Commodities Authority to trade on a
UAE exchange
body corporates and AMI can accept deposits;
only an individual can manage a collective investment fund or act as the trustee of a fund
For DFSA license authorization, following is not a criteria for considering if an applicant is fit and
proper :
how the applicant will comply with the Prudential norms
the type of financial services being provided;
whether the applicant’s affairs will be conducted and managed in a sound and prudent
manner;
any matter which may harm, or may have harmed, the integrity or the reputation of the
DFSA or the DIFC;
Even after license withdrawl, the DFSA regulatory powers in relation to an authorised firm or
authorised individual can be exercised :
for one years from the date on which the licence was withdrawn.
for two years from the date on which the licence was withdrawn.
for three years from the date on which the licence was withdrawn.
for five years from the date on which the licence was withdrawn.
any appeal in relation to a DFSA decision to refuse an application for an endorsement can be made
to :
DIFC court
Financial markets tribunal
DIFCA
The Regulatory Appeals Committee
An individual must not carry out a licensed function for an authorised firm unless he is authorised by
the DFSA. Exceptions to this rule are:
manager of the business of an authorised firm or AMI as directed by the DFSA
when a function is performed by a registered insolvency practitioner within the meanings of
the Insolvency Law 2009
A separate endorsement to provide financial services is provided
Only a and b
An individual who is not an authorised individual to carry out the functions of an authorised
individual (this is known as temporary cover the licensed function is only carried out for a:
maximum of 3 weeks in any consecutive 12 months
maximum of 12 weeks in any consecutive 12 months
maximum of 15 weeks in any consecutive 12 months
maximum of 24 weeks in any consecutive 12 months
An authorised firm must request the withdrawal of an authorised individual status
within seven days of resignation or dismissal
within fourteen days of resignation or dismissal
within thirty days of resignation
within fourteen days of dismissal
this function is carried out by an individual who has, either alone or jointly with other authorised
individuals, ultimate responsibility for the day-to-day management :
Licensed director
Senior manager
Senior executive officer
Responsible officer
This function is carried out by an individual who has exercises a significant influence on the firm as
a result of this; and is not an employee of the authorised firm.
Finance officer
Responsible officer
Licensed partner
Licensed director
has responsibility for the authorised firm’s compliance with the applicable rules in PIN or PIB
Finance officer
Responsible officer
Licensed partner
Licensed director
Mandatory appointments are :
Senior executive officer; Finance officer; Compliance officer; and Senior manager
Senior executive officer; Finance officer; Responsible officer ; and Money laundering
reporting officer
Senior executive officer; Licensed director, Senior manager; and Money laundering reporting
officer
Senior executive officer; Finance officer; Compliance officer; and Money laundering
reporting officer
For the following positions, unless a waiver is applied, must be resident of UAE:
The senior executive officer, compliance officer and money laundering reporting
officer
The senior executive officer, Finance officer and money laundering reporting officer
The senior executive officer, compliance officer and Licensed director
Finance officer, compliance officer and money laundering reporting officer
A controller is defined as a person who, either alone or with any associate
holds 10% or more of an authorised firm’s or AMI’s shares;
is entitled to exercise, or control the exercise, of 10% or more of the voting rights of an
authorized firm or AMI;
holds shares or voting rights which enables the person to exercise significant influence over the
management of the authorised firm or AMI
All of the above
A person must not act as a controller of an authorised firm prior to having obtained approval from
the DFSA. This requirement does not apply when a person:
becomes a controller by virtue of having acquired shares for the sole purpose of
clearing
is holding shares in as a principal
controller by virtue of holding 5% shares or holding or exercising voting rights as a result of
providing the underwriting of financial instruments
is placing financial instruments on an open commitment basis
Where the authorised firm is not a body corporate, a partnership, or an unincorporated association
formed within the jurisdiction of the DIFC, a notification to the DFSA is triggered by the following
changes:
when a holding is increased from below 10% to 10% or more;
when a holding is increased from below 30% to 30% or more;
when a holding is increased from below 50% to 50% or more
all of the above
An authorised firm must submit to the DFSA an annual report on its controllers within __ months of
its financial year end.
1
2
4
12
A firm when first establishing a relationship with a person as a professional client for the purposes of
carrying on a financial service, has to inform that person of his option to be treated as a retail client;
From DFSA, this is
Requirement
Voluntary
To be Mutually agreed with client
None of the above.
A firm may classify a person as a professional client only if such a person
in the previous years, been an employee of the authorised firm or in a professional position
in another authorised firm;
in the current years, been an employee of the authorised firm or in a professional position in
another authorised firm;
in the previous one year, been an employee of the authorised firm or in a professional
position in another authorised firm;
in the previous two years, been an employee of the authorised firm or in a
professional position in another authorised firm;
A personal investment vehicle may be classified as a professional client if it is established and
operated for the sole purpose of facilitating the management of the investment portfolio of
an existing retail client
an existing professional or retail client
an existing professional client
Previous professional client
whether a client has sufficient experience to qualify as a professional client,one of the following is
not aspect is not an assessment criteria:
Knowledge and understanding of the market
Size and nature of transactions
To be an Authorised individual
Existing investment portfolio
a detailed analysis is not required to qualify as a professional client in case of a body corporate that
has called up share capital of at least :
$1,000,000
$5,000,000
$10,000,000
$500,000
An authorised firm must keep records of the process by which each client’s classification was
Established for
At least six years from the date on which the business relationship ended
At least six years from the date on which the business relationship commenced
At least ten years from the date on which the business relationship commenced
At least six years from the date of the initiation of the last transaction
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