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2023

DIFC Category 3A License – Dealing in Investments as Principal / Dealing in Investments as Agent

The DIFC Category 3A License authorizes an Authorised Firm to conduct one or more of the following Financial Services: Dealing in Investments as Principal

The DIFC Category 3A License authorizes an Authorised Firm to conduct one or more of the following Financial Services: Dealing in Investments as Principal, but only as a Matched Principal, and Dealing in Investments as Agent. Firms under this category may also be permitted to conduct other Financial Services listed in Categories 3B, 3C, or 4. However, they are not allowed to perform any services falling under Categories 1 or 2.

  • Base Capital Requirement: US$ 500,000

  • Risk-based Capital Minimum:

    • CET1: 6%

    • Tier 1: 8%

These capital requirements are not applicable to branch setups of existing regulated banks. The firm's Capital Plan must be outlined in the Internal Capital Adequacy Assessment Process (ICAAP) Report. Note that the DFSA may impose additional capital requirements during the application review process.

DIFC Category 3A License - Licensing Process

To obtain a Category 3A License, an applicant must submit an application to the Dubai Financial Services Authority (DFSA), which will evaluate the applicant's merits, suitability, and the appropriate license category.

Application Process

  1. Initial Review:

    • The DFSA will informally review the draft Regulatory Business Plan (RBP) and projected financials.

    • If the DFSA is satisfied with the initial submission, it will allow the applicant to proceed with a full formal application, including the finalized RBP.

  2. MVG Dubai Office Support:The Morgan Vantage Group (MVG) Dubai office offers end-to-end assistance throughout the application process, ensuring that all regulatory requirements are met. Our services include:

    • SEO (Senior Executive Officer), FO (Finance Officer), RO (Risk Officer), MLRO (Money Laundering Reporting Officer), CO (Compliance Officer).

    • AUT-CORE: This form is mandatory for all applicants seeking a license to carry out one or more financial services in or from the DIFC.

    • AUT-IND: Required for individuals holding key roles, such as Directors, Senior Executive Officer, Finance Officer, Compliance Officer, and Money Laundering Reporting Officer.

    • AUT-AMS: This form is necessary for applicants planning to arrange credit or deals in investment, as part of the proposed activities in the DIFC.

    • Compliance, Anti-Money Laundering (AML), Risk Management, Remuneration, Governance, Conflicts of Interest, and Business Continuity Plan.

    • Three-year financial projections and drafts of the ICAAP and IRAP reports.

    • Includes Application Forms, Business Flow Processes, and Charts.

    • Regulator Introduction

    • Drafting of the Regulatory Business Plan (RBP):

    • Financial Model Preparation:

    • Preparation of Policies and Manuals:

    • Application Forms:

    • Drafting and Submission of the Regulatory Application: Covering both the company and individual roles.

    • Appointment of Key Roles:

    • Office Lease Arrangements

    • Bank Account Opening Assistance: Introduction to UAE banks.

    • License Issuance: Guidance on meeting DFSA’s requirements for obtaining the financial services license.

  3. DFSA Review:

    • Incorporation or registration with the DIFC Registrar of Companies.

    • Opening a local bank account and providing proof of capital remittance.

    • Securing office space from which financial activities will be conducted.

    • The DFSA will thoroughly review the application and engage in an ongoing dialogue with the applicant. This process may involve interviews with nominated authorized individuals.

    • Upon satisfaction, the DFSA will issue an "In-Principle Approval" with specific conditions to be met before granting the final license. These conditions may include:

  4. Final Licensing:

    • Once all conditions outlined in the In-Principle Approval are fulfilled, the DFSA will issue the formal license.

Why Partner with MVG Dubai Office?

Morgan Vantage Group (MVG) Dubai is committed to delivering exceptional service quality, ensuring that our clients successfully navigate the complex regulatory landscape of the Dubai International Financial Centre (DIFC). With a team of experienced professionals, we provide a comprehensive range of services that go beyond mere compliance, focusing on long-term strategic success.

Our approach is personalized, recognizing that each client has unique business objectives. From the initial consultation through to the issuance of the license, we offer tailored solutions designed to meet your specific needs. Our expertise covers every aspect of the licensing process, and our ongoing support ensures that you remain compliant and competitive in the evolving financial market.

Choosing MVG Dubai means partnering with a team that is dedicated to your success. We pride ourselves on our ability to deliver not just results, but also peace of mind. Our commitment to excellence, attention to detail, and deep understanding of the DIFC regulatory environment make us the ideal partner for your business.

Experience the MVG difference and let us help you achieve your business goals in Dubai’s dynamic financial landscape. With MVG Dubai, you can be confident that you are in capable hands, with a partner who values your success as much as you do.


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