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2023

DIFC Category 2 License – Principal Investor / Providing Credit

This license is designated for an Authorised Firm permitted to engage in Financial Services, specifically Dealing in Investments as Principal and Providing Credit.

This license is designated for an Authorised Firm permitted to engage in Financial Services, specifically Dealing in Investments as Principal and Providing Credit. Additionally, the firm may be authorized to conduct other Financial Services listed under Categories 3A, 3B, 3C, or 4. However, it is not permitted to perform Financial Services defined in Category 1.

  • Base Capital Requirement: US$ 2,000,000

  • Risk-based Capital Minimum:

    • CET1: 6%

    • Tier 1: 8%

These capital requirements do not apply to branch setups of existing regulated banks. The firm's Capital Plan must be documented in the Internal Capital Adequacy Assessment Process (ICAAP) Report. Additional capital requirements may be imposed by the DFSA upon reviewing the application.

DIFC Category 2 License - Licensing Process

Applicants must submit an application to the Dubai Financial Services Authority (DFSA), which will assess the suitability and merits of the applicant and the appropriate license category.

Application Process

  1. Initial Review:

    • The DFSA will conduct an informal review of the draft Regulatory Business Plan (RBP) and projected financials.

    • If satisfied, the DFSA will permit the submission of a full formal application, including the final RBP.

  2. MVG Dubai Office Support:The Morgan Vantage Group (MVG) Dubai office provides comprehensive assistance throughout the application process, including:

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

    • AUT-CORE: Required for all applicants seeking a license for one or more financial services in or from DIFC.

    • AUT-IND: For individuals holding mandatory roles (e.g., Directors, Senior Executive Officer, Finance Officer, Compliance Officer, Money Laundering Reporting Officer).

    • AUT-AMS: Required for those arranging credit or deals in investment, as part of the proposed activities in DIFC.

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

    • Three-year projections, ICAAP, and IRAP report drafts.

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

    • Regulator Introduction

    • Drafting of the Regulatory Business Plan (RBP):

    • Financial Model Preparation:

    • Policy and Manual Preparation:

    • Application Forms:

    • Drafting and Submission of Regulatory Application: For both the company and individuals.

    • 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 for conducting financial activities.

    • The DFSA will engage in ongoing dialogue with the applicant, which may include interviews with nominated authorized individuals.

    • Upon satisfaction, the DFSA will issue an "In-Principle Approval" with specific conditions, such as:

  4. Final Licensing:

    • Once the conditions of the In-Principle Approval are met, the DFSA will issue the formal license.

Why Choose MVG Dubai Office?

At Morgan Vantage Group (MVG) Dubai, we believe in going beyond mere regulatory compliance to provide a holistic approach that supports the long-term success and growth of our clients. Our team of seasoned professionals brings decades of experience in the financial services industry, coupled with deep expertise in the regulatory framework of the Dubai International Financial Centre (DIFC). We understand that each client's needs are unique, and we pride ourselves on our ability to tailor our services to meet those specific needs.

From the moment you engage with us, you’ll experience the MVG difference. We offer a comprehensive suite of services that cover every aspect of the licensing process, from the initial consultation to the final issuance of your license. Our approach is not just about ticking boxes; it's about crafting a strategy that aligns with your business objectives and sets you up for success in the competitive financial landscape of Dubai.

Our support doesn’t end with the license issuance. We continue to partner with you, providing ongoing guidance and support as your business grows and evolves. Whether it’s helping you navigate the complexities of regulatory changes, optimizing your financial models, or advising on best practices in risk management and compliance, MVG Dubai is with you every step of the way.

We are dedicated to excellence in service, and our track record speaks for itself. Our clients choose us not only for our expertise but for our commitment to their success. We build lasting relationships founded on trust, reliability, and the highest standards of professionalism. When you choose MVG Dubai, you’re choosing a partner who is as invested in your success as you are.

Let us help you unlock the full potential of your business in Dubai’s dynamic financial market. With MVG Dubai by your side, you can focus on driving growth and achieving your business goals, confident that your regulatory and compliance needs are expertly managed. Choose Morgan Vantage Group Dubai for unparalleled service, expertise, and a commitment to your success that goes beyond expectations.


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