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2023

DIFC Category 3B License – Providing Custody (for a Fund) / Acting as Trustee of a Fund

A DIFC Category 3B License authorizes an Authorised Firm to provide custody services specifically for a fund and to act as a trustee for a fund.

A DIFC Category 3B License authorizes an Authorised Firm to provide custody services specifically for a fund and to act as a trustee for a fund. Firms holding this license can also conduct financial services under Category 3C and Category 4. However, they are restricted from engaging in any financial services categorized under 1, 2, or 3A.

  • Base Capital Requirement: US$ 4,000,000

  • Capital Requirement Exemption: Not applicable to branch setups of existing regulated banks.

  • Capital Plan: Must be documented in the Internal Capital Adequacy Assessment Process (ICAAP) Report.

Additionally, the DFSA may impose further capital requirements upon reviewing the application.

DIFC Category 3B License – Licensing Process

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

Application Process

  1. Initial Review:

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

    • If the DFSA is satisfied, it will allow the submission of a full formal application, including the finalized RBP.

  2. MVG Dubai Office Support:The Morgan Vantage Group (MVG) Dubai office offers comprehensive support throughout the application process, ensuring 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: Required for all applicants applying for a license to carry out one or more financial services in or from the DIFC. It covers information on the applicant, its activities, prospective clients, and controllers.

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

    • AUT-AMS: Required 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.

    • Introduction to the Regulator

    • 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 for conducting financial activities.

    • The DFSA will conduct a thorough review of the application and engage in ongoing dialogue with the applicant. This may include interviews with nominated authorized individuals.

    • Upon satisfaction, the DFSA will issue an "In-Principle Approval" outlining 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 Choose MVG Dubai Office?

Morgan Vantage Group (MVG) Dubai is your trusted partner in navigating the complexities of financial licensing within the DIFC. Our dedicated team of experts is committed to providing unparalleled service quality, ensuring that your business achieves its regulatory and strategic objectives efficiently and effectively.

At MVG Dubai, we understand the unique challenges of setting up and operating in the DIFC. Our comprehensive services are tailored to meet your specific needs, from the initial application process to ongoing compliance support. With our deep expertise in DIFC regulations and a client-centric approach, we deliver not only compliance but also strategic value, helping you achieve long-term success in Dubai’s financial landscape.

Partnering with MVG Dubai means choosing excellence, reliability, and a commitment to your success. Let us guide you through every step of the licensing process, ensuring that your business is positioned for growth and stability in one of the world's leading financial centers.


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