DIFC Category 3C License – Managing a Collective Investment Fund / Managing Assets
An Authorised Firm holding a DIFC Category 3C license is permitted to carry out various Financial Services, including:
Managing a Collective Investment Fund
Managing Assets
Providing Trust Services as a trustee of an express trust
Providing Custody (other than for a fund)
Managing a Profit Sharing Investment Account (received on a restricted basis)
Firms with this license can also offer Financial Services under Category 4 but are restricted from providing services under Categories 1, 2, 3A, or 3B.
Base Capital Requirement:
US$ 500,000
Specific Base Capital for Fund Managers:
US$ 140,000 for managing a Public Fund
US$ 70,000 for managing Exempt Funds or Qualified Investor Funds (QIFs)
Expenditure-Based Capital Requirement:
18/52 of annual operating expenditure, especially if the Fund Manager will hold or control Client Money.
The Capital Plan must be included in the Internal Capital Adequacy Assessment Process (ICAAP) Report. Note that additional capital requirements may be imposed by the DFSA during the application review.
DIFC Category 3C License – Licensing Process
To obtain a DIFC Category 3C license, an applicant must submit an application to the Dubai Financial Services Authority (DFSA), which will evaluate the merits and suitability of the applicant and the category of the license sought.
Application Process:
Initial Review: The DFSA will initially conduct an informal review of a draft Regulatory Business Plan and projected financials. If satisfied, the applicant may proceed with submitting a full formal application, including a finalized Regulatory Business Plan.
MVG Dubai Office Will Assist You in the Following:
Introduction to the Regulator: Facilitating initial contact and communication with the DFSA.
Drafting the Regulatory Business Plan (RBP): Assisting with the creation of the RBP, including application forms, business flow processes, and charts.
Financial Model Preparation: Developing a three-year financial model and drafting the ICAAP and IRAP reports.
Policy and Manual Preparation: Preparing essential policies and manuals, including those related to Compliance, AML, Risk Management, Remuneration, Governance, Conflicts of Interest, and Business Continuity Planning.
Required Forms:
AUT – CORE: Must be submitted by all applicants applying for a license to carry out one or more financial services in or from the DIFC. It includes information about the applicant, its activities, prospective clients, and controllers.
AUT – IND: To be submitted by individuals holding mandatory functions, including directors, the Senior Executive Officer (SEO), Finance Officer (FO), Compliance Officer (CO), and Money Laundering Reporting Officer (MLRO).
AUT – AMS: Required for applicants intending to conduct financial services related to arranging credit or deals in investments.
Submission of Regulatory Application:
MVG Dubai Office will handle the drafting and submission of the regulatory application, including all relevant policies and the appointment of SEO, FO, MLRO, RO, and CO.
Provision of Full-Time Functions:
SEO: Senior Executive Officer
FO: Finance Officer
RO: Risk Officer
MLRO: Money Laundering Reporting Officer
CO: Compliance Officer
Support in fulfilling mandatory roles such as:
Additional Services:
Office Lease: Assistance in securing office space.
Introduction to UAE Banks: Facilitating the opening of a bank account in the UAE.
Issuance of Financial Services License: Coordinating with the DFSA throughout the review process, including interviews with nominated authorized individuals.
Once the DFSA is satisfied with the application, it will issue an In-Principle approval, which will contain several conditions to be met before the final license is granted. These conditions typically include:
Incorporation or Registration: Completing the incorporation or registration of the entity with the DIFC Registrar of Companies.
Local Bank Account: Opening a local bank account and providing proof of remittance of capital to the DFSA.
Office Space: Securing and providing evidence of the office space from which the financial activities will be conducted.
After fulfilling these conditions, the DFSA will issue the formal license.
Why Choose MVG Dubai Office?
With years of experience and a deep understanding of the financial regulatory landscape in Dubai, MVG Dubai Office is your trusted partner in navigating the complexities of the DIFC licensing process. Our team of experts is dedicated to ensuring a smooth and efficient application process, providing comprehensive support at every step. We pride ourselves on delivering top-quality service, tailored solutions, and strategic insights that empower our clients to succeed in the dynamic financial environment of the DIFC. Partner with MVG Dubai Office and benefit from our unparalleled expertise and commitment to excellence.