The Dubai Financial Services Authority, which regulates the Dubai International Financial Centre, is planning to change the fee regime for trust services and exclude certain firms from dealing as principal.

Exclusions from dealing in investments as principal

The regulator is aware that some firms want to place reliance on rule GEN 2.7.4, or perhaps are already relaying  on it, as a rationale to avoid having to obtain authorisation to perform the financial service of dealing in investments as principal (as opposed to dealing as agent). It notes that the exclusion in GEN 2.7.4 is not intended to be available for firms that hold themselves out to other potential counterparties as engaging in such a business or as being willing to conduct transactions. The DFSA proposes to amend the rule and to add some guidelines to make the limitation of this exclusion clear.

Fees for the provision of trust services

The present fee regime lists one application fee of US$25,000 (according to rule FER 2.1.1) and one annual fee of US$25,000 (FER 3.2.1) for those firms that perform trust services. However, in the regulator's prudential regime, it recognises two separate sub-categories of providing trust services.

The regulator draws a distinction between firms that are performing trust services, sometimes acting as trustee in respect of at least one express trust (GEN 2.23.1(c)), and those who are also doing so, but not acting as trustee in respect of any express trust. It wants to make fees take account of this distinction.

It wants firms that perform trust services, but are not acting as trustee in respect of at least one express trust, to pay application and annual fees of US$15,000.