Professional or institutional investor regulations

On this website, “professional” or “institutional” investors are those who qualify as a “Professional Client” as defined under the Dubai Financial Services Authority (‘DFSA’) Conduct of Business Rules, COB 2 Client Classification.

In summary a person who can be classified as a professional client under the DFSA Conduct of Business Rules will generally need to meet one or more of the following requirements

(1) An entity required to be authorised or regulated to operate in the financial markets including:

  • an Authorised Market Institution,
  • a Regulated Exchange,
  • a regulated clearing house,
  • a DFSA Authorised Firm,
  • a Regulated Financial Institution,
  • a regulated pension fund,
  • the management company of a regulated pension fund,
  • a Collective Investment fund,
  • a licence holder under the Single Family Office Regulations,
  • a body corporate whose shares are listed on exchange in an IOSCO member country

(2) a large undertaking that meets at least two of the following tests: (i) a balance sheet total of at least USD 20,000,000; (ii) an net annual turnover of at least USD 40,000,000; or (iii) own funds or called up capital of  at least USD 2,000,000.

(3) a properly constituted government, government agency, central bank, other national monetary authority, a supranational organisation (such as the World Bank, the IMF, the ECB, the EIB), public body or state investment body

(4) another institutional investor whose main activity is to invest in financial instruments.

Please note that the above summary is provided for information purposes only. If you are uncertain as to whether you can both be classified as a professional client under the DFSA Conduct of Business Rules, you should seek independent advice.