1. Dealing in Investments as Principal

Dealing in Investments as Principal means buying, selling, subscribing for or underwriting any Investment as principal.

2. Dealing in Investments as Agent

Dealing in Investments as Agent means buying, selling, subscribing for or underwriting any Investment as agent.

3. Managing Investments

Managing Investments means managing on a discretionary basis assets belonging to another Person where the assets include any Investment.

4. Managing a Collective Investment Scheme

(1) Managing a Collective Investment Scheme means establishing, managing or otherwise operating or winding up a Collective Investment Scheme.

(2) To the extent that any activity under (1) constitutes Managing Assets, Providing Fund Administration, Dealing as Agent, Dealing as Principal, Arranging Deals in Investments, or Providing Custody, such a Regulated Activity is taken to be incorporated within Managing a Collective Investment Scheme.

5. Providing Custody

Providing Custody means one or more of the following activities:

1. (a)      safeguarding and administering Investments belonging to another Person;
2. (b)      in the case of a Fund, safeguarding and administering Fund Property; or
3. (c)      safeguarding and administering Digital Assets belonging to another Person.

6. Arranging Custody

Arranging Custody means arranging for one or more Persons to carry on the Regulated Activity of Providing Custody.

7. Providing Trust Services

Providing Trust Services means:

1. (a) the provision of services with respect to the creation of an express trust;
2. (b) arranging for any Person to act as a trustee in respect of any express trust;
3. (c) acting as trustee in respect of an express trust; or
4. (d) acting as protector or enforcer in respect of an express trust.

8. Providing Fund Administration

Providing Fund Administration means providing one or more of the following services in relation to a Fund:

• (a) processing dealing instructions including subscriptions, redemptions, stock transfers and arranging settlements;
• (b) valuing of assets and performing net asset value calculations;
• (c) maintaining the share register and Unitholder registration details;
• (d) performing anti money laundering requirements;
• (e) undertaking transaction monitoring and reconciliation functions;
• (f) performing administrative activities in relation to banking, cash management, treasury and foreign exchange;
• (g) producing financial statements, other than as the Fund’s registered auditor; or
• (h) communicating with participants, the Fund, the Fund Manager, and investment managers, the prime brokers, the Regulators and any other parties in relation to the administration of the Fund.

9. Acting as the Trustee of a Fund

(1) Acting as the Trustee of a Fund means holding the assets of a Fund on trust for the Unitholders where the Fund is in the form of an Investment Trust.

(2) To the extent that any activity under (1) constitutes Providing Fund Administration or Providing Custody, such a Financial Service is taken to be incorporated within Acting as the Trustee of a Fund.

10. Advising on Investments

(1) Advising on Investments means giving advice to a Person in his capacity as an investor or potential investor, or in his capacity as agent for an investor or a potential investor, on the merits of his buying, selling, holding, subscribing for or underwriting a particular Investment (whether as principal or agent).

(2) In sub‐paragraph (1), "advice" includes a statement, opinion or report:

• (a) where the intention is to influence a Person, in making a decision, to select a particular Investment or an interest in a particular Investment; or
• (b) which could reasonably be regarded as being intended to have such an influence.

11. Arranging Deals in Investments

Arranging Deals in Investments means making arrangements with a view to another Person buying, selling, subscribing for or underwriting an Investment (whether that other Person is acting as principal or agent).

12. Managing a Restricted Profit Sharing Investment Account

Managing a Restricted Profit Sharing Investment Account means managing an account or portfolio which is a Restricted Profit Sharing Investment Account (RPSIA).

13. Islamic Banking Business

Islamic Banking Business means providing financing or making Investments by entering as principal or agent into any Islamic Financial Contract while raising funds for those activities through either or both of the following:

• (a) raising, accepting and managing funds or money placements;
• (b) managing Unrestricted Profit Sharing Investment Accounts (UPSIA); provided that all such activities are carried out in a Shari’ah-compliant manner.

14. Providing Islamic Financing

Providing Islamic Financing means providing financing in a Shari’ah-compliant manner by entering into any Islamic Financial Contract.

15. Insurance Intermediation

(1) Insurance Intermediation means:

• (a) advising on a Contract of Insurance;
• (b) acting as agent for another Person in relation to the buying or selling of a Contract of Insurance for that other Person; or
• (c) making arrangements with a view to another Person, whether as principal or agent, buying a Contract of Insurance.

(2) In (1)(a), ‘advising’ means giving advice to a Person in his capacity as a Policyholder, or in his capacity as agent for a Policyholder on the merits of his entering into a Contract of Insurance whether as principal or agent.

(3) In (2), ‘advice’ includes a statement, opinion or report:

• (a) where the intention is to influence a Person, in making a decision, to select a Contract of Insurance or insurance cover; or
• (b) which could reasonably be regarded as being intended to have such influence.

(4) The arrangements in (1)(c) include arrangements which do not bring about the transaction.

(5) The arrangements in (1)(c) do not include the mere provision of information about:

• (a) a Contract of Insurance, insurer, insurance intermediary or insurance manager to a Policyholder; or
• (b) a Policyholder to an insurer, insurance intermediary or insurance manager, if the Person providing that information does not take any further steps to assist in concluding the Contract of Insurance.

16. Operating a Representative Office

(1) Operating a Representative Office means the marketing, from an establishment in the AIFC, of one or more financial services or investments which are offered in a jurisdiction other than the AIFC.

(2) For the purposes of this paragraph, "marketing" means:

• (a) providing information on one or more investments or financial services;
• (b) engaging in promotions in relation to such information provision; or
• (c) making introductions or referrals in connection with the offer of financial services or investments; provided that such activities do not constitute:
• (d) advising on Investments; or
• (e) receiving and transmitting orders in relation to an Investment.

(3) An Authorised Person which is authorised to Operate a Representative Office may not have a Licence to carry on any other Regulated Activity.

(4) An Authorised Person which does not have a Licence to Operate a Representative Office does not Operate a Representative Office if it undertakes any activities of the kind described in sub‐paragraph (2) that constitute marketing.

(5) Any communication which amounts to marketing in respect of a Financial Service or Investment, which is issued by or on behalf of a Government or non‐commercial governmental entity, does not constitute marketing for the purposes of sub‐paragraph (2).

17. Accepting Deposits

(1) Accepting Deposits means accepting money or funds received as a Deposit if that money or funds are:

1. (a) lent to other Persons; or
2. (b) used to finance wholly, or partly, any other activity of the Person accepting the Deposit.

(2) To the extent that any activity constitutes Opening and Operating Bank Accounts, such a Regulated Activity is taken to be incorporated within Accepting Deposits.

18. Providing Credit

(1) Providing Credit means providing a Credit Facility to another Person.

(2) A Person does not carry on the Regulated Activity of Providing Credit if the Credit Facility is to be provided by the Authorised Person in the course of carrying on one or more of the following activities:

• (a) Dealing in Investments as Agent;
• (b) Arranging Deals in Investments;
• (c) Managing Investments;
• (d) Managing a Collective Investment Scheme;
• (e) Providing Custody.

19. Advising on a Credit Facility

(1) Advising on a Credit Facility means giving advice to a Person in his capacity as a borrower or a potential borrower, or as an agent for a borrower or a potential borrower, on the merits of his entering into a particular Credit Facility.

(2) In sub‐paragraph (1), "advice" includes a statement, opinion or report:

• (a) where the intention is to influence a Person, in making a decision, to enter into a particular Credit Facility; or
• (b) which could reasonably be regarded as being intended to have such an influence.

20. Arranging a Credit Facility

(1) Arranging a Credit Facility means making arrangements for the provision of a Credit Facility by one or more Persons.

(2) A Person does not carry on the Regulated Activity of Arranging a Credit Facility if

• (a) he is to be a party to the Provision of Credit Facilities in question; or
• (b) he merely provides the means by which a Person providing a Credit Facility communicates with the Person to whom the Credit Facility is or is to be provided.

(3) A Person does not carry on the Regulated Activity of Arranging a Credit Facility if it:

• (a) is carried on in the course of Providing Legal Services or Providing Accountancy Services, which does not otherwise consist of the carrying on of Financial Services;
• (b) may reasonably be regarded as a necessary part of any other services provided in the course of Providing Legal Services or Providing Accountancy Services; and
• (c) is not remunerated separately from the other services.

21. Providing Money Services

(1) Providing Money Services includes, without limitation:

1. (a) providing currency exchange;
2. (b) selling or issuing payment instruments;
3. (c) selling or issuing stored value;
4. (d) Execution of payment transactions, including transfers of funds on a settlement account, including a bank account, with the user's payment service provider or with another payment service provider:
5. (i) execution of direct debits, including one-off direct debits;

(ii) execution of payment transactions through a payment card or a similar device; and

1. (e) Execution of payment transactions where the funds are covered by a credit line for a payment service user:
2. (i) execution of direct debits, including one-off direct debits;

(ii) execution of payment transactions through a payment card or a similar device; and

1. (f) Money remittance; and
2. (g) Execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or network operator, acting only as an intermediary between the payment service user and the supplier of the goods and services.

(2) An Authorised Person does not provide Money Services, if it does so in relation to the carrying on of another Regulated Activity where providing Money Services is in connection with and a necessary part of that other Regulated Activity.

22. Effecting Contracts of Insurance

Effecting Contracts of Insurance means effecting Contracts of Insurance as Principal.

23. Carrying on Contracts of Insurance

Carrying on Contracts of Insurance means carrying on Contracts of Insurance as Principal.

24. Insurance Management

(1) Insurance Management means:

1. (a) performing underwriting or administration functions for or on behalf of an insurer or Captive, for the purposes of that insurer effecting or carrying out a Contract of Insurance as principal; or
2. (b) arranging reinsurance for and on behalf of an insurer or Captive for whom it is underwriting;
3. (c) performing underwriting or administration functions for or on behalf of a Takaful Operator or a Captive Takaful Operator, for the purposes of that Takaful Operator effecting or carrying out a Takaful Contract as principal; or
4. (d) arranging Retakaful for and on behalf of a Takaful Operator or Captive for whom it is underwriting.

(2) In (1):

1. (a) “administration” includes, without limitation, one or more of the following activities:
2. (i) processing applications for, and endorsements on, Contracts of Insurance;

(ii) collecting and processing premiums or Takaful contributions;

(iii) negotiating terms of settlement of claims; or

(iv) settling claims; and

1. (b) “underwriting” includes, without limitation, one or more of the following activities:
2. (i) assessing underwriting risks;

(ii) negotiating and settling terms of Contracts of Insurance or terms of Takaful Contracts, including exclusions;

(iii) negotiating and settling premiums or Takaful contributions;

(iv) negotiating commissions; or

1. (v) countersigning, stamping and issuing Contracts of Insurance or Takaful Contracts.

(3) In this Rule, a reference to an “insurer” is a reference to:

1. (a) an Insurer; or
2. (b) a Non-AIFC insurer.

(4) In this Rule, a reference to a “Takaful Operator” is a reference to:

1. (a) a Takaful Operator; or
2. (b) a Non-AIFC Takaful Operator.

25. Takaful Business

Takaful Business means the business of conducting either or both of the following activities:

• (a) effecting Takaful Contracts as Principal;
• (b) carrying on Takaful Contracts as Principal.

26. Opening and Operating Bank Accounts

Opening and Operating Bank Accounts means one or more of the following activities:

1. (a) Opening and operating Bank Accounts;
2. (b) Services enabling funds to be placed on a Bank Account as well as all the operations required for operating a bank account; and
3. (c) Services enabling funds withdrawals from a Bank Account as well as all the operations required for operating a Bank Account.

27. Operation of a Payment System

Operation of a Payment System means operation of funds transfer system with formal and standardised arrangements and common rules for the processing, clearing and/or settlement of payment transactions.

28. Operating a Multilateral Trading Facility

Operating a Multilateral Trading Facility or ‘MTF’, where MTF means a system which brings together multiple third parties buying and selling Investments, rights or interests in Investments, in accordance with its non-discretionary rules, in a way that results in a contract in respect of such Investments.

29. Operating an Organised Trading Facility

Operating an Organised Trading Facility or ‘OTF’, where OTF means a system which brings together multiple third parties buying and selling Investments, rights or interests in Investments, in accordance with its discretionary rules, in a way that results in a contract in respect of such Investments.

30. Operating a Digital Asset Trading Facility

Operating a Digital Asset Trading Facility means operating a facility which functions regularly and brings together multiple parties (whether as principal or agent) with a view to the entering into of contracts:

(a) to buy, sell or exchange Digital Assets for a Fiat currency; and/or

(b) to exchange one Digital Asset for another Digital Asset, in its Facility, in accordance with its non-discretionary rules.; and/or

(c) to buy, sell or exchange Digital Assets for a commodity.