New DFSA Client Classification Rules  

On 15 February 2015, following the end of the consultation period on Consultation Paper No. 97, the DFSA published its changes to the client classification regime contained in chapter 2 of the Conduct of Business Module of its Rulebook.  

These changes will come into effect on 1 April 2015 (with one exception that the increase of the asset test applicable to ‘assessed' Professional Clients from US $500,000 to US $1 million, will not come into effect until 1 April 2016).

The new client classification regime requires Authorised Firms, before providing Financial Services to clients, to classify such clients as “Retail”, “Professional” or “Market Counterparty” clients, so that an appropriate level of protection can be provided to those clients given their level of knowledge, experience and resources. 

Transitional Rules