Dubai is the capital of the Emirate of Dubai and has become a global city and business hub for the Middle East. In 2004, a special economic zone is located in the city known as the Dubai International Financial Centre (DIFC). Then a financial regulatory agency of the zone called the Dubai Financial Services Authority (DFSA) came into existence.
Notably, the jurisdiction of DFSA covers only the territory of the Dubai International Financial Centre, providing a regulatory environment of international standards.
The DFSA's regulatory mandate includes asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange, and an international commodities derivatives exchange. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing anti-money laundering (AML) and counter-terrorist financing (CTF) requirements applicable in the DIFC.
Dubai only allows DFSA Forex brokers to conduct financial activities in the entire UAE. However, Dubai does offer an opportunity for investors to set up a business in DIFC for providing services to a global audience. Therefore, it is possible for brokers to set up their brokerage in Dubai without being regulated by the DFSA. In such an instance, investors are not protected by any regulatory laws or supervisions that are usually available with DFSA regulated broker. Consequently, several investors had faced problems with Dubai-based brokers and were victims of numerous frauds and financial scams. It should be mentioned that the problem only exists with non-regulated brokers, as all DFSA regulated Forex brokers do not indulge in any scams due to regulatory backlash from the DFSA and authorities.
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1. Safety of Client Funds：
Companies shall open segregated accounts.
2. Requirement on Forex Brokers' Reports：
Transaction reports; Audit reports; Clients Assets Reports; Anti-money laundering Reports.
Generally speaking, DFSA-regulated broker profile will be found at the PUBLIC REGISTER page on DFSA website. Try to find it and check if it will match the info from the broker website.
The detailed steps are as follow:
1. Find the licensed/reference no.(preferred) or name of the forex broker, which you can get from the broker's website;
2. Enter the no. or name into the search bar on https://www.dfsa.ae/public-register/firms;
3. And you'll get the broker's profile details on DFSA website. At this time you need to check if the broker has the authorization to provide 'Futures' for 'Arraging Deals in Investment' or 'Dealing in Investments as Principal' and 'Carrying on authorised Financial Services with or for Retail clients';
4. If all the above steps have been done, don't forget to check the most important information: check if the firm details published on DFSA website matches the ones you'll go to trade with, especially the website and email etc. If no, please keep away the broker because it's probably an unauthorized firm and your money will fall in danger.
When you have disputes with a DFSA-regulated broker, you can proceed the following ways:
1st way: The recommended way is to contact the broker directly and discuss with them to find a solution.
2nd way: If you're not satisfied with the broker's solution, try to contact DFSA in Dubai, which helps to solve the disputes between the forex broker and the investor.
The DFSA will only consider complaints submitted in writing. To submit a complaint you can:
1. Complete our online Complaints Form: https://www.dfsa.ae/make-enquiry#complaints
2. Submit your written complaint to the DFSA via mail to DFSA, Level 13, The Gate, PO Box 75850, Dubai, UAE or via facsimile +971 (0)4 362 0801.
3rd way: If the first 2 ways above can't solve the dispute, the last way is to issue a case to the court in Dubai.
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