APPLICATION FORMS AND NOTICES (AFN) – AUT – AMS

For DFSA use only

Form AUT – AMS

Applying for Authorisation

Asset Management supplement

This supplement must be submitted by applicants applying to conduct any of the following Financial Services:

  • Managing assets
  • Arranging credit or deals in investments
  • Advising on financial products or credit
  • Dealing in investments as agent
  • Arranging custody
  • Providing custody

The Notes for Applicants contains information that may assist you in completing this supplement. Please refer to the section entitled “Asset Management” in the notes. Each note is linked to a specific question in this supplement via a referenced number. Please note the submission of this supplement is in addition to the submission of the Core Information form. Where you feel a question in the supplement may have already been answered in the Core Information form you may provide cross reference to the relevant section.

SECTION 1: CORPORATE GOVERNANCE, STRATEGY AND BUSINESS MODEL

AM1.Please describe the type of Clients whose assets will be under management and the account structure to be used. This should include details of the underlying asset classes which the portfolio(s) is likely to invest in.
AM2.Please provide details of the expected amount of funds under management, number of Clients / portfolio(s) and investors. This information should be provided for the assumed time of authorisation and up to the end of year one.
AM3.Please describe the governance arrangements of any portfolio(s) you will manage.

SECTION 2: FINANCIAL AND OPERATIONAL RISKS

AM4.Please disclose the source(s) of your Client(s)’ funding for any portfolio(s) you will manage.

SECTION 3: CONDUCT OF BUSINESS RISKS TO CLIENTS AND MARKETS

AM5.Please describe the extent to which you will be liable for the timely execution of Transactions and your arrangements for ensuring best execution.
AM6.Please provide details regarding the procedures you will have in place for the record keeping of Transaction and Client orders.
AM7.When marketing Foreign Funds, please advise how you will ensure that the Funds meet DFSA requirements.
AM8.Where applicable, please describe the arrangements and procedures for holding and safeguarding Client Assets and Client Money.
AM9.Will you or any related parties co-invest with your Clients? If yes, please describe how any conflicts or potential conflicts of interest will be managed.
AM10.Please describe your formal valuation arrangements of the portfolio(s) you will manage and how these are disclosed to Clients.
AM11.Please describe how you will ensure and evidence that Client assessment and considerations of suitability are carried out.
AM12.Please provide in conjunction with any risk management policy and procedures a description of the risk management and investment strategy, explaining how it addresses inherent risks in the asset classes the portfolio(s) will invest in.
AM13.Please describe the arrangements for reconciling the proper exercise of discretionary management decisions and Client Transactions against the parameters set out in the investment mandate.
AM14.Please describe how Clients will be kept up-to-date on the performance of their portfolio(s).
AM15.Please describe how senior management and the board will ensure that personnel in Client facing roles and responsible for the exercise of discretionary management decisions in relation to the management of portfolios are competent at performing their role and continue to maintain their knowledge and skills relevant to their role.

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