Pepperstone has secured a license from the Dubai Financial Services Authority (DFSA). This was a few months after incorporating its new subsidiary, Pepperstone Financial Services Limited, in the Dubai International Financial Center.
Tamas Szabo, Group CEO of Pepperstone, is thankful for their presence in Dubai. Pepperstone can establish even closer ties with their clients in the Middle East. Dubai is a significant global financial hub, and they look forward to bringing their expertise and technology to local investors.
The DIFC’s website shows that the registration status of the new spin-off shows as ‘Active’ while its regulatory application has changed. It has changed from a ‘Pending DFSA Authorization,’ which had been in place since September 2019, to currently be at ‘Regulated.’
Tarik Chebib, Head of the Middle East division, said they have a particularly experienced team here in Dubai. They intend to aid the group’s genuine commitment to help their clients in their trading journeys. This year marks Pepperstone’s 10th anniversary, and they will celebrate with the opening of their new office in the DIFC.
This new license will allow the broker to provide its range of FX and CFDs products to its clients. This is not only for the UAE but also for expanding the offering to the other GCC states.
Pepperstone’s other subsidiaries already hold financial licenses from the UK FCA and the Australian ASIC. It also has several representative offices in other countries.
Pepperstone: Dubai Forex License is Complicated
The Dubai International Financial Centre (DIFC) is a federal area that is financially-free. It is completely separate from the rest of the country and features its own courts and legal system.
It has been receiving increased interest from authorized firms and global brokers to offer FX trading to retail customers. These customers may be in or from the DIFC.
Within Dubai’s International Financial Centre, the DFSA is the regulatory authority that issues all forex broker licenses. It regulates all financial and subsidiary services conducted.
However, the DFSA has very strict guidelines in place for obtaining a Dubai forex license and for conducting forex business.
Obtaining a Dubai forex license is a complicated procedure that involves many legal limitations. These limitations revolve around the country’s prohibitions on banking activity in the local currency. This is because transactions in UAE Dirhams are strictly prohibited in the center.
Other than AML compliance, FX brokers, like Pepperstone, also need to have such systems. They also need systems such as intra-day and end-of-day counterparty and settlement limits, segregation of functions, and other risk measures.