Are Client Assets safe in the DIFC?

"Client Assets" is defined in the Dubai Financial Services Authority (DFSA) rules, as "Client Money and Client Investments". "Client Money" and "Client investments", are money¹ and investments², held or controlled by an authorised firm³ on behalf of a client in the course of, or in connection with the carrying on of investment business in or from the Dubai International Financial Centre (DIFC).

An authorised firm may, depending on the scope of its license, act as an investment intermediary who holds or controls, or provides or arranges custody, in respect of Client Assets. Such authorised firm must comply with the applicable provisions in the DFSA rules relating to Client Assets. The key requirement⁴ is that an authorised firm must have systems and controls to ensure that Client Assets are identifiable and secure at all times. Client Assets must be properly segregated from those of the authorised firm and that client account must be established to hold the