DFSA offers insight for Dubai based firms preparing for client assets regime changes
09 Jul 2025, 6:22 am
New guidance from the Dubai Financial Services Authority (DFSA) will assist Dubai-based firms in their preparations for upcoming changes to the client assets regime, an expert has said.
The updated client assets regime will come into force next year, and will strengthen protections for client money, investments and crypto tokens. A new FAQ document (5-page / 379KB PDF) published by the regulator explains how firms should transition to the new rules ahead of their implementation on January 1 2026; what supervisory expectations will look like during this period; and how the DFSA will monitor compliance. Key changes to the regime include a distinction between controlling vs. holding client assets, including changes to reporting and auditing requirements.
Marie Chowdhry, an expert in financial regulations and fintech at Pinsent Masons, said: “The FAQs aim to clarify the application of the revised rules and address common queries raised by relevant individuals such as authorised firms.”
“They are designed to help firms prepare for the transition and ensure compliance with the updated regulatory framework which may necessitate some lead time in order to be ready,” she said.
“The changes are part of the DFSA’s broader efforts to strengthen the safeguarding of client assets, enhance investor protection and maintain the integrity of the Dubai International Financial Centre (DFCI) financial system.”
The updated regime applies to authorised firms that that provide custody, arrange custody, and hold the client assets endorsement, and form a part of the regulatory push to enhance protections for the safeguarding of assets by DIFC and the DFSA.
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