Obtaining an Operating Representative license is a great way for the firm to discover the opportunities that AIFC has to offer. The scope of the license contains only marketing activities, therefore it has less commitment and obligations for the Head company.
Only firms that are regulated by a Financial Services Regulator in a jurisdiction other than the AIFC, may apply for opening a Representative office in AIFC.
(1) Operating a Representative Office means the marketing, from an establishment in the AIFC, of one or more financial services or investments which are offered in a jurisdiction other than the AIFC.
(2) For the purposes of this paragraph, “marketing” means:
- (a) providing information on one or more investments or financial services;
- (b) engaging in promotions in relation to such information provision; or
- (c) making introductions or referrals in connection with the offer of financial services or investments; provided that such activities do not constitute:
- (d) advising on Investments; or
- (e) receiving and transmitting orders in relation to an Investment.
(3) An Authorised Person which is authorised to Operate a Representative Office may not have a Licence to carry on any other Regulated Activity.
(4) An Authorised Person which does not have a Licence to Operate a Representative Office does not Operate a Representative Office if it undertakes any activities of the kind described in sub‐paragraph (2) that constitute marketing.
(5) Any communication which amounts to marketing in respect of a Financial Service or Investment, which is issued by or on behalf of a Government or non‐commercial governmental entity, does not constitute marketing for the purposes of sub‐paragraph (2).