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  • Part II – Advisory Services Rules

    • A. Client Suitability

      1. VASPs providing Advisory Services shall establish procedures to ensure that their clients understand the risks associated with investing in Virtual Assets and are financially able to satisfy any obligation which may arise from them acting upon advice provided by the VASP.
      2. VASPs providing Advisory Services shall provide all advice regarding Virtual Assets in good faith and which is suitable for, and in the best interest of, each client. In order to ensure all advice complies with this Rule II.A.2 of this Advisory Services Rulebook, VASPs shall consider the following factors at a minimum in respect of each client—
       
        a. knowledge and experience in investing in Virtual Assets;
        b. investment objectives including, but not limited to, risk tolerance, time horizon and venues through which they can acquire Virtual Assets; and
        c. financial circumstances including, but not limited to, their ability to bear sudden and significant losses or the proportion of their net worth which is invested in Virtual Assets.
       
      3. VASPs providing Advisory Services shall collect all necessary information from clients for the purpose of assessing relevant factors in accordance with Rule II.A.2 of this Advisory Services Rulebook and take all reasonable steps to ensure such information is accurate and up-to-date. All such information shall be maintained for at least eight [8] years.
      4. VASPs providing Advisory Services shall, in all advice provided to clients, specify how the advice is appropriate for a client by reference to the factors assessed by the VASP in accordance with Rule II.A.2 of this Advisory Services Rulebook.
      5. VASPs providing Advisory Services must eliminate any conscious bias, and take all reasonable steps to eliminate any non-conscious bias, in order to prevent discrimination between clients on any grounds which is not in the best interests of a client receiving advice.
       

    • B. Staff Competency

      1. In addition to all requirements in the Company Rulebook, VASPs providing Advisory Services shall ensure all of its Staff providing Advisory Services are knowledgeable, competent and suitably trained. In assessing competency of such Staff, VASPs shall consider the following factors at a minimum—
       
        a. academic, professional and industry qualifications;
        b. experience in the Virtual Assets sector, including but not limited to hands-on working experience acquired through their employment by Entities carrying out activities similar to VA Activities outside of the Emirate;
        c. experience in conducting regulated investment-related activities similar to the provision of Advisory Services, whether or not related to Virtual Assets;
        d. whether they have a good understanding of the VARA regulatory framework, including but not limited to the Regulations, Rules and Directives governing the provision of Advisory Services; and
        e. industry standards as may be applicable to the Virtual Assets sector from time to time.
       

    • C. Verification of Information

      1. VASPs providing Advisory Services shall only provide advice which does not contain statements, promises, forecasts or other types of information which they know or suspect to be misleading, false or deceptive or which they should have reasonably known to be misleading, false or deceptive at the time of making such statement, promise or forecast.
      2. Prior to making any statement, promise or forecast, VASPs providing Advisory Services shall verify factual information against appropriate and reliable source materials and shall use all reasonable endeavours to verify the continued accuracy of such information.
       

    • D. Methodology

      1. VASPs shall, in the course of providing Advisory Services, assess a broad range of Virtual Assets available to the client which must be sufficiently diverse such that the client’s investment objectives are met.