a licence to innovate
The Dubai Financial Services Authority (DFSA) granted Sarwa Digital Wealth Limited (Sarwa), an automated investment advice service, in-principle approval for its innovation testing licence (ITL). The DIFC-based company becomes the first FinTech operator to receive approval for this special class of financial service licence developed specifically for FinTech firms.
The DFSA’s ITL is a restricted financial services licence that allows qualifying FinTech firms to develop and test innovative concepts from within the DIFC, without being subject to all the regulatory requirements that normally apply to regulated firms. It was introduced in May this year, as part of the DFSA’s efforts to develop a regulatory framework that promotes growth and innovation in the sector.
Ian Johnston, chief executive, DFSA, said: “The DFSA has worked closely with Sarwa’s management to understand its business proposal and the appropriate controls for the safety of customers involved, as the company works towards receiving an ITL.”
Sarwa is the first automated investment advice service for young professionals in the Middle East, which combines investment strategies with technology to reduce investments costs. It is among the 12 start-ups to participate in the FinTech Hive at DIFC, the region’s first accelerator programme launched by the DIFC in partnership with Accenture in January this year.