The Dubai Financial Services Authority has opened its financial technology (FinTech) portal, a dedicated page that hosts all the latest news and developments for the DFSA, tailored for the financial technology industry.

The portal provides resources specific to the DFSA’s activities in the area of FinTech and that of related authorities. It includes up-to-date information about its regulatory approach from the launch of its crowdfunding regime to its innovation testing licence.

The portal has much to discuss, especially the authority's innovation testing licence, which provides a controlled environment in which a firm can develop innovative fintech ideas without being subject to all the regulatory requirements that would otherwise apply - an echo of the British Financial Conduct Authority's oddly-named 'regulatory sandbox.'
 
To be considered for such a licence, a firm has to meet the following criteria.

• It must involve innovation and the use of financial IT. In assessing its claim to do this, the DFSA will consider whether the firm's business model uses new, emerging or existing technology in an innovative way and whether it might benefit consumers or the financial services industry.
• It must involve an activity that, if carried out in the Dubai Internationa Financial Centre which the DFSA regulates, would amount to a financial service. It must be an 'financial service' that falls under the DFSA's regulatory regime, perhaps by arranging deals in investment or giving advice about financial products.
• It must be ready (or about to be ready) to start testing its operations with customers and/or the industry. The DFSA will want to see its test plan which might set out the objectives, timelines and parameters for testing.
• It must intend to roll out its business on a broader scale in or from the DIFC after it has successfully completed testing. The DFSA will want to see evidence of this intention.

If eligible, the firm must complete an ITL application form and regulatory test plan that describes its proposed business model and details of how it will test it. The DFSA will work out what rules to apply and not to apply during the testing period. The firm is obliged at all times, though, to be located in the DIFC, comply with UAE federal laws and act with integrity.

There will be restrictions on the number and type of customer that may take part in the testing. The testing period will be for a finite period, usually six to 12 months. In exceptional cases the DFSA might consider extending that period.