# Regulatory Law 2004

Source page: https://protegra.io/licensing/laws/ae-difc-regulatory-law-2004/

The Regulatory Law 2004 (DIFC Law No. 1 of 2004) establishes the DFSA and its licensing regime for the Dubai International Financial Centre, creating the Licence for Financial Services and Licence Endorsement (Part 3), and the DFSA's power to govern change of control of Authorised Persons (Art. 64) and the Innovation Testing Licence sandbox under its Rulebook.

## At a glance

| Official title | Regulatory Law [1] |
| --- | --- |
| English title | Regulatory Law 2004 |
| Citation | DIFC Law No. 1 of 2004 |
| Jurisdiction | [United Arab Emirates](https://protegra.io/licensing/jurisdictions/uae/) |
| Type | act |
| Adopted | 2004-09-16 |
| In force from | 2004-09-16 |
| Status | in force |

## Full text

**Official full text:** [Regulatory Law 2004 (PDF, en)](https://dfsaen.thomsonreuters.com/sites/default/files/net_file_store/DFSA1547_7446_VER301025.pdf) [1] · 1,021 KB · file checked 2026-09-24 · consolidated version of 2025-10-30

Official page: [dfsaen.thomsonreuters.com](https://dfsaen.thomsonreuters.com/rulebook/regulatory-law-1) [1] · [archived copy](http://web.archive.org/web/20251121065112/https://dfsaen.thomsonreuters.com/sites/default/files/net_file_store/DFSA1547_7446_VER301025.pdf)

## Summary

The Regulatory Law establishes the Dubai Financial Services Authority (DFSA) as the DIFC's financial regulator, sets its objectives, board structure, rule-making power and the Financial Markets Tribunal (Part 2). Part 3 creates the licensing regime: a person must hold a Licence (or Licence Endorsement) to carry on a Financial Service in or from the DIFC; the DFSA grants a Licence when the Article 45 requirements are met (Art. 48), and may reject applications or restrict a person from performing functions if not fit and proper (Art. 59). Article 64 empowers the DFSA to make Rules governing change of control of Authorised Persons (approving or objecting to a person becoming or increasing control as a 'controller'), with the concrete thresholds and procedures set out in the DFSA Rulebook (GEN module) rather than in the Law itself. Part 4 covers general regulation and AML, Parts 5-9 cover supervision, investigation, contraventions, enforcement, accounting/auditing and transfers. The DFSA's Innovation Testing Licence is a Rulebook (GEN Chapter 13) product built on the Law's general Licence power, not a separately named creature of the Law.

Summary written by the Atlas from the official text; the law itself prevails.

## Main articles

- **Art. 45**: Sets requirements an applicant must meet to be granted a Licence, extension or Licence Endorsement.
- **Art. 48**: DFSA grants a Licence once Art. 45 requirements are met; informs the applicant of the decision without undue delay.
- **Art. 59**: DFSA may restrict a person from performing functions in the DIFC if not fit and proper; not a change-of-control provision.
- **Art. 64**: Empowers DFSA Rules on change of control of Authorised Persons: approving, objecting to, or acting against controllers.

## Licences it governs

- [IF · Dubai International Financial Centre (DIFC)Investment firm licenceFinancial Services Permission for Dealing in Investments as Principal (Category 2)DFSA](https://protegra.io/licensing/licences/investment-firm/difc-cat2/)
- [IF · Dubai International Financial Centre (DIFC)Investment firm licenceFinancial Services Permission for Dealing in Investments as Agent or Operating an Alternative Trading System (Category 3A)DFSA](https://protegra.io/licensing/licences/investment-firm/difc-cat3a/)
- [IF · Dubai International Financial Centre (DIFC)Investment firm licenceFinancial Services Permission for Advising on Financial Products or Arranging Deals in Investments (Category 4)DFSA](https://protegra.io/licensing/licences/investment-firm/difc-cat4/)
- [VASP · Dubai International Financial Centre (DIFC)Financial Services Permission with Crypto Token Activities EndorsementDFSA · capital USD 1,000,000](https://protegra.io/licensing/licences/vasp/difc/)

## Regulators that apply it

- [Dubai International Financial Centre (DIFC)Dubai Financial Services Authority (DFSA)The DFSA is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC). It authori](https://protegra.io/licensing/regulators/dfsa-difc/)

## Sources

1. [DFSA Rulebook: regulatory law 1](https://dfsaen.thomsonreuters.com/rulebook/regulatory-law-1): retrieved 2026-09-24

Last verified 2026-09-24 · Author: Danil Marmysh · Reviewed by Anastasia Sidorenkova · © Protegra. Data: CC BY 4.0, cite "Protegra Licensing Atlas". Not legal advice.