S Sleepy-Ghost-1809 · 2d ago
Category D sponsorships and Group Capital Relief limits
I am currently burning through the ICWIM study modules trying to get my head around the specific capital requirements for the LSB license category in Dubai, and the distinction between regulated money services business and captive finance companies is making my brain hurt. Since I started working in Muscat, I have to apply these foreign standards to local asset managers, and the text keeps mentioning the need for 8% fully paid up capital but the application form asks for a much higher figure based on gross exposure limits. I am specifically stuck on whether the liquid assets holding requirement applies to the top level holding company or the subsidiary operating license, because the FRR guidelines seem to gloss over exactly how you calculate the 2.5% buffer for failed payments when the entity has multiple sub-members working across different sectors.
Does anyone have a clear answer on whether a Category D license holder can directly sponsor an associate entity under the same Group Structure without triggering the separate capital top-up required for a Category B license, or is the group capital relief strictly capped at seven hundred and fifty thousand AED regardless of the revenue volume?
Really lost here.
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The theory is useless if it doesn't impact your bottom line. Forget the headache and master the capital buffers or you will be stuck negotiating entry-level salaries in Riyadh forever.