Custodian of Securities Services in Dubai

In today's dynamic financial landscape, the role of a Custodian of Securities has become increasingly crucial for maintaining the integrity and efficiency of securities transactions. The IFZA offers a comprehensive framework for establishing securities custody services in Dubai, enabling financial institutions to provide essential safekeeping and management of securities for their clients.

Operating under the supervision of the Securities and Commodities Authority (SCA), custodians in the IFZA are authorized to implement sophisticated electronic systems and technical infrastructure necessary for the secure custody of securities. These services encompass a wide range of responsibilities, from maintaining detailed records of securities holdings to facilitating corporate actions and ensuring regulatory compliance.

This business activity allows companies to serve as intermediaries between investors and the market, managing various aspects of securities ownership including the receipt of dividends, handling voting rights, and executing transfers. Through a Dubai company formation in this sector, businesses can participate in Dubai's growing financial services industry while operating within a well-regulated environment.

Business Models for Securities Custody Services

1. Full-Service Securities Custody: Establish a comprehensive custody service that handles all aspects of securities management, including safekeeping, settlement, corporate actions processing, and reporting. This model caters to institutional investors, investment funds, and high-net-worth individuals requiring complete custody solutions.

2. Digital Custody Platform: Develop a technology-driven custody solution that leverages blockchain and other innovative technologies to provide secure, efficient, and transparent custody services. This modern approach appeals to tech-savvy investors and institutions looking for advanced security features and real-time access to their holdings.

3. Specialized Asset Class Custody: Focus on providing custody services for specific types of securities such as bonds, equities, or alternative investments. This specialized approach allows for deeper expertise and tailored services for particular market segments.

4. Global Custody Services: Offer cross-border custody services that enable international investors to access multiple markets through a single point of contact. This model is particularly relevant in Dubai's position as a global financial hub.

5. Institutional Custody Services: Provide custody services specifically designed for institutional clients such as pension funds, insurance companies, and investment managers, offering customized solutions for their unique requirements.

Compliance Requirements

- Primary approval required from the Securities and Commodities Authority before license issuance
- Robust internal control systems must be implemented
- Regular compliance reporting to regulatory authorities
- Adequate technological infrastructure meeting market specifications
- Professional indemnity insurance requirements
- Qualified staff with relevant experience in securities custody
- Regular audits and assessments

IFZA Freezone Advantages

The Freezone IFZA stands out as one of Dubai's premier free zones for financial services companies. With a corporate tax rate of 9%, businesses benefit from a competitive tax environment while operating in a well-regulated jurisdiction. IFZA offers state-of-the-art infrastructure, strategic location, and comprehensive support services for financial institutions. The free zone's robust regulatory framework ensures compliance with international standards while providing flexibility for business operations. Companies in IFZA enjoy 100% foreign ownership, streamlined licensing processes, and access to Dubai's sophisticated financial markets. The Dubai company formation process in IFZA is efficient and transparent, making it an ideal choice for securities custody services.

Start Your Journey with Foundster

Ready to establish your securities custody business in Dubai? Foundster offers Dubai company formation services in IFZA at list price, with no additional service fees or markups. Connect with our AI-powered expert, Donna, for a free instant quote and professional guidance on setting up your business. Take the first step towards your successful venture in Dubai's financial sector by visiting /company-formation/freezone/ifza/order today.