Hero Banner

DFSA Regulation

Beehive is the first and only peer to peer lending platform to be officially authorised and regulated by the Dubai Financial Services Authority (DFSA). This is a milestone for the business and the industry and we will continue to evolve our business model in order to comply with DFSA regulation requirements. Regulation is a very positive step for the peer to peer lending industry in MENA, Beehive and our investors and we feel these new measures and processes will offer our investor community greater protection.

 

What are the benefits of DFSA regulation to Beehive investors?

  • Greater client monies protection. All client monies are held in a UK custodian bank account operated by Global Currency Exchange Limited (GCEN) and Global Custodian Services Limited (GCS) and are legally segregated from Beehive. GCEN is authorised and regulated by the UK’s Financial Conduct Authority (FCA).
  • Comprehensive and impartial auditing. Investors can take comfort in the knowledge that Beehive will be regularly monitored, audited and held to account by the Dubai Financial Services Authority (DFSA), a tier 1 global regulator.
  • Additional complaints procedure. Investors now have recourse through the regulator for complaints, in the unlikely event that they feel these have not been handled satisfactorily by Beehive.

 

Retail vs. Professional Clients: 

Regulation requires that Beehive classifies all investors as either Retail Clients or Professional Clients. All investors will automatically be classified as Retail Clients unless they can be verified as Professional Clients. 

For your protection, the DFSA has ruled that Retail Clients will be limited to a maximum annual cumulative cash deposit of AED180,000 onto Beehive and a maximum investment per request of AED18,000.  

Investors can opt to be classified as a Professional Client which removes the Retail Client restrictions. To be deemed a Professional Client, we need your confirmation that you have more than $1m of net assets (directly or indirectly held by you), excluding your primary residence. 

 

Changes to investor fees:

Whilst we always try to minimise the cost of investing on Beehive, the introduction of new regulatory measures and the implementation of additional protection of client monies means that we have increased our annual fees charged to investors from 1% to 2% on business and project finance investments.

The increase in fees will only apply to finance written over Beehive as of 5 March 2017. Fees will remain at the previous rate for finance written pre 5 March 2017 onwards.

 

Potential impact on investor and business transfer costs:

GCEN and GCS can only accept electronic transfers. As such, money transfers from your account to GCEN could take up to a few days and may incur additional transaction charges from your own bank.

 

If you have any queries at all, please contact us at team@beehive.ae or call +971 4 550 6700.