General safeguards for investors
A Recognised Body must have rules, procedures and appropriate surveillance to ensure that its facilities are such as to afford proper protection to investors. The Regulator may have regard to the extent to which the Recognised Body's rules, procedures and arrangements for monitoring and overseeing the use of its facilities:(a) include appropriate measures to prevent the use of its facilities for abusive or improper purposes;(b) provide appropriate safeguards for investors against fraud or misconduct, recklessness, negligence or incompetence by users of its facilities;(c) provide appropriate information to enable users of its facilities to monitor their use of the facilities;(d) include appropriate arrangements to enable users of its facilities to raise queries about any use of those facilities which they are reported to have made;(e) include appropriate arrangements to enable users of its facilities to comply with any relevant regulatory or legal requirements; and(f) include appropriate arrangements to reduce the risk that those facilities will be used in ways which are incompatible with relevant regulatory or legal requirements,
and in this paragraph "appropriate" should be taken to mean appropriate having regard to the nature and scale of the Recognised Body's facilities, the types of Persons who will use the facilities and the use which they will make of those facilities.
A Recognised Body must be able and willing to promote and maintain high standards of integrity and fair dealing in the carrying on of business on or through its facilities. The Regulator may have regard to the extent to which the Recognised Body seeks to promote and encourage, through its rules, practices and procedures, conduct in Regulated Activities which is consistent with the Rules of Market Conduct and with any other Rules, codes or principles relating to behaviour in Regulated Activities which users of the Abu Dhabi Global Market Financial System would normally expect to apply to the Regulated Activity and the conduct in question.
A Recognised Body must be able and willing to cooperate, by the sharing of information or otherwise, with the Regulator, with any other authority, body or Person having responsibility in the Abu Dhabi Global Market for the supervision or regulation of any Regulated Activity or other financial service, or with a Non-Abu Dhabi Global Market Financial Services Regulator. The Regulator may have regard to the extent to which the constitution and rules of the Recognised Body and its agreements with its Members enable it to obtain information from Members and to disclose otherwise confidential information to the Regulator and other appropriate bodies, including:(a) the extent to which the Recognised Body is willing to provide information about it and its activities to assist the Regulator in the exercise of its functions;(b) the extent to which the Recognised Body is open with the Regulator or other appropriate bodies in regulatory matters;(c) how diligently the Recognised Body investigates or pursues enquiries from the Regulator or other appropriate bodies; and(d) whether the Recognised Body participates in appropriate international fora.
For the purpose of this section, "information" includes information held about large positions held by Members of a Recognised Body.