• MIR 5.4 MIR 5.4 Notification requirements

    • MIR 5.4.1

      A Recognised Body must, in the circumstances noted, notify the Regulator of the following information:

        Event Timing Information Requirement
      Key Individuals
      1. A Recognised Body proposes to appoint or elect a Person as a Key Individual. At least thirty days before appointment or election is effective.
      (a) Name;
      (b) date of birth; and
      (c) description of the responsibilities in the post.
      2. A Person has resigned as, or has ceased to be, a Key Individual of the Recognised Body. As soon as practicable. Name.
      3. A major change in responsibilities of a Key Individual is made which amounts to a new appointment. At least thirty days before change is effective.
      (a) Name; and
      (b) description of the new responsibilities.
      Standing committees
      4. The governing body delegates any of its relevant functions to a standing committee, or appoints a standing committee to manage or oversee the carrying out of any of that Recognised Body's relevant functions. As soon as practicable.
      (a) Names of the members of that standing committee; and
      (b) the terms of reference of that standing committee (including a description of any powers delegated to that committee and any conditions or limitations placed on the exercise of those powers).
      5. There is any change in the composition or the terms of reference of a standing committee or any such committee is dissolved. As soon as practicable.
      (a) Changes to the names of the members of that standing committee; and
      (b) changes to the terms of reference of that standing committee (including a description of any powers delegated to that committee and any conditions or limitations placed on the exercise of those powers).
      Disciplinary action and events relating to Key Individuals
      6. Where any Key Individual:
      (a) is the subject of any disciplinary action because of concerns about his alleged misconduct;
      (b) resigns as a result of an investigation into his alleged misconduct; or
      (c) is dismissed for misconduct.
      As soon as practicable.
      (a) Name of the Key Individual and his responsibilities within the Recognised Body;
      (b) details of the acts or alleged acts of misconduct by that Key Individual; and
      (c) details of any disciplinary action which has been or is proposed to be taken by that body in relation to that Key Individual.
      7. Any of the following has occurred in relation to a Key Individual:
      (a) a petition for bankruptcy is presented (or similar or analogous proceedings under the law of a jurisdiction outside the Abu Dhabi Global Market are commenced);
      (b) a bankruptcy order (or a similar or analogous order under the law of a jurisdiction outside the Abu Dhabi Global Market) is made; or
      (c) he enters into a voluntary arrangement (or a similar or analogous arrangement under the law of a jurisdiction outside the Abu Dhabi Global Market) with his creditors.
      As soon as the Recognised Body becomes aware of the relevant event. Details of the relevant event.
      Constitution and governance
      8. A Recognised Body proposes to circulate any notice or other document proposing any amendment to its memorandum or articles of association (or other similar agreement or document relating to its constitution) to its shareholders (or any group or class of them), its Members (or any group or class of them), or any other group or class of Persons which has the power to make that amendment or whose consent or approval is required before it may be made. In advance of circulation or otherwise as soon as reasonably practicable.
      (a) The proposed amendments;
      (b) the reasons for the proposal; and
      (c) a description of the group or class of Persons to whom the proposal is to be circulated.
      9. A change to a Recognised Body's memorandum or articles of association (or other similar agreement or document relating to its constitution) becomes effective. As soon as practicable.
      (a) Details of the amendment; and
      (b) the date on which the amendment took effect.
      10. Any change is made to an agreement which relates to the constitution or governance of a Recognised Body:
      (a) between that Recognised Body and another Person;
      (b) between the owners of that Recognised Body;
      (c) between the owners of that Recognised Body and another Person; or
      (d) between other Persons.
      As soon as practicable.
      (a) Details of the change; and
      (b) the date on which the change took effect.
      Auditors
      11. The auditors of a Recognised Body cease to act as such. As soon as practicable.
      (a) Whether the appointment of those auditors expired or was terminated;
      (b) the date on which the auditors ceased to act; and
      (c) if the Recognised Body terminated, or decided not to renew, their appointment, its reasons for taking that action or decision.
      12. Appointment of new auditors. As soon as practicable.
      (a) The name and business address of those new auditors; and
      (b) the date of their appointment.
      Financial information
      13. Publication of a Recognised Body's:
      (a) annual report and accounts;
      (b) consolidated annual report and accounts of any group in which the Recognised Body is a subsidiary undertaking, or (if the Recognised Body is not a subsidiary undertaking in any group) of any group of which the Recognised Body is a parent undertaking.
      The latest of:
      (a) four months after the end of the financial year to which the document relates;
      (b) the time when the document is sent to the Members or shareholders of the Recognised Body; or
      (c) the time when the document is sent to the shareholders in a parent undertaking of the group to which that document relates.
      A copy of the relevant document.
      14. An audit committee has prepared a report in relation to any period or any matter relating to any relevant function of that Recognised Body. As soon as practicable. A copy of the relevant report.
      15. Publication of a Recognised Body's:
      (a) quarterly management accounts; or
      (b) monthly management accounts.
      Within one month of the end of the period to which they relate. A copy of the relevant accounts.
      16. Preparation of:
      (a) a statement of a Recognised Body's anticipated income, expenditure and cashflow for each financial year; and
      (b) an estimated balance sheet showing its position as it is anticipated at the end of each financial year.
      Before the beginning of the financial year to which they relate. A copy of the relevant document.
      17. Accounting reference date is changed. As soon as practicable. New accounting reference date.
      Fees and incentive schemes
      18. Any proposal to change the fees or charges levied on a Recognised Body's Members (or any group or class of them) is made. As close to the time when the proposal is communicated to those Members as practicable. A summary of any such proposal made.
      19. Any change is made to fees or charges levied on a Recognised Body's Members (or any group or class of them) is made. No later than the date when the changes are published or notified to those Members. A summary of any such changes.
      Complaints
      20.
      (a) Where a Recognised Body's complaints investigator has investigated a complaint arising in connection with the performance of, or failure to perform, any of its Regulatory Functions; and
      (b) that complaints investigator has made a recommendation in respect of that complaint that the Recognised Body should:
      (i) make a compensatory payment to any Person; or
      (ii) remedy the matter which was the subject of that complaint.
      As soon as practicable. A notification of that event.
      21. When the complaints investigator's report, as referred to above, and the particulars of his recommendations are made available to the Recognised Body. As soon as practicable.
      (a) A copy of the complaints investigator's report; and
      (b) particulars of his recommendations.
      Insolvency events
      22. On:
      (a) the presentation of a petition for the winding up of a Recognised Body (or the commencement of any similar or analogous proceedings under the law of a jurisdiction outside the Abu Dhabi Global Market); or
      (b) the appointment of a receiver, administrator, liquidator, trustee or sequestrator of assets of that body (or of any similar or analogous appointment under the laws of a jurisdiction outside the Abu Dhabi Global Market); or
      (c) the making of a voluntary arrangement by that body with its creditors (or of any similar or analogous arrangement under the law of a jurisdiction outside the Abu Dhabi Global Market).
      As soon as practicable. A notification of that event.
      Legal proceedings
      23. If any civil or criminal legal proceedings are instituted against a Recognised Body, except where all of the conditions stated at (a)–(c) are met in respect of those proceedings:
      (a) the amount of damages claimed would not significantly affect that Recognised Body's financial resources, if the claim were successful;
      (b) the claim would not have a significant adverse effect on the reputation and standing of that body, if that claim were successful; and
      (c) the claim does not relate to that body's Regulatory Functions.
      As soon as practicable. For civil proceedings:
      (a) the name of the claimant;
      (b) particulars of the claim;
      (c) the amount of damages;
      (d) any other remedy sought by the claimant; and
      (e) particulars of any allegation that any act or omission of that body was in bad faith.
      For criminal proceedings: the particulars of the offence with which that body is charged.
      Delegation of relevant functions
      24. Where a Recognised Body makes an offer or agrees to delegate any of its relevant functions to another Person in respect of any activities forming a significant part of a relevant function or which make a significant contribution to the performance of a relevant function of that Recognised Body. As soon as practicable.
      (a) The reasons for that delegation or proposed delegation;
      (b) the reasons why the Recognised Body is satisfied that it will continue to meet the Recognition Requirements following that delegation;
      (c) a copy of the invitation to tender, if the offer is made by issuing a written invitation to tender to another body or Person; and
      (d) a copy of the agreement, where the Recognised Body makes such an agreement.
      25. A Recognised Body makes an offer or agrees to undertake any relevant function of another Recognised Body in respect of any activities forming a significant part of a relevant function, or which make a significant contribution to the performance of a relevant function, of that other Recognised Body. As soon as practicable. A notification of that event.
      Products, services and normal hours of operation
      26. A Recognised Body proposes to admit to trading (or to cease to admit to trading) by means of its facilities:
      (a) a Specified Investment (other than a security or an option in relation to a security); or
      (b) a type of security or a type of option in relation to a security.
      As soon as practicable.
      (a) A description of the Specified Investment to which the proposal relates;
      (b) where that Specified Investment is a Derivative, the proposed terms of that Derivative; and
      (c) in the case of a Recognised Body which is admitting that Specified Investment to trading, the name of any Recognised Body which will provide Clearing Services in respect of that Specified Investment under an agreement with that Recognised Body.
      27. A Recognised Body removes a Financial Instrument from trading on a regulated market. As soon as practicable.
      (a) Notice of that event;
      (b) relevant information including particulars of that Financial Instrument; and
      (c) the reasons for the action taken.
      28. A Recognised Body proposes to provide (or to cease to provide) Clearing facilitation services in respect of:
      (a) a Specified Investment (other than a security or an option in relation to a security); or
      (b) a type of security or a type of option in relation to a security.
      As soon as practicable.
      (a) Notice of that event;
      (b) a description of the Specified Investment to which the proposal relates;
      (c) where that Specified Investment is a Derivative, the proposed terms of that Derivative; and
      (d) in the case of a Recognised Body which is admitting that Specified Investment to trading, the name of any Recognised Body which will provide Clearing Services in respect of that Specified Investment under an agreement with that Recognised Body.
      29. A Recognised Body proposes to amend the standard terms of any Derivative admitted to trading by means of its facilities. As soon as practicable.
      (a) Notice of that event; and
      (b) written particulars of those proposed amendments.
      30. A Recognised Body proposes to amend the standard terms relating to any Derivative in respect of which it provides Clearing facilitation services. As soon as practicable.
      (a) Notice of that event; and
      (b) written particulars of those proposed amendments.
      31. A Recognised Body proposes to make (or to cease to make) arrangements for the safeguarding and administration of assets belonging to any other Person (other than an undertaking in the same group). As soon as practicable.
      (a) Notice of that event;
      (b) a description of the assets (or types of assets) to which the proposal relates; and
      (c) the date or dates on which the arrangements will be made (or cease to be made).
      32. A Recognised Body proposes to change its normal hours of operation. As soon as practicable.
      (a) Notice of that proposal;
      (b) the particulars of the proposal; and
      (c) the reasons for the actions proposed.
      Suspension of services and inability to operate facilities
      33. A Recognised Body:
      (a) suspends trading in any Derivative (other than an option in relation to a security), in any type of security or in any type of option in relation to a security; or
      (b) temporarily calls a trading halt in respect of any type of security or in any type of option in relation to a security.
      As soon as practicable.
      (a) Notice of that event;
      (b) particulars of that Derivative, type of security or type of option in relation to a security, as the case may be; and
      (c) the reasons for the action taken.
      34. A Recognised Body suspends trading on a regulated market in any Financial Instrument. As soon as practicable.
      (a) Notice of that event;
      (b) relevant information including particulars of that Financial Instrument; and
      (c) the reasons for the action taken.
      35. A Recognised Body suspends providing Clearing facilitation services generally in respect of any Derivative (other than an option in relation to a security), type of security or type of option in relation to a security. As soon as practicable.
      (a) Notice of that event;
      (b) particulars of that Derivative, type of security or type of option in relation to a security, as the case may be; and
      (c) the reasons for the action taken.
      36. A Recognised Body suspends any arrangements it makes for the safeguarding and administration of any type of asset belonging to any other Person (other than an undertaking in the same group). As soon as practicable.
      (a) Notice of that event;
      (b) particulars of that type of asset; and
      (c) the reasons for the action taken.
      37. A Recognised Body is unable to operate any of its facilities within its normal hours of operation, due to the occurrence of any event or circumstances. As soon as practicable.
      (a) Notice of that event;
      (b) which facility the Recognised Body is unable to operate;
      (c) what event or circumstance has caused it to become unable to operate that facility within those hours; and
      (d) what action, if any, the Recognised Body is taking or proposes to take to enable it to recommence operating that facility.
      38. A Recognised Body extends its hours of operation, due to the occurrence of any event or circumstances. As soon as practicable.
      (a) Notice of that event;
      (b) what event or circumstance has caused it to do so;
      (c) the new hours of operation; and
      (d) the date on which it expects to revert to its normal hours of operation.
      Information technology systems
      39. A Recognised Body changes any of its plans for action in the event of a failure of any of its information technology systems resulting in disruption to the operation of its facilities; unless the changes are only minor revisions to, or updating of, the documents containing a Recognised Body's business continuity plan (for example, changes to contact names or telephone numbers). As soon as practicable.
      (a) Notice of that event; and
      (b) a copy of the new plan.
      40. Any reserve information technology system of a Recognised Body fails in such a way that, if the main information technology system of that body were also to fail, it would be unable to operate any of its facilities during its normal hours of operation. As soon as practicable.
      (a) Notice of that event;
      (b) what action that Recognised Body is taking to restore the operation of the reserve information technology system; and
      (c) when it is expected that the operation of that system will be restored.
      Inability to discharge Regulatory Functions
      41. A Recognised Body is unable to discharge any Regulatory Function because of the occurrence of any event or circumstances. As soon as practicable.
      (a) Notice of that event;
      (b) what event or circumstances has caused it to become unable to do so;
      (c) which of its Regulatory Functions it is unable to discharge; and
      (d) what action, if any, it is taking or proposes to take to deal with the situation and, in particular, to enable it to recommence discharging that Regulatory Function.
      Membership
      42. A Recognised Body admits a new Member. As soon as practicable.
      (a) Notice of that event;
      (b) a description of the Person whom it is admitting to Membership; and
      (c) particulars of its reasons for considering that the relevant criteria are met.
      43. A Recognised Body admits for the first time a Member whose head or registered office is in a jurisdiction from which that Recognised Body has not previously admitted Members. As soon as practicable.
      (a) Notice of that event;
      (b) the name of that jurisdiction;
      (c) the name of any regulatory authority in that jurisdiction which regulates that Member in respect of activities relating to Specified Investments; and
      (d) particulars of its reasons for considering that, in admitting a Member from that jurisdiction to Membership, the Recognised Body is able to continue to satisfy the Recognition Requirements which apply to it.
      Investigations
      44. A Recognised Body becomes aware that a Person has been appointed by any regulatory body (other than the Regulator or a Recognised Body) to investigate:
      (a) any business transacted by means of its facilities; or
      (b) any aspect of the Clearing facilitation services which it provides.

      Notifications do not need to be made in respect of:

      (a) routine inspections or visits undertaken in the course of regular monitoring, complaints handling or as part of a series of 'theme visits';
      (b) routine requests for information; or
      (c) investigations into the conduct of Members of the Recognised Body or of other users of its facilities where the use of its facilities is a small or incidental part of the subject matter of the investigation.
      As soon as practicable. Notice of that event.
      Disciplinary action relating to Members
      45. A Recognised Body has taken any disciplinary action against any Member or any employee of a Member, in respect of a breach of a rule relating to the carrying on by the Recognised Body of any of its Regulatory Functions. As soon as practicable.
      (a) Notice of that event;
      (b) the name of the Person concerned;
      (c) details of the disciplinary action taken by the Recognised Body; and
      (d) the Recognised Body's reasons for taking that disciplinary action.
      46. An appeal is lodged against any disciplinary action taken by a Recognised Body against any Member or any employee of a Member, in respect of a breach of a rule relating to the carrying on by the Recognised Body of any of its Regulatory Functions. As soon as practicable.
      (a) Notice of that event;
      (b) the name of the appellant;
      (c) the grounds on which the appeal is based; and
      (d) the outcome of the appeal, when known.
      Criminal offences and civil prohibitions
      47. A Recognised Body has evidence tending to suggest that any Person has:
      (a) been carrying on any Regulated Activity in the Abu Dhabi Global Market in contravention of the general prohibition;
      (b) been engaged in market abuse; committed a criminal offence under the Act or subordinate legislation made under the Act; or
      (d) committed a criminal offence under the Anti-Money Laundering rules.
      As soon as practicable.
      (a) Notice of that event; and
      (b) full details of that evidence in writing.
      Restriction of, or instruction to close out, open positions
      48. A Recognised Body decides to:
      (a) restrict the open position on any of the contracts of a Member; or
      (b) issue instructions to a Member to close out its positions on any contracts.
      As soon as practicable.
      (a) Notice of that event;
      (b) the Member's name;
      (c) the nature and size of any position to be restricted or closed out; and
      (d) the reasons for the Recognised Body's decision.
      Default
      49. A Recognised Body decides to put a Member into default. As close to when such a decision is taken by a Recognised Body as practicable.
      (a) Notice of that event;
      (b) the name of the Member and (where relevant) the class of Membership;
      (c) the reasons for that decision; and
      (d) the names of any other exchange, Clearing house or auction platform on which, to the best of that Recognised Body's knowledge, that Member clears business or transacts for, or in respect of, its clients.
      Transfers of ownership
      50. A Recognised Body becomes aware of a transfer of ownership of the Recognised Body which gives rise to a change in the Persons who are in a position to exercise significant influence over the management of the Recognised Body, whether directly or indirectly.

      The Regulator may regard a Person who falls within any of the cases in FSMR as being in a position to exercise significant influence.
      In advance of the transfer taking place, to allow for approval under section 105 FSMR.
      (a) Notice of that event;
      (b) the name of the Person(s) concerned; and
      (c) the details of the transfer.
      Significant breaches of rules and disorderly trading conditions
      51. Any of the following events arise:
      (a) significant breaches of a Recognised Body's rules; or
      (b) disorderly trading conditions on any of its markets or auctions.
      As soon as practicable. Notice of that event.
      Rule changes
      52. A Recognised Body issues a consultation on proposed changes to its rules or procedures. As soon as practicable. A copy of the consultation paper and accompanying documentation.
      53. Changes to a Recognised Body's rules or procedures become effective. As soon as practicable. A copy of the amended rules or procedures.
      54. A Recognised Body issues guidance on or a circular relating its rules or procedures. As soon as practicable. A copy of the guidance or circular.
      Recognised Clearing House capital
      55. The amount of capital falls below the notification threshold set out in Rule 4.2.4. As soon as practicable.
      (a) The reasons for the Recognised Clearing House's capital being below the notification threshold and a description of the short-term perspective of the Recognised Clearing House's financial situation; and
      (b) a comprehensive description of the measures the Recognised Clearing House intends to adopt to ensure the ongoing compliance with the capital requirements.