MKT 5.2 MKT 5.2 Compliance advisers
MKT 5.2.1 MKT 5.2.1
This section applies to a Reporting Entity that is required by the ADGM to appoint a compliance adviser.
The requirement for the appointment of a compliance adviser is designed to ensure that a Reporting Entity is aware of and complies with its continuing obligations under the FSMR and this module. A compliance adviser should therefore be a person familiar with the requirements of the FSMR and this module and should have the necessary knowledge, experience, qualifications and resources to assist a Reporting Entity to comply with its regulatory obligations.
Appointment of a compliance adviser
The Regulator may require a Reporting Entity to:(1) appoint a compliance adviser; or(2) replace a compliance adviser already appointed.
MKT 5.2.3(1) A Reporting Entity required to appoint a compliance adviser must, prior to making the appointment:(a) take reasonable steps to ensure that the proposed compliance adviser has the required knowledge, experience, qualifications and resources to carry out its obligations under these Rules;(b) notify the Regulator of the proposed compliance adviser's name and business address; and(c) take reasonable steps to ensure that the proposed compliance adviser and its relevant Employees are independent and that any conflicts of interest are appropriately managed.(2) If requested by the Regulator, a Reporting Entity appointing a compliance adviser must provide the Regulator with such information as it may require including information regarding knowledge, experience, qualifications and resources of the compliance adviser.(3) A Reporting Entity must notify the Regulator if it becomes aware, or has reason to believe, that the compliance adviser or its relevant Employees have a conflict of interest which has not been appropriately managed.
MKT 5.2.4(1) The Regulator may, by written notice, require a Reporting Entity to appoint a compliance adviser for a specified period to assist the Reporting Entity in meeting its continuing obligations under the Markets Regulations and these Rules.(2) A Reporting Entity that is required to appoint a compliance adviser in accordance with the requirements in this section must ensure that a compliance adviser continues to fulfil the role of compliance adviser until such time as the Regulator advises the Reporting Entity in writing that a compliance adviser is no longer required.
Obligations of a Reporting Entity in relation to its compliance adviser
Where a Reporting Entity is advised by its compliance adviser that it is failing or has failed to comply with its obligations under the FSMR and these Rules, the Reporting Entity must without undue delay:(1) take reasonable steps to rectify the failure as soon as practicable; and(2) if the Reporting Entity does not or is unable to rectify the failure as soon as practicable notify the Regulator of that fact.
A Reporting Entity must provide to the Regulator any information in such form and within such time as the Regulator may reasonably require regarding its compliance adviser or any advice the compliance adviser is providing, or has provided, to the Reporting Entity regarding its continuing obligations under the FSMR and these Rules.
A Reporting Entity must take reasonable steps to ensure its compliance adviser cooperates in any investigation conducted by the Regulator including answering promptly and openly any questions addressed to the compliance adviser, promptly producing the originals or copies of any relevant documents and attending before any meeting or hearing at which the compliance adviser is requested to appear.
Co-operation with compliance advisers
A Reporting Entity must take reasonable steps to ensure that it and its Employees:(1) provide such assistance as the compliance adviser reasonably requires to discharge its duties;(2) give the compliance adviser right of access at all reasonable times to relevant records and information;(3) do not hinder or interfere with the compliance adviser's ability to discharge its duties;(4) do not withhold information that would assist the compliance adviser advising the Reporting Entity of its duties;(5) do not provide false, misleading, or deceptive information to the compliance adviser; and(6) report to the compliance adviser any matter which may significantly affect the financial position of the Reporting Entity or the price or value of the Securities.
Termination of compliance adviser
Where a Reporting Entity dismisses its compliance adviser, the Reporting Entity must advise the Regulator in writing without delay of the dismissal, giving details of all relevant facts and circumstances.
Where a compliance adviser resigns, the Reporting Entity must without delay advise the Regulator in writing of the resignation, giving details of all relevant facts and circumstances.