• Part 4 Part 4 Authorisation

    • 27. Application for a Financial Services Permission

      (1) An Application for a Financial Services Permission to carry on one or more Regulated Activities may be made to the Regulator by —
      (a) a Body Corporate; or
      (b) a Partnership.
      (2) An Authorised Person who has a Financial Services Permission under this Part which is in force may not apply for a further Financial Services Permission under this section but may apply for variation of its Financial Services Permission under section 32.

    • 28. The Threshold Conditions

      (1) In giving or varying a Financial Services Permission, or imposing or varying a requirement under any provision of this Part, the Regulator must ensure that the person concerned will satisfy, and continue to satisfy, in relation to all of the Regulated Activities for which the person has or will have a Financial Services Permission, any Threshold Conditions specified by the Regulator in Threshold Condition Rules made under section 7(2).
      (2) The duty imposed by subsection (1) does not prevent the Regulator, having due regard to that duty, from taking such steps as it considers are necessary, in relation to a particular person, in order to further one or more of its objectives.

    • 29. Firms based outside the Abu Dhabi Global Market

      (1) This section applies in relation to a Non-Abu Dhabi Global Market Firm.
      (2) In determining whether a Non-Abu Dhabi Global Market Firm is satisfying or will satisfy, and continue to satisfy, any one or more of the Threshold Conditions, the Regulator may have regard to any opinion notified to it by a Non-Abu Dhabi Global Market Regulator which relates to the Non-Abu Dhabi Global Market Firm and appears to the Regulator to be relevant to compliance with those conditions.
      (3) In considering how much weight (if any) to attach to the opinion, the Regulator must have regard to the nature and scope of the supervision exercised in relation to the Non-Abu Dhabi Global Market Firm by the Non-Abu Dhabi Global Market Regulator.

    • 30. Granting a Financial Services Permission

      (1) This section applies in relation to an Application for a Financial Services Permission under section 27.
      (2) The Regulator may grant a Financial Services Permission for the Applicant to carry on the Regulated Activity or Regulated Activities to which the Application relates or such of them as may be specified in the Financial Services Permission.
      (3) If it grants a Financial Services Permission, the Regulator must specify the permitted Regulated Activity or Regulated Activities, described in such manner as the Regulator considers appropriate.
      (4) The Regulator may —
      (a) incorporate in the description of a Regulated Activity such limitations and stipulations (for example as to circumstances in which the activity may, or may not, be carried on) as it considers appropriate;
      (b) specify a narrower or wider description of Regulated Activity than that to which the Application relates; or
      (c) grant a Financial Services Permission for the carrying on of a Regulated Activity which is not included among those to which the Application relates.
      (5) If a Partnership has a Financial Services Permission —
      (a) it has the relevant Financial Services Permission to carry on the Regulated Activities concerned in the name of the firm; and
      (b) its Financial Services Permission is not affected by any change in its membership.
      (6) If an Authorised Person which is a firm is dissolved, its Financial Services Permission continues to have effect in relation to any individual or firm which succeeds to the business of the dissolved firm.
      (7) For the purposes of this section, an individual or Partnership is to be regarded as succeeding to the business of a dissolved Partnership only if succession is to the whole or substantially the whole of the business of the former Partnership.

    • 31. Granting a Financial Services Permission: special cases

      (1) If the Applicant —
      (a) in relation to a particular Regulated Activity, is exempt from the General Prohibition as a result of section 16(3); but
      (b) has applied for a Financial Services Permission in relation to another Regulated Activity;
      the Application is to be treated as relating to all the Regulated Activities which, if a Financial Services Permission is granted, the Applicant will carry on.
      (2) If the Applicant —
      (a) in relation to a particular Regulated Activity, is exempt from the General Prohibition as a result of any of subsections (1) or (2) of section 119; but
      (b) has applied for a Financial Services Permission in relation to another Regulated Activity;
      the Application is to be treated as relating only to that other Regulated Activity.
      (3) If the Applicant —
      (a) is a person to whom, in relation to a particular Regulated Activity, the General Prohibition under section 16 does not apply; but
      (b) has applied for a Financial Services Permission in relation to another Regulated Activity;
      the Application is to be treated as relating only to that other Regulated Activity.

    • Variation and cancellation of a Financial Services Permission

      • 32. Variation by the Regulator at the request of an Authorised Person

        (1) The Regulator may, on the application of the Authorised Person, vary its Financial Services Permission by —
        (a) adding a Regulated Activity to those to which the Financial Services Permission relates;
        (b) removing a Regulated Activity from those to which the Financial Services Permission relates; or
        (c) varying the description of a Regulated Activity to which the Financial Services Permission relates.
        (2) The Regulator may, on the application of the Authorised Person, cancel its Financial Services Permission.
        (3) The Regulator may refuse an application under this section if it appears to it that it is desirable to do so in order to further one or more of its objectives.
        (4) If, as a result of a variation of a Financial Services Permission under this section, there are no longer any Regulated Activities for which the Authorised Person concerned has a Financial Services Permission, the Regulator must, once it is satisfied that it is no longer necessary to keep the Financial Services Permission in force, cancel it.
        (5) The Regulator's power to vary a Financial Services Permission under this section extends to including in the Financial Services Permission as varied any provision that could be included if a fresh Financial Services Permission were being given by it in response to an Application under section 27.

      • 33. Variation or cancellation on initiative of the Regulator

        (1) The Regulator may exercise its power under this section in relation to an Authorised Person with a Financial Services Permission ("A") if it appears to the Regulator that —
        (a) A is failing, or is likely to fail, to satisfy the Threshold Condition Rules;
        (b) A has committed a contravention of these Regulations or any Rules made under these Regulations;
        (c) A has failed, during a period of at least 12 months, to carry on a Regulated Activity to which the Financial Services Permission relates; or
        (d) it is desirable to exercise the power in order to further one or more of the Regulator's objectives.
        (2) The Regulator's power under this section is the power —
        (a) to vary the Financial Services Permission by —
        (i) adding a Regulated Activity to those to which the Financial Services Permission relates;
        (ii) removing a Regulated Activity from those to which the Financial Services Permission relates; or
        (iii) varying the description of a Regulated Activity to which the Financial Services Permission relates in a way which does not, in the opinion of the Regulator, widen the description; or
        (b) to cancel the Financial Services Permission.
        (3) If, as a result of a variation of a Financial Services Permission under this section, there are no longer any Regulated Activities for which the Authorised Person concerned has a Financial Services Permission, the Regulator must, once it is satisfied that it is no longer necessary to keep the Financial Services Permission in force, cancel it.
        (4) The power of the Regulator to vary a Financial Services Permission under this section extends to including in the Financial Services Permission as varied any provision that could be included if a fresh Financial Services Permission were being given in response to an Application to the Regulator under section 27.
        (5) The power of the Regulator under this section is referred to in these Regulations as its Own-Initiative Variation Power.

      • 34. Withdrawal of authorised status

        (1) This section applies if —
        (a) an Authorised Person's Financial Services Permission is cancelled; and
        (b) as a result, there is no Regulated Activity for which it has a Financial Services Permission.
        (2) The Regulator must give a direction withdrawing that person's status as an Authorised Person.

    • Imposition and variation of requirements

      • 35. Imposition of requirements by the Regulator

        (1) Where a person has applied to the Regulator for a Financial Services Permission or the variation of a Financial Services Permission, the Regulator may impose on that person such requirements, taking effect on or after the giving or variation of the Financial Services Permission, as the Regulator considers appropriate.
        (2) The Regulator may exercise its power under subsection (3) in relation to an Authorised Person with a Financial Services Permission ("A") if it appears to the Regulator that —
        (a) A is failing, or is likely to fail, to satisfy the Threshold Condition Rules;
        (b) A has committed a contravention of these Regulations or any Rules made under these Regulations;
        (c) A has failed, during a period of at least 12 months, to carry on a Regulated Activity to which the Financial Services Permission relates; or
        (d) it is desirable to exercise the power in order to further one or more of the Regulator's objectives.
        (3) The Regulator's power under this subsection is a power —
        (a) to impose a new requirement;
        (b) to vary a requirement imposed by the Regulator under this section; or
        (c) to cancel such a requirement.
        (4) The Regulator's power under subsection (3) is referred to in these Regulations as its Own-Initiative Requirement Power.
        (5) The Regulator may, on the application of an Authorised Person with a Financial Services Permission —
        (a) impose a new Requirement;
        (b) vary a Requirement imposed by the Regulator under this section; or
        (c) cancel such a Requirement.
        (6) The Regulator may refuse an application under subsection (5) if it appears to it that it is desirable to do so in order to further one or more of its objectives.

      • 36. Requirements under section 35: further provisions

        (1) A Requirement may, in particular, be imposed —
        (a) so as to require the person concerned to take action specified by the Regulator; or
        (b) so as to require the person concerned to refrain from taking action specified by the Regulator.
        (2) A Requirement may extend to activities which are not Regulated Activities.
        (3) A Requirement may be imposed by reference to the person's relationship with —
        (a) the person's Group; or
        (b) other members of the person's Group.
        (4) A Requirement may be expressed to expire at the end of such period as the Regulator may specify, but the imposition of a Requirement that expires at the end of a specified period does not affect the Regulator's power to impose a new Requirement.
        (5) A Requirement may refer to the past conduct of the person concerned (for example, by requiring the person concerned to review or take remedial action in respect of past conduct).

      • 37. Imposition of requirements on acquisition of Control

        (1) This section applies if it appears to the Regulator that —
        (a) a person has acquired Control over an Authorised Person; and
        (b) there are no grounds for exercising its Own-Initiative Requirement Power.
        (2) If it appears to the Regulator that the likely effect of the acquisition of Control on the Authorised Person, or on any of its activities, is uncertain, the Regulator may —
        (a) impose on the Authorised Person a requirement that could be imposed by the Regulator under section 35 on the giving of a Financial Services Permission; or
        (b) vary a requirement imposed by the Regulator under that section on the Authorised Person.
        (3) Any reference to a person having acquired Control is to be read in accordance with Part 10.

      • 38. Assets Requirements

        (1) This section applies if —
        (a) the Regulator imposes an Assets Requirement on a person being given a Financial Services Permission;
        (b) an Assets Requirement is imposed on an Authorised Person; or
        (c) an Assets Requirement previously imposed on such a person is varied.
        (2) A person on whom an Assets Requirement is imposed is referred to in this section as "A".
        (3) "Assets Requirement" means a requirement under imposed section 35
        (a) prohibiting the disposal of, or other dealing with, any of A's assets (whether in the Abu Dhabi Global Market or elsewhere) or restricting such disposals or dealings; or
        (b) that all or any of A's assets, or all or any assets belonging to Customers but held by A or to A's order, must be transferred to and held by a trustee approved by the Regulator.
        (4) If the Regulator —
        (a) imposes a requirement of the kind mentioned in subsection (3)(a); and
        (b) gives notice of the requirement to any institution with whom A keeps an account;
        the notice has the effects mentioned in subsection (5).
        (5) Those effects are that —
        (a) the institution does not act in breach of any contract with A if, having been instructed by A (or on A's behalf) to transfer any sum or otherwise make any payment out of A's account, it refuses to do so in the reasonably held belief that complying with the instruction would be incompatible with the requirement; and
        (b) if the institution complies with such an instruction, it shall be liable to pay to the Regulator an amount equal to the amount transferred from, or otherwise paid out of, A's account in contravention of the requirement.
        (6) If the Regulator imposes a requirement of the kind mentioned in subsection (3)(b), assets held by a person as trustee in accordance with the requirement shall not, while the requirement is in force, be released or dealt with except with the consent of the Regulator.
        (7) If, while a requirement of the kind mentioned in subsection (3)(b) is in force, A creates a Charge over any assets of A held in accordance with the requirement, the Charge is (to the extent that it confers security over the assets) void against the liquidator and any of A's creditors.
        (8) Assets held by a person as trustee ("T") are to be taken to be held by T in accordance with any requirement mentioned in subsection (3)(b) only if —
        (a) A has given T written notice that those assets are to be held by T in accordance with the requirement; or
        (b) they are assets into which assets to which paragraph (a) applies have been transposed by T on the instructions of A.
        (9) Subsections (6) and (8) do not affect any equitable interest or remedy in favour of a person who is a beneficiary of a trust as a result of a requirement of the kind mentioned in subsection (3)(b).

    • Connected Persons

      • 39. Persons connected with an Applicant

        (1) In considering —
        (a) an Application for a Financial Services Permission;
        (b) whether to vary or cancel a Financial Services Permission; or
        (c) whether to impose or vary a requirement under this Part;
        the Regulator may have regard to any person appearing to it to be, or likely to be, in a relationship with the Applicant or a person given a Financial Services Permission which is relevant.

    • Procedure

      • 40. Applications under this Part

        (1) An Application for a Financial Services Permission must —
        (a) contain a statement of the Regulated Activity or Regulated Activities which the Applicant proposes to carry on and for which the Applicant wishes to have a Financial Services Permission; and
        (b) give the address of a place in the Abu Dhabi Global Market for service on the Applicant of any notice or other Document which is required or authorised to be served on the Applicant under these Regulations.
        (2) An application for the variation of a Financial Services Permission must contain a statement —
        (a) of the desired variation; and
        (b) of the Regulated Activity or Regulated Activities which the Applicant proposes to carry on if the Financial Services Permission is varied.
        (3) An application for the variation of a requirement imposed under section 35 or for the imposition of a new requirement must contain a statement of the desired variation or requirement.
        (4) An application under this Part must —
        (a) be made in accordance with any applicable Rules made by the Regulator;
        (b) be made in such manner as the Regulator may direct; and
        (c) contain, or be accompanied by, such other information as the Regulator may reasonably require.
        (5) At any time after the application is received and before it is determined, the Regulator may require the Applicant to provide it with such further information as it reasonably considers necessary to enable it to determine the application.
        (6) Different directions may be given, and different requirements imposed, in relation to different applications or categories of application.
        (7) The Regulator may require an Applicant to provide information which the Applicant is required to provide to it under this section in such form, or to verify it in such a way, as the Regulator may direct.

      • 41. Determination of applications

        (1) If the Regulator grants an application —
        (a) for a Financial Services Permission;
        (b) for the variation or cancellation of a Financial Services Permission;
        (c) for the variation or cancellation of a requirement imposed under section 35; or
        (d) for the imposition of a new requirement under that section;
        it must give the Applicant written notice.
        (2) The notice must state the date from which the Financial Services Permission, variation, cancellation or requirement has effect.

      • 42. Exercise of Own-Initiative Power: procedure

        (1) This section applies to an exercise of the Regulator's Own-Initiative Variation Power or Own-Initiative Requirement Power in relation to an Authorised Person ("A").
        (2) A variation of a Financial Services Permission or the imposition or variation of a requirement takes effect —
        (a) immediately, if the notice given states that that is the case;
        (b) on such date as may be specified in the notice; or
        (c) if no date is specified in the notice, when the matter to which the notice relates is no longer open to review.
        (3) A variation of a Financial Services Permission, or the imposition or variation of a requirement, may be expressed to take effect immediately (or on a specified date) only if the Regulator, having regard to the ground on which it is exercising its Own-Initiative Variation Power or Own-Initiative Requirement Power, reasonably considers that it is necessary for the variation, or the imposition or variation of the requirement, to take effect immediately (or on that date).
        (4) If the Regulator proposes to vary a Financial Services Permission or to impose or vary a requirement, or varies a Financial Services Permission or imposes or varies a requirement, with immediate effect, it must give A written notice.
        (5) The notice must —
        (a) give details of the variation of the permission or the requirement or its variation;
        (b) state the Regulator's reasons for the variation of the permission or the imposition or variation of the requirement;
        (c) inform A that A may make representations to the Regulator within such period as may be specified in the notice (whether or not A has referred the matter to the Regulatory Committee);
        (d) inform A of when the variation of the permission or the imposition or variation of the requirement takes effect; and
        (e) inform A of A's right to refer the matter to the Regulatory Committee.
        (6) The Regulator may extend the period allowed under the notice for making representations.
        (7) If, having considered any representations made by A, the Regulator decides —
        (a) to vary the permission, or impose or vary the requirement, in the way proposed; or
        (b) if the permission has been varied or the requirement imposed or varied, not to rescind the variation of the permission or the imposition or variation of the requirement;
        it must give A written notice.
        (8) If, having considered any representations made by A, the Regulator decides —
        (a) not to vary the permission, or impose or vary the requirement, in the way proposed;
        (b) to vary the permission or requirement in a different way, or impose a different requirement; or
        (c) to rescind a variation or requirement which has effect;
        it must give A written notice.
        (9) A notice under subsection (7) must inform A of A's right to refer the matter to the Regulatory Committee.
        (10) A notice under subsection (8)(b) must comply with subsection (5).
        (11) For the purposes of subsection (2)(c), whether a matter is open to review is to be determined in accordance with section 252(7).