• 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).