• Power to disallow excessive Regulatory Provision

    • 137. Power of the Regulator

      (1) This section applies where a Recognised Body proposes to make any Regulatory Provision in connection with —
      (a) its business as an investment exchange;
      (b) the provision by it of clearing services; or
      (c) the provision by it of services falling within section 119(1)(b) or (2)(b).
      (2) If it appears to the Regulator —
      (a) that the proposed provision will impose a Requirement on persons affected (directly or indirectly) by it; and
      (b) that the Requirement is excessive;
      the Regulator may direct that the proposed provision must not be made.
      (3) A Requirement is excessive if —
      (a) it is not required under any enactment or rule of law in the Abu Dhabi Global Market; and
      (b) either —
      (i) it is not justified as pursuing a reasonable regulatory objective; or
      (ii) it is disproportionate to the end to be achieved.
      (4) In considering whether a Requirement is excessive, the Regulator must have regard to all the relevant circumstances, including —
      (a) the effect of existing legal and other requirements;
      (b) the global character of financial services and markets and the international mobility of activity;
      (c) the desirability of facilitating innovation; and
      (d) the impact of the proposed provision on market confidence.
      (5) Any provision made in contravention of a Direction under this section is of no effect.

    • 138. Power to disallow excessive Regulatory Provision: supplementary

      (1) In section 137
      (a) "Regulatory Provision" means any rule, guidance, arrangements, policy or practice; and
      (b) references to making provision shall be read accordingly as including, as the case may require, issuing guidance, entering into arrangements or adopting a policy or practice.
      (2) For the purposes of those sections, a variation of a proposal is treated as a new proposal.
      (3) Those sections do not apply to a Non-Abu Dhabi Global Market Investment Exchange or Non-Abu Dhabi Global Market Clearing House.