• Chapter 3 Chapter 3 Disciplinary measures

    • 231. Public censure

      (1) If the Regulator considers that a person has committed a contravention of these Regulations, the Regulator may publish a statement to that effect.
      (2) After a statement under subsection (1) is published, the Regulator must send a copy of the statement to any person to whom a copy of the decision notice was given under section 248.

    • 232. Financial penalties

      (1) If the Regulator considers that a person has committed a contravention of these Regulations, it may impose a penalty on him, in respect of the contravention, of such amount as it considers appropriate.
      (2) A penalty may not be imposed on any person under these Regulations in excess of the maximum amount that may be imposed under the ADGM Founding Law.

    • 233. Suspending a Financial Services Permission or Approval or disqualification of auditors or actuaries

      (1) If the Regulator considers that an Authorised Person has committed a contravention of these Regulations, it may —
      (a) suspend, for such period as it considers appropriate, any Financial Services Permission which the person has to carry on a Regulated Activity; or
      (b) impose, for such period as it considers appropriate, such limitations or other restrictions in relation to the carrying on of a Regulated Activity by the person as it considers appropriate.
      (2) If the Regulator considers that an Approved Person has committed a contravention of these Regulations, it may suspend, for such period as it considers appropriate, any Approval of the performance by him of any Controlled Function to which the Approval relates.
      (3) If the Regulator considers that an auditor or actuary has committed a contravention of these Regulations, it may disqualify the auditor or actuary from being the auditor of, or (as the case may be), from acting as an actuary for, any Authorised Person, Recognised Body or Reporting Entity or any particular class thereof.
      (4) A suspension under this section may relate only to the carrying on of an activity or function in specified circumstances.
      (5) A suspension under subsection (2) may have effect in relation to part of a function.
      (6) A restriction under subsection (1)(b) may, in particular, be imposed so as to require the person concerned to take, or refrain from taking, specified action.
      (7) The Regulator may —
      (a) withdraw a suspension, restriction or disqualification; or
      (b) vary a suspension, restriction or disqualification so as to reduce the period for which it has effect or otherwise to limit its effect.
      (8) The power under this section may (but need not) be exercised so as to have effect in relation to all the Regulated Activities that the person concerned carries on.

    • 234. Prohibition Orders

      (1) The Regulator may make a Prohibition Order if it appears to it that an individual is not a fit and proper person to perform any function in relation to a Regulated Activity carried on by an Authorised Person.
      (2) A Prohibition Order may relate to —
      (a) a Specified Regulated Activity, any Regulated Activity falling within a Specified description or all Regulated Activities; and
      (b) all Authorised Persons or all persons within a Specified class of Authorised Person.
      (3) An individual who performs or agrees to perform a function in breach of a Prohibition Order contravenes these Regulations.
      (4) In proceedings in relation to a contravention committed under subsection (3) it is a defence for the individual to show that he took all reasonable precautions and exercised all due diligence to avoid committing the contravention.
      (5) The Regulator may, on the application of the individual named in the order, vary or revoke a Prohibition Order that it has made.
      Amended on (13 January, 2020).

    • 235. Enforceable undertakings

      (1) The Regulator may accept a written undertaking from a person against whom action could be taken under these Regulations or any Rules made under these Regulations.
      (2) An undertaking under subsection (1) may incorporate an agreement by the person making the undertaking —
      (a) to pay any sum to any person (including the Regulator); and
      (b) to take remedial action.
      (3) The person may withdraw or vary the undertaking at any time, but only with the consent of the Regulator.
      (4) If the Regulator considers that the person who gave the undertaking has been in breach of any of its terms, it may apply to the Court for an order under subsection (5).
      (5) If the Court is satisfied that the person has been in breach of a term of the undertaking, the Court may make all or any of the following orders —
      (a) an order directing the person to comply with that term of the undertaking;
      (b) an order directing the person to pay to any person or to the Regulator an amount up to the amount of any financial benefit that the person has obtained directly or indirectly and that is reasonably attributable to the breach;
      (c) any order that the Court considers appropriate directing the person to compensate any other person who has suffered loss or damage as a result of the breach; or
      (d) any other order that the Court considers appropriate.