4.4 4.4 Power to impose requirements on a firm or Recognised Body
We may impose a requirement on a firm or Recognised Body under FSMR section 35, so as to:(a) require a firm or Recognised Body to take action specified by us; or(b) require a firm or Recognised Body to refrain from taking action specified by us.
Examples of requirements that we may consider imposing include, among other things, a requirement:(a) not to take on new business;(b) not to hold or control Client Money;(c) not to trade in certain categories of Specified Investment;(d) prohibiting or restricting the disposal of, or other dealing with, any of the firm's or Recognised Body's assets (whether in the ADGM or elsewhere); and(e) that all or any of the firm's assets (or all or any assets belonging to investors but held by the firm or Recognised Body) must be transferred to a trustee approved by us.
We may exercise our power under paragraph 4.4.1 above in certain circumstances, as set out in FSMR section 35(2) and GEN 8.13.1, including where:(a) the firm or Recognised Body is failing, or is likely to fail, to satisfy the Threshold Conditions when it was first granted a Financial Services Permission including:(i) having adequate and appropriate resources;(ii) being fit and proper to carry on a activity regulated by us for which it has an authorisation or recognition;(iii) capability of being effectively supervised; and(iv) having adequate compliance arrangements to enable it to comply with all applicable legal requirements.(b) the firm or Recognised Body has committed a contravention of the FSMR, Rules or other enactments or subordinate legislation administered by us;(c) the firm or Recognised Body has failed, during the period of at least 12 months, to carry on an activity regulated by us to which the Financial Services Permission relates; or(d) we consider that the exercise of the power is necessary or desirable in the pursuit of one or more of our objectives.
In determining whether to exercise our power under section 35 of the FSMR, we may take into account relevant facts and circumstances including, the following:(a) whether we have concerns about the fitness and propriety of the firm or Recognised Body;(b) whether the firm's or Recognised Body's resources are adequate for the scale or type of activity which the firm is authorised to undertake;(c) whether the firm or Recognised Body has conducted its business in compliance with the FSMR and the Rules;(d) whether the firm or Recognised Body has ensured full compliance with applicable money laundering or counter terrorism legislation; and(e) whether the firm's or Recognised Body's management is able to address the Regulator's concerns about the firm or Recognised Body, or the way the business is being or has been run.
When exercising this power, we will have regard to the principle that any restriction imposed on a firm or a Recognised Body should be proportionate to the objectives which we are seeking to achieve.