• PART 4 PART 4 ENFORCEMENT

    • 40. Meaning of "relevant requirement"

      In this Part, "relevant requirement" means a requirement imposed by rules made under these Regulations.

    • 41. Fines

      (1) If the Registrar considers that a licensed person has contravened a relevant requirement imposed on the person, it may impose on him a fine, in respect of the contravention, of such amount as it considers appropriate, provided such fine shall not exceed level 5 on the standard fines scale.
      (2) If the Registrar considers that a person has committed a contravention of an enactment or subordinate legislation, it may impose on him a fine of an amount not exceeding the maximum specified for such contravention in the relevant enactment or subordinate legislation.
      (3) A fine under this section is payable to the Registrar.

    • 42. Suspending licence to carry on controlled activities etc.

      (1) If the Registrar considers that a licensed person has contravened a relevant requirement imposed on the person, it may —
      (a) suspend, for such period as it considers appropriate, any licence which the person has to carry on a controlled activity; or
      (b) impose, for such period as it considers appropriate, such limitations or other restrictions in relation to the carrying on of a controlled activity by the person as it considers appropriate.
      (2) The period for which a suspension or restriction is to have effect may not exceed 12 months.
      (3) A suspension may relate only to the carrying on of an activity in specified circumstances.
      (4) A restriction may, in particular, be imposed so as to require the person concerned to take, or refrain from taking, specified action.
      (5) The Registrar may —
      (a) withdraw a suspension or restriction; or
      (b) vary a suspension or restriction so as to reduce the period for which it has effect or otherwise to limit its effect.
      (6) The power under this section may (but need not) be exercised so as to have effect in relation to all the controlled activities that a licensed person carries on.
      (7) In the case of a licensed person, any one or more of the powers under —
      (a) subsection (1)(a) and (b) of this section; and
      may be exercised in relation to the same contravention.

    • 43. Proposal to take disciplinary measures

      (1) If the Registrar proposes —
      (a) to impose a fine on a person (under section 41); or
      (b) to suspend the licence of a licensed person or impose a restriction in relation to the carrying on of a controlled activity by a licensed person (under section 42),
      it must give that person a warning notice.
      (2) A warning notice about a proposal to impose a fine must state the amount of the fine.
      (3) A warning notice about a proposal to suspend a licence or impose a restriction must state the period for which the suspension or restriction is to have effect.

    • 44. Decision to take disciplinary measures

      (1) If the Registrar decides —
      (a) to impose a fine under section 41 (whether or not of the amount proposed); or
      (b) to suspend a licence or impose a restriction under section 42 (whether or not in the manner proposed),
      it must without delay give the person concerned a decision notice.
      (2) In the case of a fine, the decision notice must state the amount of the fine.
      (3) In the case of a suspension or restriction, the decision notice must state the period for which the suspension or restriction is to have effect.
      (4) If a Registrar decides to —
      (a) impose a fine on a person under section 41; or
      (b) suspend the licence of a licensed person, or impose a restriction in relation to the carrying on of a controlled activity by a licensed person, under section 42,
      that person may refer the matter to the court.

    • 45. Statements of policy

      (1) The Registrar must prepare and issue a statement of its policy with respect to —
      (a) the imposition of fines, suspensions or restrictions under this Part; and
      (b) the period for which suspensions or restrictions under this Part are to have effect.
      (2) The Registrar's policy in determining what the amount of a fine should be, or what the period for which a suspension or restriction is to have effect should be, must include having regard to —
      (a) the seriousness of the contravention in question in relation to the nature of the relevant requirement or provision of these Regulations contravened;
      (b) the extent to which that contravention was deliberate or reckless; and
      (c) whether the person against whom action is to be taken is an individual.
      (3) The Registrar may at any time alter or replace a statement issued by it under this section.
      (4) If a statement issued under this section is altered or replaced by the Registrar, the Registrar must issue the altered or replacement statement.
      (5) The Registrar must, without delay, give the Board a copy of any statement which it publishes under this section.
      (6) A statement issued under this section by the Registrar must be published by the Registrar in the way appearing to the Registrar to be best calculated to bring it to the attention of the public.
      (7) In exercising, or deciding whether to exercise, its power under sections 41 or 42 in the case of any particular contravention, the Registrar must have regard to any statement published by it under this section and in force at the time when the contravention in question occurred.
      (8) The Registrar may charge a reasonable fee for providing a person with a copy of the statement.

    • 46. Statements of policy: procedure

      (1) Before the Registrar issues a statement under section 45, the Registrar must publish a draft of the proposed statement in the way appearing to the Registrar to be best calculated to bring it to the attention of the public.
      (2) The draft must be accompanied by notice that representations about the proposal may be made to the Registrar within a specified time.
      (3) Before issuing the proposed statement, the Registrar must have regard to any representations made to it in accordance with subsection (2).
      (4) If the Registrar issues the proposed statement it must publish an account, in general terms, of —
      (a) the representations made to it in accordance with subsection (2); and
      (b) its response to them.
      (5) If the statement differs from the draft published under subsection (1) in a way which is, in the opinion of the Registrar, significant, the Registrar must (in addition to complying with subsection (4)) publish details of the difference.
      (6) The Registrar may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1).
      (7) This section also applies to a proposal to alter or replace a statement.

    • 47. Warning notices

      (1) A warning notice must —
      (a) state the action which the Registrar proposes to take;
      (b) be in writing;
      (c) give reasons for the proposed action;
      (d) state whether section 53 applies; and
      (e) if that section applies, describe its effect and state whether any secondary material exists to which the person concerned must be allowed access under it.
      (2) A warning notice must specify a reasonable period (which may not be less than 14 days) within which the person to whom it is given may make representations to the Registrar.
      (3) The Registrar may extend the period specified in the notice.
      (4) The Registrar must then decide, within a reasonable period, whether to give the person concerned a decision notice.
      (5) In this Part, "warning notice" means a notice under sections 18(1), 18(2), 20(1) or 43(1).

    • 48. Decision notices

      (1) A decision notice must —
      (a) be in writing;
      (b) give the reasons of the Registrar for the decision to take the action to which the notice relates;
      (c) state whether section 53 applies;
      (d) if that section applies, describe its effect and state whether any secondary material exists to which the person concerned must be allowed access under it; and
      (e) give an indication of —
      (i) any right to have the matter referred to the court which is given by these Regulations; and
      (ii) the procedure on such a reference.
      (2) If the decision notice was preceded by a warning notice, the action to which the decision notice relates must be action under the same provision as the action proposed in the warning notice.
      (3) The Registrar may, before it takes the action to which a decision notice ("the original notice") relates, give the person concerned a further decision notice which relates to different action in respect of the same matter.
      (4) The Registrar may give a further decision notice as a result of subsection (3) only if the person to whom the original notice was given consents.
      (5) If the person to whom a decision notice is given under subsection (3) had the right to refer the matter to which the original decision notice related to the court, he has that right as respects the decision notice under subsection (3).
      (6) In this Part, "decision notice" means a notice under sections 18(3), 20(2) or 44(1).

    • 49. Notices of discontinuance

      (1) If the Registrar decides not to take —
      (a) the action proposed in a warning notice given by it; or
      (b) the action to which a decision notice given by it relates,
      it must give a notice of discontinuance to the person to whom the warning notice or decision notice was given.
      (2) But subsection (1) does not apply if the discontinuance of the proceedings concerned results in the granting of an application made by the person to whom the warning or decision notice was given.
      (3) A notice of discontinuance must identify the proceedings which are being discontinued.

    • 50. Final notices

      (1) If the Registrar has given a person a decision notice and the matter was not referred to the court within 28 days of that person receiving the notice or such other period as the court may allow, the Registrar must, on taking the action to which the decision notice relates, give the person concerned and any person to whom the decision notice was copied a final notice.
      (2) If the Registrar has given a person a decision notice and the matter was referred to the court, the Registrar must, on taking action in accordance with any directions given by —
      (a) the court, or
      (b) the Court of Appeal on an appeal against the decision of the court,
      give that person and any person to whom the decision notice was copied the notice required by subsection (3).
      (3) The notice required by this subsection is —
      (a) in a case where the Registrar is acting in accordance with a direction given by the court, or by the Court of Appeal on an appeal from a decision of the court, a further decision notice; and
      (b) in any other case, a final notice.
      (4) A final notice must —
      (a) give details of the action being taken;
      (b) state the date on which the action is to be taken; and
      (c) if it imposes a fine, state the amount of the fine and the manner in which, and the period within which, the fine is to be paid.
      (5) The period stated under subsection (4)(c) may not be less than 30 days beginning with the date on which the final notice is given.
      (6) If all or any of the amount of a fine payable under a final notice is outstanding at the end of the period stated under subsection (4)(c), the Registrar may recover the outstanding amount as a debt due to it.

    • 51. Publication

      (1) In the case of a warning notice, neither the Registrar nor a person to whom it is given or copied may publish the notice or any details concerning it.
      (2) A person to whom a decision notice is given or copied may not publish the notice or any details concerning it unless the Registrar has published the notice or those details.
      (3) A notice of discontinuance must state that, if the person to whom the notice is given consents, the Registrar may publish such information as it considers appropriate about the matter to which the discontinued proceedings related.
      (4) A copy of a notice of discontinuance must be accompanied by a statement that, if the person to whom the notice is copied consents, the Registrar may publish such information as it considers appropriate about the matter to which the discontinued proceedings related, so far as relevant to that person.
      (5) The Registrar must publish such information about the matter to which a decision notice or final notice relates as it considers appropriate.
      (6) When a supervisory notice takes effect, the Registrar must publish such information about the matter to which the notice relates as it considers appropriate.
      (7) The Registrar may not publish information under this section if, in its opinion, publication of the information would be —
      (a) unfair to the person with respect to whom the action was taken (or was proposed to be taken);
      (b) detrimental to the interests of participants of the Abu Dhabi Global Market; or
      (c) detrimental to the interests of the Abu Dhabi Global Market.
      (8) Information is to be published under this section in such manner as the Registrar considers appropriate.
      (9) For the purposes of determining when a supervisory notice takes effect, a matter to which the notice relates is open to review if —
      (a) the period during which any person may refer the matter to the court is still running;
      (b) the matter has been referred to the court but has not been dealt with;
      (c) the matter has been referred to the court and dealt with but the period during which an appeal may be brought against the court's decision is still running; or
      (d) such an appeal has been brought but has not been determined.
      (10) "Notice of discontinuance" means a notice given under section 49.
      (11) "Supervisory notice" has the same meaning as in section 54.
      (12) A person, other than the Registrar, who contravenes subsections (1) or (2) shall be liable to a fine not exceeding level 3 on the standard fines scale.

    • 52. Third party rights

      (1) If any of the reasons contained in a warning notice relates to a matter which —
      (a) identifies a person ("the third party") other than the person to whom the notice is given; and
      (b) in the opinion of the Registrar, is prejudicial to the third party,
      a copy of the notice must be given to the third party.
      (2) Subsection (1) does not require a copy to be given to the third party if the Registrar —
      (a) has given him a separate warning notice in relation to the same matter; or
      (b) gives him such a notice at the same time as it gives the warning notice which identifies him.
      (3) The notice copied to a third party under subsection (1) must specify a reasonable period (which may not be less than 14 days) within which he may make representations to the Registrar.
      (4) If any of the reasons contained in a decision notice to which this section applies relates to a matter which —
      (a) identifies a person ("the third party") other than the person to whom the decision notice is given; and
      (b) in the opinion of the Registrar, is prejudicial to the third party,
      a copy of the notice must be given to the third party.
      (5) If the decision notice was preceded by a warning notice, a copy of the decision notice must (unless it has been given under subsection (4)) be given to each person to whom the warning notice was copied.
      (6) Subsection (4) does not require a copy to be given to the third party if the Registrar —
      (a) has given him a separate decision notice in relation to the same matter; or
      (b) gives him such a notice at the same time as it gives the decision notice which identifies him.
      (7) Neither subsection (1) nor subsection (4) requires a copy of a notice to be given to a third party if the Registrar considers it impracticable to do so.
      (8) Subsections (9) to (11) apply if the person to whom a decision notice is given has a right to refer the matter to the court.
      (9) A person to whom a copy of the notice is given under this section may refer to the court —
      (a) the decision in question, so far as it is based on a reason of the kind mentioned in subsection (4); or
      (b) any opinion expressed by the Registrar in relation to him.
      (10) The copy must be accompanied by an indication of the third party's right to make a reference under subsection (9) and of the procedure on such a reference.
      (11) A person who alleges that a copy of the notice should have been given to him, but was not, may refer to the court the alleged failure and —
      (a) the decision in question, so far as it is based on a reason of the kind mentioned in subsection (4); or
      (b) any opinion expressed by the Registrar in relation to him.
      (12) Section 53 applies to a third party as it applies to the person to whom the notice to which this section applies was given, in so far as the material to which access must be given under that section relates to the matter which identifies the third party.
      (13) A copy of a notice given to a third party under this section must be accompanied by a description of the effect of section 53 as it applies to him.
      (14) Any person to whom a warning notice or decision notice was copied under this section must be given a copy of a notice of discontinuance applicable to the proceedings to which the warning notice or decision notice related.
      (15) This section does not apply to a warning notice under section 18(1) or 18(2) or a decision notice under section 18(3).

    • 53. Access to material

      (1) If the Registrar gives a person ("A") a warning notice or a decision notice, it must —
      (a) allow him access to the material on which it relied in taking the decision which gave rise to the obligation to give the notice;
      (b) allow him access to any secondary material which, in the Registrar's opinion, might undermine that decision.
      (2) But the Registrar does not have to allow A access to material under subsection (1) if the material is excluded material or it —
      (a) relates to a case involving a person other than A; and
      (b) was taken into account by the Registrar in A's case only for purposes of comparison with other cases.
      (3) The Registrar may refuse A access to particular material which it would otherwise have to allow him access to if, in its opinion, allowing him access to the material —
      (a) would not be in the public interest; or
      (b) would not be fair, having regard to —
      (i) the likely significance of the material to A in relation to the matter in respect of which he has been given a notice; and
      (ii) the potential prejudice to the commercial interests of a person other than A which would be caused by the material's disclosure.
      (4) If the Registrar does not allow A access to material because it is excluded material consisting of a protected item, it must give A written notice of —
      (a) the existence of the protected item; and
      (b) the Registrar's decision not to allow him access to it.
      (5) If the Registrar refuses under subsection (3) to allow A access to material, it must give him written notice of —
      (a) the refusal; and
      (b) the reasons for it.
      (6) "Secondary material" means material, other than material falling within paragraph (a) of subsection (1) which —
      (a) was considered by the Registrar in reaching the decision mentioned in that paragraph; or
      (b) was obtained by the Registrar in connection with the matter to which that notice relates but which was not considered by it in reaching that decision.
      (7) "Excluded material" means material which is a protected item (as defined in section 56).
      (8) This section does not apply to a warning notice under section 18(1) or 18(2) or a decision notice under section 18(3).

    • 54. The Registrar's procedures

      (1) The Registrar must determine the procedure that it proposes to follow in relation to the following —
      (a) a decision which gives rise to an obligation to give a supervisory notice;
      (b) a decision which gives rise to an obligation for it to give a warning notice or decision notice.
      (2) That procedure must be designed to secure, among other things, that a decision falling within subsection (1) is taken —
      (a) by a person not directly involved in establishing the evidence on which the decision is based; or
      (b) by 2 or more persons who include a person not directly involved in establishing that evidence.
      (3) But the procedure may permit a decision which gives rise to an obligation to give a supervisory notice to be taken otherwise than as mentioned in subsection (2) if the person taking the decision is of a level of seniority laid down by the procedure and the Registrar considers that, in the particular case, it is necessary in order to advance one or more of its objectives.
      (4) A level of seniority laid down by the procedure for the purposes of subsection (3) must be appropriate to the importance of the decision.
      (5) The Registrar must issue a statement of its procedure.
      (6) The statement must be published in the way appearing to the Registrar to be best calculated to bring the statement to the attention of the public.
      (7) The Registrar may charge a reasonable fee for providing a person with a copy of the statement.
      (8) The Registrar must, without delay, give the Board a copy of the statement.
      (9) When the Registrar gives a supervisory notice, or a warning notice or decision notice, the Registrar must follow its stated procedure.
      (10) If the Registrar changes its procedure in a material way, it must publish a revised statement.
      (11) The Registrar's failure in a particular case to follow its procedure as set out in the latest published statement does not affect the validity of a notice given in that case.
      (12) But subsection (11) does not prevent the court from taking into account any such failure in considering a matter referred to it.
      (13) "Supervisory notice" means a notice or notification given in accordance with sections 19(4), 19(7) or 19(8)(b).

    • 55. Statements under section 54: consultation

      (1) Before issuing a statement of its procedure under section 54, the Registrar must publish a draft of the proposed statement in the way appearing to it to be best calculated to bring the draft to the attention of the public.
      (2) The draft must be accompanied by notice that representations about the proposal may be made to the Registrar within a specified time.
      (3) Before the Registrar issues the proposed statement of its procedure, it must have regard to any representations made to it in accordance with subsection (2).
      (4) If the Registrar issues the proposed statement of its procedure, it must publish an account, in general terms, of —
      (a) the representations made to it in accordance with subsection (2); and
      (b) its response to them.
      (5) If the statement of the Registrar's procedure differs from the draft published by it under subsection (1) in a way which is, in its opinion, significant, it must (in addition to complying with subsection (4)) publish details of the difference.
      (6) The Registrar may charge a reasonable fee for providing a person with a copy of the draft published under subsection (1).
      (7) This section also applies to a proposal to revise a statement of policy.

    • 56. Protected items

      (1) A person may not be required under these Regulations to produce, disclose or permit the inspection of protected items.
      (2) "Protected items" means —
      (a) communications between a professional legal adviser and his client or any person representing his client which fall within subsection (3);
      (b) communications between a professional legal adviser, his client or any person representing his client and any other person which fall within subsection (3) (as a result of paragraph (b) of that subsection);
      (c) items which —
      (i) are enclosed with, or referred to in, such communications;
      (ii) fall within subsection (3); and
      (iii) are in the possession of a person entitled to possession of them.
      (3) A communication or item falls within this subsection if it is made —
      (a) in connection with the giving of legal advice to the client; or
      (b) in connection with, or in contemplation of, legal proceedings and for the purposes of those proceedings.
      (4) A communication or item is not a protected item if it is held with the intention of furthering a criminal purpose.

    • 57. Service of notices

      (1) The Board may make rules with respect to the procedure to be followed when a provision of or made under these Regulations requires a notice, direction or document of any kind to be given or authorises the imposition of a requirement.
      (2) The rules may, in particular, make provision —
      (a) as to the manner in which a document must be given;
      (b) as to the address to which a document must be sent;
      (c) requiring, or allowing, a document to be sent electronically;
      (d) for treating a document as having been given, or as having been received, on a date or at a time determined in accordance with the rules;
      (e) as to what must, or may, be done if the person to whom a document is required to be given is not an individual;
      (f) as to what must, or may, be done if the intended recipient of a document is outside the Abu Dhabi Global Market.
      (3) Subsection (1) applies however the obligation to give a document is expressed (and so, in particular, includes a provision which requires a document to be served or sent).