• MIR 8 MIR 8 REMOTE MEMBERS

    • MIR 8.1 MIR 8.1 Introduction

      • MIR 8.1.1

        An Applicant to be a Remote Member must submit a written application to the Regulator on how it satisfies or intends to satisfy the Remote Member Requirements at the date of the application and on an ongoing basis.

      • MIR 8.1.2

        The written application in Rule 8.1.1 is to include:

        (a) the business name or trading name the Remote Member intends to use in the ADGM;
        (b) the address of the Remote Member’s registered office and head office in its home jurisdiction;
        (c) the name of the Recognised Body upon which it is applying for membership;
        (d) the name of, and contact details relating to, the Non‐ADGM Financial Services Regulator in its home jurisdiction; and
        (e) how the Applicant will satisfy the Remote Member Requirements set out in Rule 8.2.1.

      • MIR 8.1.3

        In assessing an application for a Remote Member Recognition Order, the Regulator may:

        (a) carry out any enquiries which it considers appropriate including enquiries independent of the Applicant;
        (b) require the Applicant to submit such additional information as the Regulator may reasonably require;
        (c) require any information submitted by the Applicant to be verified in such manner as the Regulator may specify; and
        (d) take into account any information which the Regulator considers appropriate in relation to the Applicant.

    • MIR 8.2 MIR 8.2 Applications

      • MIR 8.2.1

        The Remote Member Requirements for a Remote Member are that:

        (a) it agrees in writing to submit unconditionally to the jurisdiction of the Regulator in relation to any matters which arise out of or which relate to its use of the facilities of the Recognised Body;
        (b) it agrees in writing to submit unconditionally to the jurisdiction of the ADGM Courts in relation to any proceedings in the ADGM, arising out of or related to its use of the facilities of the Recognised Body; and
        (c) it agrees in writing to subject itself to the ADGM legislation and the jurisdiction of the ADGM Courts in relation to its use of the facilities of the ADGM Recognised Body.
        (d) it is licensed or otherwise authorised to trade on, or use the facilities of, an exchange or clearing house in a jurisdiction acceptable to the Regulator;
        (e) it is regulated in respect of the trading, or use of facilities in (d), by a Non‐ADGM Financial Services Regulator to a standard acceptable to the Recognised Body;
        (f) the law and practice under which the Remote Member is licensed or otherwise authorised is broadly equivalent to the ADGM regulatory regime as it applies to an ADGM Member;
        (g) adequate arrangements exist, or will exist, for co‐operation between the Regulator and the Non‐ADGM Financial Services Regulator responsible for the Remote Member’s licensing and regulation;
        (h) it carries on business in a jurisdiction other than the ADGM and has its head office and registered office outside the ADGM;
        (i) subject to Rule 8.2.2, when using the facilities of a Recognised Investment Exchange or Recognised Clearing House, it only does so for the purpose of dealing in investments as either agent or principal, pursuant to the scope of the activities it is licensed to undertake by its Non‐ADGM Financial Services Regulator; and
        (j) subject to Rule 8.2.3, when dealing on a Recognised Body it does so only for non‐ ADGM clients.

      • MIR 8.2.2

        Rule 8.2.1(i) does not prevent a Remote Member which has a Branch that is an Authorised Person from carrying on a Regulated Activity in or from the ADGM through such a Branch.

      • MIR 8.2.3

        Rule 8.2.1(j) does not apply to a Remote Member which:

        (a) is licensed and supervised by a Non‐ADGM Financial Services Regulator located within the U.A.E; or
        (b) has a Branch which is an Authorised Person.

    • MIR 8.3 MIR 8.3 Regulator decision on Remote Member Recognition

      • MIR 8.3.1

        If the Regulator considers that the Remote Member Requirements are satisfied, it may make a Recognition Order, which will state the date on which it takes effect.

      • MIR 8.3.2

        Where the Regulator considers that it is unlikely to make a Recognition Order, it will discuss its concerns with the Applicant with a view to enabling the Applicant to make changes to its application. If the Regulator decides to refuse to make a Recognition Order, it will follow the procedure set out in Part 12 of FSMR.

    • MIR 8.4 MIR 8.4 Remote Member Supervision

      • Guidance

        The Regulator will rely upon a Remote Member’s Non‐ADGM Financial Services Regulator in its home jurisdiction to supervise the Remote Member. The focus of the Regulator’s interest will be on the ADGM and those activities of the Remote Member that may impact the ADGM.

      • MIR 8.4.1

        A Remote Member must provide the Regulator with reasonable advance notice of a change in:

        (a) its name;
        (b) any business name or trading name it uses in the ADGM, if different to (a); or
        (c) the address of its registered office or head office in its home jurisdiction.

      • MIR 8.4.2

        A Remote Member must notify the Regulator immediately upon the granting, modification, variation, withdrawal or refusal of an application for, or revocation of membership of an exchange or clearing house, including membership of a Recognised Body.

      • MIR 8.4.3

        A Remote Member must provide the Regulator with a copy of any information provided to any Non‐ADGM Financial Services Regulator to which the Remote Member is subject and which is relevant to its status as a Remote Member.

      • MIR 8.4.4 MIR 8.4.4

        Notwithstanding Rule 8.4.2, a Remote Member must notify the Regulator as soon as possible of:

        (a) anything which causes, or may cause, it to fail to satisfy the Remote Member Requirements;
        (b) it becoming aware that a Non‐ADGM Financial Services Regulator has started an investigation into the affairs of the Remote Member;
        (c) the appointment of inspectors, howsoever named, by a Non‐ADGM Financial Services Regulator to investigate or manage the affairs of the Remote Member;
        (d) the imposition of disciplinary measures or sanctions on the Remote Member by any Non‐ADGM Financial Services Regulator;
        (e) any significant event, or anything else relating to the Remote Member, which the Recognised Body would reasonably expect to notified of; or
        (f) it receiving an order from a Client, or arranges or executes a transactions with or for a Client, and has reasonable grounds to suspect that the order or transaction may constitute Market Abuse in the ADGM.
        (i) The notification under 8.4.4(f) must provide sufficient details of the order or transaction, and the reasons for the Remote Member suspecting that the order or transaction may constitute Market Abuse in the ADGM.
        (ii) A Remote Member must not inform the Client, or any other Person involved in the order or transaction, of a notification under Rule 8.4.4(f).

        • Guidance

          Events which may cause a Remote Member to be unable to meet the Remote Member Requirements include significant changes to any relevant laws or regulations in its home jurisdiction, which:

          (a) are designed to prevent market abuse or money laundering; or
          (b) affect the ability of a Remote Member to provide information to the Regulator.

          The Regulator does not require notification from a Remote Member, for the purposes of Rule 8.4.4(b) or (c), where the activities of the Non‐ADGM Financial Services Regulator are part of a routine / regular inspection or audit of affairs of the Remote Member.

      • MIR 8.4.5 MIR 8.4.5

        A Remote Member must:

        (a) deal with the Regulator in an open and co‐operative manner; and
        (b) ensure that communication with the Regulator is conducted in the English language.

        • Guidance

          GEN Rule 8.11 sets out how information is to be provided to the Regulator.

    • MIR 8.5 MIR 8.5 Revocation of a Remote Member Recognition Order

      • MIR 8.5.1

        If a Remote Member wishes to have its Recognition Order revoked it must submit a request in writing to the Regulator stating:

        (a) the reasons for the request;
        (b) that it is no longer, or will no longer be, a Member of a Recognised Body;
        (c) the date on which its membership was, or will be, terminated; and
        (d) that it has discharged, or will discharge, all obligations owed to any Person in the ADGM which have arisen as a result of its recognised status.

      • MIR 8.5.2 MIR 8.5.2

        If the Regulator decides to revoke a Remote Member’s Recognition Order, it will follow the requirements set out in Rules 6.9.3 and 6.9.6, mutatis mutandis.

        • Guidance

          The Regulator may revoke a Remote Member's Recognition Order in circumstances where such Person continues to the meet the Remote Member Recognition Requirements. This may include where the Regulator considers it necessary or desirable in order to prevent damage to the reputation of the ADGM or to the ADGM Financial System.