• FEES 1. FEES 1. INTRODUCTION

    • FEES 1.1 FEES 1.1 Application

      • FEES 1.1.1

        These Rules apply to a Person in relation to:

        (a) an application for a Financial Services Permission;
        (b) an application to amend the scope of a Financial Services Permission;
        (c) an application for approval as an Approved Person to perform a Controlled Function;
        (d) an application for the amendment of an approval as an Approved Person to perform a Controlled Function;
        (e) an application for recognition as a Recognised Body;
        (f) an application to register a Public Fund;
        (g) an application by an Authorised Fund Manager to manage a Foreign Fund pursuant to FUND Rule 7.2.1;
        (h) filing a Prospectus pursuant to MKT Rule 4.6.1(1)(b);
        (j) an application for admittance of Securities to the Official List of Securities;

      • FEES 1.1.2

        This module also applies to a Person who is an Authorised Person or a Recognised Body.

    • FEES 1.2 FEES 1.2 General provisions

      • FEES 1.2.1

        Where pursuant to Chapters 2, 3 or 4, a fee is payable for any application to or authorisation from the Regulator, the application will not be regarded as submitted until the fee and any supplementary fee has been paid in full.

        Amended on (13 January, 2020).

      • FEES 1.2.2

        In regard to supervision fees payable pursuant to Chapters 2 and 3:

        (a) the initial annual supervision fee must be paid in full to the Regulator within 21 days of the date on which the application is granted; and
        (b) subsequent annual supervision fees are payable in advance and must be paid in full to the Regulator on or before 1 January of the calendar year to which the fee relates.

      • FEES 1.2.3

        When a fee is not paid in full on or before the due date or within the prescribed period, such non-payment incurs a late payment fee of:

        (a) $1,000; or
        (b) an amount equivalent to 3% of the annual fee due,

        whichever is the greater. In addition the annual fee due shall be increased by 1% for each calendar month, or part of a calendar month, that it remains outstanding beyond the due date.

      • FEES 1.2.4

        Nothing in this rule limits the right of the Regulator to take any other action.

      • FEES 1.2.5

        The Regulator may reduce, waive or refund all or part of any fee if it considers that, in the exceptional circumstances of a particular case, it would be equitable to do so.

      • FEES 1.2.6

        (a) The Regulator may require a Person to pay to the Regulator a supplementary fee in circumstances where it expects to incur substantial additional costs in dealing with an application, authorisation, filing or conducting on-going supervision.
        (b) In such cases the Regulator will notify the Person as soon as reasonably possible of the amount of the supplementary fee.
        (c) Such a supplementary fee may be applicable in respect of any fee payable under Chapters 2 or 3 other than a fee under Rule 3.7.

      • FEES 1.2.7 FEES 1.2.7

        (a) In respect of any fee payable in accordance with these rules, the fee must, subject to (b), be paid:
        (i) by the Person to whom the Rule applies;
        (ii) in USD; and
        (iii) by bank transfer directly from a bank account maintained by the Person specified in (i) into the Regulator's bank account.
        (b) The Regulator will accept payment of a fee in USD from a member of the applicant's Group, the applicant's Parent, the applicant's legal advisor or a Person who has applied to be a Controller in relation to the applicant but only where:
        (i) the relevant fee is an application or authorisation fee; and
        (ii) the applicant is in formation and does not have a commercial licence to enable it to open a bank account in its own name.

        • Guidance

          1. In regard to the payment of subsequent annual fees, invoices will be issued at least 21 days before the specified date for payment.
          2. If a fee is not paid by the date on which it becomes due, the Person is in breach of a Rule and the Regulator is entitled to take action including, but not limited to, taking steps to withdraw authorisation.
          3. A supplementary fee may be levied by the Regulator in circumstances where it expects to incur substantial additional costs in dealing with a matter. Such circumstances could include, for example:
          a. complex applications by reason of the applicant's start-up profile, origin, ownership structure or proposed business model;
          b. cases where it may be necessary to conduct intense supervisory scrutiny of an entity from a risk perspective;
          c. complex waiver or modification requests, complex restructurings or changes in an Authorised Person or Recognised Body's structure, or activities which necessitate a change to rules; or
          d. novel proposals and applications that cover untested ground or untested areas of the financial services regulatory regime.
          4. An example is where the entity is a Branch from a jurisdiction where there are not or are not expected to be in place arrangements for co-operation between the Regulator and the relevant Non-ADGM Financial Services Regulators in that jurisdiction. Equally, where the entity is incorporated in the ADGM, a full analysis of the prudential and systems arrangements will be required.
          5. A further example is where the Fund Manager of a Domestic Fund delegates activities or outsources functions to an entity in another jurisdiction or to several entities in different jurisdictions where there are not or are not expected to be in place arrangements for co-operation between the Regulator and the relevant Non-ADGM Financial Services Regulators in those jurisdictions.
          6. A supplementary fee may also be levied by the Regulator in cases where the on-going supervision of the Authorised Person or Foreign Fund Manager appears to the Regulator to be likely to cause it to incur substantial additional costs.