• GEN 5.3 GEN 5.3 Controlled Functions and Approved Persons

    • GEN 5.3.1 GEN 5.3.1

      (1) Pursuant to Part 5 of the FSMR, the functions specified in Rules 5.3.2 to 5.3.4 are Controlled Functions.
      (2) Performance of Controlled Functions are subject to approval by the Regulator.
      (3) Where an individual is approved pursuant to Rule 5.3.1(2) or has his Controlled Function withdrawn or varied, the Authorised Person must notify the Regulator in writing within 10 days of such approval, withdrawal or variation.
      (4) A Controlled Function shall not include a function performed by a registered insolvency practitioner (subject to the restrictions defined within section 289 of the Insolvency Regulations 2015) if the practitioner is:
      (a) appointed as a receiver or administrative receiver within the meaning of Part 2 of the Insolvency Regulations 2015;
      (b) appointed as a liquidator in relation to a members' voluntary Winding-Up within the meaning of Chapter 3 of Part 3 of the Insolvency Regulations 2015;
      (c) appointed as a liquidator in relation to a creditors' voluntary Winding-Up within the meaning of Chapter 4 of Part 3 of the Insolvency Regulations 2015; or
      (d) appointed as a liquidator or provisional liquidator in relation to a compulsory Winding-Up within the meanings of Chapter 6 of Part 3 of the Insolvency Regulations 2015.
      (5) A Controlled Function shall not include a function performed by an individual appointed to act as manager of the business of an Authorised Person or Recognised Body.

      • Guidance

        The Regulator will approve an Approved Person for the performance of Controlled Functions. However, the Regulator expects that the Authorised Person will carry out proper due diligence to satisfy itself that the individual will be able to carry out his role effectively, is fit and proper to do so, and that there are no conflicts of interest or that any actual or potential conflicts of interest are appropriately managed.

    • Senior Executive Officer

      • GEN 5.3.2

        The Senior Executive Officer function is carried out by an individual who:

        (a) has, either alone or jointly with other Approved Persons, ultimate responsibility for the day-to-day management, supervision and control of one or more (or all) parts of an Authorised Person's Regulated Activities carried on in or from the ADGM; and
        (b) is a Director, Partner or Senior Manager of the Authorised Person.

    • Licensed Director

      • GEN 5.3.3

        Subject to Rule 5.5.4, the Licensed Director function is carried out by an individual who is a Director of an Authorised Person which is a Body Corporate.

    • Licensed Partner

      • GEN 5.3.4

        The Licensed Partner function is carried out, in the case of an Authorised Person which is a Partnership, by an individual specified in Rule 5.5.5.

      • GEN 5.3.5 GEN 5.3.5

        An Approved Person may perform one or more Controlled Functions for one or more Authorised Persons. Carrying on a Controlled Function does not prevent a Person from also performing any Recognised Function.

        • Guidance

          1. In considering whether to grant an individual Approved Person status with respect to more than one Authorised Person, the Regulator will consider each Controlled Function and any Recognised Function to be carried out and the allocation of responsibility for that individual among the relevant Authorised Persons. In this situation the Regulator will need to be satisfied that the individual will be able to carry out his roles effectively, is fit and proper to do so, and that there are no conflicts of interest or that any actual or potential conflicts of interest are appropriately managed.