Grounds for taking own-initiative requirement power
6.18 Section 14(2) sets out the grounds for the Registration Authority to exercise own-initiative requirement power. The grounds are as follows:
a. the person is failing, or is likely to fail, to satisfy the conditions of licence applicable to him;
b. that person has failed, during a period of at least 12 months, to carry on a controlled activity to which the licence relates; or
c. it is desirable to exercise the power in the interests of the ADGM.
6.19 The Registration Authority may exercise own-initiative requirement power if it is satisfied that the grounds in section 14(2) apply.
6.20 When deciding whether to take own-initiative requirement power on a licensed person, the Registration Authority takes into account the effect of the powers exercised and seeks to ensure that any requirement imposed is proportionate to the objective the Registration Authority is seeking to achieve by taking action.
6.21 In the course of monitoring of licensed persons or during the enforcement process, the Registration Authority might consider it appropriate to agree formally or informally with a licensed person on certain steps required to resolve the Registration Authority’s concerns.
6.22 However, in some cases the Registration Authority forms the view that it is appropriate to take own initiative action to ensure that its concerns are satisfied. Such action is likely to be necessary where the Registration Authority:
a. has serious concerns about a licensed person or about the way its business is being conducted;
b. is concerned that there will be serious consequences if the licensed person fails to take the steps required by the Registration Authority; or
c. considers that the action will demonstrate the importance that the Registration Authority attaches to the need for the firm to satisfy the Registration Authority’s concerns.