Grounds for taking own-initiative variation power

6.8 Section 13(1) of CLR 2015 sets out the grounds for the Registration Authority to exercise own-initiative variation 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.
6.9 The Registration Authority may exercise own-initiative variation power if it is satisfied that the grounds in section 13(1) apply.
6.10 In circumstances where a licensed person has ceased carrying on controlled activities for a significant period of time (at least 12 months) and in particular, where the person is non-responsive, it may be a relatively routine matter for the Registration Authority to cancel that person’s licence, along with own-initiative de-registration considerations.
6.11 In other cases, where a licensed person is carrying on controlled activities, then to vary, impose restrictions or cancel a licence may have serious consequences for that person. In such cases, the Registration Authority takes own-initiative action, particularly in respect of cancelling a licence, only where it has serious concerns regarding a licensed person.
6.12 Having regard to the grounds specified under CLR 2015, examples of circumstances where the Registration Authority might consider it appropriate to cancel a licensed person’s licence include:
a. if it is found that a licensed person provided false or misleading information to the Registration Authority during the licensing process;
b. if a licensed person appears to be failing, or is likely to fail to satisfy, relevant licensing criteria under ADGM’s commercial legislation;
c. if a licensed person carrying on a controlled activity repeatedly fails to lodge filings with the Registration Authority as and when it is required to do so;
d. if a licensed person knowingly provides misleading or false information in any filings lodged with the Registration Authority; or
e. if a licensed person fails to pay fees to the Registration Authority as required, or renew its licence on or before its expiry.
6.13 Depending on the circumstances, the Registration Authority may initially vary a licensed persons’ scope of licence or impose requirements. However, where that action does not resolve the Registration Authority’s concerns, the Registration Authority may then decide to cancel the licence.