Timing

5.7 Settlement discussions can be held at any stage of the enforcement process, including at an early stage, provided the Registration Authority is satisfied that it understands the full nature and extent of the misconduct or issue. Therefore, settlement discussions may be more likely to occur following the issuance of a warning notice. This is to enable the person to understand the Registration Authority’s concerns and what it considers to be the appropriate action.
5.8 However, the Registration Authority is unlikely to settle a matter through negotiation after a decision notice has been given to the person.
5.9 Where the Registration Authority decides to exercise a disciplinary power, it must give the person a decision notice. Accordingly, the Registration Authority must give the person a decision notice where the terms of a settlement include disciplinary action. A person who receives a decision notice has the right to refer the matter to the ADGM Courts. However, if settlement has been reached, the Registration Authority expects the person concerned to waive their referral rights.
5.10 Settlement discussions should also take place in a timely and diligent manner. The Registration Authority will set appropriate timetables for settlement discussions to ensure that the discussions do not delay or shift focus away from the formal enforcement process. Settlement discussions are held on a “without prejudice” basis, unless the parties agree otherwise. “Without prejudice” means that a communication between negotiating parties will not be admissible in the ADGM Courts and cannot be adduced in evidence against the interest of the party that made it, if the without prejudice privilege is attached to such communication.