Chapter 1 Chapter 1 Rule-making Powers
3. General rule-making power of the Regulator(1) The Regulator may make Rules for carrying out the purposes of these Regulations or furthering one or more of its objectives under section 1(3).(2) The powers specified in subsection (3) and in any other provision of these Regulations are without prejudice to the generality of subsection (1).(3) The Regulator may make such Rules applying to Authorised Persons and Recognised Bodies—(a) with respect to the carrying on by them of Regulated Activities; or(b) with respect to the carrying on by them of activities which are not Regulated Activities;as appear to the Regulator to be necessary or expedient for the purpose of furthering one or more of its objectives.(4) Such Rules may make provision applying to Authorised Persons or Recognised Bodies even if there is no relationship between the Authorised Persons or Recognised Bodies to whom the Rules will apply and the persons whose interests will be protected by the Rules.(5) Such Rules may contain requirements which take into account, in the case of an Authorised Person or Recognised Bodies who is a member of a Group, any activity of another member of the Group.(6) Any power of the Regulator to make Rules under these Regulations may be exercised so as to impose requirements on persons who are not Authorised Persons, Approved Persons or Recognised Bodies.
Specific rule-making powers
4. Client Money Rules(1) The Regulator may make Rules relating to the handling of money ("Client Money") held by an Authorised Person in Specified circumstances, which may —(a) make provision which results in that money being held on trust (which may be one or more separate trusts) in accordance with the Rules;(b) treat two or more accounts as a single account for Specified purposes (which may include the distribution of money held in the accounts);(c) authorise the retention by the Authorised Person of interest accruing on the money; and(d) make provision as to the distribution of such interest which is not to be retained by the Authorised Person.(2) An institution with which an account is kept in pursuance of Rules relating to the handling of Client Money does not incur any liability as constructive trustee if the money is wrongfully paid from the account, unless the institution permits the payment —(a) with knowledge that it is wrongful; or(b) having deliberately failed to make enquiries in circumstances in which a reasonable and honest person would have done so.(3) Rules made by the Regulator may —(a) confer rights on persons to rescind agreements with, or withdraw offers to, Authorised Persons within a Specified period; and(b) make provision, in respect of Authorised Persons and persons exercising those rights, for the restitution of property and the making or recovery of payments where those rights are exercised.
5. Islamic Finance Rules
The Regulator may make Rules applying to Authorised Persons —(a) prescribing the requirements that must be met by a person applying for a Financial Services Permission to carry on Islamic Financial Business;(b) providing for such requirements to be varied in cases where an Application is made by an Applicant which is, at the time at which it submits its Application, regulated in a jurisdiction other than the Abu Dhabi Global Market;(c) prescribing certain persons or categories of person to be exempted from the requirements referred to in paragraph (a); and(d) prescribing exemptions from any requirements imposed by or under these Regulations under paragraph (a) that are to be —(i) limited to certain Islamic Financial Business activities or Specified circumstances; or(ii) subject to certain conditions and restrictions as the Regulator may determine.
5A. Operating a Crypto Asset Business(1) The Regulator may by Rules prescribe—(a) Accepted Crypto Assets that meet the requirements for engaging in the Regulated Activity of Operating a Crypto Asset Business in or from the Abu Dhabi Global Market;(b) the requirements and factors that, in the opinion of the Regulator, are to be taken into account in determining whether or not a Crypto Asset meets the requirements to be considered an Accepted Crypto Asset;(c) the requirements applicable to the Regulated Activity of Operating a Crypto Asset Business in or from the Abu Dhabi Global Market; and(d) such additional requirements as the Regulator considers appropriate that Authorised Persons Operating a Crypto Asset Business must comply with, including any requirements imposed under the Rules made under these Regulations.(2) Without limiting the generality of its powers the Regulator may, by written notice—(a) exclude the application of any requirement imposed by the Rules for engaging in the Regulated Activity of Operating a Crypto Asset Business in or from the Abu Dhabi Global Market; or(b) impose on an Authorised Person engaged in the Regulated Activity of Operating a Crypto Asset Business in or from the Abu Dhabi Global Market any additional obligations that the Regulator considers appropriate; or(c) require an Authorised Person engaged in the Regulated Activity of Operating a Crypto Asset Business in or from the Abu Dhabi Global Market to take such action as is specified by the Regulator; or(d) require an Authorised Person Operating a Crypto Asset Exchange to obtain a Recognition Order to become a Recognised Investment Exchange under section 121 of these Regulations, and the Rules made under these Regulations, where the Regulator is satisfied that it is in the interests of the Abu Dhabi Global Market to do so and on such terms and conditions as the Regulator considers appropriate.
Added on June 25, 2018
6. Carrying on Regulated Activities by way of business(1) The Regulator may make Rules which make provision —(a) as to the circumstances in which a person who would otherwise not be regarded as carrying on a Regulated Activity by way of business is to be regarded as doing so;(b) as to the circumstances in which a person who would otherwise be regarded as carrying on a Regulated Activity by way of business is to be regarded as not doing so.(2) Rules under subsection (1) may be made so as to apply —(a) generally in relation to all Regulated Activities;(b) in relation to a Specified category of Regulated Activity; or(c) in relation to a particular Regulated Activity.
7. Other specific rule-making powers(1) The Regulator may make Rules requiring Authorised Persons to take Specified steps in connection with the setting by a Specified person of a Specified Benchmark. Such Rules may in particular —(a) require Authorised Persons to whom the Rules apply to provide information of a Specified kind, or expressions of opinion as to Specified matters, to persons determined in accordance with the Rules;(b) make provision about the form in which and the time by which any information or expression of opinion is to be provided;(c) make provision by reference to any code or other Document published by the person responsible for the setting of the Benchmark or by any other person determined in accordance with the Rules, as the code or other Document has effect from time to time; and(d) make provision that the code or other Document referred to in paragraph (c) is to be capable of affecting obligations imposed by the Rules only if Specified requirements are met in relation to it.(2) The Regulator may make Rules prescribing the conditions ("Threshold Conditions") that must be satisfied by Authorised Persons as a condition of obtaining and maintaining a Financial Services Permission ("Threshold Condition Rules"). Such Rules may in particular —(a) specify requirements which a person must satisfy in order to be regarded as satisfying a particular Threshold Condition in relation to any Regulated Activities; and(b) specify matters which are, or may be, or are not, relevant in determining whether a person satisfies a particular Threshold Condition in relation to any Regulated Activities.(3) The Regulator may make Rules about the disclosure and use of information held by an Authorised Person ("A"). Such Rules may —(a) require the withholding of information which A would otherwise be required to disclose to a person ("B") for or with whom A does business in the course of carrying on any Regulated Activity or other activity;(b) specify circumstances in which A may withhold information which A would otherwise be required to disclose to B;(c) require A not to use for the benefit of B information —(i) which is held by A; and(ii) which A would otherwise be required to use for the benefit of B; and(d) specify circumstances in which A may decide not to use for the benefit of B information within paragraph (c).(4) The Regulator may make Rules as to the circumstances and manner in which, the conditions subject to which, and the time when or the period during which, action may be taken for the purpose of stabilising the price of Specified Investments.(5) The Regulator may make Rules which treat a person who acts or engages in conduct —(a) for the purpose of stabilising the price of investments; and(b) in conformity with such provisions corresponding to price stabilising rules and made by a body or authority outside the Abu Dhabi Global Market as may be Specified;as acting, or engaging in that conduct, for that purpose and in conformity with Price Stabilising Rules.(6) The Regulator may make Rules in connection with the creation and implementation of anti-money laundering measures, policies and procedures, including Rules as to:(a) the persons or classes of persons who shall be subject to any such measures, policies and procedures;(b) the nature and extent of any duty, requirement, prohibition, obligation or responsibility applicable to such persons; and(c) registration of any or all such persons with the Regulator, including the criteria that person must meet to become and remain registered by the Regulator.(7) The Regulator may make Rules applicable to Approved Persons or other employees or persons connected with Authorised Persons, with respect to the conduct required of such persons. Such Rules may relate to the conduct required of such persons in relation to —(a) the performance by them of Controlled Functions; or(b) the performance by them of any other functions in relation to the carrying on by Authorised Persons of Regulated Activities.(8) The Board may make Rules requiring the payment to the Regulator of such fees, in connection with applications made under these Regulations, as are specified in the Rules. The Regulator may reject an application which is not accompanied by the payment to the Regulator of the fees due on such application.(9) The Board may make Rules requiring the payment of such periodic fees to the Regulator by Authorised Persons and Recognised Bodies, as the Rules specify.(10) Rules made under subsection (8) or (9) may prescribe different levels of fees for different types of applicant or different types of Regulated Activity.(11) Any fee which is owed to the Regulator under any provision made by such Rules may be recovered as a debt due to the Regulator.
Amended on (21 February 2018 and 8 April 2019).
8. General supplementary powers
Rules made by the Regulator —(a) may make different provision for different cases and may, in particular, make different provision in respect of different descriptions of Authorised Persons, activities or investments;(b) may make provision by reference to other Rules made by the Regulator, as those Rules have effect from time to time; and(c) may contain such incidental, supplemental, consequential and transitional provision as the Regulator considers appropriate.
Amended on (21 February 2018).