• Part 3 Part 3 Regulated Activities

    • 16. The General Prohibition

      (1) No person may carry on a Regulated Activity by way of business in the Abu Dhabi Global Market, or purport to do so, unless he is —
      (a) an Authorised Person; or
      (b) an Exempt Person.
      (2) The prohibition is referred to in these Regulations as the General Prohibition.
      (3) The persons set out in Schedule 3 are exempt from the General Prohibition.

    • 17. Authorised Persons acting without a Financial Services Permission

      (1) An Authorised Person must not carry on a Regulated Activity in the Abu Dhabi Global Market, or purport to do so, otherwise than in accordance with a Financial Services Permission.
      (2) A contravention of subsection (1) does not give rise to any right of action for breach of statutory duty.

    • 18. Restrictions on financial promotion

      (1) A person ("A") must not, in the course of business, communicate an invitation or inducement to Engage in Investment Activity (the "Financial Promotion Restriction").
      (2) Subsection (1) does not apply if —
      (a) A is an Authorised Person or an Exempt Person;
      (b) A is licensed and supervised by a financial services regulator in the U.A.E.;
      (c) the content of the communication is approved for the purposes of this section by an Authorised Person or an Exempt Person; or
      (d) the communication is an exempt communication under Schedule 2.
      (3) In the case of a communication originating outside the Abu Dhabi Global Market, subsection (1) applies only if the communication is capable of having an effect in the Abu Dhabi Global Market.
      (4) For the purposes of the Financial Promotion Restriction, "communicate" shall include causing a communication to be made.
      (5) Schedule 2 specifies circumstances in which subsection (1) does not apply.

    • 19. Regulated Activities

      An activity is a Regulated Activity if it is specified as a Regulated Activity in Schedule 1.

    • 20. False claims to be authorised or exempt

      A person who is neither an Authorised Person nor, in relation to the Regulated Activity in question, an Exempt Person must not —

      (a) describe himself (in whatever terms) as an Authorised Person;
      (b) describe himself (in whatever terms) as an Exempt Person in relation to the Regulated Activity; or
      (c) behave, or otherwise hold himself out, in a manner which indicates (or which is reasonably likely to be understood as indicating) that he is —
      (i) an Authorised Person; or
      (ii) an Exempt Person in relation to the Regulated Activity.

    • 21. Agreements made by non-Authorised Persons

      (1) An Agreement made by a person in the course of carrying on a Regulated Activity in contravention of the General Prohibition is unenforceable against the other party.
      (2) The other party is entitled to recover —
      (a) any money or other property paid or transferred by him under the Agreement; and
      (b) compensation for any loss sustained by him as a result of having parted with it.
      (3) This section does not apply if the Regulated Activity is Accepting Deposits.

    • 22. Agreements made through non-Authorised Persons

      (1) An Agreement that —
      (a) is made by an Authorised Person (the "Provider") in the course of carrying on a Regulated Activity (not in contravention of the General Prohibition); and
      (b) is made in consequence of something said or done by another person (the "Third Party") in the course of a Regulated Activity carried on by the Third Party in contravention of the General Prohibition;
      is unenforceable against the other party.
      (2) The other party is entitled to recover —
      (a) any money or other property paid or transferred by him under the Agreement; and
      (b) compensation for any loss sustained by him as a result of having parted with it.
      (3) This section does not apply if the Regulated Activity is Accepting Deposits.

    • 23. Agreements made unenforceable by section 21 or 22

      (1) This section applies to an Agreement which is unenforceable as a result of section 21 or 22.
      (2) The amount of compensation recoverable in the event that an Agreement is unenforceable is —
      (a) the amount agreed by the parties; or
      (b) on the application of either party, the amount determined by the Court.
      (3) In considering whether to allow the Agreement to be enforced or (as the case may be) the money or property paid or transferred under the Agreement to be retained the Court must —
      (a) if the case arises as a result of section 21, have regard to whether the person carrying on the Regulated Activity concerned reasonably believed that he was not contravening the General Prohibition by making the Agreement; or
      (b) if the case arises as a result of section 22, have regard to whether the Provider knew that the Third Party was, in carrying on the Regulated Activity, contravening the General Prohibition.
      (4) If the Court is satisfied that it is just and equitable in the circumstances of the case, it may allow —
      (a) the Agreement to be enforced; or
      (b) money and property paid or transferred under the Agreement to be retained.
      (5) If the person against whom the Agreement is unenforceable —
      (a) elects not to perform the Agreement; or
      (b) as a result of this section, recovers money paid or other property transferred by him under the Agreement;
      he must repay any money and return any other property received by him under the Agreement.
      (6) If property transferred under the agreement has passed to a Third Party, a reference in section 21 or 22 or this section to that property is to be read as a reference to its value at the time of its transfer under the Agreement.
      (7) The commission of a contravention of the General Prohibition or the Financial Promotion Restriction does not make the agreement concerned illegal or invalid to any greater extent than is provided by section 21 or 22.

    • 24. Accepting Deposits in breach of General Prohibition

      (1) This section applies to an agreement between a person (the "depositor") and another person (the "deposit-taker") made in the course of the carrying on by the deposit-taker of the Regulated Activity of Accepting Deposits in contravention of the General Prohibition.
      (2) If the depositor is not entitled under the agreement to recover without delay any money deposited by him, he may apply to the Court for an order directing the deposit-taker to return the money to him.
      (3) The Court need not make such an order if it is satisfied that it would not be just and equitable for the money deposited to be returned, having regard to whether the deposit-taker reasonably believed that he was not contravening the General Prohibition by making the agreement.

    • 25. Enforceability of Agreements resulting from Unlawful Communications

      (1) If in consequence of an Unlawful Communication, a person Engages in Investment Activity as a Customer, any agreement entered into by him as a part of that activity is unenforceable against him and he is entitled to recover —
      (a) any money or other property paid or transferred by him under the agreement; and
      (b) compensation for any loss sustained by him as a result of having parted with it.
      (2) If in consequence of an Unlawful Communication a person exercises any rights conferred by a Specified Investment, no obligation to which he is subject as a result of exercising them is enforceable against him and he is entitled to recover —
      (a) any money or other property paid or transferred by him under the obligation; and
      (b) compensation for any loss sustained by him as a result of having parted with it.
      (3) The Court may allow —
      (a) the agreement or obligation to be enforced; or
      (b) money or property paid or transferred under the agreement or obligation to be retained;
      if it is satisfied that it is just and equitable in the circumstances of the case.
      (4) In considering whether to allow the agreement or obligation to be enforced or (as the case may be) the money or property paid or transferred under the agreement to be retained, the Court must have regard to —
      (a) if the Applicant made the Unlawful Communication, whether he reasonably believed that he was not making such a communication; and
      (b) if the Applicant did not make the Unlawful Communication, whether he knew that the agreement was entered into in consequence of such a communication.
      (5) The amount of compensation recoverable as a result of subsection (1) or (2) is —
      (a) the amount agreed between the parties; or
      (b) on the application of either party, the amount determined by the Court.
      (6) If a person elects not to perform an agreement or an obligation which (by virtue of subsection (1) or (2)) is unenforceable against him, he must repay any money and return any other property received by him under the agreement.
      (7) If (by virtue of subsection (1) or (2)) a person recovers money paid or property transferred by him under an agreement or obligation, he must repay any money and return any other property received by him as a result of exercising the rights in question.
      (8) If any property required to be returned under this section has passed to a third party, references to that property are to be read as references to its value at the time of its receipt by the person required to return it.

    • 26. Accepting Deposits

      (1) No Authorised Person, when carrying on the Regulated Activity of Accepting Deposits or Managing a Profit Sharing Investment Account which is unrestricted, may accept Deposits from the U.A.E. markets.
      (2) No Authorised Person, possessing a Financial Service Permission enabling the Regulated Activities of Accepting Deposits or Managing a Profit Sharing Investment Account which is unrestricted, may undertake foreign exchange transactions involving the U.A.E. Dirham on behalf of a Client.
      Amended on (13 January, 2020).