• Part 9 Part 9 Misleading Statements and Impressions

    • 102. Misleading Statements

      (1) Subsection (2) applies to a person ("P") who —
      (a) makes a statement which P knows to be false or misleading in a material respect;
      (b) makes a statement which is false or misleading in a material respect, being reckless as to whether it is; or
      (c) dishonestly conceals any material facts whether in connection with a statement made by P or otherwise.
      (2) P commits a contravention of these Regulations if P makes the statement or conceals the facts with the intention of inducing, or is reckless as to whether making it or concealing them may induce, another person (whether or not the person to whom the statement is made) —
      (a) to enter into or offer to enter into, or to refrain from entering or offering to enter into; or
      (b) to acquire, dispose of, subscribe for or underwrite, or refrain from acquiring, disposing of, subscribing for or underwriting; or
      (c) to exercise, or refrain from exercising, any rights conferred by—
      a Financial Instrument, a Specified Investment or an Accepted Crypto Asset, as applicable.
      (3) In proceedings for a contravention under subsection (2) brought against a person to whom that subsection applies as a result of paragraph (a) of subsection (1), it is a defence for the person charged ("D") to show that the statement was made in conformity with —
      (a) Price Stabilising Rules (section 7(4)); or
      (b) Control of Information Rules (section 7(3)).
      (4) Subsections (1) and (2) do not apply unless —
      (a) the statement is made in or from, or the facts are concealed in or from, the Abu Dhabi Global Market or arrangements are made in or from the Abu Dhabi Global Market for the statement to be made or the facts to be concealed;
      (b) the person on whom the inducement is intended to or may have effect is in the Abu Dhabi Global Market; or
      (c) the agreement is or would be entered into or the rights are or would be exercised in the Abu Dhabi Global Market.
      Amended on June 25, 2018

    • 103. Misleading Impressions

      (1) A person ("P") who does any act or engages in any course of conduct which creates a false or misleading impression as to the market in or the price or value of any Financial Investments or Accepted Crypto Assets commits a contravention of these Regulations if —
      (a) P intends to create the impression; and
      (b) the case falls within either subsection (2) or (3) or both.
      (2) The case falls within this subsection if P intends, by creating the impression, to induce another person to acquire, dispose of, subscribe for or underwrite the investments or to refrain from doing so or to exercise or refrain from exercising any rights conferred by the investments.
      (3) The case falls within this subsection if —
      (a) P knows that the impression is false or misleading or is reckless as to whether it is; and
      (b) P intends by creating the impression to produce any of the results in subsection (4) or is aware that creating the impression is likely to produce any of the results in that subsection.
      (4) Those results are —
      (a) the making of a gain for P or another; or
      (b) the causing of loss to another person or the exposing of another person to the risk of loss.
      (5) References in subsection (4) to gain or loss are to be read in accordance with subsections (6) and (7).
      (6) In proceedings brought against any person ("D") for a contravention under subsection (1) it is a defence for D to show —
      (a) to the extent that the contravention results from subsection (2), that D reasonably believed that D's conduct would not create an impression that was false or misleading as to the matters mentioned in subsection (1);
      (b) that D acted or engaged in the conduct —
      (i) for the purpose of stabilising the price of investments; and
      (ii) in conformity with Price Stabilising Rules; or
      (c) that D acted or engaged in the conduct in conformity with Control of Information Rules.
      (7) This section does not apply unless —
      (a) the act is done, or the course of conduct is engaged in, in the Abu Dhabi Global Market; or
      (b) the false or misleading impression is created there.
      Amended on June 25, 2018

    • 104. Misleading statements etc. in relation to Benchmarks

      (1) A person ("A") who makes to another person ("B") a false or misleading statement commits a contravention of these Regulations if —
      (a) A makes the statement in the course of arrangements for the setting of a Relevant Benchmark;
      (b) A intends that the statement should be used by B for the purpose of the setting of a Relevant Benchmark; and
      (c) A knows that the statement is false or misleading or is reckless as to whether it is.
      (2) A person ("C") who does any act or engages in any course of conduct which creates a false or misleading impression as to the price or value of any investment or as to the interest rate appropriate to any transaction commits a contravention of these Regulations if —
      (a) C intends to create the impression;
      (b) the impression may affect the setting of a Relevant Benchmark;
      (c) C knows that the impression is false or misleading or is reckless as to whether it is; and
      (d) C knows that the impression may affect the setting of a Relevant Benchmark.
      (3) In proceedings for a contravention under subsection (1), it is a defence for the person charged ("D") to show that the statement was made in conformity with —
      (a) Price Stabilising Rules (section 7(4)); or
      (b) Control of Information Rules (section 7(3)).
      (4) In proceedings brought against any person ("D") for a contravention under subsection (2) it is a defence for D to show —
      (a) that D acted or engaged in the conduct —
      (i) for the purpose of stabilising the price of investments; and
      (ii) in conformity with Price Stabilising Rules (section 7(4)); or
      (b) that D acted or engaged in the conduct in conformity with Control of Information Rules (section 7(3)).
      (5) Subsection (1) does not apply unless the statement is made in or from the Abu Dhabi Global Market or to a person in the Abu Dhabi Global Market.
      (6) Subsection (2) does not apply unless —
      (a) the act is done, or the course of conduct is engaged in, in the Abu Dhabi Global Market; or
      (b) the false or misleading impression is created in the Abu Dhabi Global Market.