(1) This section applies where a Recognised Body proposes to make any Regulatory Provision in connection with —
(a) its business as an investment exchange;
(b) the provision by it of clearing services; or
(c) the provision by it of services falling within section 119
(1)(b) or (2)(b).
(2) If it appears to the Regulator —
(a) that the proposed provision will impose a Requirement on persons affected (directly or indirectly) by it; and
(b) that the Requirement is excessive;
the Regulator may direct that the proposed provision must not be made.
(3) A Requirement is excessive if —
(a) it is not required under any enactment or rule of law in the Abu Dhabi Global Market; and
(b) either —
(i) it is not justified as pursuing a reasonable regulatory objective; or
(ii) it is disproportionate to the end to be achieved.
(4) In considering whether a Requirement is excessive, the Regulator must have regard to all the relevant circumstances, including —
(a) the effect of existing legal and other requirements;
(b) the global character of financial services and markets and the international mobility of activity;
(c) the desirability of facilitating innovation; and
(d) the impact of the proposed provision on market confidence.
(5) Any provision made in contravention of a Direction under this section is of no effect.