• Part 21 Part 21 Enforcement Procedure

    • 246. Requirement to give warning notices

      (1) If the Regulator proposes to exercise any of the following powers, it must give a warning notice to any person in relation to whom the power is proposed to be exercised —
      (a) exercising its power under section 30(2) and section 30(4)(a) or (b) on granting a Financial Services Permission;
      (b) exercising its power under section 35(3) in connection with an Application for a Financial Services Permission;
      (c) exercising its power under section 35(3) in relation to the variation of a Financial Services Permission on the application of an Authorised Person;
      (d) exercising its power under section 35(3) in connection with an application for the variation of a Financial Services Permission;
      (e) exercising its power under section 33(2)(b) to cancel a Person's Financial Services Permission otherwise than at the Person's request;
      (f) refusing an Application for a Financial Services Permission made under Part 4, in accordance with section 30(2);
      (g) withdrawing approval under section 46;
      (h) refusing an Application for Approval or granting the Application subject to any conditions or for a limited period (or both) under section 45(2);
      (i) refusing an Application under section 47 or granting the Application subject to any conditions or for a limited period (or both) under section 47(1);
      (j) refusing an Application for Listing, or imposing conditions or restrictions in relation to such an Application, under section 52(1);
      (k) refusing an application by the Issuer of Financial Instruments for the Discontinuance or Suspension of the Listing of the Financial Instruments under section 55;
      (l) refusing an application by the Issuer of Financial Instruments for the cancellation of a Suspension of Listing under section 55(4);
      (m) refusing approval to a Prospectus under Rules made under section 61;
      (n) exercising its power under section 72(4) on its own initiative;
      (o) exercising the power of Direction in section 84;
      (p) refusing an application under section 72(4)(a)(ii) or imposing any conditions or restrictions in respect of a declaration made following such application;
      (q) exercising its powers under section 202;
      (r) publishing a statement under section 231;
      (s) imposing a financial penalty under section 232;
      (t) exercising its powers under section 233;
      (u) imposing a Prohibition Order under section 234 or refusing an application for variation or revocation of such an order made under subsection (5) of that section;
      (v) refusing an Application for registration of a Public Fund under section 109;
      (w) withdrawing the registration of a Public Fund under section 111;
      (x) giving a Direction under section 111(3);
      (xx) refusing an application for DNFBP registration under the Rules made under section 7(6)(c); or
      (xxx) exercising its power to suspend or withdraw the registration of a DNFPB on its own initiative under the Rules made under section 7(6)(c);
      (y) giving a Direction under section 117; and
      (z) exercising its power under section 241(5).
      (2) In the case of an exercise of powers under section 111, a warning notice shall also be given to the Fund Manager and Trustee of the Public Fund concerned.
      Amended on (13 January, 2020).

    • 247. Warning notices

      (1) A warning notice must, to the extent applicable —
      (a) state the action which the Regulator proposes to take;
      (b) be in writing;
      (c) give reasons for the proposed action;
      (d) state whether —
      (i) section 255 applies; and
      (ii) if that section applies, describe its effect and state whether any Secondary Material exists to which the person concerned must be allowed access under it;
      (e) provide a reasonable period within which the person to whom the warning notice is given can make representations to the Regulator;
      (f) provide for the possibility of an extension of the period outlined in paragraph (e);
      (g) state the amount of any monetary payment to be made;
      (h) state the period for which any suspension, limitation or restriction is to have effect; and
      (i) state the terms of any statement to be published.
      (2) Once the Regulator has provided a warning notice in accordance with subsection (1), the Regulator must then decide, within a reasonable period, whether to give the person concerned a decision notice.

    • 248. Requirement to give decision notice

      If the Regulator decides to exercise any of the powers specified in section 241, it must give a decision notice to every person in relation to whom a warning notice was given under section 246.

      Amended on (13 January, 2020).

    • 249. Decision notices

      (1) A decision notice, must, to the extent applicable —
      (a) state the action which the Regulator has decided to take;
      (b) be in writing;
      (c) give the reasons of the Regulator for taking the action to which the notice relates;
      (d) state whether —
      (i) section 255 applies;
      (ii) if that section applies, describe its effect and state whether any Secondary Material exists to which the person concerned must be allowed access under it; and
      (e) inform the person concerned of its right to have the matter referred to the Regulatory Committee which is given by these Regulations;
      (f) state the amount of any financial penalty to be made;
      (g) state the period for which any suspension, limitation or restriction is to have effect; and
      (h) state the terms of any statement to be published;
      (i) when ordering restitution in the form of payment —
      (i) state the amount that is to be paid or distributed;
      (ii) identify the person or persons to whom that amount is to be paid or among whom that amount is to be distributed; and
      (iii) state the arrangements in accordance with which the payment or distribution is to be made.
      (2) If the decision notice was preceded by a warning notice, the action to which the decision notice relates must be action under the same provision of these Regulations as the action proposed in the warning notice.
      (3) The Regulator may, before it takes the action to which a decision notice (the "Original Notice") relates, give the person concerned a further decision notice which relates to different action in respect of the same matter.
      (4) The Regulator may give a further decision notice as a result of subsection (3) only if the person to whom the Original Notice was given consents.
      (5) If the person to whom a decision notice is given under subsection (3) had the right to refer the matter to which the original decision notice related to the Regulatory Committee, he has that right as respects the decision notice under subsection (3).
      Amended on (13 January, 2020).

    • Conclusion of proceedings

      • 250. Notices of Discontinuance

        (1) If the Regulator decides not to take —
        (a) the action proposed in a warning notice given by it; or
        (b) the action to which a decision notice given by it relates;
        it must give a Notice of Discontinuance to the person to whom the warning notice or decision notice was given.
        (2) But subsection (1) does not apply if the discontinuance of the proceedings concerned results in the granting of an application made by the person to whom the warning or decision notice was given.
        (3) Any Notice of Discontinuance must —
        (a) state that, if the person to whom the notice is given consents, the Regulator may publish such information as it considers appropriate about the matter to which the discontinued proceedings related; and
        (b) be accompanied by a statement that, if the person to whom the notice is copied consents, the Regulator may publish such information as it considers appropriate about the matter to which the discontinued proceedings related, so far as relevant to that person.
        (4) A Notice of Discontinuance must identify the proceedings which are being discontinued.

      • 251. Final notices

        (1) If the Regulator has given a person a decision notice and the matter was not referred to the Regulatory Committee (or a decision of the Regulatory Committee in relation to the matter was not appealed to the Appeals Panel) within the time required by any procedures of the Regulatory Committee or, if applicable, the Appeals Panel, the Regulator must, on taking the action to which the decision notice relates, give the person concerned and any person to whom the decision notice was copied, a final notice.
        (2) If the Regulator has given a person a decision notice and the matter was referred to the Regulatory Committee (or a decision of the Regulatory Committee in relation to the matter was appealed to the Appeals Panel), the Regulator must, on taking action in accordance with any directions given by the Regulatory Committee or Appeals Panel, give that person and any person to whom the decision notice was copied, the notice required by subsection (3).
        (3) The notice required by this subsection is —
        (a) in a case where the Regulator is acting in accordance with a direction given by the Regulatory Committee or Appeals Panel, a further decision notice; and
        (b) in any other case, a final notice.
        (4) A final notice must, to the extent applicable —
        (a) state the amount of any financial penalty to be made and the date by which it is to be paid;
        (b) state the period for which any suspension, limitation or restriction is to have effect;
        (c) state the terms of any statement to be published;
        (d) when ordering restitution in the form of payment —
        (i) state the amount that is to be paid or distributed;
        (ii) identify the person or persons to whom that amount is to be paid or among whom that amount is to be distributed; and
        (iii) state the arrangements in accordance with which the payment or distribution is to be made.
        (5) If all or any of a required payment has not been made at the end of a period stated in a final notice in accordance with subsection 251(4)(a), the obligation to make the payment is enforceable as a debt by the person entitled to the payment.
        Amended on (13 January, 2020).

    • Publication

      • 252. Publication

        (1) A warning notice can only be published following a written agreement allowing Publication entered into between the Regulator and the person to whom the notice was addressed.
        (2) Where the Regulator and the person to whom the notice was addressed have not agreed to publish the warning notice in accordance with subsection (1), neither the Regulator nor a person to whom the notice is given or copied may publish the notice or any details concerning it.
        (3) A decision notice, final notice or any other notice in relation to the exercise of the Regulator's powers (other than a warning notice), and details about the matter to which such notice relates, may be published by the Regulator at its discretion.
        (4) A person to whom a notice specified in subsection (3) is given or copied may not publish the notice or any details concerning it unless the Regulator has published the notice or those details in accordance with its power in subsection (3).
        (5) The Regulator may determine not to publish information under this section if, in its opinion, Publication of the information would be —
        (a) unfair to the person with respect to whom the action was taken (or was proposed to be taken);
        (b) prejudicial to the interests of Customers; or
        (c) detrimental to the stability of the Abu Dhabi Global Market Financial System.
        (6) Any information published under this section is to be so published in such manner as the Regulator considers appropriate.
        (7) For the purposes of these Regulations, a matter to which the notice relates is open to review if —
        (a) the period during which any person may refer the matter to the Regulatory Committee or, appeal any decision of the Regulatory Committee in relation to the matter to the Appeals Panel, is still running; or
        (b) the matter has been referred to the Regulatory Committee (or a decision of the Regulatory Committee in relation to the matter has been appealed to the Appeals Panel) but has not been dealt with.

    • Third Party rights and access to evidence

      • 253. Application of sections 254 and 255

        Sections 254 and 255 apply to —

        (a) a warning notice given in accordance with section 246(1)(e), (g), (n), (r), (s), (t), (u), (w), (x), (y) or (z); and
        (b) a decision notice given following a warning notice falling within paragraph (a) and in relation to the same matter as the warning notice.

      • 254. Third Party rights

        (1) If any of the reasons contained in a warning notice to which this section applies relates to a matter which —
        (a) identifies a person (the "Third Party") other than the person to whom the notice is given; and
        (b) in the opinion of the Regulator, is prejudicial to the Third Party;
        a copy of the notice must be given to the Third Party.
        (2) Subsection (1) does not require a copy to be given to the Third Party if the Regulator —
        (a) has given him a separate warning notice in relation to the same matter; or
        (b) gives him such a notice at the same time as it gives the warning notice which identifies him.
        (3) The notice copied to a Third Party under subsection (1) must specify a reasonable period within which he may make representations to the Regulator.
        (4) If any of the reasons contained in a decision notice to which this section applies relates to a matter which —
        (a) identifies a person (the "Third Party") other than the person to whom the decision notice is given; and
        (b) in the opinion of the Regulator, is prejudicial to the Third Party;
        a copy of the notice must be given to the Third Party.
        (5) If the decision notice was preceded by a warning notice, a copy of the decision notice must (unless it has been given under subsection (4)) be given to each person to whom the warning notice was copied.
        (6) Subsection (4) does not require a copy to be given to the Third Party if the Regulator —
        (a) has given him a separate decision notice in relation to the same matter; or
        (b) gives him such a notice at the same time as it gives the decision notice which identifies him.
        (7) Neither subsection (1) nor subsection (4) requires a copy of a notice to be given to a Third Party if the Regulator considers it impractical to do so.
        (8) Subsections (9) to (11) apply if the person to whom a decision notice is given has a right to refer the matter to the Regulatory Committee.
        (9) A person to whom a copy of the notice is given under this section may refer to the Regulatory Committee —
        (a) the decision in question, so far as it is based on a reason of the kind mentioned in subsection (4); or
        (b) any opinion expressed by the Regulator in relation to him.
        (10) The copy must be accompanied by an indication of the Third Party's right to make a reference under subsection (9).
        (11) A person who alleges that a copy of the notice should have been given to him, but was not, may refer to the Regulatory Committee the alleged failure and —
        (a) the decision in question, so far as it is based on a reason of the kind mentioned in subsection (4); or
        (b) any opinion expressed by the Regulator in relation to him.
        (12) Section 255 applies to a Third Party as it applies to the person to whom the notice to which this section applies was given, in so far as the material to which access must be given under that section relates to the matter which identifies the Third Party.
        (13) A copy of a notice given to a Third Party under this section must be accompanied by a description of the effect of section 255 as it applies to him.
        (14) Any person to whom a warning notice or decision notice was copied under this section must be given a copy of a Notice of Discontinuance applicable to the proceedings to which the warning notice or decision notice is related.

      • 255. Access to Regulator material

        (1) If the Regulator gives a person ("A") a notice to which this section applies, it must —
        (a) allow him access to the material on which it relied in making the decision which gave rise to the obligation to give the notice;
        (b) allow him access to any Secondary Material which, in the Regulator's opinion, might undermine that decision.
        (2) But the Regulator giving the notice does not have to allow A access to material under subsection (1) if the material is a Protected Item or it —
        (a) relates to a case involving a person other than A; and
        (b) was taken into account by the Regulator in A's case only for purposes of comparison with other cases.
        (3) The Regulator may refuse A access to particular material which it would otherwise have to allow him access to if, in its opinion, allowing him access to the material —
        (a) would not be in the public interest; or
        (b) would not be fair, having regard to —
        (i) the likely significance of the material to A in relation to the matter in respect of which he has been given a notice to which this section applies; and
        (ii) the potential prejudice to the commercial interests of a person other than A which would be caused by the material's disclosure.
        (4) If the Regulator does not allow A access to material because it is a Protected Item, it must give A written notice of —
        (a) the existence of the Protected Item; and
        (b) the Regulator's decision not to allow him access to it.
        (5) If the Regulator refuses under subsection (3) to allow A access to material, it must give him written notice of —
        (a) the refusal; and
        (b) the reasons for it.

    • The Regulator's procedures

      • 256. The Regulator's procedures

        (1) The Regulator must determine the procedure that it proposes to follow in relation to the exercise of —
        (a) any power giving rise to an obligation to give a notice under sections 246 or 248;
        (b) its Own-Initiative Powers;
        (c) its powers under section 48;
        (d) its powers under section 53;
        (e) its powers under section 71;
        (f) its powers under section 135; or
        (g) its powers under Part 14.
        (2) That procedure must be designed to secure, among other things that a decision to exercise any power specified in subsection (1) is taken —
        (a) by a person not directly involved in establishing the evidence on which the decision is based; or
        (b) by two or more persons who include a person not directly involved in establishing that evidence.