Guidance

1. Because of the limited nature of the Regulated Activity of Operating a Representative Office, much of the ADGM Rulebook has been disapplied for Representative Offices. While most of the key provisions applying to a Representative Office are contained in these Rules, a Representative Office should ensure that it complies with and has regard to other relevant provisions in other applicable ADGM Rulebooks including AML. The application section of each Rulebook sets out which chapters, if any, apply to a Representative Office.
2. A Representative Office should also ensure that it complies with and has regard to relevant provisions of the FSMR and MKT. FSMR gives the Regulator a number of important powers in relation to Authorised Persons including powers of supervision and enforcement.
3. The Regulated Activity of Operating a Representative Office is defined in Schedule 1 of the FSMR. By virtue of this Schedule, the Regulated Activity of Operating a Representative Office is a stand-alone Regulated Activity.
4. Whilst much Representative Office activity will not involve a continuing relationship with the Persons to whom marketing is directed, where such a relationship is necessary, the Representative Office will need to be careful to ensure that it does not carry on any activities other than the activity of Operating a Representative Office.
5. A Representative Office which undertakes a Regulated Activity which is outside the scope of its Financial Services Permission will be in breach of Part 4 of the FSMR. If the Regulator believes that a Representative Office is in breach of Part 4 of the FSMR, it may take steps which may include withdrawal of authorisation and formal enforcement action under the FSMR.
Amended on (3 February, 2020).