GEN A2.4.1 GEN A2.4.1
(1) The DFSA may, subject to (5), declare by written notice any financial instrument or class of financial instruments to be a particular type of an existing Security or Derivative as defined in these Rules or a new type of a Security or Derivative. It may do so on such terms and conditions as it considers appropriate.
(2) The DFSA may exercise the power under (1) either upon written application made by a Person or on its own initiative.
(3) Without limiting the generality of the matters that the DFSA may consider when exercising its power under (1), it must consider the following factors:
(a) the economic effect of the financial instrument or class of financial instruments;
(b) the class of potential investors to whom the financial instrument is intended to be marketed;
(c) the treatment of similar financial instruments for regulatory purposes in other jurisdictions; and
(d) the possible impact of such a declaration on any person issuing or marketing such a financial instrument.
(4) A Person who makes an application for a declaration under (1) must address, as far as practicable, the factors specified in (3).
(5) The DFSA must publish any proposed declaration under (1) for public consultation for at least 30 days from the date of publication, except where:
(a) it declares a financial instrument to be a particular type of an existing Security or Derivative;
(b) it determines that any delay likely to result from public consultation is prejudicial to the interests of the DIFC; or
(c) it determines that there is a commercial exigency that warrants such a declaration being made without any, or shorter than 30 day, public consultation.