Application for a Withdrawal of Licence
In considering requests under GEN Rule 11.4.1, an
Authorised Firmwill need to satisfy the DFSAthat it has made appropriate arrangements with respect to its existing customers, including the receipt of any customers' consent where required and, in particular:(a) whether there may be a long period in which the business will be run-off or transferred;(b) whether deposits must be returned to customers;(c) whether money and other assets belonging to customers must be returned to them; and(d) whether there is any other matter which the DFSAwould reasonably expect to be resolved before granting a request for the withdrawal of a Licence.
In determining a request for the withdrawal of a
Licence, the DFSAmay require additional procedures or information as appropriate including evidence that the Authorised Firmhas ceased to carry on Financial Services.
Authorised Firmshould submit detailed plans where there may be an extensive period of wind-down. It may not be appropriate for an Authorised Firmto immediately request a withdrawal of its Licencein all circumstances, although it may wish to consider reducing the scope of its Licenceduring this period. Authorised Firmsshould discuss these arrangements with the DFSA.
DFSAmay refuse a request for the withdrawal of a Licencewhere it appears that customers may be exposed to adverse effect.
DFSAmay also refuse a request for the withdrawal of a Licencewhere:(a) the Authorised Firmhas failed to settle its debts to the DFSA; or(b) it is in the interests of a current or pending investigation by the DFSA, or by another regulatory body or Financial Services Regulator.
Some other matters which an
Authorised Firmshould be mindful of in relation to the withdrawal of its Licenceinclude:(a) Under Article 63 of the Regulatory Law2004 where the DFSAgrants a request for the withdrawal of a Licence, the DFSAmay continue to exercise any power under the Regulatory Law2004 or Rulesin relation to an Authorised Firmor Authorised Individualfor two years from the date on which the Licencewas withdrawn;(b) Article 43(2) of the Regulatory Law2004 states that Licensed Functionsof an Authorised Firmshall be carried out by its Authorised Individuals. Accordingly, where an Authorised Firm's Licenceis withdrawn, the authorised status of its Authorised Individualswill also be withdrawn from the same date. However, this does not remove the obligation on an Authorised Firmto provide a statement under GEN Rule 11.7.3 where an Authorised Individualhas been dismissed or requested to resign; and(c) Where a Fund Manageror the Trusteemakes a request under GEN Rule 11.4.1, the Fund Manageror the Trusteewill need to satisfy the DFSAthat it has made appropriate arrangements in accordance with the requirements under the Collective Investment Law 2010 and the CIR module with respect to the continuing management of the Fundfor which it is the Fund Manageror the Trustee, as the case may be.