RPP 5-7 RPP 5-7 Appointment of Managers
Pursuant to Article 88, the DFSA may require an
Authorised Personto appoint one or more individuals to act as a manager of the business of the Personon such terms as the DFSA may stipulate. Such individuals must be nominated or approved by the DFSA.
The types of circumstances in which the DFSA may exercise this power are set out in Article 88(3). For example, the DFSA may require an
Authorised Personto appoint a manager where it has concerns about the solvency or the level of compliance with prudential requirements of an Authorised Person.
Authorised Personmay receive an opportunity to make representations prior to being required to appoint a manager in accordance with the procedures set out in chapter 6. However, in circumstances of urgency, the DFSA may not give advance notice of the proposed requirement and may not provide the relevant Authorised Personwith the opportunity to make representations prior to the imposition of the requirement.
When the DFSA does require an
Authorised Personto appoint a manager, it will do so in writing, setting out:(a) that the Authorised Personis required to appoint a manager;(b) the time by which such manager must be appointed;(c) the reasons for the Authorised Personbeing required to appoint a manager;(d) the individual nominated by the DFSA to be the manager or the process by which approval may be given by the DFSA; and(e) the fact that the Authorised Personmay appeal to the Regulatory Appeals Committeein respect of the decision.
The DFSA recognises that the use of its Article 88 power to appoint a manager is likely to have a significant impact on an
Authorised Person. Accordingly, the DFSA is likely to exercise such power only in exceptional circumstances.
In considering whether a manager should be appointed, the DFSA may take into consideration all relevant circumstances, including but not limited to, the following matters:(a) the nature and extent of the business of the
Authorised Person;(b) the nature of the DFSA's concerns in relation to the Authorised Personand whether they affect, or have the potential to affect, the DFSA's objectives;(c) whether the DFSA's concerns in relation to the Authorised Personmay be addressed by the appointment of a manager;(d) where the DFSA considers it necessary to protect regulated entities and customers in the DIFC;(e) whether an appropriately qualified manager may be available and willing to undertake the appointment;(f) the likely duration of the appointment; and(g) the likely impact of costs associated with the appointment of a manager.