AMI 10 AMI 10 Withdrawal of a Licence
AMI 10.1 AMI 10.1 Application
This chapter applies to an
Authorised Market Institution.
AMI 10.2 AMI 10.2 Withdrawal of a Licence at an Authorised Market Institution's request
AMI 10.2.1 AMI 10.2.1(1) An
Authorised Market Institutionmust continue to carry on every Financial Serviceit is authorised to conduct under its Licenceuntil its Licenceis withdrawn or the DFSAconsents in writing.(2) An Authorised Market Institutionseeking to have its Licencewithdrawn must submit a request in writing stating:(a) the reasons for the request;(b) the date on which it will cease to carry on Financial Servicesin or from the DIFC;(c) how Personsusing facilities maintained by it for trading, clearing or settlement, as applicable, are affected and any alternative arrangements made for the trading, clearing or settlement;(d) where applicable, how persons with Securitiesadmitted to an Official List of Securitiesmaintained by it are affected and any alternative arrangements made for the listing and trading of the relevant Securities; and(e) that it has discharged, or will discharge, all obligations owed to its users in respect of whom the Authorised Market Institutionhas carried on Financial Servicesin or from the DIFC.
AMI 10.2.1 Guidance1. The
DFSAwill need to be satisfied when considering requests under Rule 10.2.1, that an Authorised Market Institutionhas made appropriate arrangements with respect to its existing users (including the receipt of consent where required) and, in particular:a. whether there may be a long period in which the business will be wound down or transferred;b. whether money and other assets belonging to users must be returned to them; andc. whether there is any other matter which the DFSAwould reasonably expect to be resolved before granting a request for the withdrawal of a Licence.2. In determining a request for the withdrawal of a Licence, the DFSAmay require additional procedures or information as appropriate including evidence that the Authorised Market Institutionhas ceased to carry on Financial Services.3. Detailed plans should be submitted where there may be an extensive period of wind-down. It may not be appropriate for an Authorised Market Institutionto immediately request a withdrawal of its Licencein all circumstances, although it may wish to consider reducing the scope of its Licenceduring this period. should discuss these arrangements with the Authorised Market Institution DFSA.4. The DFSAmay refuse a request for the withdrawal of a Licencewhere it appears that users and customers may be adversely affected.5. The DFSAmay also refuse a request for the withdrawal of a Licencewhere:a. the Authorised Market Institutionhas failed to settle its debts to the DFSA; orb. it is in the interests of a current or pending investigation by the DFSA, or by another regulatory body or Financial Services Regulator.6. Under Article 63 where the DFSAgrants a request for the withdrawal of a Licence, the DFSAmay continue to exercise any power under the Regulatory Law, the Markets Law or Rules in relation to an Authorised Market Institutionfor a period of three years from the date on which it became aware of the matter giving rise to the right to exercise the power.
AMI 10.3 AMI 10.3 Withdrawal of a Licence on the DFSA's Initiative
AMI 10.3 Guidance
In section 10.2 above, an application to withdraw a
Licencewill be at the Authorised Market Institution's request. Under Article 51 of the Regulatory Law, the DFSAmay act on its own initiative to withdraw an Authorised Market Institution's Licencein cases when the Authorised Market Institutionno longer has authority to carry on any Financial Service, is no longer meeting the conditions of its Licenceor has failed to remove a Controllerin the circumstances described in Article 64 of the Regulatory Law.