Entire Section

  • RPP 6-7 RPP 6-7 Serious Financial Hardship

    • RPP 6-7-1

      The DFSA's approach to determining penalties described in sections 6-5 and 6-6 is intended to ensure that financial penalties are proportionate to the contravention. The DFSA recognises that penalties may affect Persons differently, and that the DFSA should consider whether a reduction in the proposed financial penalty is appropriate if such penalty would cause the subject of enforcement action serious financial hardship.

      Inserted (Made 21st August 2014). August 2014 Edition

    • RPP 6-7-2

      Where an individual or firm claims that payment of the financial penalty proposed by the DFSA will cause them serious financial hardship, the DFSA will consider whether to reduce the proposed financial penalty only if:

      (a) the individual or firm provides verifiable evidence that payment of the financial penalty will cause them serious financial hardship;
      (b) the individual or firm provides full, frank and timely disclosure of the verifiable evidence, and cooperates fully in answering any questions asked by the DFSA about their financial position; and
      (c) the individual or firm is able to satisfy the DFSA that payment of the financial penalty will cause them serious financial hardship.
      Inserted (Made 21st August 2014). August 2014 Edition

    • RPP 6-7-3

      There may be cases where, even though the individual or firm has satisfied the DFSA that payment of the financial penalty would cause serious financial hardship, the DFSA considers the contravention to be so serious that it is not appropriate to reduce the financial penalty. The DFSA will consider all the circumstances of the case in determining whether this course of action is appropriate, including whether:

      (a) the individual or firm directly or indirectly derived an economic benefit from the contravention and, if so, the extent of that economic benefit;
      (b) the individual or firm acted fraudulently or dishonestly with a view to personal gain; or
      (c) the individual or firm has spent money or dissipated assets in anticipation of DFSA or other enforcement action with a view to frustrating or limiting the impact of action taken by the DFSA or other authorities.
      Inserted (Made 21st August 2014). August 2014 Edition

    • Individuals

      • RPP 6-7-4

        In assessing whether a financial penalty would cause an individual serious financial hardship, the DFSA will consider the individual's ability to pay the financial penalty over a reasonable period, including agreeing to payment of the financial penalty by instalments where the individual requires time to realise his assets, for example, by waiting for payment of a salary or by selling property.

        Inserted (Made 21st August 2014). August 2014 Edition

    • Firms

      • RPP 6-7-5

        The DFSA will consider reducing the amount of a financial penalty if a firm will suffer serious financial hardship as a result of having to pay the entire financial penalty. In deciding whether it is appropriate to reduce the financial penalty, the DFSA will take into consideration the firm's financial circumstances, including whether the financial penalty would render the firm insolvent or threaten the firm's solvency. The DFSA will also take into account its statutory objectives, for example, in situations where consumers would be harmed or market confidence would suffer, the DFSA may consider it appropriate to reduce a financial penalty in order to allow a firm to continue in business and/or pay redress.

        Inserted (Made 21st August 2014). August 2014 Edition

    • Withdrawal of authorisation or registration

      • RPP 6-7-6

        The DFSA may withdraw a firm's Licence or registration, or the status of registration of an Authorised Individual, Key Individual, Principal Representative or Audit Principal, as well as impose a financial penalty. Such action by the DFSA does not affect the DFSA's assessment of the appropriate financial penalty in relation to a contravention. However, the fact that the DFSA has withdrawn such Licence or registration, as a result of which the firm or individual may have less earning potential, may be relevant in assessing whether the financial penalty will cause the firm or individual serious financial hardship.

        Inserted (Made 21st August 2014). August 2014 Edition