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  • 10-8 10-8 Using the Prohibition Power

    • 10-8-1

      Article 75(1)(a)(iv) of the Regulatory Law 2004 permits the DFSA to prohibit an Authorised Person from using a particular name or description in relation to its business. It is a strong power that the DFSA will use if it considers that a prohibition is necessary in order to ensure customers, Authorised Persons or the financial system are not adversely affected.

      Derived from Notice of Updates (Made 14th July 2015). July 2015 Edition

    • 10-8-2

      Before deciding whether to use of the Article 75(1)(a)(iv) power, the DFSA will generally try to resolve any concerns that it has with an Authorised Person's name using informal channels, and would generally seek a voluntary undertaking by the firm to change its name. However, in urgent cases, the DFSA may use the prohibition power without, or with very little, prior notice in accordance with paragraph 4(7) of Schedule 3 of the Regulatory Law 2004.

      Derived from Notice of Updates (Made 14th July 2015). July 2015 Edition

    • 10-8-3

      Ordinarily, if the DFSA has concerns about an Authorised Person's name, trading name or business description, it will write to the person explaining its concerns about the particular name and will provide the firm with a period in which to respond to its concerns. If, following receipt of any response, the DFSA remains dissatisfied with the continued use of the particular name, the DFSA will write to the firm and ask the firm to agree to cease using the name. The DFSA will give the person a reasonable period of time in order to change their name. If the person does not agree to change their name or continues to use the name after the time allowed to change the name, the DFSA will use Article 75(1)(a)(iv) of the Regulatory Law in order to prohibit the use of the name. Where a person refuses to comply with an Article 75(1)(a)(iv) notice, the DFSA would generally seek to enforce the notice in the DIFC Court under Article 92 of the Regulatory Law.

      Derived from Notice of Updates (Made 14th July 2015). July 2015 Edition

    • 10-8-4

      The DFSA would take this naming policy into consideration when deciding whether to use its Article 75(1)(a)(iv) power and, in particular, relevant factors that it would consider prior to using the power would include:

      (a) whether the Authorised Person holds the required DFSA Authorisations to carry on the relevant Financial Services;
      (b) the extent to which the Authorised Person's name or description reflects the substance of the firm's Financial Services activities in or from the DIFC;
      (c) whether the use of certain words could mislead the public into thinking that the Authorised Firm is operating a banking or insurance business in or from the DIFC when the firm is not; and
      (d) whether the use of certain words could otherwise mislead consumers about the Authorised Person's activities in or from the DIFC.
      Derived from Notice of Updates (Made 14th July 2015). July 2015 Edition

    • 10-8-5

      The DFSA will adopt a similar process and approach when deciding to use its Article 75(1)(a)(v) power in relation to a Fund.

      Derived from Notice of Updates (Made 14th July 2015). July 2015 Edition

    • 10-8-6

      When the DFSA exercises its Article 75(1)(a)(v) power in relation to an Authorised Person, the person may refer the matter to the Financial Markets Tribunal for review.

      Derived from Notice of Updates (Made 14th July 2015). July 2015 Edition