Entire Section

  • Chapter 5 – Miscellaneous

    • 84T. Recognition of Resolution Actions in Other Jurisdictions

      (1) Where a Resolution Authority in another jurisdiction notifies the DFSA that it intends to take or has taken resolution action with respect to an entity in that jurisdiction and requests the DFSA to recognise that resolution action, the DFSA may:
      (a) make an order recognising the resolution action;
      (b) make an order recognising part of the resolution action, and refuse to recognise the remainder of it; or
      (c) refuse to recognise the resolution action.
      (2) When considering whether to recognise resolution action taken in another jurisdiction, the DFSA shall consider the impact of its decision on financial stability in the DIFC, and in other jurisdictions outside the DIFC (including in the State).
      (3) The DFSA may refuse to recognise resolution action in another jurisdiction, or any part thereof, if it is satisfied that one or more of the following conditions are met:
      (a) the recognition would have an adverse effect on financial stability, the financial services industry in the DIFC or the economy of the State, whether this effect would occur directly or indirectly as a result of the recognition;
      (b) the exercise of a Resolution Power or Resolution Tool by the DFSA, rather than recognition of the resolution action in relation to the entity is necessary to achieve one or more of the DFSA’s objectives with respect to Resolution;
      (c) under the resolution action, creditors (including, in particular, depositors) or shareholders located or payable in the DIFC would not, by reason of being located and payable in the DIFC, receive the same treatment, and have similar legal rights, as creditors (including depositors) or shareholders who are located or payable in the other jurisdiction concerned; or
      (d) the recognition would have a significant detrimental impact on the DIFC or be unlawful under any DIFC Law.
      (4) Where the DFSA makes a decision under (1), the DFSA:
      (a) shall record its decision together with the reasons for that decision;
      (b) shall give written notice of the decision to:
      (i) the Resolution Authority in the other jurisdiction;
      (ii) if it considers it necessary, the entity; and
      (iii) if it considers it necessary, any Resolution Authority in any other relevant jurisdiction; and
      (c) may publish information about the decision if it considers it is desirable to do so in the public interest.
      (5) For the purposes of supporting, or giving full effect to, an order under (1) (a) or (b) (a “Recognition Order”), the DFSA may:
      (a) include in the order any provision that the DFSA considers necessary to give effect to the order; or
      (b) exercise in conjunction with the order one or more Resolution Powers or Resolution Tools as it considers appropriate in the circumstances.
      (6) A Recognition Order shall not prejudice the winding up of an Authorised Firm under ordinary insolvency proceedings, unless the winding up conflicts with the resolution action, in which case the recognised resolution action shall take precedence.

    • 84U. Statements of Policy

      (1) The DFSA may prepare and publish a statement of its policy about the principles it will consider in exercising its powers under this Part.
      (2) The DFSA may at any time amend or replace a statement published under this Article and where it does so it shall publish the amended or new statement.
      (3) In exercising its powers under this Part, the DFSA shall have regard to a statement of policy (if any) published under this Article.

    • 84V. Application of Insolvency Law

      (1) To the extent that this Part, including any Rule made or requirement issued under this Part, is inconsistent with the Insolvency Law, the provision of this Part or the Rule or requirement under this Part shall prevail.
      (2) If the DFSA has determined that the Resolution Conditions have been met in relation to an Authorised Firm, a person may not commence insolvency proceedings under the Insolvency Law in respect of the Authorised Firm except with the DFSA’s consent.
      (3) The DFSA may apply to the Court under Article 93 of this Law for the winding up of an Authorised Firm or commence insolvency proceedings under the Insolvency Law in respect of the Authorised Firm notwithstanding that it has determined that the Resolution Conditions have been met or has taken resolution action under this Part in respect of the Authorised Firm.
      (4) The DFSA may take resolution action under this Part in relation to an Authorised Firm even if insolvency proceedings have al commenced in relation to the Authorised Firm.

    • 84W. Protection from Liability

      (1) An Authorised Firm, an entity in its Group or a director or employee of the Authorised Firm or an entity in its Group is not liable for damages in respect of anything done or omitted to be done in good faith in accordance with a requirement made by the DFSA under this Part.
      (2) A Temporary Administrator or an independent valuer appointed under this Part is not liable for damages in respect of anything done or omitted to be done in good faith for the purposes of, or in connection with, the performance of functions under that appointment.

    • 84X. Default Event Provision

      (1) Article 84X(2) applies where a contract or other agreement:
      (a) is entered into by an Authorised Firm or a Regulated Financial Institution; or
      (b) includes cross-default provisions, and is entered into by another Group entity in the Authorised Firm’s Group or Regulated Financial Institution’s Group,
      and the substantive obligations provided for in the contract or agreement (including payment and delivery obligations and provision of collateral) continue to be performed.
      (2) The following shall be disregarded in determining whether a Default Event Provision applies:
      (a) the exercise of a measure in an Authorised Firm’s Recovery Plan, the removal of impediments to Resolvability of an Authorised Firm, the imposition of an Early Intervention Power, the appointment of a Temporary Administrator, the exercise of a Resolution Power or application of a Resolution Tool, or the recognition of a resolution action taken by a Resolution Authority; and
      (b) the occurrence of any event directly linked to the application of such measure, power or action.
      (3) A notice under Article 84N may specify additional matters that are to be disregarded under (2) and those matters shall be disregarded.
      (4) In this Article, “specified” in relation to a contract or agreement means specified in the contract or other agreement .
      (5) In this Article, “Default Event Provision” means a provision of a contract or other agreement:
      (a) that has the effect that if a specified event or situation arises:
      (i) the agreement is terminated, modified, replaced or suspended;
      (ii) rights or duties under the agreement are terminated, modified, replaced or suspended;
      (iii) a right accrues to terminate, modify or replace the agreement;
      (iv) a right accrues to terminate, modify or replace rights or duties under the agreement;
      (v) a set-off or netting right accrues under the agreement;
      (vi) a sum becomes payable or ceases to be payable;
      (vii) a right accrues to obtain possession, exercise control or enforce any security over any property;
      (viii) delivery of anything becomes due or ceases to be due;
      (ix) a right to claim a payment or delivery accrues, changes or lapses;
      (x) any other right accrues, changes or lapses; or
      (xi) an interest is created, changes or lapses; or
      (b) that has the effect that a provision of the contract or agreement:
      (i) takes effect only if a specified event occurs or does not occur;
      (ii) takes effect only if a specified situation arises or does not arise;
      (iii) has effect only for so long as a specified event does not occur;
      (iv) has effect only while a specified situation lasts;
      (v) applies differently if a specified event occurs;
      (vi) applies differently if a specified situation occurs; or
      (vii) applies differently while a specified situation lasts.