61. Applications and other matters in relation to recognised status
Past version: effective up to 04/07/2012
To view other versions open the versions tab on the right
(1) Any body corporate, partnership or unincorporated association may apply to the DFSA for a notice (a 'Recognition Notice') declaring it to be:
(a) a Recognised Body; or
(b) a Recognised Member.
(2) A Recognised Body may apply to the DFSA to extend the scope of its Recognition Notice to Financial Services other than those in respect of which the Recognised Body is already Recognised.
(3) The DFSA shall make Rules setting out the recognition criteria:
(a) an applicant must satisfy to obtain a Recognition Notice from the DFSA under this Part; and
(b) which it must continue to satisfy if it is to remain a Recognised Body or Recognised Member.
(4) The DFSA may make Rules requiring a Recognised Body or Recognised Member to give it notice of, and information about, such events as may be specified where such notice or information is reasonably required for the exercise of the DFSA's functions under this Law.
(5) At any time after receiving an application and before determining it, the DFSA may require the applicant to provide such further information as it reasonably considers necessary to enable it to determine the application.
(6) If at any time between the filing of an application and the issue of a Recognition Notice the applicant becomes aware of a material change reasonably likely to be relevant to the application under consideration, it shall inform the DFSA in writing of such change without delay.
(7) The DFSA may in its absolute discretion refuse to grant an application for a Recognition Notice or for an extension to the scope of a Recognition Notice. Upon refusing such an application, the DFSA shall without undue delay, inform the applicant in writing of such refusal and, where requested by the applicant, the reasons for such refusal.
(8) The DFSA may grant an application for a Recognition Notice or for an extension to the scope of a Recognition Notice with or without conditions and restrictions. The DFSA shall without undue delay inform the relevant applicant in writing of:
(a) such decision;
(b) the date on which the Recognition Notice or for an extension to the scope of a Recognition Notice shall be deemed to take effect; and
(c) any conditions and restrictions applicable to the Recognition Notice.
(9) The DFSA may revoke a Recognition Notice by a notice (a "Revocation Notice") issued on its own initiative or at the request of a Recognised Body or Recognised Member.
(10) The DFSA may exercise its power under Article 61(9) in the following circumstances:
(a) the Recognised Body or Recognised Member is in breach of, or has been in breach of, one or more restrictions or conditions applicable to its Recognition Notice;
(b) the Recognised Body or Recognised Member is otherwise in breach of, or has otherwise been in breach of, the Law or Rules or other legislation administered by the DFSA;
(c) the Recognised Body or Recognised Member is no longer fit and proper;
(d) the Recognised Body or Recognised Member is failing, or has failed, to satisfy the recognition criteria;
(e) the Recognised Body or Recognised Member requests the Revocation Notice; or
(f) the DFSA considers that the exercise of the power is necessary or desirable in the pursuit of its objectives.
(11) Subject to Articles 61(11) and (12), the DFSA may only exercise its power under Article 61(9) if it has given the relevant recognised undertaking a suitable opportunity to make representations in person and in writing to the DFSA in relation to the proposed revocation.
(12) The restriction imposed on the DFSA under Article 61(11) shall not apply if:
(a) the DFSA concludes that any delay likely to arise as a result of such requirement is prejudicial to the interests of the DIFC; or
(b) the Recognised Body or Recognised Member requests the DFSA to revoke its Recognition Notice.
(13) Where the DFSA takes steps to exercise its powers under Articles 61(8) in relation to a Recognised Body or Recognised Member following a determination of the Financial Markets Tribunal or a decision of the Court in relation to the conduct of such recognised undertaking, the obligation upon the DFSA to afford that recognised undertaking an opportunity to make representations to the DFSA shall not apply in relation to findings of fact of that tribunal or the Court as the case may be.
(14) Where the DFSA has received a representation from a Recognised Body or Recognised Member under this Article, the DFSA shall without undue delay inform such Recognised Body or Recognised Member in writing of its response to such representation.
(15) Upon deciding to issue a revocation notice, the DFSA shall without undue delay inform the relevant Recognised Body or Recognised Member in writing of:
(a) such decision; and
(b) the date on which such revocation shall be deemed to take effect.