52. Withdrawal of registration

Past version: effective from 18/04/2006 - 31/07/2006
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(1) The DFSA may withdraw the registration of a Fund where:
(a) one or more of the following circumstances apply:
(i) the Fund is not operating or has been wound up;
(ii) the Operator has, in purported compliance with any requirement under the Law or the Rules, knowingly or recklessly given the DFSA information which is false or misleading in a material particular;
(iii) the Operator has contravened a requirement imposed on him by or under the Law;
(iv) the Operator or member of the Fund's Governing Body has not complied with a direction issued by the DFSA under the Law;
(v) a person is exercising significant influence over the Fund or Operator or any member of the Fund's Governing Body and that person is not a member of the Fund's Governing Body, Shari'a Supervisory Board or a person providing oversight functions;
(vi) the Operator is no longer fit and proper to operate the Fund or is incapable of operating the Fund in compliance with the Law or Rules or the terms of its Constitution; or
(vii) the Operator requests the DFSA to withdraw the registration on the grounds that a Special Resolution has been passed by the relevant Unitholders that the Fund should be deregistered; and
(b) the DFSA considers that:
(i) the withdrawal of registration is in the interests of the Unitholders of the Fund; or
(ii) appropriate steps have been taken or may reasonably be taken to protect the interests of the Unitholders.
(2) Where the DFSA has withdrawn, or proposes to withdraw, a registration under this Article, it may, by written notice, direct the Operator to take such steps as the DFSA considers necessary or desirable to protect the interests of Unitholders in the Fund.
(3) Subject to Article 52(4), the DFSA may only exercise its power under Article 52(1) if it has given the relevant Operator a suitable opportunity to make representations in person and in writing to the DFSA in relation to the proposed withdrawal and the DFSA has informed the Operator in writing of its response to any such representation.
(4) The restriction imposed on the DFSA under Article 52(3) shall not apply if the Operator requests the DFSA to withdraw the registration or the Operator is no longer authorised under its Licence to operate the Fund.
(5) Upon deciding to withdraw a registration, the DFSA shall without undue delay inform the Operator in writing of:
(a) such decision;
(b) the date on which such withdrawal shall be deemed to take effect; and
(c) where requested by the Operator, the reasons for the decision.
(6) The Court may order the DFSA to withdraw the registration of a Public Fund.