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.