GEN 11.10.8

(1) Subject to (2), an Authorised Firm which makes or proposes to make a Major Acquisition as defined in (3) must:
(a) if it is a Domestic Firm, comply with the requirements in Rule 11.10.9; and
(b) if it is not a Domestic Firm, comply with the requirements in Rule 11.10.10.
(2) The requirement in (1) does not apply to an Authorised Firm which is a Credit Rating Agency or a firm in Category 3 (as defined in PIB Rules 1.3.3 to 1.3.5) or Category 4 (as defined in PIB Rule 1.3.6).
(3) Subject to (4), an Authorised Firm makes a Major Acquisition if it makes or proposes to directly or indirectly acquire a shareholding in a Body Corporate where that acquisition:
(a) is of a value (whether by one acquisition or a series of acquisitions) of 10% or more of:
(i) the Authorised Firm'sCapital Resources, if it is a Domestic Firm which is a Category 1 Authorised Firm (as defined in PIB Rule 1.3.1), Category 2 Authorised Firm (as defined in PIB Rule 1.3.2) or Category 5 Authorised Firm (as defined in PIB Rule 1.3.7); or
(ii) the Authorised Firm'sAdjusted Capital Resources, if it is a Domestic Firm conducting Insurance Business; or
(iii) the capital resources of the Authorised Firm calculated in accordance with the requirements of the Financial Services Regulator in its home jurisdiction, if it is not a Domestic Firm; or
(b) even if it does not exceed the 10% threshold referred to in (a), it is reasonably likely to have a significant regulatory impact on the Authorised Firm's activities.
(4) An acquisition is not a Major Acquisition for the purposes of (3) if it is an investment made by an Authorised Firm:
(a) in accordance with the terms of a contract entered into by the Authorised Firm as an incidental part of its ordinary business; or
(b) as a routine transaction for managing the Authorised Firm's own investment portfolio and therefore can reasonably be regarded as made for a purpose other than acquiring management or control of a Body Corporate either directly or indirectly.
Derived from Notice of Amendments to Legislation April 2011 [VER27/02-11]
[Amended] DFSA RM96/2012 (Made 24th July 2012) [VER30/07-12]
[Amended] DFSA RM166/2016 (Made 10th February 2016). [VER36/04-16]