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  • 75A. Power to issue directions for prudential purposes

    (1) For prudential purposes, the DFSA may direct that a particular Authorised Firm or Authorised Firms within a specified class:
    (a) comply with any specified additional capital or liquidity requirements;
    (b) apply a specific provisioning policy or treatment of specified assets;
    (c) comply with specified limits on material risk exposures;
    (d) comply with specified limits on exposures to related parties;
    (e) meet additional or more frequent reporting requirements; or
    (f) take such other action as is specified in the direction.
    (2) The DFSA may direct an Affiliate of an Authorised Person to take specified steps or not to carry out specified activities if the DFSA:
    (a) is the consolidated supervisor of the Group to which the Authorised Person belongs; and
    (b) is satisfied that the direction is necessary or desirable for the purposes of the effective prudential supervision of the Group on a consolidated basis.
    (3) A direction to an Affiliate under Article 75A(2) may include a requirement that the Affiliate:
    (a) limit any activities it undertakes or may undertake (including closing any office that is outside the jurisdiction in which it has its principal place of business and head office) if the activities are reasonably likely to expose the Authorised Person or its Group to excessive risks or risks that are not properly managed; or
    (b) take such other measures as are necessary to remove any impediments to effective supervision of the group on a consolidated basis, including a direction to take steps to restructure the Group.
    (4) Nothing in this Article limits the scope or application of any other power that the DFSA may have in legislation administered by the DFSA.
    (5) A direction issued under this Article comes into force on the date specified in the notice and remains in force, subject to Article 75A(7), until it is revoked or varied in writing by the DFSA pursuant to Article 75A(6).
    (6) The DFSA may, by notice, revoke or vary, any direction given pursuant to this Article.
    (7) A direction issued to Authorised Firms within a specified class under Article 75A(1), including any variation made to such a direction pursuant to Article 75A(6), shall not remain in force for a period longer than 12 months from the date specified in the initial direction notice issued pursuant to Article 75A(1).
    (8) The procedures in Schedule 3 apply to a decision of the DFSA under this Article to issue a direction to a particular person or to vary such a direction.
    (9) If the DFSA decides to exercise its power under this Article to issue a direction to a particular person or to vary such a direction, the person may refer the matter to the FMT for review.