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  • Chapter 1 — Powers of Supervision

    • 73. Powers to Obtain Information

      (1) The DFSA may require an Authorised Person, DNFBP, Domestic Fund, Registered Auditor or any director, officer, employee or agent of such person by written notice to:
      (a) give, or procure the giving of, such specified information; or
      (b) produce, or procure the production of, such specified documents;
      to the DFSA as the DFSA considers necessary or desirable to meet the objectives of the DFSA.
      (2) The DFSA may require any Authorised Person, Domestic Fund, DNFBP or Registered Auditor to allow the DFSA to enter its premises during normal business hours or at any other time as may be agreed for the purpose of inspecting and copying information or documents stored in any form on such premises as it considers necessary or desirable to meet the objectives of the DFSA.
      (3) The DFSA may exercise its powers under this Article 73 in respect of any person specified in Article 73(1) or (2) within, or outside of, the DIFC.
      (4) Information given or a document produced as a result of the exercise by the DFSA of powers under this Article is admissible in evidence in any proceedings, provided that any such information or document also complies with any requirements relating to the admissibility of evidence in such proceedings.

    • 74. Requirement to Provide a Report

      (1) The DFSA may require, in such manner and in such form as it may prescribe in the Rules, an Authorised Person to provide the DFSA with a report on any matter about which the DFSA has required or could require the giving of information or production of documents under Article 73.
      (2) The DFSA may require, at such frequency and in such manner and in such form as it may prescribe in the Rules, an Authorised Market Institution to provide the DFSA with a report or reports relating to the conduct of or the performance of the regulatory functions of an Authorised Market Institution, including but not limited to a report or reports addressing:
      (a) ongoing compliance of the Authorised Market Institution with the terms of its Licence;
      (b) complaints received and dealt with and disciplinary matters arising and dealt with;
      (c) adequacy and performance of systems and controls; or
      (d) financial matters concerning the operation of the Authorised Market Institution.
      (3) The person appointed to make a report required by Article 74(1) or (2) must be a person nominated or approved by the DFSA.
      (4) Where a requirement has been made of an Authorised Person under this Article, it must take all reasonable steps to ensure that any person who is providing or has provided services to the Authorised Person shall provide all such assistance as the appointed person may reasonably require.
      (5) Subject to Article 74(6), information given or a document produced as a result of the exercise by the DFSA of powers under this Article is admissible in evidence in any proceedings, provided that any such information or document also complies with any requirements relating to the admissibility of evidence in such proceedings.
      (6) The DFSA shall not disclose a statement made by a person in a report made pursuant to a requirement made of the person under Article 74(1) or (2) to any law enforcement agency for the purpose of criminal proceedings against the person unless:
      (a) the person consents to the disclosure; or
      (b) the DFSA is required by law or court order to disclose the statement.
      (7) The procedures in Schedule 3 apply to a decision of the DFSA under Article 74 (1) or (2).
      (8) If the DFSA decides to exercise its power under Article 74 (1) or (2), the person may refer the matter to the FMT for review.

    • 75. Imposing Prohibitions or Restrictions on Business

      (1) Subject to Article 77, the DFSA may impose any one or more of the following prohibitions or requirements:
      (a) a prohibition on an Authorised Person from:
      (i) entering into certain specified transactions or types of transaction;
      (ii) soliciting business from certain specified persons or types of person;
      (iii) carrying on business in a specified manner or other than in a specified manner;
      (iv) using a particular name or description in respect of the Authorised Person; or
      (v) using a particular name for a Fund or a sub-fund of a Fund; or
      (b) a requirement that an Authorised Person carry on business in, and only in, a specified manner.
      (2) The prohibitions or requirements in Article 75(1) may be imposed on the Fund Manager in relation to the management of a Fund or on the Fund itself, even where the Fund has no legal personality.
      (3) The procedures in Schedule 3 apply to a decision of the DFSA under Article 75(1).
      (4) If the DFSA decides to exercise its power under Article 75(1), the Authorised Person may refer the matter to the FMT for review.

    • 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.

    • 76. Restriction on Dealing with Property

      (1) In this Article:
      (a) "dealing" in relation to property includes the maintaining, holding, disposing and transferring of property; and
      (b) "relevant property", in relation to an Authorised Person, means:
      (i) any property held by the person on behalf of any of the clients of the person, or held by any other person on behalf of or to the order of the person; or
      (ii) any other property which the DFSA reasonably believes to be owned or controlled by the person.
      (2) Subject to Article 77, the DFSA may:
      (a) prohibit an Authorised Person from:
      (i) dealing with any relevant property in a specified manner or other than in a specified manner; or
      (ii) assisting, counselling or procuring another person to deal with any relevant property in a specified manner or other than in a specified manner;
      (b) require an Authorised Person to deal with any relevant property in a specified manner.
      (c) require an Authorised Person to deal with any relevant property such that:
      (i) the property remains of the value and of the description that appear to the DFSA to be desirable with a view to ensuring that the person will be able to meet its liabilities in relation to the business which constitutes a Financial Service for which it holds a Licence; and
      (ii) the person is able at any time readily to transfer or dispose or otherwise deal with of the property when instructed to do so by the DFSA.
      (d) withdraw an existing prohibition or requirement imposed on an Authorised Person; or
      (e) substitute or vary an existing prohibition or requirement imposed on an Authorised Person.
      (3) The DFSA may in any prohibition or requirement imposed under Article 76(2) direct that, for the purposes of such requirement, property of a specified description shall or shall not be taken into account.
      (4) The procedures in Schedule 3 apply to a decision of the DFSA under this Article.
      (5) If the DFSA decides to exercise its power under this Article, the Authorised Person may refer the matter to the FMT for review.

    • 77. Imposition of a prohibition or requirement

      (1) The DFSA may impose a prohibition or requirement under Article 75 or 76 in the circumstances prescribed in the Rules.
      (2) Any prohibition or requirement including any variation or substitution of such prohibition or requirement, made under Article 75 or 76, does not operate so as to render an agreement unenforceable by a party to the agreement if he proves that in entering into the agreement he acted in good faith and was unaware of any notice given, served or published in relation to such imposition, withdrawal, substitution or variation.
      (3) The withdrawal of a Licence under Chapter 4 of Part 3 of the Law does not affect the validity of a current prohibition or requirement made under Articles 75 or 76.