Entire section
2.4. Application process
2.6. Waivers, conditions, restrictions

2.5. Licence

2.5.1. General

(a) A Person must not Test and/or Develop FinTech Activities within the FinTech Lab unless it holds a Licence issued by the CFTO on behalf of the AFSA.

(b) A Licence issued by the CFTO, which can be subject to a set of conditions, serves as an authorisation of a Centre Participant to:

  1. (i) Test the FinTech Activities within the FinTech Lab; and/or
  2. (ii) Develop the FinTech Activities within the FinTech Lab.

(c) The Licence has effect for 2 years from the date of its issuance.

2.5.2. Extension, varying, withdrawal of the Licence

(a) The FinTech Lab Participant is entitled to apply to the AFSA to extend, vary or withdraw the Licence.

(b) The FinTech Lab Participant may submit an application for the Licence extension, but no later than 2 months prior to the Licence expiration date.

(c) The FinTech Lab Participant is entitled to apply to the AFSA to extend the validity, to change the scope, and to have a condition/restriction varied or withdrawn from its Licence (or to have its Licence withdrawn) by:

  1. (i) filing a written request with the AFSA accompanied by such documents as may be requested by the AFSA;
  2. (ii) providing such further information as the AFSA may require.

(d) Each application for an extension, variation or withdrawal of the Licence must be accompanied by sufficient reasons for such an application.

(e) In the case of withdrawal of the Licence, the FinTech Lab Participant follows the procedure specified in 2.5.3(d) of these Rules.

(f) The CFTO may approve the extension, variation or withdrawal of the Licence on a caseby-case basis.

(g) The CFTO, subject to 7 days prior notification to the FinTech Lab Participant and consideration of any comments received from the FinTech Lab Participant, may vary the terms of the Licence on his/her own initiative and at his/her own discretion based on the progress of the FinTech Lab Participant in Testing and/or Developing the FinTech Activities.

2.5.3. Suspension, revocation of the Licence

(a) The CFTO may suspend or withdraw the Licence based on an application of the FinTech Lab Participant.

(b) The CFTO is entitled to suspend or revoke all or some of the terms of the Licence at his/her own discretion.

(c) For the purposes of 2.5.3(b), the CFTO may exercise its power only if the CFTO:

  1. (i) is satisfied that there is a breach, or likely breach of a provision of legislation administered by the AFSA; or there is a failure, or likely failure, to comply with any obligation to which the FinTech Lab Participant is subject under the Licence; or
  2. (ii) considers that the exercise of the power is necessary or desirable in the interests of the AIFC as the risks posed by the Testing and /or Developing FinTech Activities exceed the benefits to consumers or the financial system.

(d) Upon revocation or withdrawal of the Licence, the FinTech Lab Participant must:

  1. (i) immediately implement its exit strategy to cease provision of the FinTech Activities to new and existing customers;
  2. (ii) provide notification to customers informing them of the cessation and their rights to redress, where relevant;
  3. (iii) compensate any customers who had suffered financial losses from engaging with the FinTech Lab Participant pursuant to the safeguards submitted by the FinTech Lab Participant while submitting the application for authorisation;
  4. (iv) ensure that the exit strategy is employed and all the existing obligations to its customers must be fully fulfilled or addressed; and
  5. (v) submit a final report to the AFSA on the actions taken pursuant to the paragraph 2.7.3. of these Rules within 30 days after the revocation or withdrawal.