23. Exemption from liability

The AFSA, and its officers, employees and agents, are not liable for anything done or omitted to be done in the Exercise, or purported Exercise, of the AFSA’s Functions under these Regulations unless it is proven that the thing was done or omitted to be done in bad faith.

24. Applicable law relating to securities held as Collateral Security

If:

• (a) securities (including rights in securities) are provided, under the Payment System Rules of a Designated Payment System, as Collateral Security to a party to the rules; and
• (b) a register, account or centralised deposit system located in a Jurisdiction records the entitlement of the Person to the Collateral Security; the rights of the Person as a holder of Collateral Security in relation to the securities is governed by the law of the Jurisdiction where the register, account or centralised deposit system is located.

25. AFSA and Central Bank etc.

(1) In Exercising its Functions under these Regulations, the AFSA may consult with, and have regard to the views of, the Central Bank.

(2) The AFSA may share any documents or information obtained by it under these Regulations with any or all of the following:

• (a) the Central Bank;
• (b) the central bank or monetary authority of any other Jurisdiction;
• (c) any banking or financial services regulatory body of any other Jurisdiction;
• (d) any other AIFC Bodies.

26. Power to adopt rules

(1) The Board of Directors of the AFSA may adopt rules prescribing matters:

• (a) required or permitted by these Regulations to be prescribed by the Rules; or
• (b) necessary or convenient to be prescribed for carrying out or giving effect to these Regulations.

(2) However, the Board may not adopt rules under this section on matters related to the regulation of financial services and related operations in the AIFC.

(3) Without limiting subsection (1), the Board may adopt rules:

• (a) with respect to any matters relating to the AFSA’s Functions under these Regulations; or
• (b) to facilitate the administration of, or further the object or purposes of, these Regulations; or
• (c) prescribing the Contraventions of these Regulations and the Rules for which fines may be imposed by the AFSA;
• (d) with respect to the procedures for the imposition or recovery of fines, including any circumstances in which the procedures do not apply to the imposition of a fine; or
• (e) setting limits for fines and other penalties that may be imposed for Contraventions of these Regulations or the Rules

(4) Without limiting subsection (1), rules adopted by the Board may do any of the following:

• (a) make different provision for different cases or circumstances;
• (b) include supplementary, incidental and consequential provisions;
• (c) make transitional and savings provisions.

(5) If any rules purport to be adopted in the exercise of a particular power or powers, the rules are taken also to be adopted in the exercise of all the powers under which they may be adopted.

(6) Until rules mentioned in subsection (3)(e) are adopted by the Board, there are no limits on the fines and other penalties that may be imposed for a Contravention of these Regulations or the Rules.

27. Publication of proposed rules

(1) Before making rules under section 26 (Power to adopt rules), the Board of Directors of the AFSA must publish a notice under this section.

(2) The notice must include, or have attached to it:

• (a) a summary of the proposed rules; and
• (b) the text of the rules; and
• (c) a statement of the substance and purpose of the material provisions of the rules.

(3) The notice must invite interested Persons to make representations about the proposed rules within a stated period of at least 30 days.

(4) Subsections (1), (2) and (3) do not apply to the making of rules if the Board of Directors of the AFSA considers:

• (a) that any delay likely to arise because of complying with those subsections is prejudicial to the interests of the AFSA; or
• (b) that the rules are merely consequential on any other Rules adopted (or proposed to be adopted) by the Board; or
• (c) that the rules do not change, or significantly change, the policy intended to be give effect to by these Regulations and the Rules or any other AIFC Regulations or AIFC Rules.

28. Notification of AFSA’s decisions and reasons

(1) This section applies if, under these Regulations or the Rules:

• (a) the AFSA makes a decision (including a decision refusing to make a decision) on the application (however described) of a Person (the affected Person for the decision); or
• (b) the AFSA makes a decision affecting the interests of a Person (the affected Person for the decision) on the AFSA’s own initiative.

(2) As soon as practicable after the AFSA makes the decision, the AFSA must give the affected Person Written notice of the decision.

(3) Without limiting subsection (2), the notice must:

• (a) if the decision is to take effect on the day after the day the notice is given to the Person—state that fact; or
• (b) if the decision is to take effect at a different time—specify the time; or
• (c) if the decision is to grant or issue (however described) a designation, licence, permit, registration or anything else subject to conditions, restrictions or limitations of any kind—state the conditions, restrictions or limitations; or
• (d) if the decision is to grant or issue (however described) a designation, licence, permit, registration or anything else for a period—specify the period.

(4) The notice must include, or be accompanied by, a statement of the AFSA’s reasons for the decision.

(5) However, if the decision was made on the application (however described) of the affected Person, subsection (4) does not apply to the decision so far as the decision was the decision the affected Person applied for.

(6) Also, subsection (4) does not apply to the decision if a provision of any AIFC Regulations or AIFC Rules expressly provides that the AFSA need not provide reasons for the decision.

(7) This section is additional to, and does not limit, any other provision of any the AIFC Regulations or AIFC Rules.

29. Language

The AFSA may require communications to which the AFSA is a party under these Regulations or the Rules to be conducted in the English language.