PART 5: CONTROL OF AUTHORISED PERSONS

A Person must not take any steps to:

(a) become a Controller of an Authorised Person incorporated in the AIFC ; or
(b) increase the level of control which that Person has in an Authorised Person incorporated in the AIFC beyond a threshold specified in Rules by the AFSA; unless that Person has obtained the prior written approval of the AFSA to do so.

The AFSA may make Rules in connection with the change of control of Authorised Persons incorporated in the AIFC, including Rules as to:

(a) when a Person becomes or ceases to be a Controller of an Authorised Person;
(b) when the acquisition or increase in the level of control of an Authorised Person requires either the prior approval of, or notification to, the AFSA;
(c) when the AFSA is likely object to an existing Controller;
(d) the procedures relating to the approval, notification and objections referred to in paragraph (b) and (c); and
(e) any other matter necessary or incidental to give effect to the provisions governing Controllers.

(1) Without limiting the generality of the AFSA powers, the AFSA may:

(a) approve or object to a Person becoming a Controller of an Authorised Person incorporated in the AIFC;
(b) approve or object to an increase in the level of control of an existing Controller of an Authorised Person incorporated in the AIFC;
(c) object to an existing Controller of an Authorised Person incorporated in the AIFC where it has reasonable grounds to believe that such a Person is no longer an acceptable Controller; and
(d) approve a Person as a Controller or approve an increase of control by an existing Controller subject to such conditions as it considers appropriate.

(2) Where the AFSA considers an existing Controller of an Authorised Person incorporated in the AIFC to be an unacceptable Controller it may:

(a) notify the Controller and the Authorised Person in writing that the Controller is no longer an acceptable Controller; and
(b) require that the Controller and the Authorised Person take such action as specified by the AFSA.

(3) Without limiting the generality of the AFSA powers, the AFSA may, for the purposes of section 50(2)(b):

(a) require an Authorised Person incorporated in the AIFC to take such action as specified by the AFSA in relation to an unacceptable Controller; or
(b) where an Authorised Person has failed to comply with a requirement referred to in section 50(3)(a) to the satisfaction of the AFSA, either withdraw, or impose conditions, on the Authorised Person’s licence; or
(c) require the unacceptable Controller to take such action as specified by the AFSA.

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