1.2.1. Form and content of application for a Licence

A Person may apply to the AFSA for a Licence for a Centre Participant to carry on one or more Market Activities in the AIFC by:

• (a) completing the form prescribed in Schedule 3 and filing the form with the AFSA accompanied by such documents as are specified in the form;
• (b) providing such information and documents as the AFSA may require; and
• (c) paying the fee prescribed in the Fees Rules to the AFSA.

1.2.2. Adequate and appropriate financial resources

In assessing whether an applicant has adequate and appropriate financial resources for the purposes of section 37(1)(a) of the Framework Regulations, the AFSA will consider:

• (a) how the applicant will comply with the applicable provisions of AMI 2.2;
• (b) the provision the applicant makes in respect of any liabilities, including contingent and future liabilities;
• (c) the means by which the applicant manages the risks to its business;
• (d) the rationale for, and basis of, the applicant's business plan;
• (e) whether the applicant's assets are appropriate given the applicant's liabilities;
• (f) the liquidity of the applicant's resources;
• (g) the nature and scale of the business which will be carried on by the applicant;
• (h) the risks to the continuity of the services which will be provided by the applicant;
• (i) the applicant's membership of a Group and any relevant effect which that membership may have; and
• (j) whether the applicant is capable of meeting its debts as they fall due.

1.2.3. Adequate and appropriate non-financial resources

In assessing whether an applicant has adequate and appropriate non‐financial resources for the purposes of section 37(1)(a) of the Framework Regulations, the AFSA will consider:

• (a) the skills and experience of those who will manage the applicant's affairs;
• (b) the applicant's resources to identify, monitor, measure and take action to remove or reduce risks as to its safety and soundness;
• (c) the applicant’s resources to control and monitor access to, and the use of, its facilities in a manner designed to protect the orderly functioning of the market and the interests of investors;
• (d) the applicant’s resources to reduce the extent to which its facilities can be used for a purpose connected with Market Abuse, Financial Crime or money laundering, and to facilitate their detection and monitor their incidence;
• (e) the applicant’s resources to monitor and take action in the event of a member of an applicant being unable to meet his obligations in respect of one or more Market Contracts;
• (f) the effectiveness of the applicant's business management; and
• (g) whether the applicant's non‐financial resources are sufficient to enable the applicant to comply with the Regulations and Rules that are likely to be relevant to the applicant.

1.2.4. Adequate and appropriate technology resources

In assessing whether an applicant has adequate and appropriate technology resources for the purposes of section 37(1)(a) of the Framework Regulations, the AFSA will consider:

• (a) the applicant’s resources for the evaluation, selection and on-going monitoring of the information technology systems used by the applicant;
• (b) the applicant’s willingness and ability to use development and testing methodologies in line with internationally accepted testing standards in order to test the viability and effectiveness of such systems; and
• (c) the means by which the applicant will secure and maintain the confidentiality of the data and ensure that the systems used by the applicant are reliable and adequately protected from external attack or incident.

1.2.5. Fitness and propriety

In assessing whether an applicant is fit and proper for the purposes of section 37(1)(b) of the Framework Regulations, the AFSA will consider:

• (a) the fitness and propriety of the members of its Governing Body;
• (b) the applicant's connection with any Person or membership of any Group;
• (c) the fitness and propriety of the applicant's Controllers or any other Person associated with the applicant;
• (d) the impact a Controller might have on the applicant's ability to comply with the applicable requirements;
• (e) the Market Activities concerned and the risks to their continuity;
• (f) the nature (including the scale and complexity) of the activities of the applicant and any associated risks that those activities pose to the AFSA’s objectives;
• (g) whether the applicant's business model will allow for its facilities to function in a fair and orderly manner, having regard to, amongst other things, the orderly functioning of the market and the interests of investors;
• (h) any matter which may harm or may have harmed the integrity or the reputation of the AIFC or AFSA , including through the carrying on of a business by the applicant for a purpose connected with Market Abuse or a Financial Crime; and

(i) any other relevant matters.

1.2.6. Effective supervision

In assessing whether an applicant is capable of being effectively supervised by the AFSA for the purposes of section 37(1)(c) of the Framework Regulations, the AFSA will consider:

1. (a)      the nature, including the complexity, of the Market Activities that the applicant will carry on;
2. (b)      if the applicant seeks a licence to carry on the Market Activity of Operating an Exchange, a Loan Crowdfunding Platform or an Investment Crowdfunding Platform, the size, nature and complexity of any markets in respect of which the applicant will offer its facilities in carrying on that Market Activity;
3. (c)      if the applicant seeks a licence to carry on the Market Activity of Operating a Clearing House, the complexity of the Investments and transactions, and the size of the likely transaction values and volumes in respect of which the applicant will offer clearing and settlement services in carrying on that Market Activity;
4. (c)      the way in which the applicant's business is organised;
5. (d)      (if the applicant is a member of a Group) whether membership of the Group is likely to prevent the AFSA’s effective supervision of the applicant; and
6. (e)      whether the applicant is subject to consolidated supervision.

1.2.7. Compliance arrangements

In assessing whether an applicant has adequate compliance arrangements for the purposes of section 37(1)(d) of the Framework Regulations, the AFSA will consider whether it has:

1. (a)      clear and comprehensive policies and procedures relating to compliance with all applicable legal requirements; 
2. (b)      adequate means to implement those policies and procedures and monitor that they are operating effectively and as intended;
3. (c)      effective arrangements for monitoring and enforcing compliance of its Members with its own rules and, if relevant, its clearing and settlement arrangements; and
4. (d)     if the applicant seeks a licence to carry on the Market Activity of Operating an Exchange, effective arrangements to verify that issuers admitted to trading on its facilities comply with the Market Rules; 
5. (e)    [intentionally omitted]

1.2.8. Modification or withdrawal of an Authorised Market Institution’s Licence

An Authorised Market Institution may apply to the AFSA to change the scope of its Licence, to have a condition or restriction varied or withdrawn, or to have its Licence withdrawn by:

• (a) completing the form prescribed in Schedule 3 and filing the form with the AFSA accompanied by such documents as are specified in the form;
• (b) providing such further information as the AFSA may require; and
• (c) paying the fee prescribed in the Fees Rules to the AFSA.