2.1.1. Application procedure

A Person located in a jurisdiction other than the AIFC may apply to the AFSA for an order declaring it to be a Recognised Non-AIFC Member by:

1. (a) completing the form prescribed in Schedule 1 and filing the form with the AFSA accompanied by such documents as are specified in the Form;
2. (b) providing such further information as the AFSA may require; and
3. (c) paying the Fee prescribed in the Fees Rules to the AFSA.

2.1.2. The making of a recognition order

(1) Before making a recognition order, the AFSA will need to be satisfied that the applicant meets the requirements for recognition in section 91 of the Framework Regulations (“the Non-AIFC Member Recognition Requirements”).

(2) If the AFSA considers that the Non-AIFC Member Recognition Requirements are satisfied, it may make a recognition order, which will state the date on which it takes effect.

2.2.1. Annual reports

(a) A Recognised Non-AIFC Member shall provide the AFSA or the Authorised Market Institution, as applicable, with an annual report which must include:

1. (i) a copy of its audited annual report and accounts, including any consolidated annual report and accounts of any Group of which the Recognised Non-AIFC Member is a member;
2. (ii) confirmation that the Recognised Non-AIFC Member has satisfied the Non-AIFC Member Recognition Requirements throughout the previous 12 months and is continuing to satisfy the said requirements; and
3. (iii) if the Recognised Non-AIFC Member has not satisfied the Non-AIFC Member Recognition Requirements in any respect, an explanation of why the Recognised Non-AIFC Member failed to satisfy such requirements and what actions it is taking, or has already taken, to satisfy them.

(b) The period covered by such a report:

1. (i) starts on the day after the period covered by its last report; or
2. (ii) if there is no such report, the making of the recognition order recognising the Recognised Non-AIFC Member as such; and
3. (iii) ends on the date specified in the report, or, if no date is specified, on the date of the report.

(c) If a Recognised Non-AIFC Member changes the period covered by its report, it should ensure that the first day of the period covered by a report is the day immediately following the last day of the period covered by the previous report.

(d) Copies of the report should be sent to the AFSA or the Authorised Market Institution, as applicable within five months after the end of the period to which it relates.

Guidance

A Recognised Non-AIFC Member, which is not a member of the Authorised Market Institution, shall provide the AFSA with an annual report.

A Recognised Non-AIFC Member, which is a member of the Authorised Market Institution, shall provide the Authorised Market Institution with an annual report.

2.2.2. Notifications

A Recognised Non-AIFC Member must notify the AFSA or, in case such a Recognised Non-AIFC Member is an effective member of the Authorised Market Institution, the Authorised Market Institution, of the events identified in the first column of the table in Schedule 3 within the period and in the manner specified in the second and third columns of that table.

2.2.3. Language of notice

Any notice to be given or information to be supplied under these notification rules must be supplied in English, and any document to be provided must be accompanied, if not in English, by an accurate English translation.

2.2.4. Waivers

A Recognised Non-AIFC Member may apply to the AFSA for a waiver of any of the notification rules in accordance with section 9 of the Framework Regulations.

2.2.5. Supervisory powers of the AFSA

The AFSA may:

1. (a) give directions to a Recognised Non-AIFC Member if it has failed, or is likely to fail, to satisfy the Non-AIFC Member Recognition Requirements or if it has failed to comply with any other obligation imposed by the AFSA; or
2. (b) revoke a recognition order if:
3. (i) a Recognised Non-AIFC Member is failing, or has failed, to comply with the Non-AIFC Member Recognition Requirements or any other obligation; or
4. (ii) a Recognised Non-AIFC Member has applied for revocation of its status by completing the form prescribed in Schedule 1 and filing the form with the AFSA accompanied by such documents as are specified in the form; or
5. (c) require a Recognised Non-AIFC Member or a Person connected with the Recognised Non-AIFC Member, to provide or produce specified information or information of a specified description, at a specified place and before the end of a reasonable period, in such form and with such verifications or authentications as it may reasonably require;

Guidance

The AFSA will rely upon a Recognised Non-AIFC Member’s lead financial services regulator to supervise a Recognised Non-AIFC Member. The focus of AFSA’s interest will be on those activities of the Recognised Non-AIFC Member that may have an impact on the AIFC. A Recognised Non-AIFC Member must deal with the AFSA in an open and co-operative manner.