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PART 3. THE AFSA FINTECH OFFICE
FINANCIAL SERVICES LEGISLATION
RULES
Entire Act

PART 3. THE AFSA FINTECH OFFICE

3.1. Overview

3.1.1. The FinTech Lab and the FINTECH are administered by the CFTO.

3.1.2. The CFTO is an agent and employee of the AFSA and is subject to the same responsibilities and has the same rights as other agents or employees of the AFSA under the AIFC laws.

3.1.3. The CFTO is accountable to the AFSA Board of Directors.

3.2. Objectives and functions

3.2.1. Objectives

(a) In exercising the CFTO’s functions, the CFTO acts in an independent and non-biased way.

(b) The CFTO exercises the CFTO’s functions only in pursuit of the following objectives:

  1. (i) to promote good practices and observance of the requirements of these Rules; and
  2. (ii) to pursue effectiveness and transparency in administering of these Rules.

3.2.2. Functions

(a) The CFTO has the powers given to the CFTO by or under the applicable law of the AIFC, decisions of Governor, AFSA Board of Directors and AFSA Executive Body.

(b) Without limiting paragraph (a), the CFTO’s functions include the following:

  1. (i) preparing draft rules, codes of practice and submitting them to the AFSA Board Legislative Committee for consideration;
  2. (ii) preparing and adopting guidance for the AIFC FinTech Lab Participants, and seeking approval of the Board of Directors of the AFSA of any guidance adopted by the CFTO;
  3. (iii) issuing or approving the necessary forms, procedural guidance and other necessary documents pertinent to these Rules;
  4. (iv) initiating and convening the AFSA Committee on Authorisation of FinTech Lab applicants;
  5. (v) devising a tailored regulatory regime for FinTech Lab Participant to Test and/or Develop the FinTech Activities within the FinTech Lab, including, without limitations, the following:
  6. i. create and modify eligibility criteria on a case by case basis at his/her own discretion after due consideration of risks posed by the proposed FinTech;
  7. ii. issue individual guidance to the FinTech Lab Participant having regard to specific characteristics of the participant, or risk posed by, a specific FinTech Activity of the FinTech Lab participant;
  8. iii. holding the signature right of various legal matters:
  9. i. approve the form of the Licence and other application forms, and make modifications thereto;
  10. ii. issue the Licence;
  11. iii. modify, suspend or revoke the Licence at any time at his/her own discretion due to necessity to pursue one or more regulatory objective.
  12. (vi) waiving or modifying any conditions, restriction, requirements of the Framework Regulations or the Rules defining the conditions to apply to FinTech Lab Participants upon authorisation through different stages of Testing and/or Developing their FinTech Activities; and/or
  13. (vii) exercise all or any of the following functions on behalf of the AFSA in relation to FinTech Activities:
  14. i. approving the form of Licence;
  15. ii. issuing Licences; and
  16. iii. modifying, suspending or revoking Licences at any time, at the CFTO’s own discretion, to give effect to or further 1 or more regulatory objectives.

(c) The CFTO may make a decision under (vi), (vii).iii with immediate effect. However, if the CFTO makes a decision under (vi), (vii).iii the CFTO must refer the decision to the AFSA Committee on Authorisation for its consideration. The committee may confirm, set aside or change the condition in any way it considers appropriate.

3.2.3. Other powers

(a) These Rules are not an exhaustive source of the CFTO’s exercise of AFSA’s statutory powers and discretion. In discharge of his/her regulatory duty, the CFTO is entitled to exercise other powers or functions which the CFTO considers necessary or desirable for or in connection with, or reasonably incidental to, the exercise of the CFTO’s functions, where it might be relevant to address any specific matter in FinTech.

(b) The CFTO may delegate all or any of the CFTO’s functions to any AFSA employee.

(c) The CFTO, and any delegate of the CFTO, is not liable to third parties for anything done or omitted to be done in the exercise or purported exercise of the CFTO’s functions (including any function delegated to the CFTO) under the AIFC Acts, decisions of Governor and AFSA Executive Body, except when it is established that such an action or omission was committed with unfair intentions and/or malicious intent and/or for the purpose of deliberate non-fulfillment or violation of his/her official duties.