Operating Law - DIFC Law No. 7 of 2018

Part 1 : GENERAL.......................................................................................................................................................1

1. Title ..................................................................................................................................................................... 1

2. Legislative authority............................................................................................................................................ 1

3. Application of this Law........................................................................................................................................ 1

4. Date of enactment and commencement.............................................................................................................. 1

5. Schedules ........................................................................................................................................................... 1

Part 2 : THE APPOINTMENT OF AND ROLE OF THE REGISTRAR ......................................................................................2

6. Appointment of the Registrar.............................................................................................................................. 2

7. The objectives, functions and powers of the Registrar....................................................................................... 2

Part 3 : CONDUCT OF BUSINESS IN THE DIFC................................................................................................................5

8. Prohibition against conduct of business............................................................................................................. 5

9. Licences, Permissions and Exemptions............................................................................................................... 5

10. Names................................................................................................................................................................ 6

11. Change of name................................................................................................................................................. 6

12. Power to require change of name ..................................................................................................................... 7

13. Registered office .............................................................................................................................................. 7

14. Particulars in communications .......................................................................................................................... 7

15. Change in Registered Details of a Registered Person ....................................................................................... 8

16. Confirmation Statement .................................................................................................................................... 8

17. Records and registers ....................................................................................................................................... 8

Part 4 : AUDITORS .................................................................................................................................................. 10

18. Qualification and registration of auditors............................................. ...........................................................10

19. Register of auditors ............................................ ............................................................................................10

20. Obligation of disclosure to the Registrar................................ .........................................................................10

21. Court orders..................................................................................................................................................... 11

Part 5 : POWERS AND REMEDIES.............................................................................................................................. 12

CHAPTER 1 – POWERS OF INSPECTION AND INVESTIGATION....................................................................................... 12

22. Application and Interpretation of this Part ....................... ..............................................................................12

23. Appointment of Inspectors............................................................................................................................... 12

24. Powers of Inspectors to obtain information and Documents........................................................................... 12

25. Use and effect of Documents and information obtained for investigations ........... .........................................14

26. Obstruction of the Inspectors ......................................................................................................................... 14

27. Inspectors’ reports........................................................................................................................................... 15

28. Powers of Registrar to apply to Court ............................................................................................................. 15

CHAPTER 2 – OTHER POWERS OF THE REGISTRAR ................................... .................................................................16

29. Direction to comply with this Law or other Legislation administered by the Registrar.................................... 16

30. General power to obtain information .............................. .................................................................................16

31. Compliance with a direction or requirement of the Registrar ................... ......................................................17

32. Powers to strike off names of Registered Persons from the Public Register................................................... 17

33. Restoration of a Registered Person .......................................... ......................................................................19

CHAPTER 3 – GENERAL CONTRAVENTIONS................................................................................................................ 20

34. General contraventions provision.................................... ................................................................................20

35. Involvement in contraventions......................................................................................................................... 21

CHAPTER 4 – ENFORCEMENT ............................................ .......................................................................................21

36. Enforceable undertakings.............................. ..................................................................................................21

37. Administrative Censures.................................................................................................................................. 22

38. Imposition of fines .......................................................................................................................................... 22

CHAPTER 5 – APPLICATIONS TO COURT..................................................................................................................... 22

39. Application to Court in relation to decision of the Registrar............................................................................ 22

40. Orders for compensation ................................................................................................................................. 23

41. Compulsory winding up ................................ ...................................................................................................23

OPERATING LAW 42. Appointment of a receiver...................................................................................................... 23

43. Power of Court to grant relief in certain cases................................................................................................ 24

44. Effect of provisions.......................................................................................................................................... 24

Part 6 : GENERAL PROVISIONS ............... .................................................................................................................25

CHAPTER 1 – THE BOARD OF DIRECTORS OF THE DIFCA ............................................................................................ 25

45. The powers and functions of the Board of Directors of the DIFCA ................................................................... 25

46. Power to make Regulations............................................................................................................................. 25

47. Publication of draft Regulations...................................................................................................................... 26

CHAPTER 2 - THE REGISTRAR................................................................................................................................... 26

48. Reporting by the Registrar ............................ ..................................................................................................26

49. Record keeping.............................................. ..................................................................................................27

50. Conflicts of interest ....................................... .................................................................................................27

51. Confidential information ............................... ..................................................................................................27

52. Financial year................................................ ...................................................................................................27

53. The annual budget of the Registrar ................ ................................................................................................28

54. Funding and fees........................................... ..................................................................................................28

55. Accounts......................................................... .................................................................................................28

56. Audit ............................................................... .................................................................................................29

57. Taxation ........................................................ ...................................................................................................29

58. Liability.......................................................... ..................................................................................................29

59. Independent review of the Registrar ............. .................................................................................................30

CHAPTER 3 – MISCELLANEOUS................................................................................................................................. 30

60. Waivers and modification of this Law or the Regulations................ ................................................................30

61. Obligation to identify and disclose beneficial ownership information.............. ...............................................31

62. Obligation of disclosure to the Registrar.......................................................................................................... 31

63. Disclosures to the Registrar............................................................................................................................ 32

64. Whistleblower Protection................................................................................................................................ 32

65. Irregularities.................................................................................................................................................... 33

66. False or misleading information..................... .................................................................................................33

67. Publication by the Registrar ............................................................................................................................ 33

68. Public Registers............................................................................................................................................... 34

69. Language............................................................ .............................................................................................34

Schedule 1............................................................................................................................................................. 35

Schedule 2............................................................................................................................................................. 39