The Riffle
The DFSA can now issue penalties faster, where are clear breaches of their rules, for instance, not submitting regulatory returns by their due date. US$ 2,500 at first instance. Submit returns on time!
Digging deeper…
Here is how it works:
1. Prescribed provision breached (Annex 1 has the list)
2. DFSA issues an FPN – why, how much and when to pay, and what happens when you don’t comply
3. Firm pays within 14 days AND remedies the contravention – no fine or censure
4. Firm does not pay or does not remedy – fine or censure, and a longer process (and a bigger fine)
The first penalty for the calendar year – US$ 2,500, the second – US$ 7,500 and third onwards – US$ 15,000.
If more than three, then the DFSA can step back and take a harder look at a possible systemic issue within the Firm. Something that is best avoided.
The legal bits:
The amendments affect:
General Rulebook (‘Gen’)
— Section 14 on the application of Fixed Penalty NoticesFees Module (‘FER’)
— Section 1.2 on the removal of standardised payment due dates of 21 days amended
to instead include a due date on the Fixed Penalty Notice
— to remove Section 7 on late returnsGlossary Module (‘GLO’)
— ‘Fixed Penalty Notice’ to reference Article 91 of the Regulatory Law.
You can read the complete SEO Letter here.