New Dear SEO Letter – on the Fixed Penalty Notice Regime (FPN)

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 Notices

• Fees 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 returns

• Glossary Module (‘GLO’)
  — ‘Fixed Penalty Notice’ to reference Article 91 of the Regulatory Law.

You can read the complete SEO Letter here.