	(290602,27949,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n<h4 dir=\"LTR\" align=\"LEFT\"></h4>\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n&nbsp;\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>'),
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	(290604,27949,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=8186&amp;action=edit'),
	(290605,27949,'ReportText','<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n<h4 dir=\"LTR\" align=\"LEFT\"></h4>\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n&nbsp;\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>|<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n<h4 dir=\"LTR\" align=\"LEFT\"></h4>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n&nbsp;\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>'),
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	(290699,27957,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n&nbsp;\r\n\r\n<img class=\"aligncenter wp-image-8188 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/09/Article-Graph-1.jpg\" alt=\"\" width=\"1353\" height=\"694\" />\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>'),
	(290700,27957,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n<h4 dir=\"LTR\" align=\"LEFT\"></h4>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n&nbsp;\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>'),
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	(290703,27957,'ReportText','<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n<h4 dir=\"LTR\" align=\"LEFT\"></h4>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n&nbsp;\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>|<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n&nbsp;\r\n\r\n<img class=\"aligncenter wp-image-8188 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/09/Article-Graph-1.jpg\" alt=\"\" width=\"1353\" height=\"694\" />\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>'),
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	(290741,27960,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n&nbsp;\r\n\r\n<img class=\"aligncenter wp-image-8188 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/09/Article-Graph-1.jpg\" alt=\"\" width=\"1353\" height=\"694\" />\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>'),
	(290742,27960,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n&nbsp;\r\n\r\n<img class=\"aligncenter wp-image-8188 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/09/Article-Graph-1.jpg\" alt=\"\" width=\"1353\" height=\"694\" />\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>'),
	(290743,27960,'MetaLink','content'),
	(290744,27960,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=8186&amp;action=edit'),
	(290745,27960,'ReportText','<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n&nbsp;\r\n\r\n<img class=\"aligncenter wp-image-8188 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/09/Article-Graph-1.jpg\" alt=\"\" width=\"1353\" height=\"694\" />\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>|<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n&nbsp;\r\n\r\n<img class=\"aligncenter wp-image-8188 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/09/Article-Graph-1.jpg\" alt=\"\" width=\"1353\" height=\"694\" />\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>'),
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	(290776,27963,'PostTitle','Regulation of Crypto Assets at ADGM'),
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	(290779,27963,'PostDate','2018-09-02 15:37:01'),
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	(290783,27963,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n&nbsp;\r\n<img class=\"aligncenter wp-image-8188 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/09/Article-Graph-1.jpg\" alt=\"\" width=\"1353\" height=\"694\" />\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>'),
	(290784,27963,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n&nbsp;\r\n\r\n<img class=\"aligncenter wp-image-8188 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/09/Article-Graph-1.jpg\" alt=\"\" width=\"1353\" height=\"694\" />\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>'),
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	(290787,27963,'ReportText','<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n&nbsp;\r\n\r\n<img class=\"aligncenter wp-image-8188 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/09/Article-Graph-1.jpg\" alt=\"\" width=\"1353\" height=\"694\" />\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>|<p dir=\"LTR\" align=\"LEFT\">Taking a lead on the regulation of crypto assets in the Abu Dhabi Global Market (\"ADGM\"), the Financial Services Regulatory Authority (\"FSRA\") issued <em>Guidance on Regulation of Crypto Asset Activities in ADGM</em> (the \"Regulations\"). The Regulations are supplementary to and should be read in conjunction with FSRA’s <em>Guidance on Regulation of Initial Coin/Token Offerings and Virtual Currencies under the Financial Services and Markets Regulations 2015</em> issued on 9 October 2017 (the \"ICO Guidance\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations together with applicable rules and regulations governing crypto assets, as issued by the FSRA, provides for a comprehensive Spot Crypto Asset Framework (the \"Framework\"). The Regulation sets out and limits the FSRA’s approach to the regulation of crypto asset activities in and from the ADGM, including activities conducted by crypto asset exchanges, crypto asset custodians and intermediaries engaged in crypto asset activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For purposes of the Regulations and the Framework, <em>Crypto Assets</em> are a digital representation of value that can be digitally traded and functions as a: (a) medium of exchange; (b) unit of account; and/or (c) a store of value. These: (i) do not have a legal tender status in any jurisdiction; (ii) are neither issued nor guaranteed by any jurisdiction and fulfil its functions only by agreement within the community of users of such assets; and (iii) are distinguished from fiat currencies including electronic money.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Initial Coin Offerings</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Framework is not intended to apply to initial token or coin offerings (\"ICOs\") and such offerings will continue to be regulated in accordance with the ICO Guidance. The ICO Guidance clarifies the nature of token offerings (utility or security) that are permissible in the ADGM.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Objectives of the Framework</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">While, the fact that crypto assets can be created, stored and transferred without the need of any third party makes it attractive for its users, it also raises significant regulatory concerns for regulatory authorities and law enforcement agencies worldwide, particularly in relation to money laundering, terrorism financing, consumer protection, market abuse, amongst other risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA under the Framework addresses these risks in addition to issues that may arise in connection with protection of client money, safe custody, technology governance and disclosure and transparency, which makes it an attractive and comparatively secure jurisdiction for conducting crypto related activities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Notwithstanding that crypto assets are deemed as commodities and are not considered a \"Specified Investment\" (for purposes of Financial Services and Markets Regulations, 2015, as may be amended from time to time (FSMR)), to ensure adequate consumer protection, while meeting demands in this market space, the FSRA has rightly provided for certain activities associated with crypto assets to be regulated. The diagram sets out FSRA’s approach in relation to different type of digital assets.</p>\r\n&nbsp;\r\n<img class=\"aligncenter wp-image-8188 size-full\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/09/Article-Graph-1.jpg\" alt=\"\" width=\"1353\" height=\"694\" />\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operating a Crypto Asset Business</h3>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">Who can Operate a Crypto Asset Business (\"OCAB\") in and from the ADGM?</h4>\r\n<ul>\r\n 	<li dir=\"LTR\">new applicants;</li>\r\n 	<li dir=\"LTR\">authorised persons (i.e. persons authorised to carry on other regulated activities within the ADGM); and</li>\r\n 	<li dir=\"LTR\">recognised investment exchanges.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Amongst these, applicants that qualify for authorisation under the Framework will be granted a Financial Service Permission (\"FSP\") to carry on regulated activity of OCAB.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">OCAB permits undertaking of one or more crypto asset activities, which include:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">buying, selling or exercising any right in accepted crypto assets (whether as principal or agent);</li>\r\n 	<li dir=\"LTR\">managing accepted crypto assets belonging to another person;</li>\r\n 	<li dir=\"LTR\">making arrangements with a view to another person (whether as principal or agent) buying, selling or providing custody of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">marketing of accepted crypto assets;</li>\r\n 	<li dir=\"LTR\">advising on the merits of buying or selling of accepted crypto assets or any rights conferred by such buying or selling; and</li>\r\n 	<li dir=\"LTR\">operating a crypto asset exchange or operating as a crypto asset custodian.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The FSRA’s approach to the regulatory treatment of crypto assets in the ADGM is encouraging. The Framework makes it evident that: (a) crypto asset activities may only be permitted in connection with crypto assets that are categorised as \"Accepted Crypto Assets\" i.e. those crypto assets that fulfil criteria prescribed by the FSRA; and (b) any person dealing with such accepted crypto assets including intermediaries (such as brokers/dealers, asset managers, crypto asset exchanges, crypto asset custodians) involved in dealing, managing or arranging Accepted Crypto Assets, would require an FSP to operate in and from the ADGM.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However: (i) creation or administration of crypto assets; (ii) development, dissemination or use of software for the purpose of creating or mining a crypto asset; (iii) transmission of crypto assets; (iv) loyalty points scheme denominated in crypto assets; and (v) such other activity as may be determined by the FSRA to not constitute OCAB, shall not constitute OCAB and therefore will not be subject to the Framework.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Crypto Asset Exchanges and Crypto Asset Custodians</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst most of the crypto asset activities are subject to similar regulations within the Framework, the FRSA considers the crypto asset activities conducted by crypto asset exchanges and crypto asset custodians a key crypto activity in the ADGM. Therefore the Framework levies specific additional requirements applicable to such participants.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Exchanges</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to the requirements applicable to other crypto asset activities, additional requirements for a crypto asset exchange would include substantial commercial, governance, compliance, technical, information technology and human resources presence within the ADGM. A recognised investment exchange may operate as a crypto asset exchange, as part of the regulated activity of OCAB, provided that recognition order of such exchange includes a stipulation, permitting it to do so. In such cases, such exchanges would be subject to the Framework (including fees applicable for conducting OCAB) in addition to other regulations and fees (including market infrastructure rule), it already is subject to.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\"><em>Crypto Asset Custodians</em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As regards crypto asset custodians, the FRSA has taken a similar approach to that of other custodian activities permitted within the ADGM. In order to afford the same protection the FSRA offers to other similar products within the FSMR (including relevant rule books) it has widened the scope of definitions of \"Providing Custody\", \"Client Assets\", \"Client Investments\" and \"Investment Business\" (as defined under the FSMR) to include crypto assets and OCAB.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Fees</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fees for OCAB are comparatively higher than most other regulated activities within the ADGM. In addition to the fees applicable to crypto asset exchanges, a trading fees is levied on such exchanges, which is payable on a monthly basis. This is calculated as a percentage of trades conducted for each month.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Regulations are a welcome change and seem to address regulatory requirements around crypto asset activities within the ADGM. We are hopeful that this would encourage other financial regulators within the region to issue regulations and therefore provide options to potential applicants.</p>\r\n<em>Al Tamimi &amp; Company’s banking and finance team regularly advises on issues in relation to crypto assets. For further information please contact Ms. <a href=\"http://localhost:8888/tamimi/lawyer/divya-abrol-gambhir/\">Divya Abrol Gambhir</a> (<a href=\"mailto:d.abrol@tamimi.com\">d.abrol@tamimi.com</a>) or Mr. <a href=\"http://localhost:8888/tamimi/lawyer/ashish-banga/\">Ashish Banga</a> (<a href=\"mailto:a.banga@tamimi.com\">a.banga@tamimi.com</a>).</em>'),
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	(291175,27994,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\">Most business transactions involve degrees of risk, which can never be eliminated entirely. An additional layer of risk inevitably accompanies any cross-border deal, and this article addresses the best way to manage these particular risks.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cross-Border Deals and Legal Risks</h3>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">a. Choice of Law and Forum:</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In cross-border deals, choice of law and forum clauses deserve enhanced scrutiny and negotiation. If any dispute flares up, you will find that these choices will have already been locked in. Suddenly, they will loom large, and poor choices may cost you considerable money and time. Choice of law is quite distinct from the choice of forum. The choice of law is the set of laws which governs the substance of the contract, whilst forum is concerned with the dispute resolution body and the processes for final resolution.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>(i) Choice of Law:</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The main factor in deciding which governing law should govern a contract is ease of enforcement of those contractual terms allocating risks between the parties. Some jurisdictions have less developed substantive legal rules and their laws do not fit comfortably with sophisticated transaction structures commonly seen in major financial centres. In such instances, local law may either override or fail to support the agreed contract terms, rendering the outcome of any dispute unpredictable.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Ideally, parties to a contract should choose a jurisdiction with a well-developed body of legal rules. Many international players prefer common law systems, mainly because they are accustomed to working within these legal systems. Moreover, common law systems carry with them a wealth of recognised precedents which can render dispute outcomes more predictable.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>(ii) Choice of Forum:</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Selecting a forum involves two different choices. Firstly, whether the parties wish to submit to arbitration or a court process. Secondly, a choice as to the legal environment in which the dispute process will be conducted, a choice which needs to take into account supervision of the arbitration and/or access to an appellate court system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolution by official courts can save the parties substantial costs associated with arbitration. Any arbitration has to be funded privately, including the fees of the arbitrators. Also, it is usually quicker and easier for courts to secure interim remedies and to compel disclosure of documents or information; in arbitrations, it is often necessary to go to court to secure these remedies anyway. Courts also allow for appeal processes from their judgements, a safeguard against capricious findings or error. Arbitration, on the other hand, gives the parties an opportunity to ensure that a dispute is determined by a technical expert, rather than a legally trained judge. The expert can act as the arbitrator and resolve the dispute without the successful party being exposed to drawn-out appeals. Nevertheless, the possibility of the arbitrator requiring correction or supervision will also be relevant to any choice of forum. In some jurisdictions, arbitrations move faster than court processes, in others they move more slowly.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When choosing the legal environment for the forum, a neutral jurisdiction has advantages, and usually gives confidence to foreign-based counterparties, particularly in cases where one of the transaction parties is a governmental entity or has strong ties to the government. Meanwhile, selecting the jurisdiction which hosts the deal assets also has its advantages, as the dispute resolution forum will have power to make orders affecting those assets and may be convenient and accessible for involved experts or witnesses. Decisions of a court where the deal assets are located are usually more readily enforceable against those assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A key point to consider in advance is whether a court of the jurisdiction hosting the deal assets will recognize and respect the parties’ contractual choice of forum. For example, courts in GCC countries sometimes consider it appropriate to assume jurisdiction over a case filed before them which involves local assets (particularly land); and to apply local law regardless.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Transactions always carry risks, but they can be managed successfully if the right care and judgment is exercised.\"</h2>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">b. Enforcement of Securities</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Lenders must carefully study and assess the enforceability of their security in the event of default. In some jurisdictions which impose fees or taxes, taking security over the deal assets, especially real property, may be costly. In these cases, a more practical security may take the form of a preferential claim to cash balances and revenues of the target/assets.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">c. Force Majeure Risk</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Force majeure is a legal term of art describing the occurrence of an unexpected event outside the control of the affected party, as a result of which it becomes difficult or impossible for that party to perform obligations under a contract. Examples of force majeure include wars, riots, fires, floods and hurricanes. Such events also affect domestic deals, but force majeure events are less predictable for foreign counterparties in any cross-border deal.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Common law jurisdictions usually refuse to grant relief for force majeure events unless this is expressly provided for in the contract. In contrast, civil law jurisdictions usually grant the court the authority to alter the contract to restore its balance where there is a force majeure event. In all cases, courts in both systems will be influenced by, and consider, the express terms of the contract before making a decision.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some force majeure risks are commercially insurable events. Others are uninsurable events. Commercially insurable events include fires, floods or storms and in these scenarios their risk may be mitigated by obtaining the necessary insurance policies. In contrast, riots and political disruptions are usually uninsurable. Hence, the parties should take into account insurance cover and allocate contractual risks accordingly, particularly as the inclusion of an indemnity in the deal contract can sometimes nullify insurance arrangements.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">d. Currency Fluctuations</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Currency fluctuations are common risks encountered with international transactions. Even with the most careful monitoring, fluctuations can be unpredictable and can greatly affect the economics of a project, the business and its profits. To mitigate this risk, it is ideal to contract with all parties in the transaction chain in the same currency, if possible. Another way to mitigate any exchange risk, is to hedge the currency risk. This method may incur hedging costs and also sacrifice gains from favourable fluctuations – but, if the tables are turned, it also mitigates any significant losses.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">e. Sovereign Risk</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Sovereign risk is an inherit risk that is more heightened in some countries. One way to mitigate sovereign risk is by structuring investments in such a way that investment protection treaties with the host country can be triggered. An example of such is the use of acquisition vehicles to which investment protection treaties apply.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">f. Market Demand Risks</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">A product or service which proves successful in one country may not be successful in another. Many businesses have had to adapt their products or services significantly in order to conform to the cultural, religious traditions or realities of a new market. For example, online sales platforms work only if a large percentage of the target market holds credit cards. A thorough market study must be conducted before introducing a new product or service fresh to a jurisdiction to validate the introduction, assumptions or projections made by the party introducing it.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The deal \"risk list\" above is by no means exhaustive. But it highlights the fact that risk allocations between the parties in any cross-border deal should be clearly documented and the main risks addressed. Transactions always carry risks, but they can be managed successfully if the right care and judgment is exercised.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Al Tamimi &amp; Company’s Corporate Commercial team regularly advises on commercial matters. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/alex-saleh/\">Alex Saleh</a> (<a href=\"mailto:alex.saleh@tamimi.com\">alex.saleh@tamimi.com</a>) or <a href=\"http://localhost:8888/tamimi/lawyer/rana-el-nahal/\">Rana Elnahal</a> (<a href=\"mailto:r.elnahal@tamimi.com\">r.elnahal@tamimi.com</a>).</em></p>'),
	(291176,27994,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">Most business transactions involve degrees of risk, which can never be eliminated entirely. An additional layer of risk inevitably accompanies any cross-border deal, and this article addresses the best way to manage these particular risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cross-Border Deals and Legal Risks</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">a. Choice of Law and Forum:</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In cross-border deals, choice of law and forum clauses deserve enhanced scrutiny and negotiation. If any dispute flares up, you will find that these choices will have already been locked in. Suddenly, they will loom large, and poor choices may cost you considerable money and time. Choice of law is quite distinct from the choice of forum. The choice of law is the set of laws which governs the substance of the contract, whilst forum is concerned with the dispute resolution body and the processes for final resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>(i) Choice of Law:</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The main factor in deciding which governing law should govern a contract is ease of enforcement of those contractual terms allocating risks between the parties. Some jurisdictions have less developed substantive legal rules and their laws do not fit comfortably with sophisticated transaction structures commonly seen in major financial centres. In such instances, local law may either override or fail to support the agreed contract terms, rendering the outcome of any dispute unpredictable.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Ideally, parties to a contract should choose a jurisdiction with a well-developed body of legal rules. Many international players prefer common law systems, mainly because they are accustomed to working within these legal systems. Moreover, common law systems carry with them a wealth of recognised precedents which can render dispute outcomes more predictable.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>(ii) Choice of Forum:</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Selecting a forum involves two different choices. Firstly, whether the parties wish to submit to arbitration or a court process. Secondly, a choice as to the legal environment in which the dispute process will be conducted, a choice which needs to take into account supervision of the arbitration and/or access to an appellate court system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolution by official courts can save the parties substantial costs associated with arbitration. Any arbitration has to be funded privately, including the fees of the arbitrators. Also, it is usually quicker and easier for courts to secure interim remedies and to compel disclosure of documents or information; in arbitrations, it is often necessary to go to court to secure these remedies anyway. Courts also allow for appeal processes from their judgements, a safeguard against capricious findings or error. Arbitration, on the other hand, gives the parties an opportunity to ensure that a dispute is determined by a technical expert, rather than a legally trained judge. The expert can act as the arbitrator and resolve the dispute without the successful party being exposed to drawn-out appeals. Nevertheless, the possibility of the arbitrator requiring correction or supervision will also be relevant to any choice of forum. In some jurisdictions, arbitrations move faster than court processes, in others they move more slowly.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When choosing the legal environment for the forum, a neutral jurisdiction has advantages, and usually gives confidence to foreign-based counterparties, particularly in cases where one of the transaction parties is a governmental entity or has strong ties to the government. Meanwhile, selecting the jurisdiction which hosts the deal assets also has its advantages, as the dispute resolution forum will have power to make orders affecting those assets and may be convenient and accessible for involved experts or witnesses. Decisions of a court where the deal assets are located are usually more readily enforceable against those assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A key point to consider in advance is whether a court of the jurisdiction hosting the deal assets will recognize and respect the parties’ contractual choice of forum. For example, courts in GCC countries sometimes consider it appropriate to assume jurisdiction over a case filed before them which involves local assets (particularly land); and to apply local law regardless.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Transactions always carry risks, but they can be managed successfully if the right care and judgment is exercised.\"</h2>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">b. Enforcement of Securities</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Lenders must carefully study and assess the enforceability of their security in the event of default. In some jurisdictions which impose fees or taxes, taking security over the deal assets, especially real property, may be costly. In these cases, a more practical security may take the form of a preferential claim to cash balances and revenues of the target/assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">c. Force Majeure Risk</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Force majeure is a legal term of art describing the occurrence of an unexpected event outside the control of the affected party, as a result of which it becomes difficult or impossible for that party to perform obligations under a contract. Examples of force majeure include wars, riots, fires, floods and hurricanes. Such events also affect domestic deals, but force majeure events are less predictable for foreign counterparties in any cross-border deal.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Common law jurisdictions usually refuse to grant relief for force majeure events unless this is expressly provided for in the contract. In contrast, civil law jurisdictions usually grant the court the authority to alter the contract to restore its balance where there is a force majeure event. In all cases, courts in both systems will be influenced by, and consider, the express terms of the contract before making a decision.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some force majeure risks are commercially insurable events. Others are uninsurable events. Commercially insurable events include fires, floods or storms and in these scenarios their risk may be mitigated by obtaining the necessary insurance policies. In contrast, riots and political disruptions are usually uninsurable. Hence, the parties should take into account insurance cover and allocate contractual risks accordingly, particularly as the inclusion of an indemnity in the deal contract can sometimes nullify insurance arrangements.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">d. Currency Fluctuations</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Currency fluctuations are common risks encountered with international transactions. Even with the most careful monitoring, fluctuations can be unpredictable and can greatly affect the economics of a project, the business and its profits. To mitigate this risk, it is ideal to contract with all parties in the transaction chain in the same currency, if possible. Another way to mitigate any exchange risk, is to hedge the currency risk. This method may incur hedging costs and also sacrifice gains from favourable fluctuations – but, if the tables are turned, it also mitigates any significant losses.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">e. Sovereign Risk</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Sovereign risk is an inherit risk that is more heightened in some countries. One way to mitigate sovereign risk is by structuring investments in such a way that investment protection treaties with the host country can be triggered. An example of such is the use of acquisition vehicles to which investment protection treaties apply.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">f. Market Demand Risks</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">A product or service which proves successful in one country may not be successful in another. Many businesses have had to adapt their products or services significantly in order to conform to the cultural, religious traditions or realities of a new market. For example, online sales platforms work only if a large percentage of the target market holds credit cards. A thorough market study must be conducted before introducing a new product or service fresh to a jurisdiction to validate the introduction, assumptions or projections made by the party introducing it.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The deal \"risk list\" above is by no means exhaustive. But it highlights the fact that risk allocations between the parties in any cross-border deal should be clearly documented and the main risks addressed. Transactions always carry risks, but they can be managed successfully if the right care and judgment is exercised.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Al Tamimi &amp; Company’s Corporate Commercial team regularly advises on commercial matters. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/alex-saleh/\">Alex Saleh</a> (<a href=\"mailto:alex.saleh@tamimi.com\">alex.saleh@tamimi.com</a>) or <a href=\"http://localhost:8888/tamimi/lawyer/rana-el-nahal/\">Rana Elnahal</a> (<a href=\"mailto:r.elnahal@tamimi.com\">r.elnahal@tamimi.com</a>).</em></p>'),
	(291177,27994,'MetaLink','content'),
	(291178,27994,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=8187&amp;action=edit'),
	(291179,27994,'ReportText','<p dir=\"LTR\" align=\"LEFT\">Most business transactions involve degrees of risk, which can never be eliminated entirely. An additional layer of risk inevitably accompanies any cross-border deal, and this article addresses the best way to manage these particular risks.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cross-Border Deals and Legal Risks</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">a. Choice of Law and Forum:</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In cross-border deals, choice of law and forum clauses deserve enhanced scrutiny and negotiation. If any dispute flares up, you will find that these choices will have already been locked in. Suddenly, they will loom large, and poor choices may cost you considerable money and time. Choice of law is quite distinct from the choice of forum. The choice of law is the set of laws which governs the substance of the contract, whilst forum is concerned with the dispute resolution body and the processes for final resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>(i) Choice of Law:</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The main factor in deciding which governing law should govern a contract is ease of enforcement of those contractual terms allocating risks between the parties. Some jurisdictions have less developed substantive legal rules and their laws do not fit comfortably with sophisticated transaction structures commonly seen in major financial centres. In such instances, local law may either override or fail to support the agreed contract terms, rendering the outcome of any dispute unpredictable.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Ideally, parties to a contract should choose a jurisdiction with a well-developed body of legal rules. Many international players prefer common law systems, mainly because they are accustomed to working within these legal systems. Moreover, common law systems carry with them a wealth of recognised precedents which can render dispute outcomes more predictable.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>(ii) Choice of Forum:</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Selecting a forum involves two different choices. Firstly, whether the parties wish to submit to arbitration or a court process. Secondly, a choice as to the legal environment in which the dispute process will be conducted, a choice which needs to take into account supervision of the arbitration and/or access to an appellate court system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolution by official courts can save the parties substantial costs associated with arbitration. Any arbitration has to be funded privately, including the fees of the arbitrators. Also, it is usually quicker and easier for courts to secure interim remedies and to compel disclosure of documents or information; in arbitrations, it is often necessary to go to court to secure these remedies anyway. Courts also allow for appeal processes from their judgements, a safeguard against capricious findings or error. Arbitration, on the other hand, gives the parties an opportunity to ensure that a dispute is determined by a technical expert, rather than a legally trained judge. The expert can act as the arbitrator and resolve the dispute without the successful party being exposed to drawn-out appeals. Nevertheless, the possibility of the arbitrator requiring correction or supervision will also be relevant to any choice of forum. In some jurisdictions, arbitrations move faster than court processes, in others they move more slowly.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When choosing the legal environment for the forum, a neutral jurisdiction has advantages, and usually gives confidence to foreign-based counterparties, particularly in cases where one of the transaction parties is a governmental entity or has strong ties to the government. Meanwhile, selecting the jurisdiction which hosts the deal assets also has its advantages, as the dispute resolution forum will have power to make orders affecting those assets and may be convenient and accessible for involved experts or witnesses. Decisions of a court where the deal assets are located are usually more readily enforceable against those assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A key point to consider in advance is whether a court of the jurisdiction hosting the deal assets will recognize and respect the parties’ contractual choice of forum. For example, courts in GCC countries sometimes consider it appropriate to assume jurisdiction over a case filed before them which involves local assets (particularly land); and to apply local law regardless.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Transactions always carry risks, but they can be managed successfully if the right care and judgment is exercised.\"</h2>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">b. Enforcement of Securities</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Lenders must carefully study and assess the enforceability of their security in the event of default. In some jurisdictions which impose fees or taxes, taking security over the deal assets, especially real property, may be costly. In these cases, a more practical security may take the form of a preferential claim to cash balances and revenues of the target/assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">c. Force Majeure Risk</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Force majeure is a legal term of art describing the occurrence of an unexpected event outside the control of the affected party, as a result of which it becomes difficult or impossible for that party to perform obligations under a contract. Examples of force majeure include wars, riots, fires, floods and hurricanes. Such events also affect domestic deals, but force majeure events are less predictable for foreign counterparties in any cross-border deal.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Common law jurisdictions usually refuse to grant relief for force majeure events unless this is expressly provided for in the contract. In contrast, civil law jurisdictions usually grant the court the authority to alter the contract to restore its balance where there is a force majeure event. In all cases, courts in both systems will be influenced by, and consider, the express terms of the contract before making a decision.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some force majeure risks are commercially insurable events. Others are uninsurable events. Commercially insurable events include fires, floods or storms and in these scenarios their risk may be mitigated by obtaining the necessary insurance policies. In contrast, riots and political disruptions are usually uninsurable. Hence, the parties should take into account insurance cover and allocate contractual risks accordingly, particularly as the inclusion of an indemnity in the deal contract can sometimes nullify insurance arrangements.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">d. Currency Fluctuations</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Currency fluctuations are common risks encountered with international transactions. Even with the most careful monitoring, fluctuations can be unpredictable and can greatly affect the economics of a project, the business and its profits. To mitigate this risk, it is ideal to contract with all parties in the transaction chain in the same currency, if possible. Another way to mitigate any exchange risk, is to hedge the currency risk. This method may incur hedging costs and also sacrifice gains from favourable fluctuations – but, if the tables are turned, it also mitigates any significant losses.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">e. Sovereign Risk</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Sovereign risk is an inherit risk that is more heightened in some countries. One way to mitigate sovereign risk is by structuring investments in such a way that investment protection treaties with the host country can be triggered. An example of such is the use of acquisition vehicles to which investment protection treaties apply.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">f. Market Demand Risks</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">A product or service which proves successful in one country may not be successful in another. Many businesses have had to adapt their products or services significantly in order to conform to the cultural, religious traditions or realities of a new market. For example, online sales platforms work only if a large percentage of the target market holds credit cards. A thorough market study must be conducted before introducing a new product or service fresh to a jurisdiction to validate the introduction, assumptions or projections made by the party introducing it.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The deal \"risk list\" above is by no means exhaustive. But it highlights the fact that risk allocations between the parties in any cross-border deal should be clearly documented and the main risks addressed. Transactions always carry risks, but they can be managed successfully if the right care and judgment is exercised.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Al Tamimi &amp; Company’s Corporate Commercial team regularly advises on commercial matters. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/alex-saleh/\">Alex Saleh</a> (<a href=\"mailto:alex.saleh@tamimi.com\">alex.saleh@tamimi.com</a>) or <a href=\"http://localhost:8888/tamimi/lawyer/rana-el-nahal/\">Rana Elnahal</a> (<a href=\"mailto:r.elnahal@tamimi.com\">r.elnahal@tamimi.com</a>).</em></p>|<p dir=\"LTR\" align=\"LEFT\">Most business transactions involve degrees of risk, which can never be eliminated entirely. An additional layer of risk inevitably accompanies any cross-border deal, and this article addresses the best way to manage these particular risks.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cross-Border Deals and Legal Risks</h3>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">a. Choice of Law and Forum:</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In cross-border deals, choice of law and forum clauses deserve enhanced scrutiny and negotiation. If any dispute flares up, you will find that these choices will have already been locked in. Suddenly, they will loom large, and poor choices may cost you considerable money and time. Choice of law is quite distinct from the choice of forum. The choice of law is the set of laws which governs the substance of the contract, whilst forum is concerned with the dispute resolution body and the processes for final resolution.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>(i) Choice of Law:</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The main factor in deciding which governing law should govern a contract is ease of enforcement of those contractual terms allocating risks between the parties. Some jurisdictions have less developed substantive legal rules and their laws do not fit comfortably with sophisticated transaction structures commonly seen in major financial centres. In such instances, local law may either override or fail to support the agreed contract terms, rendering the outcome of any dispute unpredictable.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Ideally, parties to a contract should choose a jurisdiction with a well-developed body of legal rules. Many international players prefer common law systems, mainly because they are accustomed to working within these legal systems. Moreover, common law systems carry with them a wealth of recognised precedents which can render dispute outcomes more predictable.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>(ii) Choice of Forum:</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Selecting a forum involves two different choices. Firstly, whether the parties wish to submit to arbitration or a court process. Secondly, a choice as to the legal environment in which the dispute process will be conducted, a choice which needs to take into account supervision of the arbitration and/or access to an appellate court system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Resolution by official courts can save the parties substantial costs associated with arbitration. Any arbitration has to be funded privately, including the fees of the arbitrators. Also, it is usually quicker and easier for courts to secure interim remedies and to compel disclosure of documents or information; in arbitrations, it is often necessary to go to court to secure these remedies anyway. Courts also allow for appeal processes from their judgements, a safeguard against capricious findings or error. Arbitration, on the other hand, gives the parties an opportunity to ensure that a dispute is determined by a technical expert, rather than a legally trained judge. The expert can act as the arbitrator and resolve the dispute without the successful party being exposed to drawn-out appeals. Nevertheless, the possibility of the arbitrator requiring correction or supervision will also be relevant to any choice of forum. In some jurisdictions, arbitrations move faster than court processes, in others they move more slowly.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When choosing the legal environment for the forum, a neutral jurisdiction has advantages, and usually gives confidence to foreign-based counterparties, particularly in cases where one of the transaction parties is a governmental entity or has strong ties to the government. Meanwhile, selecting the jurisdiction which hosts the deal assets also has its advantages, as the dispute resolution forum will have power to make orders affecting those assets and may be convenient and accessible for involved experts or witnesses. Decisions of a court where the deal assets are located are usually more readily enforceable against those assets.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A key point to consider in advance is whether a court of the jurisdiction hosting the deal assets will recognize and respect the parties’ contractual choice of forum. For example, courts in GCC countries sometimes consider it appropriate to assume jurisdiction over a case filed before them which involves local assets (particularly land); and to apply local law regardless.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Transactions always carry risks, but they can be managed successfully if the right care and judgment is exercised.\"</h2>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">b. Enforcement of Securities</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Lenders must carefully study and assess the enforceability of their security in the event of default. In some jurisdictions which impose fees or taxes, taking security over the deal assets, especially real property, may be costly. In these cases, a more practical security may take the form of a preferential claim to cash balances and revenues of the target/assets.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">c. Force Majeure Risk</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Force majeure is a legal term of art describing the occurrence of an unexpected event outside the control of the affected party, as a result of which it becomes difficult or impossible for that party to perform obligations under a contract. Examples of force majeure include wars, riots, fires, floods and hurricanes. Such events also affect domestic deals, but force majeure events are less predictable for foreign counterparties in any cross-border deal.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Common law jurisdictions usually refuse to grant relief for force majeure events unless this is expressly provided for in the contract. In contrast, civil law jurisdictions usually grant the court the authority to alter the contract to restore its balance where there is a force majeure event. In all cases, courts in both systems will be influenced by, and consider, the express terms of the contract before making a decision.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some force majeure risks are commercially insurable events. Others are uninsurable events. Commercially insurable events include fires, floods or storms and in these scenarios their risk may be mitigated by obtaining the necessary insurance policies. In contrast, riots and political disruptions are usually uninsurable. Hence, the parties should take into account insurance cover and allocate contractual risks accordingly, particularly as the inclusion of an indemnity in the deal contract can sometimes nullify insurance arrangements.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">d. Currency Fluctuations</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Currency fluctuations are common risks encountered with international transactions. Even with the most careful monitoring, fluctuations can be unpredictable and can greatly affect the economics of a project, the business and its profits. To mitigate this risk, it is ideal to contract with all parties in the transaction chain in the same currency, if possible. Another way to mitigate any exchange risk, is to hedge the currency risk. This method may incur hedging costs and also sacrifice gains from favourable fluctuations – but, if the tables are turned, it also mitigates any significant losses.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">e. Sovereign Risk</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Sovereign risk is an inherit risk that is more heightened in some countries. One way to mitigate sovereign risk is by structuring investments in such a way that investment protection treaties with the host country can be triggered. An example of such is the use of acquisition vehicles to which investment protection treaties apply.</p>\r\n&nbsp;\r\n<h4 dir=\"LTR\" align=\"LEFT\">f. Market Demand Risks</h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">A product or service which proves successful in one country may not be successful in another. Many businesses have had to adapt their products or services significantly in order to conform to the cultural, religious traditions or realities of a new market. For example, online sales platforms work only if a large percentage of the target market holds credit cards. A thorough market study must be conducted before introducing a new product or service fresh to a jurisdiction to validate the introduction, assumptions or projections made by the party introducing it.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The deal \"risk list\" above is by no means exhaustive. But it highlights the fact that risk allocations between the parties in any cross-border deal should be clearly documented and the main risks addressed. Transactions always carry risks, but they can be managed successfully if the right care and judgment is exercised.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Al Tamimi &amp; Company’s Corporate Commercial team regularly advises on commercial matters. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/alex-saleh/\">Alex Saleh</a> (<a href=\"mailto:alex.saleh@tamimi.com\">alex.saleh@tamimi.com</a>) or <a href=\"http://localhost:8888/tamimi/lawyer/rana-el-nahal/\">Rana Elnahal</a> (<a href=\"mailto:r.elnahal@tamimi.com\">r.elnahal@tamimi.com</a>).</em></p>'),
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	(291480,28018,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"http://localhost:8888/tamimi/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>'),
	(291481,28018,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Powers of Attorney</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">i. The termination of the POA</p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">ii. Dismissal of the Manager and revocation of POA</p>\r\n\r\n<dir>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n\r\n</dir>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"http://localhost:8888/tamimi/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>'),
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	(291484,28018,'ReportText','<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Powers of Attorney</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">i. The termination of the POA</p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">ii. Dismissal of the Manager and revocation of POA</p>\r\n\r\n<dir>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n\r\n</dir>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"http://localhost:8888/tamimi/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>|<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"http://localhost:8888/tamimi/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>'),
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	(291939,28054,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\">We previously looked at the UAE Child Rights Law (UAE Federal Law No. 3 of 2016) and the evolving landscape in the UAE in relation to child rights and safeguarding children.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The focus of the previous article was in relation to HR issues around background checks and how to deal with issues when they arise. The focus of this article is in relation to safeguarding children generally and aims to bring readers up to speed on the latest developments in this evolving area and look at what is coming down the track.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Child Protection Units</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">By way of brief recap on the Child Rights Law which was enacted in 2016. The key pillars of it are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">It enshrines the basic principle that children have the right to life and safety, and specifically provides that every child is entitled to an education.</li>\r\n 	<li dir=\"LTR\">It seeks to prevent all kinds of violence in educational institutions and to preserve children’s dignity in an education context. The law states that a child’s mental, psychological, physical or ethical safety must not be prejudiced.</li>\r\n 	<li dir=\"LTR\">The law envisages that dedicated Child Protection Units (\"CPUs\") would be established in the relevant Ministries aimed at developing and implementing child protection mechanisms.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The executive regulations to the law, which set out the details and mechanics of how it will be implemented, have not been issued yet. The regulations will determinate the competencies of the CPU’s and operating mechanisms within each ministry.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We do have an idea of what the new safeguarding regime will look like.</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">It is envisaged that each Ministry that has a remit for children will have a dedicated CPU within it; so for example the Ministry of Education (MOE), Ministry of Health (MOH) etc. These CPUs will deal with any safeguarding/child’s rights issues arising from institutions/schools etc that are under its remit. So education providers would naturally fall under the remit of the MOE and healthcare providers under the MOH etc.</li>\r\n 	<li dir=\"LTR\">The legislation provides for child protection specialists to carry out a significant role in relation to the implementation of the law.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h2><span lang=\"EN\">“</span>Significant and welcome changes are imminent in the child protection space. The authorities are working on what appears to be well thought-out procedures and processes which will involve educational institutions becoming integrated in the framework and solution.”</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Child Protection Specialists</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">One of the major features of the law is the creation of an official child protection specialist role (\"CPS\") with sweeping powers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We understand that it is envisaged that private entities may have a member of their own staff appointed as a CPS. So in the education space a child protection officer from a school or college could be appointed to this official role of CPS, which carries with it quasi-judicial powers including:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">perform preventive and therapeutic intervention in any case where there is a risk to the child’s health, physical, psychological, ethical or mental safety;</li>\r\n 	<li dir=\"LTR\">power to collect evidence regarding any reported incidents;</li>\r\n 	<li dir=\"LTR\">enter the premises where the child is present;</li>\r\n 	<li dir=\"LTR\">take appropriate preventive measures to protect the child;</li>\r\n 	<li dir=\"LTR\">in situations where a threat to the child’s health or safety is established, the CPS will have authority to propose to place the child temporarily in an alternative family, an association, or an appropriate social, educational or health institution;</li>\r\n 	<li dir=\"LTR\">assistance in investigations and trials.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The CPS would receive training prior to appointment and would have the full backup and authority of the law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without doubt this is a very significant development and will be welcomed by education providers.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Reporting</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In the meantime, and prior to the establishment of the CPUs and the CPS system, schools can report any suspicions of abuse to the Ministry of Interior. The Ministry, which has remit over a wide range of functions including the police, has a dedicated child protection unit. The unit deals with child protection complaints from the general public, schools and any other sources. Contact details are as follows:</p>\r\n&nbsp;\r\n<h4><em>Hotline phone number: 116 111</em></h4>\r\n<h4><em>Email address: <a href=\"mailto:childprotection@moi-cpc.gov.ae\">childprotection@moi-cpc.gov.ae</a></em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">A complaint can be made anonymously or otherwise. The unit will then contact the child protection unit of the local police force.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Even after the establishment of the CPUs it is expected that any allegation of sexual abuse would be reported to the police directly or via the Ministry of Interior.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Significant and welcome changes are imminent in the child protection space. The authorities are working on what appears to be well thought-out procedures and processes which will involve educational institutions becoming integrated in the framework and solution.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Al Tamimi &amp; Company’s <a href=\"http://localhost:8888/tamimi/practice/employment-incentives/\">employment team</a> regularly advises on all aspects of the employment relationship in the UAE, in relation to the education sector and across all other sectors and industries. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).</em></p>'),
	(291940,28054,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">We previously looked at the UAE Child Rights Law (UAE Federal Law No. 3 of 2016) and the evolving landscape in the UAE in relation to child rights and safeguarding children.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The focus of the previous article was in relation to HR issues around background checks and how to deal with issues when they arise. The focus of this article is in relation to safeguarding children generally and aims to bring readers up to speed on the latest developments in this evolving area and look at what is coming down the track.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Child Protection Units</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">By way of brief recap on the Child Rights Law which was enacted in 2016. The key pillars of it are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">It enshrines the basic principle that children have the right to life and safety, and specifically provides that every child is entitled to an education.</li>\r\n 	<li dir=\"LTR\">It seeks to prevent all kinds of violence in educational institutions and to preserve children’s dignity in an education context. The law states that a child’s mental, psychological, physical or ethical safety must not be prejudiced.</li>\r\n 	<li dir=\"LTR\">The law envisages that dedicated Child Protection Units (\"CPUs\") would be established in the relevant Ministries aimed at developing and implementing child protection mechanisms.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The executive regulations to the law, which set out the details and mechanics of how it will be implemented, have not been issued yet. The regulations will determinate the competencies of the CPU’s and operating mechanisms within each ministry.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We do have an idea of what the new safeguarding regime will look like.</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">It is envisaged that each Ministry that has a remit for children will have a dedicated CPU within it; so for example the Ministry of Education (MOE), Ministry of Health (MOH) etc. These CPUs will deal with any safeguarding/child’s rights issues arising from institutions/schools etc that are under its remit. So education providers would naturally fall under the remit of the MOE and healthcare providers under the MOH etc.</li>\r\n 	<li dir=\"LTR\">The legislation provides for child protection specialists to carry out a significant role in relation to the implementation of the law.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Child Protection Specialists</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">One of the major features of the law is the creation of an official child protection specialist role (\"CPS\") with sweeping powers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We understand that it is envisaged that private entities may have a member of their own staff appointed as a CPS. So in the education space a child protection officer from a school or college could be appointed to this official role of CPS, which carries with it quasi-judicial powers including:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">perform preventive and therapeutic intervention in any case where there is a risk to the child’s health, physical, psychological, ethical or mental safety;</li>\r\n 	<li dir=\"LTR\">power to collect evidence regarding any reported incidents;</li>\r\n 	<li dir=\"LTR\">enter the premises where the child is present;</li>\r\n 	<li dir=\"LTR\">take appropriate preventive measures to protect the child;</li>\r\n 	<li dir=\"LTR\">in situations where a threat to the child’s health or safety is established, the CPS will have authority to propose to place the child temporarily in an alternative family, an association, or an appropriate social, educational or health institution;</li>\r\n 	<li dir=\"LTR\">assistance in investigations and trials.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The CPS would receive training prior to appointment and would have the full backup and authority of the law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without doubt this is a very significant development and will be welcomed by education providers.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Reporting</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In the meantime, and prior to the establishment of the CPUs and the CPS system, schools can report any suspicions of abuse to the Ministry of Interior. The Ministry, which has remit over a wide range of functions including the police, has a dedicated child protection unit. The unit deals with child protection complaints from the general public, schools and any other sources. Contact details are as follows:</p>\r\n&nbsp;\r\n<h4><em>Hotline phone number: 116 111</em></h4>\r\n<h4><em>Email address: <a href=\"mailto:childprotection@moi-cpc.gov.ae\">childprotection@moi-cpc.gov.ae</a></em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">A complaint can be made anonymously or otherwise. The unit will then contact the child protection unit of the local police force.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Even after the establishment of the CPUs it is expected that any allegation of sexual abuse would be reported to the police directly or via the Ministry of Interior.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Significant and welcome changes are imminent in the child protection space. The authorities are working on what appears to be well thought-out procedures and processes which will involve educational institutions becoming integrated in the framework and solution.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Al Tamimi &amp; Company’s <a href=\"http://localhost:8888/tamimi/practice/employment-incentives/\">employment team</a> regularly advises on all aspects of the employment relationship in the UAE, in relation to the education sector and across all other sectors and industries. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).</em></p>'),
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	(291943,28054,'ReportText','<p dir=\"LTR\" align=\"LEFT\">We previously looked at the UAE Child Rights Law (UAE Federal Law No. 3 of 2016) and the evolving landscape in the UAE in relation to child rights and safeguarding children.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The focus of the previous article was in relation to HR issues around background checks and how to deal with issues when they arise. The focus of this article is in relation to safeguarding children generally and aims to bring readers up to speed on the latest developments in this evolving area and look at what is coming down the track.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Child Protection Units</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">By way of brief recap on the Child Rights Law which was enacted in 2016. The key pillars of it are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">It enshrines the basic principle that children have the right to life and safety, and specifically provides that every child is entitled to an education.</li>\r\n 	<li dir=\"LTR\">It seeks to prevent all kinds of violence in educational institutions and to preserve children’s dignity in an education context. The law states that a child’s mental, psychological, physical or ethical safety must not be prejudiced.</li>\r\n 	<li dir=\"LTR\">The law envisages that dedicated Child Protection Units (\"CPUs\") would be established in the relevant Ministries aimed at developing and implementing child protection mechanisms.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The executive regulations to the law, which set out the details and mechanics of how it will be implemented, have not been issued yet. The regulations will determinate the competencies of the CPU’s and operating mechanisms within each ministry.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We do have an idea of what the new safeguarding regime will look like.</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">It is envisaged that each Ministry that has a remit for children will have a dedicated CPU within it; so for example the Ministry of Education (MOE), Ministry of Health (MOH) etc. These CPUs will deal with any safeguarding/child’s rights issues arising from institutions/schools etc that are under its remit. So education providers would naturally fall under the remit of the MOE and healthcare providers under the MOH etc.</li>\r\n 	<li dir=\"LTR\">The legislation provides for child protection specialists to carry out a significant role in relation to the implementation of the law.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Child Protection Specialists</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">One of the major features of the law is the creation of an official child protection specialist role (\"CPS\") with sweeping powers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We understand that it is envisaged that private entities may have a member of their own staff appointed as a CPS. So in the education space a child protection officer from a school or college could be appointed to this official role of CPS, which carries with it quasi-judicial powers including:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">perform preventive and therapeutic intervention in any case where there is a risk to the child’s health, physical, psychological, ethical or mental safety;</li>\r\n 	<li dir=\"LTR\">power to collect evidence regarding any reported incidents;</li>\r\n 	<li dir=\"LTR\">enter the premises where the child is present;</li>\r\n 	<li dir=\"LTR\">take appropriate preventive measures to protect the child;</li>\r\n 	<li dir=\"LTR\">in situations where a threat to the child’s health or safety is established, the CPS will have authority to propose to place the child temporarily in an alternative family, an association, or an appropriate social, educational or health institution;</li>\r\n 	<li dir=\"LTR\">assistance in investigations and trials.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The CPS would receive training prior to appointment and would have the full backup and authority of the law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without doubt this is a very significant development and will be welcomed by education providers.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Reporting</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In the meantime, and prior to the establishment of the CPUs and the CPS system, schools can report any suspicions of abuse to the Ministry of Interior. The Ministry, which has remit over a wide range of functions including the police, has a dedicated child protection unit. The unit deals with child protection complaints from the general public, schools and any other sources. Contact details are as follows:</p>\r\n&nbsp;\r\n<h4><em>Hotline phone number: 116 111</em></h4>\r\n<h4><em>Email address: <a href=\"mailto:childprotection@moi-cpc.gov.ae\">childprotection@moi-cpc.gov.ae</a></em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">A complaint can be made anonymously or otherwise. The unit will then contact the child protection unit of the local police force.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Even after the establishment of the CPUs it is expected that any allegation of sexual abuse would be reported to the police directly or via the Ministry of Interior.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Significant and welcome changes are imminent in the child protection space. The authorities are working on what appears to be well thought-out procedures and processes which will involve educational institutions becoming integrated in the framework and solution.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Al Tamimi &amp; Company’s <a href=\"http://localhost:8888/tamimi/practice/employment-incentives/\">employment team</a> regularly advises on all aspects of the employment relationship in the UAE, in relation to the education sector and across all other sectors and industries. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).</em></p>|<p dir=\"LTR\" align=\"LEFT\">We previously looked at the UAE Child Rights Law (UAE Federal Law No. 3 of 2016) and the evolving landscape in the UAE in relation to child rights and safeguarding children.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The focus of the previous article was in relation to HR issues around background checks and how to deal with issues when they arise. The focus of this article is in relation to safeguarding children generally and aims to bring readers up to speed on the latest developments in this evolving area and look at what is coming down the track.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Child Protection Units</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">By way of brief recap on the Child Rights Law which was enacted in 2016. The key pillars of it are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">It enshrines the basic principle that children have the right to life and safety, and specifically provides that every child is entitled to an education.</li>\r\n 	<li dir=\"LTR\">It seeks to prevent all kinds of violence in educational institutions and to preserve children’s dignity in an education context. The law states that a child’s mental, psychological, physical or ethical safety must not be prejudiced.</li>\r\n 	<li dir=\"LTR\">The law envisages that dedicated Child Protection Units (\"CPUs\") would be established in the relevant Ministries aimed at developing and implementing child protection mechanisms.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The executive regulations to the law, which set out the details and mechanics of how it will be implemented, have not been issued yet. The regulations will determinate the competencies of the CPU’s and operating mechanisms within each ministry.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We do have an idea of what the new safeguarding regime will look like.</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">It is envisaged that each Ministry that has a remit for children will have a dedicated CPU within it; so for example the Ministry of Education (MOE), Ministry of Health (MOH) etc. These CPUs will deal with any safeguarding/child’s rights issues arising from institutions/schools etc that are under its remit. So education providers would naturally fall under the remit of the MOE and healthcare providers under the MOH etc.</li>\r\n 	<li dir=\"LTR\">The legislation provides for child protection specialists to carry out a significant role in relation to the implementation of the law.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<h2><span lang=\"EN\">“</span>Significant and welcome changes are imminent in the child protection space. The authorities are working on what appears to be well thought-out procedures and processes which will involve educational institutions becoming integrated in the framework and solution.”</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Child Protection Specialists</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">One of the major features of the law is the creation of an official child protection specialist role (\"CPS\") with sweeping powers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We understand that it is envisaged that private entities may have a member of their own staff appointed as a CPS. So in the education space a child protection officer from a school or college could be appointed to this official role of CPS, which carries with it quasi-judicial powers including:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">perform preventive and therapeutic intervention in any case where there is a risk to the child’s health, physical, psychological, ethical or mental safety;</li>\r\n 	<li dir=\"LTR\">power to collect evidence regarding any reported incidents;</li>\r\n 	<li dir=\"LTR\">enter the premises where the child is present;</li>\r\n 	<li dir=\"LTR\">take appropriate preventive measures to protect the child;</li>\r\n 	<li dir=\"LTR\">in situations where a threat to the child’s health or safety is established, the CPS will have authority to propose to place the child temporarily in an alternative family, an association, or an appropriate social, educational or health institution;</li>\r\n 	<li dir=\"LTR\">assistance in investigations and trials.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The CPS would receive training prior to appointment and would have the full backup and authority of the law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without doubt this is a very significant development and will be welcomed by education providers.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Reporting</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In the meantime, and prior to the establishment of the CPUs and the CPS system, schools can report any suspicions of abuse to the Ministry of Interior. The Ministry, which has remit over a wide range of functions including the police, has a dedicated child protection unit. The unit deals with child protection complaints from the general public, schools and any other sources. Contact details are as follows:</p>\r\n&nbsp;\r\n<h4><em>Hotline phone number: 116 111</em></h4>\r\n<h4><em>Email address: <a href=\"mailto:childprotection@moi-cpc.gov.ae\">childprotection@moi-cpc.gov.ae</a></em></h4>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">A complaint can be made anonymously or otherwise. The unit will then contact the child protection unit of the local police force.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Even after the establishment of the CPUs it is expected that any allegation of sexual abuse would be reported to the police directly or via the Ministry of Interior.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Significant and welcome changes are imminent in the child protection space. The authorities are working on what appears to be well thought-out procedures and processes which will involve educational institutions becoming integrated in the framework and solution.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Al Tamimi &amp; Company’s <a href=\"http://localhost:8888/tamimi/practice/employment-incentives/\">employment team</a> regularly advises on all aspects of the employment relationship in the UAE, in relation to the education sector and across all other sectors and industries. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).</em></p>'),
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	(292011,28060,'PostTitle','Introduction to the Saudi Sport Arbitration Centre (SSAC)'),
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	(292022,28061,'PostTitle','Introduction to the Saudi Sport Arbitration Centre (SSAC)'),
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	(292024,28061,'PostType','law_update_articles'),
	(292025,28061,'PostDate','2018-08-01 07:36:57'),
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	(292028,28061,'MetaKey','content'),
	(292029,28061,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-8027 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_1016569270-1024x1024.jpg\" alt=\"\" width=\"332\" height=\"332\" />Football is hugely popular across the Middle East. Its popularity has led some to invest in football clubs. When one considers the wide range of agreements between clubs, players, coaches and sponsors, the potential for disputes is clear. Satisfactory resolution of such disputes is not always easily attainable, considering the specialist nature of sports law and general scarcity of specialist in the field. Bespoke judicial bodies and arbitration centres have recently been established in response.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015, the Saudi Arabian Olympic Committee (SAOC) approved the establishment the Saudi Sport Arbitration Centre (SSAC). Specifically, the Generally Assembly of the SAOC approved its Board of Directors’ decision to authorize the SAOC President to take all necessary actions to establish the SSAC. The SSAC aims to contribute to the general development of the sports sector and the resolution of sport related disputes. As a result, sports law in the Kingdom of Saudi Arabia, and the resolution of sports related disputes, has seen significant development. There is no doubt that SSAC has contributed to the preservation of the rights of parties, and the broader development of the sports sector in the Kingdom of Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article considers two significant regulatory regimes in the field of sports law in the Kingdom of Saudi Arabia - the Statute of the Saudi Sport Arbitration Centre (SSAC Statute) and the Rules and Procedures of the Centre of Arbitration for Sport (Rules &amp; Procedures). Further, the author considers various divisions of sports arbitration with both the ordinary and the appeal arbitration procedures of the SSAC.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Saudi Sport Arbitration Centre</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Established in 2016, the SSAC is located in Riyadh, the nation’s capital. The SSAC is the highest judicial body for sports-related disputes in the Kingdom of Saudi Arabia, specialising in the hearing of any sports-related dispute by arbitration or mediation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The legal basis of the SSAC is the SSAC Statute, its procedural rules, and any resolution issued by the SSAC’s Board of Directors. Further, the SSAC was established in line with the Olympic Charter, the statutes of International Federations, the Code of the Court of Arbitration for Sports, and the Arbitration Law of the Kingdom of Saudi Arabia. This has led to a strong, and familiar, legal basis for its effective operation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC is composed of five members: one appointed by the SAOC, that individual is the President of the SSAC; one appointed by the Athletes’ Committee of the SAOC; one appointed by the Saudi Arabia Football Federation (SAFF); and two appointed by the General Assembly of the SAOC.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC does not deal with appeals arising from violations of laws of the game, criminal cases arising from sports disputes, or sports disputes that have not exhausted the internal roads via the competent judicial bodies. Final decisions may be appealed to the SSAC within 21 days of notification.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>SSAC Procedures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC Statute and the Rules &amp; Procedures are a set of procedural rules that govern SSAC procedures. The SSAC provides for three types of procedure:</p>\r\n\r\n<ul>\r\n 	<li>Ordinary Arbitration - in which the parties have agreed to refer a sports dispute to the SSAC in accordance with an arbitration clause in a contract, or in cases where both parties agree to refer the dispute to arbitration after the dispute has arisen.</li>\r\n 	<li>Appeal Arbitration - in which a party has filed an appeal against a decision issued by a national association such as SAFF, or a judicial body related to sport, where the statutes or regulations provide an appeal before the SSAC.</li>\r\n 	<li>Mediation - in which each party has agreed to refer a dispute that has arisen, or a potential dispute that may arise, to an SSAC mediator.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>SSAC Jurisdiction</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC has jurisdiction to hear any dispute related to sport. Many types of disputes can be referred to the SSAC, including; disputes arising between the SAOC, associations, clubs, members of the boards, members of the general assembly, players, referees, coaches, intermediaries, registered media representatives, organizers of sports events, sponsoring companies, TV transmission channels, disputes relating to sports doping, contractual disputes (provided the arbitration clause refers the dispute to the SSAC), and any international sports dispute (such as may occur in connection with a foreign player or coach) in which the parties have agreed to resort to the SSAC. The SSAC accordingly enjoys wide jurisdiction to hear any dispute related to sports in the Kingdom of Saudi Arabia. This stands to generally contribute to the development of sports law in the Kingdom of Saudi Arabia.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Arbitration Divisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to Article 24 of the SSAC Statute, the SSAC shall conduct the arbitration in sports-related disputes through the following arbitration divisions:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Ordinary Arbitration Division, which shall carry out its tasks in accordance with the following powers: to resolve sports-related disputes that may arise out of contracts containing an arbitration clause that refers any dispute to the SSAC, or out of any subsequent agreement allowing the referral of disputes to the SSAC and to resolve sports disputes that may arise between the parties to any sports matter (athletes, players, intermediaries, sponsors, administrative staff, technical staff, medical staff, sports clubs, sports federations and Olympic committees), provided that such disputes are not subject to appeal before the SSAC.</li>\r\n 	<li dir=\"LTR\">Appeals Arbitration Division, which shall carry out its tasks in accordance with the following powers: to decide on all appeals against final decisions issued by the sports bodies after exhausting all internal legal procedures, except for football decisions, to decide on objections filed against internal decisions issued by the sports bodies, which do not have protest proceedings provided for in their statutes or regulations.</li>\r\n 	<li dir=\"LTR\">Football Dispute Arbitration Division, which has the competence to decide on all appeals against the decisions issued by the SAFF and its committees after exhausting all its internal legal procedures, in accordance with the SAFF Rules and Regulations.</li>\r\n 	<li dir=\"LTR\">Special Dispute Division, that may be established by the SSAC to resolve all sports-related disputes referred by the General Sport Authority (GSA).</li>\r\n 	<li dir=\"LTR\">Mediation Division, which has the competence to mediate between and assist the concerned parties to reach settlement agreements in contractual disputes.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC is composed of the five divisions described above plus newly created divisions, which are the Special Dispute Division and the Football Dispute Arbitration Division. It is to be inferred that the SSAC created a new division for the sport of football because it is the most popular sport in the Kingdom of Saudi Arabia and it is accordingly anticipated that most disputes will football related.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\" wp-image-8095 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_220904572-655x1024.jpg\" alt=\"\" width=\"188\" height=\"294\" />Applicable law and Arbitration Language</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the ordinary, appeals or football arbitration divisions, the arbitration panel must follow all of the regulations and rules of the sports body whose decision is appealed against as a means of fulfilling the principles of justice, equity and the Olympic Charter. In the event that no relevant provision is stated in those regulations, then reference may be made to the statutes or regulations of the respective International Federations (IFs) according to each individual case, however, the parties may, in the ordinary arbitration, choose the law applicable to the dispute. It can be seen that the SSAC shall apply national laws and regulations, although the international regulations can also be applied in cases where there is no relevant provision to be found in the national laws and regulations. This situation helps the arbitrators to issue decisions in line with decisions at the international level.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Arabic language shall prevail as the language before the SSAC. However, English, or any other language, may be used before SSAC with a certified Arabic translation, upon the approval by the Arbitration Panel.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Arbitration Expenses and Fees</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Party requesting arbitration will be liable to pay the arbitration fees upon submitting the case to the SSAC. In case the Claimant requests an expedited procedure, then that party shall pay the applicable fees for an expedited procedure as prescribed. All fees are non-refundable. Furthermore, the party requesting arbitration shall pay the tribunal’s administrative expenses, while the losing party bears all such expenses unless an arbitral award states that the parties shall cover the expenses equally. One important rule is that the final arbitral award shall be delivered to the parties only after all the arbitrators’ costs and fees have been paid in full. Evidently, the SSAC has strong conditions in relation to fees and protects the rights of its arbitrators.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Notifications and Communications</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">All notifications, reports and communications shall be made through and by the SSAC General Secretariat. In addition, all correspondence must be made in PDF format and sent to an SSAC approved e-mail address which shall be the only legal way for the SSAC to send/receive correspondence. Moreover, notifications, correspondence and communications served to the parties to the arbitration or their representatives must be made through the e-mail address previously specified by them or any other address determined in writing at a later stage or through an online filing platform. In case the notifications and communications cannot be delivered by email then they can be delivered by mail or by facsimile. Notifications and correspondence served on the parties to the arbitration shall be considered legally received if they are sent to the addressees at their SSAC-approved e-mail addresses.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Legal Nature of SSAC Awards</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Arbitration awards issued by the SSAC are final and may not be appealed before any other tribunal, whether inside or outside the Kingdom of Saudi Arabia, unless otherwise stated in the SSAC Statute. In sports disputes in which a foreigner is a party, awards may be appealed before the International Sports Federations (IFs) or the Court of Arbitration for Sport (CAS), if the relevant statute of an IF states that an appeal shall be made before such judicial body. In case the contract states that the arbitration is within the jurisdiction of the SSAC, then the SSAC award shall be final and non-appealable before any other authority.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC represents a significant development in sports law, not only in the Kingdom of Saudi Arabia but also in the Middle East. Litigants may be represented by any licensed lawyer. To date 24 specialist Saudi and Arab arbitrators have been appointed to the panel of the SSAC. Eight international arbitrators, from the list of the CAS, have been appointed to SSAC arbitral panels, demonstrating international confidence. Its wide jurisdiction, and the range of its specialized divisions, will ensure that sports disputes are resolved with high standards of efficiency and in accordance with the best international sports law dispute resolution standards.</p>\r\n <em><img class=\"alignleft size-full wp-image-8031\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_224568580.jpg\" alt=\"\" width=\"4429\" height=\"2041\" /></em>\r\n\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Bandar Alhamidani is a Partner and key member of the Al Tamimi &amp; Company’s Sports Law and Events Management team practice. Bandar has acted as an Arbitrator before CAS and SSAC. For further information, please contact Bandar Alhamidani (b.alhamidani@tamimi.com).</p>'),
	(292030,28061,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-8027 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_1016569270-1024x1024.jpg\" alt=\"\" width=\"332\" height=\"332\" />Football is hugely popular across the Middle East. Its popularity has led some to invest in football clubs. When one considers the wide range of agreements between clubs, players, coaches and sponsors, the potential for disputes is clear. Satisfactory resolution of such disputes is not always easily attainable, considering the specialist nature of sports law and general scarcity of specialist in the field. Bespoke judicial bodies and arbitration centres have recently been established in response.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015, the Saudi Arabian Olympic Committee (SAOC) approved the establishment the Saudi Sport Arbitration Centre (SSAC). Specifically, the Generally Assembly of the SAOC approved its Board of Directors’ decision to authorize the SAOC President to take all necessary actions to establish the SSAC. The SSAC aims to contribute to the general development of the sports sector and the resolution of sport related disputes. As a result, sports law in the Kingdom of Saudi Arabia, and the resolution of sports related disputes, has seen significant development. There is no doubt that SSAC has contributed to the preservation of the rights of parties, and the broader development of the sports sector in the Kingdom of Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article considers two significant regulatory regimes in the field of sports law in the Kingdom of Saudi Arabia - the Statute of the Saudi Sport Arbitration Centre (SSAC Statute) and the Rules and Procedures of the Centre of Arbitration for Sport (Rules &amp; Procedures). Further, the author considers various divisions of sports arbitration with both the ordinary and the appeal arbitration procedures of the SSAC.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Saudi Sport Arbitration Centre</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Established in 2016, the SSAC is located in Riyadh, the nation’s capital. The SSAC is the highest judicial body for sports-related disputes in the Kingdom of Saudi Arabia, specialising in the hearing of any sports-related dispute by arbitration or mediation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The legal basis of the SSAC is the SSAC Statute, its procedural rules, and any resolution issued by the SSAC’s Board of Directors. Further, the SSAC was established in line with the Olympic Charter, the statutes of International Federations, the Code of the Court of Arbitration for Sports, and the Arbitration Law of the Kingdom of Saudi Arabia. This has led to a strong, and familiar, legal basis for its effective operation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC is composed of five members: one appointed by the SAOC, that individual is the President of the SSAC; one appointed by the Athletes’ Committee of the SAOC; one appointed by the Saudi Arabia Football Federation (SAFF); and two appointed by the General Assembly of the SAOC.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC does not deal with appeals arising from violations of laws of the game, criminal cases arising from sports disputes, or sports disputes that have not exhausted the internal roads via the competent judicial bodies. Final decisions may be appealed to the SSAC within 21 days of notification.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>SSAC Procedures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC Statute and the Rules &amp; Procedures are a set of procedural rules that govern SSAC procedures. The SSAC provides for three types of procedure:</p>\r\n\r\n<ul>\r\n 	<li>Ordinary Arbitration - in which the parties have agreed to refer a sports dispute to the SSAC in accordance with an arbitration clause in a contract, or in cases where both parties agree to refer the dispute to arbitration after the dispute has arisen.</li>\r\n 	<li>Appeal Arbitration - in which a party has filed an appeal against a decision issued by a national association such as SAFF, or a judicial body related to sport, where the statutes or regulations provide an appeal before the SSAC.</li>\r\n 	<li>Mediation - in which each party has agreed to refer a dispute that has arisen, or a potential dispute that may arise, to an SSAC mediator.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>SSAC Jurisdiction</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC has jurisdiction to hear any dispute related to sport. Many types of disputes can be referred to the SSAC, including; disputes arising between the SAOC, associations, clubs, members of the boards, members of the general assembly, players, referees, coaches, intermediaries, registered media representatives, organizers of sports events, sponsoring companies, TV transmission channels, disputes relating to sports doping, contractual disputes (provided the arbitration clause refers the dispute to the SSAC), and any international sports dispute (such as may occur in connection with a foreign player or coach) in which the parties have agreed to resort to the SSAC. The SSAC accordingly enjoys wide jurisdiction to hear any dispute related to sports in the Kingdom of Saudi Arabia. This stands to generally contribute to the development of sports law in the Kingdom of Saudi Arabia.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Arbitration Divisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to Article 24 of the SSAC Statute, the SSAC shall conduct the arbitration in sports-related disputes through the following arbitration divisions:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Ordinary Arbitration Division, which shall carry out its tasks in accordance with the following powers: to resolve sports-related disputes that may arise out of contracts containing an arbitration clause that refers any dispute to the SSAC, or out of any subsequent agreement allowing the referral of disputes to the SSAC and to resolve sports disputes that may arise between the parties to any sports matter (athletes, players, intermediaries, sponsors, administrative staff, technical staff, medical staff, sports clubs, sports federations and Olympic committees), provided that such disputes are not subject to appeal before the SSAC.</li>\r\n 	<li dir=\"LTR\">Appeals Arbitration Division, which shall carry out its tasks in accordance with the following powers: to decide on all appeals against final decisions issued by the sports bodies after exhausting all internal legal procedures, except for football decisions, to decide on objections filed against internal decisions issued by the sports bodies, which do not have protest proceedings provided for in their statutes or regulations.</li>\r\n 	<li dir=\"LTR\">Football Dispute Arbitration Division, which has the competence to decide on all appeals against the decisions issued by the SAFF and its committees after exhausting all its internal legal procedures, in accordance with the SAFF Rules and Regulations.</li>\r\n 	<li dir=\"LTR\">Special Dispute Division, that may be established by the SSAC to resolve all sports-related disputes referred by the General Sport Authority (GSA).</li>\r\n 	<li dir=\"LTR\">Mediation Division, which has the competence to mediate between and assist the concerned parties to reach settlement agreements in contractual disputes.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">By comparison, the SSAC’s divisions exceed the number of divisions of the Foundation of Qatar Sports Arbitration (FQSA), another regional sports arbitration body. The FQSA is composed of three divisions, which are the ordinary arbitration division, the appeals arbitration division and the mediation division. The SSAC is composed of the five divisions described above plus newly created divisions, which are the Special Dispute Division and the Football Dispute Arbitration Division. It is to be inferred that the SSAC created a new division for the sport of football because it is the most popular sport in the Kingdom of Saudi Arabia and it is accordingly anticipated that most disputes will football related.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\" wp-image-8095 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_220904572-655x1024.jpg\" alt=\"\" width=\"188\" height=\"294\" />Applicable law and Arbitration Language</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the ordinary, appeals or football arbitration divisions, the arbitration panel must follow all of the regulations and rules of the sports body whose decision is appealed against as a means of fulfilling the principles of justice, equity and the Olympic Charter. In the event that no relevant provision is stated in those regulations, then reference may be made to the statutes or regulations of the respective International Federations (IFs) according to each individual case, however, the parties may, in the ordinary arbitration, choose the law applicable to the dispute. It can be seen that the SSAC shall apply national laws and regulations, although the international regulations can also be applied in cases where there is no relevant provision to be found in the national laws and regulations. This situation helps the arbitrators to issue decisions in line with decisions at the international level.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Arabic language shall prevail as the language before the SSAC. However, English, or any other language, may be used before SSAC with a certified Arabic translation, upon the approval by the Arbitration Panel.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Arbitration Expenses and Fees</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Party requesting arbitration will be liable to pay the arbitration fees upon submitting the case to the SSAC. In case the Claimant requests an expedited procedure, then that party shall pay the applicable fees for an expedited procedure as prescribed. All fees are non-refundable. Furthermore, the party requesting arbitration shall pay the tribunal’s administrative expenses, while the losing party bears all such expenses unless an arbitral award states that the parties shall cover the expenses equally. One important rule is that the final arbitral award shall be delivered to the parties only after all the arbitrators’ costs and fees have been paid in full. Evidently, the SSAC has strong conditions in relation to fees and protects the rights of its arbitrators.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Notifications and Communications</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">All notifications, reports and communications shall be made through and by the SSAC General Secretariat. In addition, all correspondence must be made in PDF format and sent to an SSAC approved e-mail address which shall be the only legal way for the SSAC to send/receive correspondence. Moreover, notifications, correspondence and communications served to the parties to the arbitration or their representatives must be made through the e-mail address previously specified by them or any other address determined in writing at a later stage or through an online filing platform. In case the notifications and communications cannot be delivered by email then they can be delivered by mail or by facsimile. Notifications and correspondence served on the parties to the arbitration shall be considered legally received if they are sent to the addressees at their SSAC-approved e-mail addresses.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Legal Nature of SSAC Awards</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Arbitration awards issued by the SSAC are final and may not be appealed before any other tribunal, whether inside or outside the Kingdom of Saudi Arabia, unless otherwise stated in the SSAC Statute. In sports disputes in which a foreigner is a party, awards may be appealed before the International Sports Federations (IFs) or the Court of Arbitration for Sport (CAS), if the relevant statute of an IF states that an appeal shall be made before such judicial body. In case the contract states that the arbitration is within the jurisdiction of the SSAC, then the SSAC award shall be final and non-appealable before any other authority.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC represents a significant development in sports law, not only in the Kingdom of Saudi Arabia but also in the Middle East. Litigants may be represented by any licensed lawyer. To date 24 specialist Saudi and Arab arbitrators have been appointed to the panel of the SSAC. Eight international arbitrators, from the list of the CAS, have been appointed to SSAC arbitral panels, demonstrating international confidence. Its wide jurisdiction, and the range of its specialized divisions, will ensure that sports disputes are resolved with high standards of efficiency and in accordance with the best international sports law dispute resolution standards.</p>\r\n <em><img class=\"alignleft size-full wp-image-8031\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_224568580.jpg\" alt=\"\" width=\"4429\" height=\"2041\" /></em>\r\n\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Bandar Alhamidani is a Partner and key member of the Al Tamimi &amp; Company’s Sports Law and Events Management team practice. Bandar has acted as an Arbitrator before CAS and SSAC. For further information, please contact Bandar Alhamidani (b.alhamidani@tamimi.com).</p>'),
	(292031,28061,'MetaLink','content'),
	(292032,28061,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=7952&amp;action=edit'),
	(292033,28061,'ReportText','<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-8027 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_1016569270-1024x1024.jpg\" alt=\"\" width=\"332\" height=\"332\" />Football is hugely popular across the Middle East. Its popularity has led some to invest in football clubs. When one considers the wide range of agreements between clubs, players, coaches and sponsors, the potential for disputes is clear. Satisfactory resolution of such disputes is not always easily attainable, considering the specialist nature of sports law and general scarcity of specialist in the field. Bespoke judicial bodies and arbitration centres have recently been established in response.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015, the Saudi Arabian Olympic Committee (SAOC) approved the establishment the Saudi Sport Arbitration Centre (SSAC). Specifically, the Generally Assembly of the SAOC approved its Board of Directors’ decision to authorize the SAOC President to take all necessary actions to establish the SSAC. The SSAC aims to contribute to the general development of the sports sector and the resolution of sport related disputes. As a result, sports law in the Kingdom of Saudi Arabia, and the resolution of sports related disputes, has seen significant development. There is no doubt that SSAC has contributed to the preservation of the rights of parties, and the broader development of the sports sector in the Kingdom of Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article considers two significant regulatory regimes in the field of sports law in the Kingdom of Saudi Arabia - the Statute of the Saudi Sport Arbitration Centre (SSAC Statute) and the Rules and Procedures of the Centre of Arbitration for Sport (Rules &amp; Procedures). Further, the author considers various divisions of sports arbitration with both the ordinary and the appeal arbitration procedures of the SSAC.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Saudi Sport Arbitration Centre</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Established in 2016, the SSAC is located in Riyadh, the nation’s capital. The SSAC is the highest judicial body for sports-related disputes in the Kingdom of Saudi Arabia, specialising in the hearing of any sports-related dispute by arbitration or mediation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The legal basis of the SSAC is the SSAC Statute, its procedural rules, and any resolution issued by the SSAC’s Board of Directors. Further, the SSAC was established in line with the Olympic Charter, the statutes of International Federations, the Code of the Court of Arbitration for Sports, and the Arbitration Law of the Kingdom of Saudi Arabia. This has led to a strong, and familiar, legal basis for its effective operation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC is composed of five members: one appointed by the SAOC, that individual is the President of the SSAC; one appointed by the Athletes’ Committee of the SAOC; one appointed by the Saudi Arabia Football Federation (SAFF); and two appointed by the General Assembly of the SAOC.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC does not deal with appeals arising from violations of laws of the game, criminal cases arising from sports disputes, or sports disputes that have not exhausted the internal roads via the competent judicial bodies. Final decisions may be appealed to the SSAC within 21 days of notification.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>SSAC Procedures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC Statute and the Rules &amp; Procedures are a set of procedural rules that govern SSAC procedures. The SSAC provides for three types of procedure:</p>\r\n\r\n<ul>\r\n 	<li>Ordinary Arbitration - in which the parties have agreed to refer a sports dispute to the SSAC in accordance with an arbitration clause in a contract, or in cases where both parties agree to refer the dispute to arbitration after the dispute has arisen.</li>\r\n 	<li>Appeal Arbitration - in which a party has filed an appeal against a decision issued by a national association such as SAFF, or a judicial body related to sport, where the statutes or regulations provide an appeal before the SSAC.</li>\r\n 	<li>Mediation - in which each party has agreed to refer a dispute that has arisen, or a potential dispute that may arise, to an SSAC mediator.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>SSAC Jurisdiction</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC has jurisdiction to hear any dispute related to sport. Many types of disputes can be referred to the SSAC, including; disputes arising between the SAOC, associations, clubs, members of the boards, members of the general assembly, players, referees, coaches, intermediaries, registered media representatives, organizers of sports events, sponsoring companies, TV transmission channels, disputes relating to sports doping, contractual disputes (provided the arbitration clause refers the dispute to the SSAC), and any international sports dispute (such as may occur in connection with a foreign player or coach) in which the parties have agreed to resort to the SSAC. The SSAC accordingly enjoys wide jurisdiction to hear any dispute related to sports in the Kingdom of Saudi Arabia. This stands to generally contribute to the development of sports law in the Kingdom of Saudi Arabia.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Arbitration Divisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to Article 24 of the SSAC Statute, the SSAC shall conduct the arbitration in sports-related disputes through the following arbitration divisions:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Ordinary Arbitration Division, which shall carry out its tasks in accordance with the following powers: to resolve sports-related disputes that may arise out of contracts containing an arbitration clause that refers any dispute to the SSAC, or out of any subsequent agreement allowing the referral of disputes to the SSAC and to resolve sports disputes that may arise between the parties to any sports matter (athletes, players, intermediaries, sponsors, administrative staff, technical staff, medical staff, sports clubs, sports federations and Olympic committees), provided that such disputes are not subject to appeal before the SSAC.</li>\r\n 	<li dir=\"LTR\">Appeals Arbitration Division, which shall carry out its tasks in accordance with the following powers: to decide on all appeals against final decisions issued by the sports bodies after exhausting all internal legal procedures, except for football decisions, to decide on objections filed against internal decisions issued by the sports bodies, which do not have protest proceedings provided for in their statutes or regulations.</li>\r\n 	<li dir=\"LTR\">Football Dispute Arbitration Division, which has the competence to decide on all appeals against the decisions issued by the SAFF and its committees after exhausting all its internal legal procedures, in accordance with the SAFF Rules and Regulations.</li>\r\n 	<li dir=\"LTR\">Special Dispute Division, that may be established by the SSAC to resolve all sports-related disputes referred by the General Sport Authority (GSA).</li>\r\n 	<li dir=\"LTR\">Mediation Division, which has the competence to mediate between and assist the concerned parties to reach settlement agreements in contractual disputes.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">By comparison, the SSAC’s divisions exceed the number of divisions of the Foundation of Qatar Sports Arbitration (FQSA), another regional sports arbitration body. The FQSA is composed of three divisions, which are the ordinary arbitration division, the appeals arbitration division and the mediation division. The SSAC is composed of the five divisions described above plus newly created divisions, which are the Special Dispute Division and the Football Dispute Arbitration Division. It is to be inferred that the SSAC created a new division for the sport of football because it is the most popular sport in the Kingdom of Saudi Arabia and it is accordingly anticipated that most disputes will football related.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\" wp-image-8095 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_220904572-655x1024.jpg\" alt=\"\" width=\"188\" height=\"294\" />Applicable law and Arbitration Language</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the ordinary, appeals or football arbitration divisions, the arbitration panel must follow all of the regulations and rules of the sports body whose decision is appealed against as a means of fulfilling the principles of justice, equity and the Olympic Charter. In the event that no relevant provision is stated in those regulations, then reference may be made to the statutes or regulations of the respective International Federations (IFs) according to each individual case, however, the parties may, in the ordinary arbitration, choose the law applicable to the dispute. It can be seen that the SSAC shall apply national laws and regulations, although the international regulations can also be applied in cases where there is no relevant provision to be found in the national laws and regulations. This situation helps the arbitrators to issue decisions in line with decisions at the international level.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Arabic language shall prevail as the language before the SSAC. However, English, or any other language, may be used before SSAC with a certified Arabic translation, upon the approval by the Arbitration Panel.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Arbitration Expenses and Fees</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Party requesting arbitration will be liable to pay the arbitration fees upon submitting the case to the SSAC. In case the Claimant requests an expedited procedure, then that party shall pay the applicable fees for an expedited procedure as prescribed. All fees are non-refundable. Furthermore, the party requesting arbitration shall pay the tribunal’s administrative expenses, while the losing party bears all such expenses unless an arbitral award states that the parties shall cover the expenses equally. One important rule is that the final arbitral award shall be delivered to the parties only after all the arbitrators’ costs and fees have been paid in full. Evidently, the SSAC has strong conditions in relation to fees and protects the rights of its arbitrators.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Notifications and Communications</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">All notifications, reports and communications shall be made through and by the SSAC General Secretariat. In addition, all correspondence must be made in PDF format and sent to an SSAC approved e-mail address which shall be the only legal way for the SSAC to send/receive correspondence. Moreover, notifications, correspondence and communications served to the parties to the arbitration or their representatives must be made through the e-mail address previously specified by them or any other address determined in writing at a later stage or through an online filing platform. In case the notifications and communications cannot be delivered by email then they can be delivered by mail or by facsimile. Notifications and correspondence served on the parties to the arbitration shall be considered legally received if they are sent to the addressees at their SSAC-approved e-mail addresses.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Legal Nature of SSAC Awards</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Arbitration awards issued by the SSAC are final and may not be appealed before any other tribunal, whether inside or outside the Kingdom of Saudi Arabia, unless otherwise stated in the SSAC Statute. In sports disputes in which a foreigner is a party, awards may be appealed before the International Sports Federations (IFs) or the Court of Arbitration for Sport (CAS), if the relevant statute of an IF states that an appeal shall be made before such judicial body. In case the contract states that the arbitration is within the jurisdiction of the SSAC, then the SSAC award shall be final and non-appealable before any other authority.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC represents a significant development in sports law, not only in the Kingdom of Saudi Arabia but also in the Middle East. Litigants may be represented by any licensed lawyer. To date 24 specialist Saudi and Arab arbitrators have been appointed to the panel of the SSAC. Eight international arbitrators, from the list of the CAS, have been appointed to SSAC arbitral panels, demonstrating international confidence. Its wide jurisdiction, and the range of its specialized divisions, will ensure that sports disputes are resolved with high standards of efficiency and in accordance with the best international sports law dispute resolution standards.</p>\r\n <em><img class=\"alignleft size-full wp-image-8031\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_224568580.jpg\" alt=\"\" width=\"4429\" height=\"2041\" /></em>\r\n\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Bandar Alhamidani is a Partner and key member of the Al Tamimi &amp; Company’s Sports Law and Events Management team practice. Bandar has acted as an Arbitrator before CAS and SSAC. For further information, please contact Bandar Alhamidani (b.alhamidani@tamimi.com).</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-8027 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_1016569270-1024x1024.jpg\" alt=\"\" width=\"332\" height=\"332\" />Football is hugely popular across the Middle East. Its popularity has led some to invest in football clubs. When one considers the wide range of agreements between clubs, players, coaches and sponsors, the potential for disputes is clear. Satisfactory resolution of such disputes is not always easily attainable, considering the specialist nature of sports law and general scarcity of specialist in the field. Bespoke judicial bodies and arbitration centres have recently been established in response.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015, the Saudi Arabian Olympic Committee (SAOC) approved the establishment the Saudi Sport Arbitration Centre (SSAC). Specifically, the Generally Assembly of the SAOC approved its Board of Directors’ decision to authorize the SAOC President to take all necessary actions to establish the SSAC. The SSAC aims to contribute to the general development of the sports sector and the resolution of sport related disputes. As a result, sports law in the Kingdom of Saudi Arabia, and the resolution of sports related disputes, has seen significant development. There is no doubt that SSAC has contributed to the preservation of the rights of parties, and the broader development of the sports sector in the Kingdom of Saudi Arabia.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This article considers two significant regulatory regimes in the field of sports law in the Kingdom of Saudi Arabia - the Statute of the Saudi Sport Arbitration Centre (SSAC Statute) and the Rules and Procedures of the Centre of Arbitration for Sport (Rules &amp; Procedures). Further, the author considers various divisions of sports arbitration with both the ordinary and the appeal arbitration procedures of the SSAC.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Saudi Sport Arbitration Centre</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Established in 2016, the SSAC is located in Riyadh, the nation’s capital. The SSAC is the highest judicial body for sports-related disputes in the Kingdom of Saudi Arabia, specialising in the hearing of any sports-related dispute by arbitration or mediation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The legal basis of the SSAC is the SSAC Statute, its procedural rules, and any resolution issued by the SSAC’s Board of Directors. Further, the SSAC was established in line with the Olympic Charter, the statutes of International Federations, the Code of the Court of Arbitration for Sports, and the Arbitration Law of the Kingdom of Saudi Arabia. This has led to a strong, and familiar, legal basis for its effective operation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC is composed of five members: one appointed by the SAOC, that individual is the President of the SSAC; one appointed by the Athletes’ Committee of the SAOC; one appointed by the Saudi Arabia Football Federation (SAFF); and two appointed by the General Assembly of the SAOC.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC does not deal with appeals arising from violations of laws of the game, criminal cases arising from sports disputes, or sports disputes that have not exhausted the internal roads via the competent judicial bodies. Final decisions may be appealed to the SSAC within 21 days of notification.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>SSAC Procedures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC Statute and the Rules &amp; Procedures are a set of procedural rules that govern SSAC procedures. The SSAC provides for three types of procedure:</p>\r\n\r\n<ul>\r\n 	<li>Ordinary Arbitration - in which the parties have agreed to refer a sports dispute to the SSAC in accordance with an arbitration clause in a contract, or in cases where both parties agree to refer the dispute to arbitration after the dispute has arisen.</li>\r\n 	<li>Appeal Arbitration - in which a party has filed an appeal against a decision issued by a national association such as SAFF, or a judicial body related to sport, where the statutes or regulations provide an appeal before the SSAC.</li>\r\n 	<li>Mediation - in which each party has agreed to refer a dispute that has arisen, or a potential dispute that may arise, to an SSAC mediator.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>SSAC Jurisdiction</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC has jurisdiction to hear any dispute related to sport. Many types of disputes can be referred to the SSAC, including; disputes arising between the SAOC, associations, clubs, members of the boards, members of the general assembly, players, referees, coaches, intermediaries, registered media representatives, organizers of sports events, sponsoring companies, TV transmission channels, disputes relating to sports doping, contractual disputes (provided the arbitration clause refers the dispute to the SSAC), and any international sports dispute (such as may occur in connection with a foreign player or coach) in which the parties have agreed to resort to the SSAC. The SSAC accordingly enjoys wide jurisdiction to hear any dispute related to sports in the Kingdom of Saudi Arabia. This stands to generally contribute to the development of sports law in the Kingdom of Saudi Arabia.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Arbitration Divisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to Article 24 of the SSAC Statute, the SSAC shall conduct the arbitration in sports-related disputes through the following arbitration divisions:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Ordinary Arbitration Division, which shall carry out its tasks in accordance with the following powers: to resolve sports-related disputes that may arise out of contracts containing an arbitration clause that refers any dispute to the SSAC, or out of any subsequent agreement allowing the referral of disputes to the SSAC and to resolve sports disputes that may arise between the parties to any sports matter (athletes, players, intermediaries, sponsors, administrative staff, technical staff, medical staff, sports clubs, sports federations and Olympic committees), provided that such disputes are not subject to appeal before the SSAC.</li>\r\n 	<li dir=\"LTR\">Appeals Arbitration Division, which shall carry out its tasks in accordance with the following powers: to decide on all appeals against final decisions issued by the sports bodies after exhausting all internal legal procedures, except for football decisions, to decide on objections filed against internal decisions issued by the sports bodies, which do not have protest proceedings provided for in their statutes or regulations.</li>\r\n 	<li dir=\"LTR\">Football Dispute Arbitration Division, which has the competence to decide on all appeals against the decisions issued by the SAFF and its committees after exhausting all its internal legal procedures, in accordance with the SAFF Rules and Regulations.</li>\r\n 	<li dir=\"LTR\">Special Dispute Division, that may be established by the SSAC to resolve all sports-related disputes referred by the General Sport Authority (GSA).</li>\r\n 	<li dir=\"LTR\">Mediation Division, which has the competence to mediate between and assist the concerned parties to reach settlement agreements in contractual disputes.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC is composed of the five divisions described above plus newly created divisions, which are the Special Dispute Division and the Football Dispute Arbitration Division. It is to be inferred that the SSAC created a new division for the sport of football because it is the most popular sport in the Kingdom of Saudi Arabia and it is accordingly anticipated that most disputes will football related.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\" wp-image-8095 alignleft\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/08/shutterstock_220904572-655x1024.jpg\" alt=\"\" width=\"188\" height=\"294\" />Applicable law and Arbitration Language</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In the ordinary, appeals or football arbitration divisions, the arbitration panel must follow all of the regulations and rules of the sports body whose decision is appealed against as a means of fulfilling the principles of justice, equity and the Olympic Charter. In the event that no relevant provision is stated in those regulations, then reference may be made to the statutes or regulations of the respective International Federations (IFs) according to each individual case, however, the parties may, in the ordinary arbitration, choose the law applicable to the dispute. It can be seen that the SSAC shall apply national laws and regulations, although the international regulations can also be applied in cases where there is no relevant provision to be found in the national laws and regulations. This situation helps the arbitrators to issue decisions in line with decisions at the international level.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Arabic language shall prevail as the language before the SSAC. However, English, or any other language, may be used before SSAC with a certified Arabic translation, upon the approval by the Arbitration Panel.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Arbitration Expenses and Fees</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Party requesting arbitration will be liable to pay the arbitration fees upon submitting the case to the SSAC. In case the Claimant requests an expedited procedure, then that party shall pay the applicable fees for an expedited procedure as prescribed. All fees are non-refundable. Furthermore, the party requesting arbitration shall pay the tribunal’s administrative expenses, while the losing party bears all such expenses unless an arbitral award states that the parties shall cover the expenses equally. One important rule is that the final arbitral award shall be delivered to the parties only after all the arbitrators’ costs and fees have been paid in full. Evidently, the SSAC has strong conditions in relation to fees and protects the rights of its arbitrators.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Notifications and Communications</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">All notifications, reports and communications shall be made through and by the SSAC General Secretariat. In addition, all correspondence must be made in PDF format and sent to an SSAC approved e-mail address which shall be the only legal way for the SSAC to send/receive correspondence. Moreover, notifications, correspondence and communications served to the parties to the arbitration or their representatives must be made through the e-mail address previously specified by them or any other address determined in writing at a later stage or through an online filing platform. In case the notifications and communications cannot be delivered by email then they can be delivered by mail or by facsimile. Notifications and correspondence served on the parties to the arbitration shall be considered legally received if they are sent to the addressees at their SSAC-approved e-mail addresses.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Legal Nature of SSAC Awards</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Arbitration awards issued by the SSAC are final and may not be appealed before any other tribunal, whether inside or outside the Kingdom of Saudi Arabia, unless otherwise stated in the SSAC Statute. In sports disputes in which a foreigner is a party, awards may be appealed before the International Sports Federations (IFs) or the Court of Arbitration for Sport (CAS), if the relevant statute of an IF states that an appeal shall be made before such judicial body. In case the contract states that the arbitration is within the jurisdiction of the SSAC, then the SSAC award shall be final and non-appealable before any other authority.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SSAC represents a significant development in sports law, not only in the Kingdom of Saudi Arabia but also in the Middle East. Litigants may be represented by any licensed lawyer. To date 24 specialist Saudi and Arab arbitrators have been appointed to the panel of the SSAC. Eight international arbitrators, from the list of the CAS, have been appointed to SSAC arbitral panels, demonstrating international confidence. Its wide jurisdiction, and the range of its specialized divisions, will ensure that sports disputes are resolved with high standards of efficiency and in accordance with the best international sports law dispute resolution standards.</p>\r\n <em><img class=\"alignleft size-full wp-image-8031\" src=\"http://localhost:8888/tamimi/wp-content/uploads/2018/07/shutterstock_224568580.jpg\" alt=\"\" width=\"4429\" height=\"2041\" /></em>\r\n\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Bandar Alhamidani is a Partner and key member of the Al Tamimi &amp; Company’s Sports Law and Events Management team practice. Bandar has acted as an Arbitrator before CAS and SSAC. For further information, please contact Bandar Alhamidani (b.alhamidani@tamimi.com).</p>'),
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	(292124,28068,'MetaValueNew','<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy. The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Children of Tomorrow</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Children of Tomorrow is a project launched by Al Tamimi and aimed at raising awareness of child rights at every school in the UAE- public and private.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We have prepared a video - in both Arabic and English - for distribution to all schools and which provides practical advice in relation to the topic of child safety including:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the legal consequences if a child is harmed or if a minor commits a crime;</li>\r\n 	<li dir=\"LTR\">what should teachers/staff do if they find signs of abuse, a state of emergency or medical condition;</li>\r\n 	<li dir=\"LTR\">reporting generally;</li>\r\n 	<li dir=\"LTR\">handling situations where a child accesses inappropriate materials shared on WhatsApp/internet etc.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The video will be launched in October and will be followed up with a number of seminars where teachers/schools/stakeholders can ask questions in person.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you would like to find out more about this initiative please email us at <a href=\"mailto:a.ponomarova@tamimi.com\">a.ponomarova@tamimi.com</a>.</p>\r\nWith thanks to the authorities and schools who have given us tremendous support with this initiative.\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fake degree story has just begun and it has a long way to go before its full effects are felt. Employers and regulators are on red alert and need to remain vigilant. Background checking of employees in sensitive positions who are required to hold academic qualifications is an absolute must and failure to do so could lead to the employer being vicariously liable for damage done by that employee as well as obvious reputational harm to the company.</p>\r\n&nbsp;\r\n\r\nAl Tamimi &amp; Company’s <a href=\"http://localhost:8888/tamimi/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).'),
	(292125,28068,'MetaValueOld','<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy. The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fake degree story has just begun and it has a long way to go before its full effects are felt. Employers and regulators are on red alert and need to remain vigilant. Background checking of employees in sensitive positions who are required to hold academic qualifications is an absolute must and failure to do so could lead to the employer being vicariously liable for damage done by that employee as well as obvious reputational harm to the company.</p>\r\n<em>\r\n\r\nAl Tamimi &amp; Company’s <a href=\"http://localhost:8888/tamimi/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).</em>'),
	(292126,28068,'MetaLink','content'),
	(292127,28068,'EditorLinkPost','http://localhost:8888/tamimi/wp-admin/post.php?post=8195&amp;action=edit'),
	(292128,28068,'ReportText','<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy. The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fake degree story has just begun and it has a long way to go before its full effects are felt. Employers and regulators are on red alert and need to remain vigilant. Background checking of employees in sensitive positions who are required to hold academic qualifications is an absolute must and failure to do so could lead to the employer being vicariously liable for damage done by that employee as well as obvious reputational harm to the company.</p>\r\n<em>\r\n\r\nAl Tamimi &amp; Company’s <a href=\"http://localhost:8888/tamimi/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).</em>|<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy. The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Children of Tomorrow</h3>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Children of Tomorrow is a project launched by Al Tamimi and aimed at raising awareness of child rights at every school in the UAE- public and private.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We have prepared a video - in both Arabic and English - for distribution to all schools and which provides practical advice in relation to the topic of child safety including:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the legal consequences if a child is harmed or if a minor commits a crime;</li>\r\n 	<li dir=\"LTR\">what should teachers/staff do if they find signs of abuse, a state of emergency or medical condition;</li>\r\n 	<li dir=\"LTR\">reporting generally;</li>\r\n 	<li dir=\"LTR\">handling situations where a child accesses inappropriate materials shared on WhatsApp/internet etc.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The video will be launched in October and will be followed up with a number of seminars where teachers/schools/stakeholders can ask questions in person.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If you would like to find out more about this initiative please email us at <a href=\"mailto:a.ponomarova@tamimi.com\">a.ponomarova@tamimi.com</a>.</p>\r\nWith thanks to the authorities and schools who have given us tremendous support with this initiative.\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The fake degree story has just begun and it has a long way to go before its full effects are felt. Employers and regulators are on red alert and need to remain vigilant. Background checking of employees in sensitive positions who are required to hold academic qualifications is an absolute must and failure to do so could lead to the employer being vicariously liable for damage done by that employee as well as obvious reputational harm to the company.</p>\r\n&nbsp;\r\n\r\nAl Tamimi &amp; Company’s <a href=\"http://localhost:8888/tamimi/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"http://localhost:8888/tamimi/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).');

