© Ozara Insights 2 June 2020
Which provisions of the Acting Law of the AIFC may help to conduct business in the current situation?
We continue publishing Will Aston's insights from the AIFC Legal Talks.
Employment, jobs, and flexibility of resourcing are at the heart of this current situation. AIFC Employment Law can potentially help with more flexible resourcing and remote working. For Regulated firms, the AIFC Financial Services Framework Conduct of Business, permits material outsourcing. Broadly speaking, this is where a firm can outsource business activities as long as it still retains responsibility. So, for example, an insurer may have their claims assessment activity impacted by a disruption. Having a sourcing arrangement with a third-party could be helpful in such circumstances. The third party does not need to be in the AIFC. They could be in another part the world, and not facing the same claims assessment resource constraints the Firm has. If this was the EU for example, the data protection required under AIFC Law could also be assured through EU adherence to GDPR, as this would meet the needs of the AIFC Data Protection Regulations.
One other observation I have, is I think and the Registrar of Companies, in particular is being very pragmatic and helpful at this point in time. I think we may see some AIFC participants, after talking with the Registrar of Companies, suspending their business for period of time and ramping up and becoming active at a later date.