The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), the UAE capital’s financial free zone, has commenced operations with the acceptance and approval of financial services licence applications since 21 October.
Firms and individuals can now apply for the appropriate financial services licences, under an internationally recognisable legislative and regulatory framework, that facilitates their local, regional and international expansion.
This follows the publication of the Financial Services and Markets Regulations (FSMR) and the FSRA Rules, which establish the legislative and regulatory framework for financial services in ADGM.
The framework is comprehensive in scope, spanning a variety of regulated financial services, including insurance, asset management and banking businesses. The regulations also include requirements to safeguard the interests of the marketplace, market infrastructure system, market conduct rules, and ADGM’s enforcement powers and disciplinary actions.
ADGM Chairman Ahmed Ali Al Sayegh said: “We have been steadfast in our strategy of building an IFC based on collaboration and input from local, regional and international institutions to ensure that we offer a jurisdiction that provides businesses with what they need and want in order to grow and succeed.”
He added: “As we look ahead, we will continue developing ADGM, with our Courts’ regulations currently in open market consultation phase and the announcement of our Courts’ judges to be made imminently. We have established ADGM with an initial core focus based on Abu Dhabi’s strength of wealth management, asset management and private banking. However, we have the flexibility to grow into a broad-based IFC, attracting a wide spectrum of financial institutions who will choose ADGM as their home.”
Mr Richard Teng, CEO of ADGM’s FSRA, said: “In our increasingly borderless business environment, companies and investors can be assured that FSRA is committed to maintaining the fairness and robustness of the ADGM financial system, which fosters business innovation and sustainable growth. This is just the beginning of the journey and we will be here for our companies and investors for the long haul.”
The FSRA consulted a panel of global and local industry experts and conducted a successful open market consultation of its proposed financial legislation and regulations during July and August this year. The ADGM Board issued the full suite of financial services legislation following an in-depth deliberation of the market feedback, thereby establishing ADGM’s financial regulatory framework.
The financial free zone is administered and anchored by a Board of Directors and three independent regulatory bodies, namely the FSRA, the Registration Authority, and the ADGM Courts.
The ADGM Registration Authority has been operational and reviewing licence applications from non-financial services firms since 15 June, when the ADGM commercial regulations were published. ADGM is located on Al Maryah Island, a 114 hectare mixed-use residential, retail, leisure, hotel and commercial development.