Abu Dhabi : The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) today issued a public consultation paper inviting public feedback and comments for its proposed legislative framework to implement and govern the FRSA Regulatory Laboratory ("FSRA RegLab"). This follows closely from our policy consultation of 10 May 2016 for a FinTech Regulatory Laboratory (RegLab) in ADGM. Taking into account the significant support and feedback received from the policy consult, the FSRA has formulated the proposed regulatory framework, comprising regulations, rules and guidelines, to introduce the FSRA RegLab that will provide a controlled environment to allow the development and testing of innovative FinTech solutions.
The proposed FSRA RegLab and its legislative framework will be the first of its kind in the Middle East and North Africa region, and amongst the first in the world. It is designed to support companies, institutions and participants that wish to deploy innovative technology within the financial services sector ("FinTech") in Abu Dhabi and the wider region.
The consultation paper is seeking feedback on:-
- Introducing a new Regulated Activity that specifically caters for participants who wish to engage in "Developing Financial Technology within the RegLab". A FinTech Participant that carries on such a Regulated Activity will need to apply for a Financial Services Permission.
- The draft FinTech Regulatory Laboratory Guidance setting out FSRA's approach to authorising and supervising FinTech Participants. The regulatory approach adopted allows the FSRA to retain flexibility in tailoring its regulatory requirements based on the specific characteristics and risks posed by a specific FinTech Participant. The FSRA recognises that
FinTech Participants progress along different stages of development of their FinTech Proposal, accordingly a flexible approach to each applicant's unique circumstances is needed.
Mr Richard Teng, CEO of Financial Services Regulatory Authority of ADGM said, "We were very pleased to receive positive and constructive feedback from local and international participants on our earlier policy consultation of the FSRA Reglab initiative. The global FinTech hubs have also been supportive in our initiative to develop a progressive and sustainable FinTech eco-system in this region. We will continue to welcome firms to create and deploy new technologies, create new growth opportunities and enhance the quality and efficiency of the financial services sector in Abu Dhabi. "
ADGM invites the public and industry participants to submit their comments to "Consultation Paper No. 3 of 2016" by 26 September 2016 to:
Mail : Consultation Paper No. 3 of 2016
Financial Services Regulatory Authority
Abu Dhabi Global Market Square
Al Maryah Island
PO Box 111999
Abu Dhabi, UAE
Email : consultation@adgm.com
About FSRA Regulatory Laboratory (FSRA RegLab)
To support FinTech firms and start-ups, the FSRA Reglab provides a controlled and progressive operating environment to allow FinTech participants to focus on the development and testing of their innovations and solutions. The FSRA RegLab will be launched once the FinTech legislative framework is approved and implemented. The RegLab is designed with the following features:
§ Operates on a "blank-sheet" approach. That is, instead of imposing a standard suite of authorisation regulations and rules (designed for more traditional financial institutions) from the outset, FSRA will identify the key risks associated with each FinTech business model, and customise a set of rules accordingly.
§ FinTech Participants are given up to two-years to develop, test and launch their products and services under the RegLab, after which FinTech Participants with viable business models may apply to be transferred to the full authorisation and supervisory regime (upon successful demonstration of compliance with the authorisation criteria). FinTech Participants that are not ready after the two-year period will be required to exit the RegLab.
About Abu Dhabi Global Market
Abu Dhabi Global Market (ADGM), an international financial centre in the capital city of the United Arab Emirates, opened for business on 21st October 2015.
In line with the Abu Dhabi's Economic Vision, ADGM is a natural extension of Abu Dhabi's role as a reliable and responsible member of the global financial community. Strategically situated in the heart of one of the world's largest sovereign wealth funds, ADGM plays a pivotal role in positioning Abu Dhabi as a global centre for business and finance that connects the growing economies of the Middle East, Africa and South Asia.
ADGM's three independent authorities, the Registration Authority, the Financial Services Regulatory Authority and ADGM Courts, enable registered companies to conduct business in a zero-percent tax environment and operate with confidence within an international regulatory framework with its own independent judicial system and legislative infrastructure based on the Common Law.
Established by a UAE Federal Decree as a broad based financial centre, ADGM's foundation is anchored on three of Abu Dhabi's strategic strengths - private banking, wealth management and asset management and will continually expand its financial services in response to the needs of its businesses and marketplace.
Abu Dhabi Global Market is located on Al Maryah Island, a 114-hectare development that is home to world-class business and lifestyle facilities such as the Rosewood and Four Seasons Hotels and Residences, the first ever specialty Cleveland Clinic Hospital outside of USA, luxury retail at the Galleria Mall, and grade-A offices spaces to meet Abu Dhabi's long-term development and economic needs. All these complement ADGM's international financial centre position as a vibrant destination in the capital city in Abu Dhabi. For more details of ADGM, please visit www.adgm.com
For more information, please contact:
Joan Lew Kwan
Tel +971 2 3338 8858 Joan.Lew@adgm.com
© Press Release 2016
