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ADGM's Financial Services Regulatory Authority is ready to receive applications from financial institutions
Abu Dhabi, UAE: Abu Dhabi Global Market ("ADGM"), the international financial centre in Abu Dhabi, is pleased to announce that its Financial Services Regulatory Authority ("FSRA") will commence operations with the acceptance and approval of financial services licence applications with effect from 21 October 2015. 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.
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. The new financial regulations and rules framework is comprehensive in scope, spanning a variety of regulated financial services, including, asset management, banking and insurance 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.
His Excellency Ahmed Ali Al Sayegh, Chairman of ADGM, said: "Today marks an important achievement in our journey to develop ADGM, an international financial centre in the heart of the capital of the United Arab Emirates, a centre of wealth and a gateway to the growing economies of the region and beyond. 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.
"My sincere appreciation to the wise leadership of Abu Dhabi and the UAE for their vision and to the authorities of the Abu Dhabi government, our expert panel members and key stakeholders for their strong support and valuable guidance."
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. This will cement ADGM's global position and ensure we contribute to the global ecosystem of international markets and business networks. "
Richard Teng, CEO of ADGM's Financial Services Regulatory Authority, added: "The FSRA team is excited and looks forward to welcoming financial services firms who wish to establish their presence and fulfil their business growth in this market and region. As a market regulator, FSRA understands that businesses wish to operate within a trusted financial infrastructure that is anchored by clear, transparent and business-oriented regulations and rules of international standards. 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."
Richard added: "Over the next few weeks and months, we will continue to closely engage financial institutions to help them understand our regulations and assist them with the application process. As an international financial centre, we are dedicated to forging long term and mutually beneficial partnerships with like-minded members and market participants."
Successful Public Consultations and Enactment of ADGM Financial Services Regulations and Rules
The FSRA is guided by a key principle of close and active engagement with stakeholders. It 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 consultation garnered positive responses and active participation from local and international industry participants. Following an in-depth deliberation of the market feedback, the ADGM Board issued the full suite of Financial Services legislation thereby establishing ADGM's financial regulatory framework that will govern the operations of the FSRA on Al Maryah Island. The newly enacted financial legislation is available on ADGM's website at adgm.complinet.com/
Towards an International Financial Centre in Abu Dhabi
As a financial free zone administered and anchored by a Board of Directors and three independent regulatory bodies, namely the Financial Services Regulatory Authority, the Registration Authority, and the ADGM Courts, the ADGM is committed to fulfill its ambition to become one of the world's leading financial centres. Both local and international companies can tap on ADGM's strengths and service offerings in asset management, private banking, family offices and wealth management to further develop and expand their business and growth plans in Abu Dhabi and the fast-growing markets in the region well into the future.
ADGM is now operational with the introduction of the financial services regulatory framework and the recent key appointments at the independent ADGM Courts. The ADGM Registration Authority has been operational and reviewing licence applications from non-financial services firms since 15 June 2015 when the ADGM commercial regulations were published. ADGM has been working closely with Al Maryah Island tenants and new industry participants to create greater awareness of and assist them in better understanding the registration framework and licencing requirements for the financial free zone. Currently, ADGM is consulting the public on its draft Courts regulations that will establish the framework and environment of ADGM Courts and judicial system.
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For more information, please contact:
Joan Lew Kwan
Tel +971 2 3338 888
Joan.Lew@adgm.com
Mirna Hijazi
Tel +971 2 3338 888
Mirna.hijazi@adgm.com
Factsheet of the FSRA Structure
The FSRA undertakes various regulatory functions to foster an open, efficient and transparent marketplace as well as a trusted regulatory environment. Within FSRA, the key departments are:
Policy and Legal - The Policy and Legal department provides a number of services within the FSRA. These include the responsibility for overseeing all the development and maintenance of policy and legislation administered by the FSRA to meet its regulatory objectives. In doing this, it keeps abreast of international developments. In conjunction with its policy and legislative function, it also provides a full range of legal services to the Chief Executive and operational departments of the FSRA, such as legal advisory services.
Banking and Insurance - The Banking and Insurance team is responsible for approving all applications to conduct banking and insurance related activities. The team adopts a risk-based focused approach to its supervision of banks, insurance companies and insurance intermediaries. Its objective is to foster the stability and strength of Abu Dhabi's financial system by monitoring the safety and soundness of financial institutions in the ADGM, as well as adopting and promoting international best practice with regards to its supervisory and approach to regulation.
Capital Market - The Capital Market team is responsible for admission and supervision of (i) financial market infrastructures such as exchanges, clearing houses and trade repositories, and (ii) capital market intermediaries such as fund managers, securities and futures intermediaries, corporate finance advisers, and investment advisers. It administers licensing and conduct rules to promote safe, sound and fair-dealing intermediaries and high governance standards. It also regulates (i) the offering of securities, collective investments schemes and unit trusts and (ii) the conduct of takeover and merger transactions.
Enforcement - The Enforcement team administers an enforcement regime that delivers fair and proportionate outcomes to deter financial misconduct and financial crime to preserve investor confidence and ADGM`s reputation as a financial centre.
International Affairs - The International Affairs team will work closely with local and international regulatory agencies as well as multilateral organisations such as IMF, World Bank and IOSCO, the Departments promotes cooperation with fellow regulators and financial institutions. In keeping abreast of international developments and trends, it assists in the development of best-in-class regulation that fosters financial innovation and growth.
Financial Centre Development - The Financial Centre Development team focuses on enhancing the ecosystem to support the growth of Abu Dhabi as an international financial centre. The Financial Centre Development team will assist companies and professionals that seek to become part of the vibrant Abu Dhabi financial industry to expand their international operations.
About Abu Dhabi Global Market
Abu Dhabi Global Market ("ADGM"), an international financial centre in the capital city of the United Arab Emirates, was established by Federal Decree in 2013.
A natural next step in Abu Dhabi's role as a dependable and responsible participant in the global financial community and in line with the Abu Dhabi's Economic Vision, ADGM, a financial free zone, will play a pivotal role in positioning the city as a global centre for business and finance, connecting the 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, will enable registered companies to transact business within a zero-tax environment and operate within an international regulatory framework with its own independent judicial system and legislative infrastructure based on English Common Law.
Established as a broad based financial centre, ADGM's foundation stage centres around three anchor sectors - private banking, wealth management and asset management, but will retain the flexibility to expand its activities over time according to market demand.
Abu Dhabi Global Market is located on Al Maryah Island, a 114 hectare mixed-use residential, retail, leisure, hotel and commercial development.
© Press Release 2015
