Abu Dhabi's financial free zone goes operational

Firms and individuals can now apply for the appropriate financial services licences. - Supplied photo

The UAE's second financial free zone Abu Dhabi Global Market, or ADGM, started its business activities on Wednesday.
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.
The free zone's Financial Services Regulatory Authority, or FSRA, commences operations with the acceptance and approval of financial services licence application with effect from October 21, 2015, ADGM said in a statement.
This follows the publication of the Financial Services and Markets Regulations, or FSMR, and the FSRA Rules, which establish the legislative and regulatory framework for financial services in ADGM.
Ahmed Ali Al Sayegh, chairman of ADGM, termed the free zone opening to business as "an important achievement in our journey to develop, an international financial centre in the heart of the capital of the UAE, a centre of wealth and a gateway to the growing economies of the region and beyond."
Richard Teng, chief executive of ADGM's Financial Services Regulatory Authority, assured that FSRA is committed to maintaining the fairness and robustness of the ADGM financial system, which fosters business innovation and sustainable growth.
"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," he said.
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.
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.
- haseeb@haseeb@khaleejtimes.com