Abu Dhabi plans fintech regulation lab
Abu Dhabi, UAE
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) is looking for public feedback and comments for its proposed FRSA Regulatory Laboratory (RegLab).
The RegLab will provide a “controlled environment to allow the development and testing of innovative fintech solutions”. It will be the “first of its kind” in the Middle East and North Africa region, and “amongst the first in the world”.
Richard Teng, chief executive of FSRA, says global fintech hubs have been “supportive in our initiative to develop a progressive and sustainable fintech eco-system in this region” and that it wants to “create new growth opportunities and enhance the quality and efficiency of the financial services sector in Abu Dhabi”.
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 participant that carries on such a regulated activity will need to apply for a “Financial Services Permission”.
This approach 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 says it recognises that participants “progress along different stages of development”.
It invites comments by 26 September 2016. More details about the consultation paper can be found here.
