Abu Dhabi regulator tightens up funding rules
Abu Dhabi Global Market (ADGM) has unveiled its framework to regulate funding so firms can access the appropriate capital.
ADGM… where rules are made
The framework will be for operators of private financing platforms (PFPs) serving equity investment, debt financing and trade receivables funding needs of start-ups, private enterprises and SMEs.
This follows the completion of a public consultation by the Financial Services Regulatory Authority (FSRA) last month to introduce a “tailored, risk-proportionate” regulatory framework for transactions made through a PFP in ADGM.
Richard Teng, chief executive officer, FSRA of ADGM, says the framework will enable “start-ups and established businesses to access the appropriate capital and liquidity for expansion and growth”.
PFPs will need systems and controls in place for due diligence, risk disclosures, safeguarding of client assets, anti-money laundering and counter-terrorist financing (AML/CFT).
The FSRA also published its “Guidance – Regulatory Framework for Private Financing Platforms” and the application form for interested applicants to operate a PFP within ADGM. You can see all that here.
Word from the Street
In a separate development, ADGM and the Beijing Financial Street Services Bureau have concluded a memorandum of understanding (MoU) in Beijing.
The MoU will promote the development of financial centres in China and the United Arab Emirates (UAE).
ADGM says this is a continuation of its commitment to the Belt and Road initiative, following the recent visit by President Xi Jinping, President of the People’s Republic of China to His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, at the Crown Prince’s Court during the state visit by the Chinese state leader and his ministerial delegation to Abu Dhabi.
The new MoU provides a formal platform for greater cooperation between ADGM and the Beijing Financial Street Service Bureau in areas including the development of financial centres in China and Abu Dhabi, investment, joint research and closer exchange of information.
