Abu Dhabi Global Market has now reached framework agreements with the country’s three main federal financial regulation bodies following the signing of an initial agreement with the UAE Central Bank.
The MoU, signed yesterday by the Central Bank and ADGM’s Financial Regulatory Services Authority (FRSA), follows similar agreements signed with the Securities and Commodities Authority last August, and the Insurance Authority in November.
“This MoU endorses the prevailing practice and arrangements for cooperation and information-sharing between the two regulators,” said the FRSA’s chief executive Richard Teng. “By working closely, we can share our regulatory experience and strengths to maintain the highest standards and practice of financial services in this region.”
The memorandum with the Central Bank comes two weeks after the FSRA announced it had been accepted as a member of both the International Association of Insurance Supervisors and the Basel Consultative Group of the Basel Committee on Banking Supervision.
The regulator is also seeking membership of the other key international regulatory forums, including the International Organization of Securities Commissions.
ADGM will focus initially on private banking, wealth and asset management, with the option of extending its activities to cover the full spectrum of financial services business, according to market demand.
The free zone formally declared itself open for business in October, launching the licensing process for financial services firms.
Afkar Capital, an incubator for asset management fund start-ups, last month became the first financial services firm to be officially licensed by the centre.
Mr Teng last month declined to comment on the status of licensing discussions with top tier local and international banks.
Institutions including Goldman Sachs, HSBC, FGB and National Bank of Abu Dhabi were on a panel of 16 leading financial institutions convened by ADGM in late 2014 to support the development of the centre’s regulatory framework.
jeverington@thenational.ae
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