Abu Dhabi Global Market has over the period of ten years evolved to become a world class financial center attracting leading institutions, pioneering advancements in financial regulation, and reinforcing Abu Dhabi’s standing as a premier destination for investment and capital formation. The Financial Service Regulatory Authority (FSRA) as a regulatory body of the ADGM, keeps it prepared for protecting investors, market development, and ensuring regulatory excellence.
BUSINESS PLAN FOR 2025 AND 2026
The FSRA has released the 2025 and 2026 business plan for the free zone to reinforce the role of the ADGM as a progressive and globally recognized regulator. The Business plan is in line with the statutory objectives of the FSRA which includes the following:
– To foster and maintain fairness, transparency, efficiency and confidence in ADGM as a financial services marketplace;
– To ensure that the financial markets in the ADGM are supported by safe and efficient infrastructure;
– To promote and enhance the integrity of the financial system in ADGM;
– To prevent, detect and restrain conduct that causes or may cause damage to the reputation of the ADGM, through appropriate means, including the imposition of sanctions;
– To secure an appropriate degree of protection for users and prospective users of ADGM.
FSRA’s strategic objectives for the year 2025 and 2026 are focused on objectives of Innovation, efficient and safe markets, growth through sound regulation and cooperation, and building the future.
INNOVATION
In the fintech space ADGM aims to enable dynamic business model in broadening the range of digital assets that custodians are allowed to hold, enabling firms to offer their clients more ways to use their digital assets as collateral. Other measures will include deployment of AI.
SUSTAINABLE FINANCE
On sustainable finance front, ADGM’s key priorities include,
– Promoting innovation by facilitating the growth and issuance of green, climate transition and sustainability linked financial products;
– Expanding collaboration with local and international stakeholders to ensure a forward looking regulatory framework;
– Seeking the most appropriate way of adopting the Sustainable Finance Working Group’s Principles for the Effective Management of Climate-related Financial Risks.
SUPERVISION
Since FSRA is supervisory body of the ADGM, its 2025 and 2026 plan includes the following:
– Working with firms to ensure that they maintain robust Financial Crime systems and controls to safeguard the integrity of the market in ADGM,
– Addressing deficiencies in conduct of businesses in areas such as proper segregation of client accounts, regular reconciliation of client assets, accurate designation of bank accounts or wallets, and appropriate customer classification, with particular attention to these matters for retail customers,
– Focusing on prudential and financial resilience of firms and as a corollary of that the wider safety and soundness of the marketplace in ADGM
OTHER GOALS
FSRA’s other plans for the years 2025-2026 include improvement in enforcement actions like investigation of matters related to financial crimes, unauthorized activities in the ADGM, failure to protect client money, fraudulent conduct towards investors and FATCA and CRS taxation reporting non-compliance.
ADGM also aims to improve its regulatory and supervisory frameworks in 2025-2026, by aligning them with international standards, enhancing the fund management framework and possible enhancement and simplification of the prudential requirements imposed in 2015.
CONCLUSION
The ADGM’s FSRA Business plan of 2025-2026 is aimed at stepping up the regulatory framework of the ADGM to make it more attractive to foreign investments and solidifying its reputation internationally.
For more information, you may contact:
Thomas Paoletti
Francesca Romana Valeri
Armando Coviello
