ADGM COURTS REGULATIONS & RULES
Please click here to view ADGM Courts Regulations and Rules enacted on 11 December 2015.
ADGM COURTS PROCEDURES
Please click here to view ADGM Courts Procedure Rules, Practice Directions, Forms, Fees and Guides enacted on 30 May 2016.
ADGM enacted its Arbitration Regulations on 17 December 2015.
Please click here for the Arbitration Regulations 2015.
Please click here for more details on Commercial Regulations.
ADGM published its first set of commercial rules & regulations that were enacted by its Board of Directors on 3 March 2015. Pursuant to section 12(1) the Interpretation Regulations, regulations in ADGM shall come into force (a) where a particular day is specified by or under the regulations, on the expiration of the previous day; or (b) where the date of commencement is the date of publication, on the expiration of the day on which the regulations are published. Accordingly, the Commercial regulations came into force on the expiration of the day of their respective publication.
FSRA REGULATIONS & RULES
Please click here for more details on FSRA Regulations and Rules.
Financial Services and Markets Regulations ("FSMR")
- The FSMR establishes the legislative and regulatory framework for financial services in ADGM. In particular, FSMR has been broadly modelled on the UK’s Financial Services and Markets Act 2000 ("FSMA") and other related legislation.
- FSMR contains provisions including the Financial Services Regulatory Authority (“the Regulator”) structure and powers, authorisation, recognition, market infrastructure bodies, enforcement and information gathering powers, accounting/auditing, listing and prospectuses, collective investment funds, settlement finality, disclosure of information, financial services transfers etc.
FSMR is supplemented by the FSMR Rulebook consisting of various modules as well as a Guidance and Policies Manual.
These modules detail the requirements that firms in the financial services sector must meet following their authorisation by the FSRA.
- Anti-Money Laundering and Sanctions Rules and Guidance (AML)
- Captive Insurance Business Rules (CIB)
- Conduct of Business Rulebook (COBS)
- Fees Rules (FEES)
- Fund Rules (FUNDS)
- General Module (GEN)
- Glossary (GLO)
- Islamic Finance Rules (IFR)
- Market Infrastructure Rulebook (MIR)
- Markets Rules (MKT)
- Prudential – Insurance Business (PIN)
- Prudential – Investment, Insurance Intermediation and Banking Rules (PRU)
Anti-Money Laundering / Countering the Financing of Terrorism and Targeted Financial Sanctions
As an international financial centre, Abu Dhabi Global Market (ADGM) recognises its responsibility to support the global efforts to combat money laundering, terrorism financing and proliferation financing. Under section 7(6) of the Financial Services and Markets Regulations 2015 (FSMR), the ADGM Financial Services Regulatory Authority (FSRA) has jurisdiction for the detection, prevention and avoidance of these activities within the ADGM. The Anti-Money Laundering and Sanctions (AML) Rulebook sets out the requirements which are imposed by the FSRA under section 7(6) of the FSMR.
In developing the AML Rulebook, the FSRA has had regarded for the Financial Action Task Force (FATF) Recommendations and the Basel Committee on Banking Supervision guidelines, published in 2014 and are intended to supplement the FATF Recommendations for banks. The U.A.E. criminal law also applies in the ADGM and, therefore, Persons in the ADGM must be aware of their obligations in respect of the criminal law as well as the rules which apply in the ADGM. Relevant U.A.E. criminal laws include Federal Law No. 4 of 2002 regarding the Criminalisation of Money Laundering, Federal Law No. 1 of 2004 regarding Combatting Terrorism Offences, Federal Law No. 7 of 2014, and the Penal Code of the United Arab Emirates. Accordingly, Relevant Persons must ensure that procedures comply with the requirement for Suspicious Activity Reports (SARs), to be made in the required format to the Anti-Money Laundering Suspicious Cases Unit (AMLSCU), located in the Central Bank of the UAE.
The U.A.E., as a member of the United Nations, is required to comply with Sanctions issued and passed by the UNSC. These UNSC obligations apply in the ADGM and their importance is emphasised by specific obligations contained in the AML Rulebook requiring Relevant Persons to establish and maintain effective systems and controls to make appropriate use of UNSC Sanctions and resolutions. Relevant Persons are required to establish robust controls to monitor for, detect, and deter the flow of illicit funds through ADGM's financial system.
Waivers and Modifications
An authorised entity may apply to the FSRA for a waiver of an existing rule, which means that the rule does not apply to the entity, or a modification of a rule, which amends a rule to fit the circumstances of the entity. Any application for a waiver or a modification is considered on a case-by-case basis by the FSRA on its merits, taking into account any precedents, and will only be granted if the entity can demonstrate both that (i) complying with the rule is unduly burdensome or would not achieve the intention of the rule and, importantly, (ii) the granting of a waiver or modification would not adversely affect the advancement of the objectives of the FSRA.
The FSRA publishes a log of waivers and modifications on a quarterly basis where new waivers or modifications have been granted in the preceding quarter; where none have been granted in that period the log will remain unchanged.
Guidance and Policy Statements
The FSRA issues Guidance on certain aspects of the financial sector regulatory and supervisory framework in ADGM including:
- the authorisation process and requirements, to assist applicants seeking to undertake business in the financial sector in ADGM;
- the interpretation of the Regulations and the Rulebook, to assist market participants, including Authorised Persons and Recognised Bodies, to meet their obligations; and
- practices expected of market participants in relation to recently developed areas of the regulatory framework.
Being Guidance, these communications are not legally binding and are intended to provide information, above and beyond that included in the Regulations and the Rulebook, which will help authorised entities meet their obligations more effectively.
The FSRA also issues Policy Statements where existing requirements in the regulatory framework have been revised and/or new ones have been introduced. The purpose of a Policy Statement is to provide background and guidance on the associated requirements that market participants will be subject to and/or the approach that the FSRA will take in relation to various aspects of the regulatory framework. Policy Statements, like Guidance, are not legally binding.