By Sarah Townsend
Free zone now has framework agreements with all UAE financial regulation bodies
Abu Dhabi’s new financial free zone has signed an initial agreement with the UAE Central Bank, enabling the governance and information sharing to operate the zone.
The memorandum of understanding (MoU) between Abu Dhabi Global Market (ADGM)’s Financial Regulatory Services Authority (FRSA) and the UAE Central Bank follows similar framework agreements last year with the country’s two other main financial regulation bodies, the Emirates Securities and Commodities Authority and the Insurance Authority.
FSRA chief executive Richard Teng said: “The signing of this MoU reinforces our commitment to and partnership with the Central Bank in supervising financial institutions under our authorities.
“This MoU endorses the prevailing practice and arrangements for cooperation and information-sharing between the two regulators.
“By working closely, we can share our regulatory experience and strengths to maintain the highest standards and practice of financial services in this region.”
Last month, the FSRA announced it had been accepted as a member of 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.
The ADGM free zone declared itself officially open for business in October and launched the licen¬s¬ing process for financial services firms. It had already launched the licensing process for non-financial firms earlier in the year.
Afkar Capital, an incubator for asset management fund start-ups, became the first financial services firm to be officially licensed by the centre last month.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.