ADGM launches new private financing platform regulatory framework to support start-ups and enterprises

ADGM FSRA 10/09/2018

Enables start-ups and small- and medium-sized enterprises (SMEs) to find new, alternative sources of funding while applying due safeguards to ensure platforms operate in a safe and sound manner for investors 

Abu Dhabi Global Market (ADGM), the International Financial Centre in Abu Dhabi, is pleased to launch its framework today to regulate 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 successful completion of a public consultation by the Financial Services Regulatory Authority (FSRA) on 16 August 2018 to introduce a tailored, risk-proportionate regulatory framework for transactions facilitated through a PFP in ADGM.
PFPs are online platforms that enable start-ups and smaller enterprises to obtain financing from private and institutional investors to launch and grow their businesses.  Such PFPs allow innovative business models that serve different business and client segments.  The new framework requires the operators of PFPs, to have appropriate systems and controls in the areas of due diligence of those enterprises listed on the PFP, risk disclosures, safeguarding of client assets, anti-money laundering and counter-terrorist financing (AML/CFT), amongst others. 

The new framework for PFPs will further add to FSRA's comprehensive regulatory regime to support a wide-range of financing solutions for varying business needs, and bolster the growth and diversification of UAE's enterprises and economy.

Mr Richard Teng, Chief Executive Officer, FSRA of ADGM, said: "As an international financial centre, ADGM continuously enhances and strengthens its offerings and regulatory regime to meet fast-evolving needs of local and international economies. The PFP regulatory framework reinforces FSRA's role in providing a trusted and sustainable financial services sector that enables start-ups and established businesses to access the appropriate capital and liquidity for expansion and growth."

The FSRA also published the 'Guidance - Regulatory Framework for Private Financing Platforms' and the application form for interested applicants to operate a PFP within ADGM. The Guidance elaborates on ADGM’s approach towards the regulation of operators of PFPs and is a useful resource for interested applicants.  

To access the Guidance, Application Form and FSRA's Regulations and Rules, attached in the email: 

Guidance Document
FSRA Regulations
FSRA Rules
About Abu Dhabi Global Market

Abu Dhabi Global Market (ADGM), an international financial centre (IFC) located in the capital city of the United Arab Emirates, opened for business on 21 October 2015.  Established by UAE Federal Decree as a broad-based financial centre, ADGM augments Abu Dhabi's position as a global hub for business and finance and serves as a strategic link between the growing economies of the Middle East, Africa and South Asia and the rest of the world. 

ADGM's strategy is anchored by Abu Dhabi's key strengths including private banking, wealth management, asset management and financial innovation. Comprising three independent authorities: ADGM Courts, the Financial Services Regulatory Authority and the Registration Authority, ADGM as IFC governs the Al Maryah Island which is a designated financial free zone. It enables registered financial institutions, companies and entities to operate, innovate and success within an international regulatory framework based on Common Law. Since its inception, ADGM has been awarded the "Financial Centre of the Year (MENA)" for two consecutive years for its initiatives and contributions to the financial and capital markets industry in the region.*  

For more details of ADGM, please visit or follow us on Twitter : @adglobalmarket and Linkedin : ADGM

* Source : The Global Investor Middle East and North Africa (MENA) Awards

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Joan Lew, Senior Manager, Communications
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