FSRA introduces enhancements to the regulatory framework for Providing Money ServicesADGM FSRA 09/11/2020
- Encourages innovative FinTech approaches for money services
- Recognises use of payment accounts and stored value
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has issued enhancements to the Regulations and Rules concerning the authorisation and supervision of the activities that constitute the Regulated Activity of Providing Money Services (PMS) within ADGM. The enhancements are part of ADGM's ongoing commitment to encourage FinTech solutions and improve its regulatory framework based on global developments, in a manner that balances risk-based regulations with the needs of market participants.
The key enhancements include amending the scope of PMS to better encompass the activities of providing payment accounts and the issuance of stored value, which frequently feature alongside the related activities of currency exchange and money transmission. These improvements also introduce a new set of Rules in the FSRA’s Conduct of Business Rulebook (COBS) that are appropriate for payment accounts and stored value services, as well as more risk-sensitive capital requirements for such services in the Prudential – Investment, Insurance Intermediation and Banking Rules (PRU).
“The FSRA is excited to implement the framework on Money Services to promote an efficient payments system and innovation in a safe and well regulated environment. The ability of financial institutions to collaborate with multiple parties securely and efficiently to deploy modern FinTech solutions has immense potential to improve financial inclusion in the region.” said Mr Richard Teng, Chief Executive Officer of the Financial Services Regulatory Authority of ADGM.
The enhanced framework will further add to the FSRA’s comprehensive regulatory framework in catering for a wide-range of money services for varying business needs and supporting Abu Dhabi’s digital transformation agenda, thereby bolstering the growth and diversification of the UAE’s enterprise economy.
The amended versions of the FSRA Regulations and Rules are available here: