3 May 2016, Abu Dhabi, UAE: Abu Dhabi Global Market (ADGM)’s Financial Services Regulatory Authority (FSRA) and the China Banking Regulatory Commission (CBRC) entered into a Memorandum of Understanding (MoU) to facilitate co-operation and the exchange of information that supports the exchange of regulatory information as well as the development of financial institutions in both jurisdictions. The MoU was signed by Mr SHANG Fulin, Chairman of the China Banking Regulatory Commission (CBRC) and Mr Richard Teng, Chief Executive Officer, Financial Services Regulatory Authority (FSRSA) of ADGM on 28 April 2016 in Beijing.
(Photo - L to R seated : Mr Richard Teng, CEO of FSRA and Mr Shang Fulin, Chairman of CBRC)
This MOU is FSRA’s first with an Asian regulator and represents the importance placed by ADGM on maintaining a strong relationship with China. This partnership marks a new milestone for Abu Dhabi’s financial industry and ADGM as the new international financial centre in the UAE.
The agreement provides a framework for FSRA and CBRC to render mutual assistance, exchange of relevant regulatory information, co-operate in the supervision and oversight of the compliance of financial institutions with applicable banking laws and regulations. Both authorities will also be able to leverage the MOU to explore and launch mutually beneficial initiatives such as joint training and technical assistance to strengthen the high regulatory standards and practice in their respective jurisdictions.
After the MOU signing, Chairman Shang and Richard Teng met to discuss ongoing initiatives by Chinese banks and financial institutions with ADGM. They also discussed areas of cooperation including joint efforts and initiatives to support the aspirations of both Chinese and UAE banks and financial institutions to engage in cross-border activities and business expansion.
The signing of this MOU also lays a strong foundation for further economic and financial cooperation between China and Abu Dhabi and comes after the inclusion of UAE in the RMB Qualified Foreign Institutional Investor (RQFII) quota of 50 billion yuan (approximately 7.5 billion USD) aimed at promoting bilateral trade and investment.
“With China’s strategic “One Belt and One Road initiative, Chinese financial institutions, and stakeholders are increasingly expanding their investment, trade and economic engagement in the Middle East and Africa. As the International Financial Center of Abu Dhabi, ADGM is committed to play its role as a strategic and economic partner for Chinese stakeholders in advancing their commercial aspirations in this region. Similarly, ADGM supports its local stakeholders in their aspirations to expand their engagement with China. We look forward to building a long-term and meaningful relationship with the China Banking Regulatory Commission and support China’s One Belt, One Road initiative,” said Mr. Richard Teng, CEO, FSRA of ADGM.