UAE’s Free Zone Regulator Outlines Its 5 ‘Guiding Rules’

Five ‘Guiding Principles’ Are Described by FSRA To Guide Regulatory Actions
The market supervisor of the Abu Dhabi World Markets in the United Arab Emirates (UAE), the Monetary Providers Regulatory Authority (FSRA), has established five “guiding rules” that could direct its regulatory actions. The guiding principles are based on ensuring that ADGM’s regulatory frameworks meet stringent standards for high quality and repair, are globally recognised, market-oriented, risk-focused, and accommodate both regional and international cooperation.

The principal tenet aims to achieve global recognition for the ADGM regulatory framework by utilising the best standards and procedures from global financial institutions and adhering to international regulations in the areas of anti-money laundering and counterterrorism financing. In addition to creating a space for regular communication with the business, the second precept aims to make the guidelines and rules of the free commerce zone dynamic and market-oriented, principles-based and outcome-focused, proportionate and progressive, responsive and proactive to business modifications and desires.

The third principle aims to implement a “prudential regulation strategy” to ensure the financial stability and enterprise friendliness of the Abu Dhabi free commerce zone, as well as to achieve centralised oversight of business premises within the Abu Dhabi free zone. The fourth precept aims to establish shared accountability and cooperation in the regulation of the ADGM through partnerships with individuals in the market, acknowledgment of local legal nuances, and cooperation with the global regulatory neighbourhood. This provides a platform for the full offering of Islamic finance companies, meeting the growing needs and demands of this industry.

Furthermore, in addition to upholding the highest standards of honesty, the fifth precept is to achieve excessive criteria of high quality and repair by a committed regulatory group with solid business data. “The Regulatory Authority [FSRA] is committed to developing its regulatory workforce and has the resources available to raise the bar for professionalism, competency, and moral standards among its employees.”

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