Obtaining ADGM Category 3A License | FSRA Category 3A Financial Licensing
Abu Dhabi Global Market (ADGM) is a broadly based recognized and renowned international financial center serving local, regional and international institutions. The ADGM serves in the obtainment of Financial License Categories 3A, 1, 2, 3B, 3C, 4 & 5.
ADGM CATEGORY 3A LICENSE – DEALING IN INVESTMENTS AS PRINCIPAL / DEALING AS AGENT
In this category, an ADGM Category 3A Authorised Firm is licensed to carry on one or more of the Financial Services of Dealing in Investments as Principal where it does only so as a Matched Principle; Dealing in Investments as Agent. An Authorised Firm grouped under this category may be authorised to conduct other Financial Services found in Category 3B, 3C or 4, but it cannot be 23 The Structure of the ADGM authorised to conduct any of the Financial Services in Categories 1 or 2.
- Base Capital – US$ 500,000
- Risk-based Capital minimum based on the totality of risks – CET1, 6%; Tier 1, 8%.
- Capital Requirement does not apply to a Branch set-up of an existing regulated bank.
- Capital Plan must be captured in Internal Capital Adequacy Assessment Process Report.
Note that additional capital requirements may be imposed by FSRA on the review of the application.
WHAT ARE THE REQUIRED APPOINTMENTS FOR AN AUTHORIZED FIRM IN ADGM?
- Directors (at least 2, preferably 3-4) – can be outsourced (NEDs).
- Senior Executive Officer (SEO) – In-house, UAE resident (can be a Director).
- Risk Officer (RO) – can be outsourced.
- Finance Officer (FO) – can be outsourced (can also be an Executive Director/Senior Manager).
- Money Laundering Reporting Officer (MLRO) – can be outsourced, UAE resident (can be a CO).
- Compliance Officer (CO) – can be outsourced, UAE resident (can be an MLRO).
HOW CAN WINCORE ASSIST YOU?
- Introduction to the Regulator
- Draft of Regulatory Business Plan (RBP) (Application Forms, Business flow processes & charts)
- Preparation of Financial model for 3 years and draft of ICAAP and IRAP report.
- Preparation of policies and manuals (Compliance, AML, Risk Management, Remuneration, Governance, Conflicts of Interests, Business Continuity Plan etc.)
AUT – CORE: this form must be submitted by all applicants applying for a license to carry out one or more financial services in or from ADGM. It covers information on the applicant, its activities, prospective clients and controllers;
AUT – IND: this form must be submitted by the individuals holding a mandatory function including directors, senior executive officer, finance officer, compliance officer and money laundering reporting officer; and
AUT-AMS: this form must be submitted by applicants applying to conduct financial services relating to arranging credit or deals in investment. The applicant will be required to submit this form as one of the Proposed Activities of ADGM CO, including arranging credits and investment deals.
- Draft of regulatory application for the company and individuals
- Submission of Regulatory Application (with Policies and appointment of SEO, FO, MLRO, RO, CO)
- Provision of full-time functions
SEO – Senior Executive Officer
FO – Finance Officer
RO – Risk Officer
MLRO – Money Laundering Reporting Officer
CO – Compliance Officer Initiation of the entity incorporation process
- Office lease
- Introduction to the UAE Bank for opening an Account
- Issuance of Regulator’s financial services license