ADGM is a financial freedom region within the United Arab Emirates and has its own civil and commercial laws and its own financial services regulator, the Financial Services Regulatory Authority (FSRA). Companies incorporated in ADGM can be 100% foreign-owned and subject to the same civil, commercial and regulatory environment as companies incorporated in the UK.

The FSRA was created to replace the Financial Services Commission of Ontario (FSCO) and the Deposit Insurance Corporation of Ontario (DICO). Agents are flexible, self-funding, and designed to respond quickly to a changing consumer and business environment. In this capacity, the FSRA does the following:

• Promotes high standards of business conduct
• Promotes a sustainable and competitive financial services industry
• Responds quickly to market changes
• Promote sound management of insurance and retirement plans
• Encourage innovation

What is Abu Dhabi Global Market (ADGM)?

The Abu Dhabi Global Market (ADGM) is an international financial center and free trade zone on the island of Almaria in Abu Dhabi, the capital of the United Arab Emirates. The financial center was established by the Abu Dhabi Chamber of Commerce in 2013 and officially opened in October 2015. There are three bodies: the financial services regulator, the registry, and the ADGM courts. ADGM regulates digital asset transactions, which has become an attractive jurisdiction for crypto companies since the introduction of digital asset regulation in 2018. In the same year, ADGM joined the Global Alliance of International Financial Centers.

What is Financial Services Regulatory Authority (FSRA)?

The Financial Services Regulatory Authority (FSRA) is an independent regulatory body that replaces the Ontario Financial Services Commission (FSCO) and Ontario Deposit Insurance Corporation (DICO). Agencies are flexible, well funded and designed to respond quickly to changing consumer and business environments. As such, FSRA promotes high standards of business performance, fosters a competitive and sustainable financial services sector, responds to market changes, promotes good governance of insurance and pension systems, and fosters innovation. It is a newly established institution that protects Ontarians by regulating cooperatives and the general public. The Financial Services Regulatory Authority regulates Ontario’s insurance, credit union, public funds, mortgage brokerage, loan, trust and pension industries. In addition, it provides deposit insurance to members of credit unions and companies incorporated in the state.

Relation Between FSRA and ADGM

ADGM believes that fair, efficient and transparent markets are the key to meeting the dynamic and growing needs of Abu Dhabi’s economy and global markets. ADGM’s Financial Services Regulators were established to support the integrity of the entire International Financial Center by supporting a progressive financial services environment and managing all potential risks and implications. FSRA policies and compliance with ADGM rules and regulations modeled and coordinated to internationally recognized standards ensure that financial institutions operate. Of course, market players grow in a fair environment and the best interests of investors are protected. The Financial Services Regulatory Authority offers the highest level of transparency and regulatory involvement, and takes an open, step-by-step approach to regulatory activities through public consultation, referral commitments, rule changes and policies.