ADGM FSRA Seeks Public Feedback on Proposed Regulatory Enhancements

The Riffle

_Introduction

The Financial Services Regulatory Authority (FSRA) of ADGM has published Consultation Paper No. 8 of 2025 to gather stakeholder feedback on proposed updates to its regulatory framework. The goal is to ensure continued alignment with IOSCO Objectives and Principles of Securities Regulation, and to refine FSRA’s powers, disclosure requirements, and oversight practices.

 _{Key Themes and Proposed Enhancements}

1. General Prohibition on Misleading Conduct

Introduces a new, broad prohibition against misleading or deceptive conduct in financial services—aimed at elevating market integrity and ensuring fair client treatment.

2. FSRA Disciplinary & Supervisory Powers

• Empowers FSRA to suspend a Financial Services Permission (FSP) or an Approved Person’s status on its own initiative.

• Enhances ability to impose conditional authorisations and to issue prudential directions when necessary.

3. Stronger Client Asset Protection

Proposed updates seek to bolster:

• Audit requirements for authorised entities.

• Complaints handling mechanisms.

• Record‑keeping standards.

• Oversight of fund units and safeguarding client assets.

_{Regulatory Objectives}

The proposed reforms underscore FSRA’s commitment to:

• Strengthen investor protection.

• Promote regulatory rigor without undermining innovation.

• Maintain alignment with international standards, especially IOSCO frameworks.

_{Scope and Impact}

The consultation spans multiple rulebooks and regulations, with detailed amendments in:

• Financial Services & Markets Regulations (FSMR)

• Conduct of Business Rulebook (COBS)

• Funds Rules

• General Rulebook (GEN)

• Glossary (GLO)

• Market Infrastructure Rules (MIR)

  (Full list includes Annexe A, COBS, GLO, FUNDS, GEN, MIR)

_{Consultation Process & Timeline}

• Deadline for feedback: 27 August 2025

• Submission: Written comments to [email protected], with subject line “Consultation Paper No. 8 of 2025”

• Important Notes:

  • Comments may be published unless confidentiality is requested.

  • IP-supported and reasoned responses will carry more weight.

  • Implementation will follow Board and FSRA review post-consultation.

  • External action should be deferred until final rules and guidance are released.

 _{Next Steps (Post‑Consultation)}

• FSRA will review all responses and adjust proposals as needed.

• The Board and FSRA will formalise final regulatory changes.

• Affected stakeholders should await official issuance before making compliance decisions.

Read the full briefing Document by 10 Leaves here: