ADGM’s Enhanced Regulatory Framework for Professional Services

The Riffle

The Abu Dhabi Global Market (ADGM) has introduced a significantly strengthened regulatory framework for professional service providers through two key rulebooks — the Commercial Licensing Regulations (Controlled Activities) Rules 2025 and the Commercial Licensing Regulations (Conditions of Licence and Branch Registration) Rules 2025(A).

Together, they replace the previous system and create a more robust environment focused on governance, transparency, and accountability for firms operating within the financial centre.

Key Highlights

1. Introduction of Tax Services as a Controlled Activity

For the first time, providing tax services has been formalized as a regulated activity. Firms offering international or UAE tax advice must now hold a specific licence, ensure professional qualifications, and maintain professional indemnity insurance.

2. Strengthened Legal Services Oversight

Law firms must now appoint a managing partner with at least eight years of post-qualification experience, maintain a physical office within ADGM, and secure USD 1 million professional indemnity coverage. An annual return will be mandatory from 2027.

3. Governance Standards for Company Service Providers (CSPs)

CSPs face enhanced governance and operational requirements, including conflict-of-interest policies, a USD 50,000 minimum capital requirement, and USD 1 million insurance per claim. Annual reporting and fit-and-proper assessments are now mandatory.

4. Universal Principles for All Providers

All regulated service providers — legal, tax, and CSPs — must comply with six universal principles: Integrity, Due Skill, Care and Diligence, Confidentiality, Transparency, and Cooperation with the Registrar.

Implementation Timeline

The rules are effective immediately for new applicants. Existing licence holders have a six-month transition period to align with new professional indemnity and governance requirements.

Why This Matters

The enhanced framework strengthens ADGM’s position as a trusted global jurisdiction by setting clear expectations for professional conduct and operational integrity. It ensures that entities operating in ADGM meet the highest standards of qualification, accountability, and ethical practice — reinforcing confidence among clients, investors, and international regulators.

Read the full briefing document presented by 10 Leaves here -