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ADGM’s Enhanced Regulatory Framework for Professional Services

From October 16, 2025, ADGM enforces new rules to raise professional standards across legal, tax, and corporate service providers.

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 -

ADGM's Enhanced Regulatory Framework for Professional Services.pdf127.69 KB • PDF File