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CP 1/2025: Proposed Periodic Fund Reporting Requirements in ADGM
The FSRA introduces a Periodic Fund Return to improve regulatory oversight, risk assessment, and transparency in ADGM’s fund management sector
Bhumika Arora & 10 Leaves
March 24, 2025
The Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) has proposed a new Periodic Fund Return reporting requirement for all Authorised Fund Managers. This initiative aims to enhance supervisory oversight by collecting structured, timely data on fund activities. The proposal is part of Consultation Paper 1/2025, with a public feedback deadline of April 29, 2025.
Key Pointers
Objective & Rationale
Strengthens the risk-based supervisory approach by ensuring timely insights into fund activities.
Enhances the identification of trends and risks in the ADGM fund management sector.
Aligns with international best practices for regulatory oversight.
Periodic Fund Return Template
The Periodic Fund Return consists of the following key sections:
Confirmation Data – Identifies the submitter for follow-up.
Static Data – Determines the relevance of subsequent sections and fund classification.
Fees & Expenses – Tracks cost structures to assess financial risks.
Portfolio Holdings & Exposures – Identifies leverage, liquidity, and risk exposures.
Liquidity – Monitors liquidity risk in open-ended funds.
Performance – Assesses abnormal performance trends as risk indicators.
Unitholders – Tracks investor concentration and fund inflows/outflows.
Declaration – Ensures the accuracy of submitted data.
Reporting Frequency & Deadlines
Public & Open-Ended Exempt Funds – Quarterly, due within 1 month.
Closed-Ended Exempt, Qualified Investor, and Foreign Funds – Semi-annual, due within 6 months.
First reporting deadline: December 31, 2025 (submission by Jan 31 or June 30, 2026).
Additional Considerations
Public Funds require assurance from an Oversight Committee or Custodian.
FSRA will provide guidance in 2025 to support compliance.
A transition period is planned to ease implementation.
Conclusion
The proposed Periodic Fund Return aims to improve regulatory transparency and risk management in ADGM’s fund sector. The FSRA encourages industry stakeholders to review the proposal and provide feedback before April 29, 2025, to ensure the framework effectively serves the industry’s evolving needs.
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