Establishing as a Regulated Financial Services Firm in the DIFC or ADGM

The Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM) are two of the leading financial free zones in the UAE. Each jurisdiction offers a wide range of opportunities for companies looking to operate in the region, including as an Authorised Financial Services Firm. The DIFC and ADGM are each governed by an independent regulator, namely the Dubai Financial Services Authority (DFSA) for the DIFC, and the Financial Services Regulatory Authority (FSRA) for the ADGM. The DFSA and FSRA are committed to adhering to internationally recognised regulatory standards.

In order to operate as a regulated financial services firm in the DIFC or ADGM, a company must obtain a financial services licence from the respective regulator. There are several types of licences available, depending on the type of financial services activities that the company wishes to undertake. These include (but are not limited to); dealing in investments, advisory activities, collective investment funds, crypto and investment tokens, crowdfunding, fintech, banking, insurance, and asset management.

It’s important to understand that being an Authorised Firm in the DIFC or ADGM comes with certain regulatory responsibilities. Once a company obtains a licence, it then becomes subject to a range of regulatory rules, including prudential, conduct, and anti-money laundering (AML) requirements. These rules are designed to maintain the integrity of the financial services industry, prevent the misuse of the industry for money laundering, terrorist financing and proliferation financing, and ensure that regulated firms operate in a safe and sound manner, and treats their customers fairly and transparently.

At Clarity Consulting, we understand the complexities of setting up a regulated financial services firm in the DIFC or ADGM. We provide a range of support services to help companies navigate the licensing and regulatory process, including assistance with licence applications, and ongoing compliance, reporting and remediation support. If you’re interested in establishing a regulated financial services firm in the DIFC or ADGM, or are an existing firm that requires support – please don’t hesitate to contact us at [email protected].