Abu Dhabi Global Market releases consultation paper on proposed legislative framework for fintech

The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has released a consultation paper on Wednesday in order to welcome public feedback and comments on the proposed legislative framework to support those participants deploying innovative technology in fintech sector.

The paper titled ‘Consultation on Proposed Legislative Framework for Innovative Financial Technology’ follows the policy consultation paper that was released by FSRA in May, which proposed to develop a Regulatory Laboratory (RegLab) framework for FinTech participants to test fintech solutions.

The fintech legislative framework paper would be of interest to individuals, organizations and investors looking at developing innovative ways to provide fintech services in Abu Dhabi. The comments and feedbacks should be in writing and the deadline is on 26th September 2016.

“Once we receive your comments, we will consider whether any modifications are required to the proposed legislative framework. The Board and the FSRA will then proceed to enact the proposed legislative framework,” the paper stated. “The finalized legislative framework is expected to take effect in Q4 2016.”

The response to the feedback on RegLab policy consultation includes implementation of co-working spaces, an interaction between fintech participants and non-ADGM persons, two-year validity period, authorization criteria for fintech participants, monitoring, and updating of RegLab activities among others.

The proposed legislative framework includes draft amendments to the financial services and markets regulation, draft fintech RegLab guidance and draft amendments to other FSRA rulebooks.