Abu Dhabi Global Market Proposes Amendments To The Prudential Regime For Investments Firms, Insurance Intermediaries And Bank

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has issued a consultation paper inviting public feedback on its proposals to revise the “Prudential – Investment, Insurance Intermediation and Banking” Rulebook (PRU). The proposals will align the requirements in PRU more closely with the current regulatory prudential regime developed by the Basel Committee on Banking Supervision (“BCBS”).

Specific areas of focus within the proposals include:

• the introduction of capital requirements through implementation of the Countercyclical Capital Buffer, Credit Valuation Adjustment and Central Counterparties frameworks;
• the ability of certain capital instruments to absorb losses at the Point Of Non-Viability;
• full implementation of the Leverage Ratio floor;
• the disclosure of the Leverage Ratio and the Liquidity Coverage Ratio; and
• the introduction of new reporting requirements, and further miscellaneous amendments that will provide greater clarity to financial institutions operating in ADGM.

This proposed revision is part of the FSRA’s commitment and ongoing efforts to maintain an internationally-recognised, transparent and robust prudential regime.

The FSRA invites the public and industry participants to submit their comments to “Consultation Paper No. 4 of 2017” by 7 December 2017 to: