ADGM to support start-ups, SMEs

ABU DHABI / WAM

Abu Dhabi Global Market (ADGM), on Monday launched its framework to regulate operators of Private Financing Platforms (PFPs), serving equity investment, debt financing and trade receivables funding needs of start-ups, private enterprises and SMEs.
This follows the successful completion of a public consultation by Financial Services Regulatory Authority (FSRA), on August 16, to introduce a tailored, risk-proportionate regulatory framework for transactions facilitated via a PFP in ADGM.
PFPs are online platforms that enable start-ups and smaller enterprises to obtain financing from private and institutional investors to launch and grow their businesses. Such PFPs allow innovative business models that serve different business and client segments. The new framework requires the operators of PFPs, to have appropriate systems and controls in the areas of due diligence of those enterprises listed on the PFP, risk disclosures, safeguarding of client assets, anti-money laundering and counter-terrorist financing, amongst others.
Richard Teng, CEO, FSRA of ADGM, said, “As an international financial centre, ADGM continuously enhances and strengthens its offerings, regulatory regime to meet fast-evolving needs of local and international economies. The PFP regulatory framework reinforces FSRA’s role in providing a trusted and sustainable financial services sector that enables start-ups and established businesses to access appropriate capital and liquidity for expansion and growth.”