Regulatory Alerts2025-01-01
Consultation Paper No. 2 of 2025 - Review of Prudential Framework for Lower Risk Firms
The Financial Services Regulatory Authority of the Abu Dhabi Global Market proposes amendments to the prudential framework for lower-risk firms in Categories 3B, 3C, and 4. Key changes include removing the expenditure-based capital minimum for Category 4 firms not holding client assets, increasing their base capital requirement to $50,000, and eliminating internal risk assessment reporting for Categories 3B and 3C. The regulator also seeks feedback on aligning custody capital requirements and establishing minimum standards for professional indemnity insurance.
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