Arranging deals in investments involves introducing clients to counterparties or facilitating transactions relating to securities or other regulated investments, without acting as principal or holding client money or assets.
Arranging custody services involves introducing clients to authorised custodians for the safekeeping of investments, without holding or controlling client assets.
Advising on financial products involves providing professional guidance to clients on the merits, risks, and suitability of regulated financial products, without executing transactions or holding client assets, in accordance with the requirements of the Financial Services Regulatory Authority (FSRA).
Insurance intermediation and insurance management involve advising on, arranging, or managing insurance policies and related services for clients, without underwriting risk, in compliance with the requirements of the Financial Services Regulatory Authority (FSRA).
Providing fund administration involves delivering administrative and operational support services to investment funds, including record-keeping, reporting, and investor servicing, without exercising investment discretion or holding fund assets, in accordance with the requirements of the Financial Services Regulatory Authority (FSRA).
Providing trust services (other than express trusts) involves offering fiduciary or administrative services in relation to trust-like arrangements, excluding the establishment or management of express trusts, in accordance with the requirements of the Financial Services Regulatory Authority (FSRA).
Operating alternative trading systems or crowdfunding platforms involves facilitating the matching of investors and issuers through electronic platforms for investment purposes, subject to specific authorisations and regulatory approval from the Financial Services Regulatory Authority (FSRA).
Arranging and advising on credit involves introducing clients to lenders and providing advisory guidance on credit facilities and financing structures, without providing the credit or holding client funds, in accordance with the requirements of the Financial Services Regulatory Authority (FSRA).
Arranging or advising on money services involves introducing clients to authorised money service providers or providing advisory guidance on payment, remittance, or related money services, without handling client funds or executing transactions, in line with the requirements of the Financial Services Regulatory Authority (FSRA).
Firms may also apply for a Retail Endorsement, either: During the initial licensing process, or post-authorisation, subject to regulatory approval and enhanced compliance requirements.
The FSRA determines the actual capital requirements which will differ according to
ADGM provides finance advisory businesses with certain advantages, including
Familiar legal structure: Common law legal system, which is well known to international players
Robust regulatory standards and guidelines applying global best practice
English Language: Legal and Court Systems
Strategic Location within the GCC and MENA Region
A diverse financial infrastructure with banks, exchanges, and investment funds, among other fintechs
These characteristics make ADGM an attractive option for investment advisors and wealth management companies that seek comprehensive, reliable, effective, and internationally recognized regulatory cover.
The ADGM Category 4 license can be suitable for businesses whose business model is more focused on providing investment, credit or insurance advice than on executing transactions.
You provide your clients with investment, credit, and/or insurance advice
Your client’s direct instructions are managed on a non-discretionary basis
You do not hold client money or other assets
You provide advice to professionals (and/or are seeking to provide financial services to retail customers in the future)
You would like to establish a regulated presence in the ADGM with an appropriate degree of compliance burden; or
You intend to establish a regional or cross-border advisory office within the UAE.
Intend to manage portfolios on a discretionary basis
Execute trades or deal in investments as principal or agent
Hold client funds or custody assets
Operate or manage collective investment funds
Applying for an investment advisory license in ADGM is a structured process. Though the detailed requirements differ based on the firm structure and activities, the general steps are as follows:
Engage early with Finjuris or any other legal counsel for a regulatory assessment of:
Early consultation may significantly smooth the application process and reduce regulatory queries.
With a lot of detail, collect and send to the FSRA:
A good application cuts down on the regulator back-and-forth and speeds up approval.
The FSRA measures:
The process also entails background checks, audits, and possibly interviews.
On the completion of the review, the FSRA will issue an ADGM financial advisory licence, which will allow the firm to operate within the free zone. After the license:
Post-licence, advisory firms have to:
Failure to comply can result in a fine, restricted licence, and/or licence revocation.
Complete the form below and we will contact you to discuss your project. Your information will be kept confidential.