FSRA Unveils Key Enhancements To Funds Regulatory Framework During Abu Dhabi Finance Week

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has highlighted ongoing growth in its fund and asset management sector during the fourth edition of Abu Dhabi Finance Week. Recent improvements to its regulatory framework were also discussed as part of Asset Abu Dhabi. Since ADGM's establishment, this sector has been crucial to its success as a leading international financial centre.

In 2025, the momentum continued with a 48% year-on-year rise in Assets under Management (AUM) by Q3. There are now 161 Fund and Asset Managers overseeing 220 Funds, showcasing ADGM's increasing global importance. The FSRA is committed to enhancing its regulatory framework to maintain ADGM's status as a top international hub for fund and asset management while managing risks effectively.

The FSRA has introduced several enhancements in 2025. These include a periodic reporting requirement for Funds and a Consultation Paper (CP) detailing significant improvements to the FSRA’s framework for Funds and Fund Managers. The aim is to streamline regulatory requirements for smaller Fund Managers and create a new category of Institutional Fund Manager.

The new periodic reporting requirement is tailored to each type of Fund, aligning the FSRA’s framework with international standards. This will help identify emerging trends and risks in the sector, supporting the development of a proportionate, evidence-based regulatory framework.

The CP was developed after a comprehensive review of the FSRA’s Funds framework. It includes proposals for Institutional Fund Managers, offering a streamlined regulatory framework for those targeting institutional investors. This recognises Abu Dhabi’s status as the ‘Capital of Capital’ and seeks views on extending this framework to asset managers handling institutional Funds.

For smaller Fund Managers managing USD $200 million or less, there is a streamlined regulatory framework with key exceptions building on the success of the Venture Capital Fund Manager framework. Additionally, employee investment vehicles will facilitate employee investment in private Funds.

Feedback and Future Plans

The consultation invites feedback until 30 January 2026, with further enhancements planned for later that year. Emmanuel Givanakis, CEO of the ADGM FSRA, stated: "The recent enhancements and our proposals going forward aim to not only further align our regulatory framework with international peers but also reflect a more proportionate approach based on the nature of our fund management ecosystem."

Revisions are also proposed for Foreign Fund Managers' existing frameworks to enhance safeguards. These changes ensure that ADGM remains an attractive jurisdiction for Fund Managers seeking a well-regulated yet progressive environment.

Since its inception in 2015, ADGM has become an important hub for Fund Managers globally. With over 161 Fund Managers now established there managing over 220 Funds, these changes aim to maintain ADGM's appeal as a preferred jurisdiction for fund management operations.

With inputs from WAM