The ADGM Category 3B License authorizes firms to provide custody services specifically for funds and act as trustees for funds. Firms with this license may also offer financial services under Categories 3C and 4 but are restricted from conducting activities in Categories 1, 2, or 3A.
Capital Requirements:
Base Capital: USD 4,000,000.
Branch Set-Up: Capital requirements do not apply to branches of existing regulated banks.
Capital Plan: Must be detailed in the Internal Capital Adequacy Assessment Process (ICAAP) Report.
Additional Requirements: The FSRA may impose further capital requirements based on the application review.
Licensing Process for ADGM Category 3B
To secure an ADGM Category 3B License, applicants must submit their application to the Financial Services Regulatory Authority (FSRA), which will evaluate the suitability and merits of the applicant and the requested license category.
The Application Process
Initial Review: The FSRA will conduct an informal review of the draft Regulatory Business Plan and projected financials. If deemed satisfactory, the FSRA will request a full formal application, including a finalized Regulatory Business Plan.
MVG Dubai Office Support
Introduction to the Regulator: MVG Dubai facilitates introductions to the FSRA to ensure clear communication and support throughout the regulatory process.
Drafting Regulatory Business Plan: We prepare a comprehensive Regulatory Business Plan (RBP), including application forms, business flow processes, and organizational charts.
Financial Modeling and ICAAP: Our team develops a detailed three-year financial model and drafts the ICAAP and Internal Risk Assessment Process (IRAP) reports, crucial for evaluating capital adequacy.
Policy and Manual Preparation: MVG Dubai assists in preparing essential policies and manuals, including Compliance, Anti-Money Laundering (AML), Risk Management, Remuneration, Governance, Conflicts of Interest, and Business Continuity Planning.
Form Preparation and Submission:
Regulatory Application Drafting: MVG Dubai drafts the regulatory application for both the firm and its key individuals, ensuring compliance with FSRA requirements.
Submission and Appointment Support:
Additional Support:
Office Lease Assistance: Help with locating and leasing appropriate office space.
Bank Introduction: Facilitation of introductions to UAE banks for account opening and banking services.
License Issuance: Support in obtaining the financial services license from the FSRA.
Regulatory Application Submission: We manage the submission of the Regulatory Application, including policies and the appointment of key roles such as Senior Executive Officer (SEO), Finance Officer (FO), Risk Officer (RO), Money Laundering Reporting Officer (MLRO), and Compliance Officer (CO).
AUT – CORE: Completion of this form, covering details about the applicant, its activities, prospective clients, and controllers.
AUT – IND: For individuals in mandatory functions, including directors, senior executive officers, finance officers, compliance officers, and money laundering reporting officers.
AUT – AMS: For firms applying to conduct financial services related to credit arrangement or investment deals, as part of ADGM CO’s proposed activities.
Post-Application Process
The FSRA will review the application and engage in ongoing dialogue with the applicant, which may include interviews with the nominated authorized individuals. Upon satisfactory review, the FSRA will issue an In-Principle approval, which will include conditions that must be fulfilled before granting the final license. These conditions typically include:
Incorporation or registration of the entity with the ADGM Registrar of Companies.
Opening a local bank account and providing proof of capital remittance.
Providing evidence of office space for conducting financial activities.
Once these conditions are met, the FSRA will issue the formal license.
Conclusion
Obtaining an ADGM Category 3B License involves a detailed application process and compliance with regulatory standards. MVG Dubai provides expert support throughout the licensing process, ensuring adherence to FSRA requirements and facilitating a smooth regulatory entry into the ADGM financial environment. Our comprehensive services help firms navigate the regulatory landscape and establish a successful presence in the UAE.