Overview of ADGM Category 3A License
The ADGM Category 3A License permits firms to engage in Dealing in Investments as Principal (only as a Matched Principal) and Dealing in Investments as Agent. Firms holding this license may also be authorized to conduct additional financial services within Categories 3B, 3C, or 4, but they are not permitted to provide services under Categories 1 or 2.
Capital Requirements:
Base Capital: USD 500,000.
Risk-Based Capital: Minimum CET1 ratio of 6% and Tier 1 ratio of 8%.
Branch Set-Up: Capital requirements are not applicable to branches of existing regulated banks.
Capital Plan: Must be documented 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 3A
To obtain an ADGM Category 3A License, applicants must submit their application to the Financial Services Regulatory Authority (FSRA), which will assess the merits and suitability of the application and the license category.
The Application Process
Initial Review: The FSRA conducts an informal review of the draft Regulatory Business Plan and projected financials. If the FSRA is satisfied, a full formal application, including a finalized Regulatory Business Plan, will be required.
MVG Dubai Office Services
Introduction to the Regulator: MVG Dubai facilitates introductions to the FSRA, ensuring effective communication and guidance throughout the regulatory process.
Drafting Regulatory Business Plan: Our team prepares a detailed Regulatory Business Plan (RBP), including application forms, business flow processes, and organizational charts.
Financial Modeling and ICAAP: We develop a comprehensive three-year financial model and draft the ICAAP and Internal Risk Assessment Process (IRAP) reports, essential for evaluating and managing capital adequacy.
Policy and Manual Preparation: MVG Dubai assists in preparing key 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 finding and leasing suitable office space for regulatory and operational purposes.
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 the Senior Executive Officer (SEO), Finance Officer (FO), Risk Officer (RO), Money Laundering Reporting Officer (MLRO), and Compliance Officer (CO).
AUT – CORE: Preparation of this form, covering details about the firm, its activities, prospective clients, and controllers.
AUT – IND: Completed for individuals holding mandatory functions, including directors, senior executive officers, finance officers, compliance officers, and money laundering reporting officers.
AUT – AMS: Prepared 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 an 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 with conditions that must be met before granting the final license. These conditions 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 fulfilled, the FSRA will issue the formal license.
Conclusion
Securing an ADGM Category 3A License requires meticulous preparation and adherence to regulatory standards. MVG Dubai offers expert support throughout the licensing process, ensuring compliance with FSRA requirements and facilitating a smooth entry into the ADGM financial environment. Our comprehensive services assist firms in achieving their regulatory objectives and establishing a successful presence in the UAE financial sector.