Overview of ADGM Category 1 License
The Abu Dhabi Global Market (ADGM) Category 1 License is tailored for firms authorized to accept deposits or manage profit-sharing investment accounts on an unrestricted basis. This license distinguishes firms within the financial sector and allows them to offer specialized services. Category 1 firms may also apply for an Islamic Window to conduct operations in compliance with Sharia law.
Capital Requirements:
Base Capital: USD 10,000,000.
Risk-Based Capital: Minimum CET1 ratio of 6% and Tier 1 ratio of 8%.
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 1
To obtain an ADGM Category 1 License, applicants must submit their application to the Financial Services Regulatory Authority (FSRA), which evaluates the suitability and merits of the applicant and the license category.
The Application Process
Draft Review: The FSRA will first conduct an informal review of a draft Regulatory Business Plan and projected financials. If deemed satisfactory, a 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 a clear understanding of regulatory requirements.
Drafting Regulatory Business Plan: We assist in preparing a detailed Regulatory Business Plan (RBP), including application forms, business flow processes, and organizational charts.
Financial Modeling and ICAAP: Our team develops a three-year financial model and drafts the ICAAP and Internal Risk Assessment Process (IRAP) reports, essential for assessing and managing capital adequacy.
Policy and Manual Preparation: MVG Dubai provides comprehensive policy and manual development services, 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 office space suitable for regulatory and operational needs.
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 process 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, which includes information about the firm, its activities, prospective clients, and controllers.
AUT – IND: Completed for individuals in mandatory functions, such as directors, senior executive officers, finance officers, compliance officers, and money laundering reporting officers.
AUT – AMS: Prepared for firms applying to arrange credit or investment deals, covering activities related to credit arrangement and investment deals.
Dubai Office Support
MVG Dubai’s dedicated team provides end-to-end support throughout the ADGM Category 1 licensing process. Our expertise ensures that all regulatory requirements are met, applications are accurately prepared, and licensing procedures are efficiently managed. By leveraging our comprehensive services, firms can navigate the complexities of the licensing process with confidence and achieve their business objectives in the UAE's financial landscape.
Conclusion
Securing an ADGM Category 1 License requires meticulous planning and adherence to regulatory standards. MVG Dubai offers a full suite of services to support firms through each step of the licensing process, from initial preparation to final approval. Our expertise ensures a smooth transition into the ADGM financial environment, enabling firms to operate effectively and in compliance with local regulations.