ADGM Company Service Provider Framework

This episode is also available as a blog post: https://10leaves.ae/publications/adgm/new-adgm-company-service-provider-regime The Abu Dhabi Global Market (ADGM) has been open for business only since October 2015, but it has already garnered much praise and respect over its efforts to differentiate itself through unique offerings. It pioneered the FinTech Abu Dhabi summit, attended by over five hundred global Financial Technology (FinTech) personalities; and has launched a series of collaborations with different companies such as Temenos, Al Ansari, and Mastercard to help forward its FinTech initiative. Other such initiatives include the Special Purpose Vehicles (SPV) regime, and the ADGM Foundations regime. The SPV regime is open to a wide variety of uses, from investor-friendly holding structures, to asset separation and transfer. Foundations provide a mechanism to consolidate holdings of various assets (shares, real property, intellectual property, royalties, etc.) into a single holding entity. This allows for clarity on the transfer of assets during a succession process. Offering world-class structures was the first step. The ADGM has now taken another significant step in the right direction, with the introduction of the Company Service Provider Framework. This framework aims to regulate existing corporate service providers, such as 10 Leaves, and addresses certain challenges of administering ADGM SPVs and Foundations, especially those that do not have a significant nexus to the UAE. The ADGM Company Service Provider will be the point of contact between the ADGM Registration Authority and the SPV. The ADGM Company Service Provider Regulations come into effect in April 2021.