Abu Dhabi Global Market (ADGM), the International Financial Centre in Abu Dhabi, today published a consultation paper setting out its proposed Bank Recovery and Resolution Regulations.  The introduction of this regime underlines FSRA’s commitment to international standards and best practices and is consistent with the Financial Stability Board’s 2011 Key Attributes Model and national initiatives adopted in a number of G20 countries. 

The FSRA is proposing a tailored, risk-proportionate approach that effectively addresses the risks posed by the failure of any significant financial institution or a member of its financial group.  The proposed Bank Recovery and Resolution Regulations would empower the FSRA to act as the resolution authority for ADGM; this would apply to various institutions including those that accept deposits, provide clearing services or deal in investments as principal.

Features of the proposed regulations would include the following:

Powers to require recovery and resolution planning for ADGM-based institutions of significant size and interconnectedness that are within the scope of these proposals; and
Early intervention and direction powers to require management of in-scope firms to adopt measures to halt the deterioration in their firm’s financial position.

ADGM invites industry participants and the public to submit their comments on the proposed draft regulations and related consequential amendments to FSRA rules by 8 November 2018 to consultation@adgm.com . 

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