Proposal to Support FinTechs within the ADGM
Type
E-journal
Date
29 Jul 2016
Jurisdiction
Abu Dhabi
Taxonomy
Regulation & Offences, Financial Institutions, General Information Technology & Telecommunications
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Analysis
The Financial Services Regulatory Authority (“FSRA”) of the Abu Dhabi Global Market (“ADGM”) has circulated Consultation Paper No.2 of 2016 (the “Paper”) regarding policies to be introduced in a proposed regulatory framework to support participants deploying innovative technology within the financial services sector. The Paper is focused on 'FinTech', which are innovative tech services that are concerned with the financial services industry.
FinTech companies pride themselves on having two main functions, which over the past decade have pushed them to the forefront of venture capitalists' ‘must have' investments. These two functions are: (1) better use of data and (2) effortless customer experience. In 2015, Goldman Sachs estimated that FinTech companies could make up to US$ 4.7 trillion in annual revenue and around US$ 470 billion in profit. Satander InnoVentures estimated that US$ 23.5 billion of venture capital investment in 2013 - 2014 was in FinTech companies. Such figures are, naturally, making this growing industry extremely attractive to venture capitalists, governments, banks, and entrepreneurs.