Mubasher: Abu Dhabi Global Market (ADGM) has launched its framework on Monday to regulate operators of Private Financing Platforms (PFPs) that provide services to equity investment, debt financing, and trade receivables funding needs of start-ups, private enterprises, and SMEs.
The launch of this PFPs follows the completion of a public consultation by the Financial Services Regulatory Authority (FSRA) on 16 August 2018 to introduce a risk-proportionate regulatory framework for transactions facilitated through a PFP in ADGM, the International Financial Centre in Abu Dhabi, according to a recent statement.
This new PFPs framework will further add to FSRA’s comprehensive regulatory regime in a bid to support different types of financing solutions for varying business needs, in addition to boosting the growth and diversification of the UAE’s enterprises and economy.
“The FSRA also published the ‘Guidance - Regulatory Framework for Private Financing Platforms’ and the application form for interested applicants to operate a PFP within ADGM. The Guidance elaborates on ADGM’s approach towards the regulation of operators of PFPs and is a useful resource for interested applicants,” the statement added.
It is noteworthy that PFPs are online platforms that enable start-ups and smaller enterprises to obtain financing from private and institutional investors to create and grow their businesses.
“As an international financial centre, ADGM continuously enhances and strengthens its offerings and regulatory regime to meet fast-evolving needs of local and international economies. The PFP regulatory framework reinforces FSRA’s role in providing a trusted and sustainable financial services sector that enables start-ups and established businesses to access the appropriate capital and liquidity for expansion and growth,” CEO, FSRA of ADGM, Richard Teng, said.
