The Financial Services Regulatory Authority, FSRA, of Abu Dhabi Global Market, ADGM, today issued its regulatory framework for Digital Investment Managers (also known as ‘robo-advisors’), operating in ADGM.
Digital Investment Managers provide investment management services using algorithm-based tools and technology to interact with more tech-savvy clients. This technology allows investment managers to provide tailored investment management services to clients in a cost-effective and scalable way.
They also have the potential to play an important role in promoting financial inclusion and providing a wider range of options for retail client investors in the Middle East and Africa region. To support the industry, the FSRA has prepared this guidance to illustrate how its regulatory framework applies to these businesses and how robo-advisors can operate more effectively in ADGM.
Commenting on the announcement, Richard Teng, CEO of FSRA, said, "Robo-advice leveraging Artificial Intelligence and data analytics is an area of FinTech that has enormous potential to improve investment decision making in the Middle East and Africa region. With this guidance, we aim to make it easier for digital investment businesses to operate in ADGM and in turn provide investors with greater access to professional investment tools to help achieve their financial goals."
As an international financial centre, ADGM actively enhances its framework and platform to support innovation and the varying financial needs of businesses, investors and consumers.