ADGM Tightens Enforcement and Licensing Rules to Strengthen Regulatory Integrity and Global Confidence
The Abu Dhabi Global Market (ADGM) Registration Authority (RA) has announced two major regulatory reforms this month, tightening its enforcement framework and raising standards for professional service providers. Together, these changes aim to enhance procedural fairness, strengthen market integrity, and align ADGM’s regime with leading global financial centres.
1. A New Administrative Framework for Fairer and Stronger Enforcement
On October 28, the RA introduced the Administrative Regulations 2025—a comprehensive reform that replaces and simplifies previous commercial licensing and enforcement rules.
The new regulations consolidate the RA’s investigation and sanctioning powers into a single, coherent system designed to ensure consistency and transparency across ADGM’s commercial legislation.
Key enhancements include:
Tiered enforcement approach: Contraventions are now categorized by severity, allowing proportionate responses.
Updated sanctions: Fine levels have been recalibrated to better reflect the seriousness of violations.
Expanded supervisory powers: The RA can now bring enforcement actions to a conclusion more efficiently and fairly.
Emergency procedures: The RA CEO gains statutory powers to act immediately in urgent cases.
Settlement mechanism: A formal process allows cases to be resolved transparently through settlement agreements.
According to the RA, these reforms “provide a clear and calibrated solution” that reinforces ADGM’s statutory framework and promotes procedural fairness. The Administrative Regulations 2025 and related amendments took effect upon publication.
2. Enhanced Controls for Legal, Tax, and Company Service Providers
Earlier on October 16, the RA also issued two complementary rules:
Commercial Licensing Regulations (Conditions of Licence and Branch Registration) Rules 2025
Commercial Licensing Regulations (Controlled Activities) Rules 2025
These updates set out new governance and licensing requirements for firms offering legal, tax, and company services within ADGM.
Under the new framework:
Legal service providers must appoint a managing partner with at least eight years of post-qualification experience, maintain a registered office in ADGM, obtain professional indemnity insurance, and file annual returns.
Tax service providers must ensure that at least half of senior management are suitably qualified professionals and maintain professional indemnity coverage.
Company service providers must implement written conflict-of-interest policies and internal governance procedures.
The RA has also designated tax services as a new controlled activity, bringing them under direct regulatory oversight for the first time. The new rules apply immediately to new applicants, while existing firms are granted transitional periods for compliance.
Implications for International Firms
For global banks, law firms, and corporate advisers operating in the Gulf, these reforms signal ADGM’s maturation into a jurisdiction with a strong enforcement backbone and predictable regulatory standards.
The new administrative regime brings greater procedural clarity, reducing uncertainty in enforcement outcomes, while the updated licensing rules emphasize professional accountability and governance—qualities that international investors and institutions value when choosing a regional base.
In a region where financial hubs compete on transparency and global recognition, ADGM’s 2025 reforms represent a decisive move toward global best practice in both supervision and service provider oversight.
The full enacted rules are publicly available at:
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