ADGM proposes amendments to prudential regime for investments

The Financial Services Regulatory Authority, FSRA, of Abu Dhabi Global Market, ADGM, has issued a consultation paper inviting public feedback on its proposals to revise the "Prudential – Investment, Insurance Intermediation and Banking" Rulebook, PRU.

The proposals will align the requirements in PRU more closely with the current regulatory prudential regime developed by the Basel Committee on Banking Supervision.

Specific areas of focus within the proposals include: the introduction of capital requirements through implementation of the Countercyclical Capital Buffer, Credit Valuation Adjustment and Central Counterparties frameworks, the ability of certain capital instruments to absorb losses at the Point Of Non-Viability, and full implementation of the Leverage Ratio floor.

It also includes the disclosure of the Leverage Ratio and the Liquidity Coverage Ratio, as well as the introduction of new reporting requirements, and further miscellaneous amendments that will provide greater clarity to financial institutions operating in the ADGM.

The proposed revision is part of the FSRA’s commitment and ongoing efforts to maintain an internationally-recognised, transparent and robust prudential regime.