ADGM Regulator Sets Out Comprehensive Financial Reform Agenda Through 2027

The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has set out a preview of its regulatory agenda through 2027 during a recent policy and legislative update session, according to Pinsent Masons. The announcement comes amid ongoing expansion at the financial centre, where more than 410 financial institutions are currently authorised and approximately 160 additional firms are seeking to establish operations.

Under finalised fund manager reforms, sub-threshold managers managing up to US$200 million of committed capital in closed-ended exempt funds or Qualified Investor Funds will benefit from a simplified authorisation process, lower capital requirements, and certain exemptions from control function requirements. A second category covering institutional fund managers managing funds with a minimum subscription of US$5 million and no individual investors will receive lighter-touch regulation and an exemption from professional indemnity insurance obligations.

In the digital assets space, the FSRA announced plans to publish a consultation paper on its approach to decentralized finance (DeFi) in October, with final guidance targeted for the first half of 2027. The regulator stated it will clarify how existing requirements apply to DeFi activities under a principles-based and technology-neutral approach rather than creating a separate dedicated framework. Regulatory attention is also shifting toward stablecoins, tokenisation, and yield products, alongside existing priorities such as custody standards and anti-money laundering controls.

Planned reforms through 2027 also include proposals to classify virtual assets within the definition of specified investments, assessing digital assets as collateral for credit exposures, and examining prediction markets. Additionally, the FSRA plans to advance work on operational resilience, business transfer schemes, and consolidated supervision and recovery planning for banking and insurance firms.