The ADGM’s regulatory authority has issued a Consultation Paper on single family offices and company charges.
The aim of the exercise is to explain and to seek public feedback and comments on the proposed amendments to: the Companies Regulations 2020, the Commercial Licensing Regulations (Controlled Activities) Rules 2022, and the Commercial Licensing Regulations (Conditions of Licence and Branch Registration) Rules 2023.
The amendments enhance the Single Family Office (SFO) regime, the Restricted Scope Company (RSC) regime, and company charge registration regime for continuing companies.
The Consultation Paper No. 5 of 2024 – Single Family Offices and Company Charges. is of interest to single family offices, and those considering establishing single family offices.
The Consultation Paper is also of interest to those that advise on, or are considering, company continuation into the ADGM.
The key features of the RA’s proposals are as follows:
Remove inconsistencies under the CR2020 with respect to charges against companies continuing into the ADGM, whilst providing certainty to existing charge holders of continuing companies.
With respect to SFOs and RSCs: provide clarity as to what constitutes SFO activity in the ADGM; introduce minimum requirements to ensure the SFO regime in the ADGM is not abused whilst at the same time ensuring SFOs provide benefit to the region; and
clarify when an RSC application can be made.
The consultation period will close on 14 July 2024.
