Tuesday 31, October 2017 by Nabilah Annuar

ADGM proposes amendments to the PRU, issues consultation paper

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 Rules (PRU).

According to a statement by the ADGM, the proposals will align the requirements in PRU more closely with the current regulatory prudential regime developed by the Basel Committee on Banking Supervision (BCBS).

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; full implementation of the Leverage Ratio floor; the disclosure of the Leverage Ratio and the Liquidity Coverage Ratio; and the introduction of new reporting requirements, and further miscellaneous amendments that will provide greater clarity to financial institutions operating in ADGM.

This proposed revision is part of the FSRA’s commitment and ongoing efforts to maintain an internationally-recognised, transparent and robust prudential regime. The public and industry are expected to send their comments by 7 December 2017.