Abu Dhabi – New regulations for third party financial technology services
Friday, 04 02 2021, Category: Technology, Country: U.A.E
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has introduced a new regulatory framework for the authorisation and supervision of financial technology (FinTech) firms providing third party services to customers of financial institutions.
Third Party Providers (TPPs) are firms that act as intermediaries between customers and the financial institutions that provide services to them in order to help customers manage and use their own data more effectively when undertaking financial transactions.
The new framework will allow and support the improved and holistic management of personal finances by focussing the new regulated activity for TPPs on the accessing, processing and transferring of specific types of customer data, with appropriate regulatory requirements for TPPs in the areas of data protection and privacy of information, conduct of business, technology risk, anti-money laundering and countering terrorist financing.
With the new framework in place TPPs will be able to work alongside financial institutions in a secure and efficient manner that facilitates customer transactions, whilst protecting the data and interests of those customers.
The new framework will also provide a foundation to support the growth of open finance, with the focus being on giving customers and businesses more control over a wider range of their financial data, such as investment and other financial products. This is all part of ADGM’s ongoing efforts to develop a sound and progressive FinTech ecosystem that fosters innovation and new models to deliver financial services.
Source: Emirates News Agency