Abu Dhabi - ADGM issues regulations for robo-advisors
Wednesday, 07 17 2019, Category: Technology, Country: U.A.E
Abu Dhabi Global Market (ADGM) rolled out a regulatory framework for digital investment managers, also known as “robo-advisors”, to boost financial technology (FinTech) activity and provide investment-related services, the regulator of one of the fastest-growing financial hubs in the Middle East and North Africa said on Monday.
Robo-advisers provide automated financial guidance and services with no human interaction involved for the client because decisions are based on programmed algorithms.
“With this guidance, we aim to make it easier for digital investment businesses to operate in ADGM and in turn provide investors with greater access to professional investment tools,” said Richard Teng, chief executive of the Financial Services Regulatory Authority (FSRA) of ADGM, adding that robo-enabled advice that leverages artificial intelligence (AI) and data analytics has enormous potential to improve investment decision-making in the Middle East and Africa region.
“We look forward to welcoming more robo-advisers to establish their presence in Abu Dhabi in ADGM and support investors with their innovative solutions.”
The regulatory framework issued by ADGM outlines permissions that may be required to provide digital investment services in or from the financial centre and how the FSRA will apply its authorisation criteria in technology governance and newer areas such as algorithm governance.
According to ADGM, digital investment managers have the potential to play an important role in promoting financial inclusion and provide a wider range of options for retail client investors in the Middle East and Africa region.
Source: The National - UAE