Abu Dhabi, UAEThe Monetary Authority of Singapore (MAS) and Abu Dhabi Global Market (ADGM) today signed a Memorandum of Understanding (MoU) to strengthen the supervision of cross-border operations of banking institutions. The signing ceremony was held on the sidelines of the annual Abu Dhabi Singapore Joint Forum (ADSJF) in Abu Dhabi today.
MAS and the Financial Services Regulatory Authority (FSRA) of ADGM share a common objective to develop sound and robust financial markets and financial ecosystems. This agreement will build on their existing cooperation framework1 to cover the full spectrum of banks, financial markets and FinTech-related activities.
Mr Ong Chong Tee, Deputy Managing Director, MAS, said, We are pleased to have concluded this supervisory MoU with ADGM. The MoU will facilitate greater regulatory and supervisory cooperation between the two authorities. This affirms the strong working relationship between MAS and FSRA and our mutual commitment to the close business and investment ties between our two economies.
Mr Richard Teng, Chief Executive Officer, ADGM FSRA, said, Singapore and the UAE share very similar strengths in how we constantly reinvent ourselves to strategically support our robust economies, as well as, collaborate with like-minded partners to foster a sound sustainable global financial ecosystem and global market. This partnership is an extension of our commitment to creating and facilitating more cross-border business, growth and investment opportunities between the two markets. I look forward to working closely with the MAS team, leveraging each other's strengths and expertise to introduce innovative initiatives to better serve the dynamic needs of our markets and the future growth of our economies.
1 The MoU builds upon the long-standing cooperation between the two regulators, formalized by their Supervisory and Enforcement cooperation in the securities field through the IOSCO MMoU (to which both regulators are signatory) and the FinTech Innovation and Cross-Border agreement signed on 8 March 2017.
NOTE TO EDITORS:-
In August 2015, MAS formed a Financial Technology & Innovation Group (FTIG) within MAS to drive its Smart Financial Centre initiatives. FTIG is responsible for formulating regulatory policies and developing strategies to facilitate the use of technology and innovation to better manage risks, enhance efficiency, and strengthen competitiveness in the financial sector.
The FSRA launched the Regulatory Laboratory (RegLab) in November 2016 to provide a controlled environment for Innovator Businesses to develop and test innovative solutions that promote efficiency and consumer choices in the financial sector, and to support FSRA in the development of risk-appropriate and effective regulations for such innovation.
On facilitating cross-border ties, the FSRA has recently awarded in-principle approval to one Singapore firm who provides credit services. The FSRA is also in regular communication with various Singapore firms, such as fund managers, who are interested in expanding their operations and establishing funds in Abu Dhabi and the wider region. At the ADGM-FinTech Abu Dhabi Summit in October 2017, four Singapore applicants were successfully selected from the Innovation Challenge competition to demo their solutions to the Middle East and North African FinTech community in Abu Dhabi. The overall winner of the Innovation Challenge was a Singapore firm (Silent Eight) that went on to become one of the top FinTech winning firms at the Singapore FinTech Festival in November 2017.
About the Monetary Authority of Singapore
As Singapore's central bank, the Monetary Authority of Singapore promotes sustained, non-inflationary economic growth through appropriate monetary policy formulation and close macroeconomic surveillance of emerging trends and potential vulnerabilities. It manages Singapore's exchange rate, foreign reserves and liquidity in the banking sector. MAS is also an integrated supervisor overseeing all financial institutions in Singapore � banks, insurers, capital market intermediaries, financial advisors, and the stock exchange. With its mandate to foster a sound and progressive financial services sector in Singapore, MAS also helps shape Singapore's financial industry by promoting a strong corporate governance framework and close adherence to the international accounting standards. In addition, it spearheads retail investor education. MAS ensures that Singapore's financial industry remains vibrant, dynamic and competitive by working closely with other government agencies and financial institutions to develop and promote Singapore as a regional and international financial centre.
About Abu Dhabi Global Market
Abu Dhabi Global Market (ADGM), an international financial centre (IFC) located in the capital city of the United Arab Emirates, opened for business since 2015. Recognised by the industry for its innovative, strategic and progressive initiatives, ADGM has been awarded as the Financial Centre of the Year (MENA) for two consecutive years. ADGM's three independent authorities, the Registration Authority, the Financial Services Regulatory Authority and ADGM Courts, enable registered companies to conduct business successfully and operate with confidence within an international regulatory framework with its own independent judicial system and legislative infrastructure based on the Common Law.
Established by a UAE Federal Decree as a broad based financial centre and in line with the Abu Dhabi's Economic Vision, ADGM is an extension of Abu Dhabi's role as a reliable and responsible member of the global financial community. Strategically situated in Abu Dhabi, home to one of the world's largest sovereign wealth funds, ADGM plays a pivotal role in positioning Abu Dhabi as a global centre for business and finance that connects the growing economies of the Middle East, Africa and South Asia. ADGM's foundation is anchored on three of Abu Dhabi's strategic strengths - private banking, wealth management and asset management and will continually expand its financial services in response to the needs of its businesses and marketplace.
ADGM is located on Al Maryah Island, a 114-hectare of financial free zone, housing world-class offices spaces, award-winning hotels, restaurants and life-style retail outlets. All these complement ADGM's international financial centre position as a vibrant destination in the capital city in Abu Dhabi.
Source: Monetary Authority of Singapore