ADGM’s enhanced framework governing auditors comes into effect
Abu Dhabi, United Arab Emirates, 19 December 2021: Abu Dhabi Global Market (ADGM), the leading international financial centre located in Abu Dhabi, announces its enhanced framework governing auditors, ‘ADGM Auditors’ Framework’, has fully come into effect as of 1 December 2021. This follows the approval by ADGM’s Board of Directors which was granted in August this year. The framework is administered by administered by the ADGM Registration Authority (RA).
ADGM enhanced the ADGM Auditors’ Framework for a variety of reasons that include ensuring international equivalence on audit oversight, promoting high quality audits and investor protection, all of which will facilitate continued robust business confidence in ADGM and the entities that operate within.
Key changes in the ADGM Auditors’ Framework include:
- Robust registration criteria: all auditors and audit principals will have to meet the criterion before they are granted registration. The robust criteria include auditors demonstrating their competence, compliance with international professional and ethical standards, as well as having adequate and appropriate professional indemnity insurance cover.
- Additional permits: ADGM auditors and audit principals who wish to accept audit engagements of public companies and financial institutions will have to obtain the relevant additional permit from the Registration Authority (RA) at ADGM. Additional permits will be granted to those who meet the eligibility criteria and requirements.
- Improved oversight powers: The RA will be responsible for monitoring and supervising auditors and audit quality in ADGM. The RA will adopt a risk-based approach to its on-site and desktop assessments and annually publish a report on its operational activities.
ADGM Auditors’ Framework offers transition arrangements to existing recognised auditors. The transition period allows existing ADGM auditors and audit principals to re-register under the new framework from 1 December until the auditor’s existing renewal date.
Existing auditors and audit principals are encouraged to re-register early and leave sufficient time for the registration process. The RA’s’ robust registration process for both existing and prospective auditors is likely to take at least four weeks from application to registration. Applicants are reminded to factor this in their plan to ensure there is no gap in the audit services offered to clients.
Dhaher bin Dhaher Al Mheiri, CEO of the ADGM RA, said: “ADGM’s enhanced Auditors’ Framework further strengthens ADGM’s position as a robust and sustainable jurisdiction that places importance on investor protection and instilling strong business confidence. High quality audited financial statements are essential to the integrity of financial markets and the financial ecosystem. Auditors play a key part in ensuring financial reporting is reliable which in turn allows investors to make informed decisions. The new Framework will help promote business growth, protect stakeholders, and the reputation of ADGM.”
For any enquiries, please contact the RA’s Monitoring Team through email on:
About Abu Dhabi Global Market (ADGM)
Abu Dhabi Global Market (ADGM), an international financial centre (IFC) located in the capital city of the United Arab Emirates, opened for business on 21 October 2015. Established by a UAE Federal Decree as a broad-based financial centre, ADGM augments Abu Dhabi’s position as a global trade and business hub serving as a strategic link between the growing economies of the Middle East, Africa and South Asia and the rest of the world.
ADGM’s strategy is anchored by Abu Dhabi’s key strengths spanning over private banking, wealth management, asset management, derivatives and commodities trading, financial innovation, sustainability and more. Comprising four independent authorities: ADGM Authority, ADGM Courts, the Financial Services Regulatory Authority and the Registration Authority, ADGM as an IFC governs the entire 114 hectares (1.14sqkm) of Al Maryah Island which is a designated financial free zone.
It enables registered financial and non-financial institutions, companies and entities to operate, innovate and succeed within an international regulatory framework based on common law. Since its inception, ADGM has been awarded the “Financial Centre of the Year (MENA)” for four consecutive years for its initiatives and contributions to the financial and capital markets industry in the region.*
For more details on ADGM, please visit www.adgm.com or follow us on Twitter and Instagram: @adglobalmarket and LinkedIn: @Abu Dhabi Global Market (ADGM)
* Source: The Global Investor Middle East and North Africa (MENA) Awards
For enquiries: firstname.lastname@example.org