ADGM Introduces Regulatory Framework Requiring Use Of CSPs By SPVs

The Abu Dhabi Global Market ("ADGM") has introduced a regulatory framework governing the appointment of Company Service Providers ("CSPs") by special purpose vehicles ("SPVs") and foundations

Unless qualifying for exemption, SPVs and foundations in the ADGM are now required to appoint a CSP which is licensed to operate in the ADGM under the new CSP regulations. Failure to comply with the new requirements by the below mentioned deadlines may result in fines.

An SPV will be exempt from the requirement to appoint a licensed CSP if it is a subsidiary undertaking of any of the following:

• a person exempt from the requirement to obtain a license in order to practice a controlled activity in or from the ADGM;