On Apr. 9, AbuDGM consulted on the framework for lower risk firms.
AbuDGM published a consultation on the prudential framework for lower risk firms.
The proposed legislative amendments have been laid out in Appendix 1.
Proposed Amendments
Sets out proposed amendments to the prudential framework for authorized persons classified as category 3B, 3C and 4 under the Prudential - investment, insurance intermediation and banking rulebook (PRU) and seeks feedback on those proposals.
Changes include revisions to capital requirements applicable to category 4 firms.
Amendments to the reporting requirements applicable to category 3B and 3C firms and changes to the professional indemnity insurance requirements under PRU.
As well as issues related to the prudential regime for firms in categories 2 and 3A, aimed at informing the next phase of the review of applicable prudential requirements.
Next Steps
Upon receiving comments, AbuDGM will consider if changes to proposals are needed.
The proposals will then be finalized and enacted; stakeholders should refrain from acting on the consultation proposals until the final rules are published.
A notice will be issued on the AbuDGM’s website once the rules are in effect.
Effectiveness
The deadline for providing comments on these proposals is May 21, 2025.
