These developments reflect continued efforts by global regulators to strengthen governance, support innovation, and enhance market confidence.

Dubai Financial Services Authority (DFSA) Updates

1. Consultation Paper No. 161 – Enhancing Proportionality in Prudential Regulation

On 8 October 2024, the DFSA released Consultation Paper 161 to enhance proportionality within Prudential Regulation. This initiative ensures that regulatory requirements are better aligned with the scale, nature, and complexity of DIFC-registered financial institutions.

Key Proposals:

• Revising the expenditure base capital minimum.

• Introducing activity-based capital requirements for specific regulated activities.

• Targeted changes for proportional supervision and capital efficiency.

Read the full paper here.

Deadline for Comments: 10 January 2025

2. Consultation Paper No. 162 – Proposed Changes to the DFSA’s Statutory Objectives

On 22 October 2024, the DFSA outlined changes to its statutory objectives to align its mandate with DIFC's economic growth goals while maintaining regulatory independence.

Key Proposals:

• Proposal 1: Introduce a secondary objective to promote DIFC’s financial services sector.

• Proposal 2: Clarify Article 8(3)(g) of the Regulatory Law, ensuring AML/CTF and financial stability remain top priorities.

Read the full paper here.

Deadline for Comments: 31 December 2024

3. Consultation Paper No. 160 – Updates to the Client Assets Regime

On 6 August 2024, the DFSA proposed revisions to the Client Assets Regime to strengthen safeguarding measures for client funds held or controlled by Authorised Firms.

Read the full paper here.

Deadline for Comments: 20 October 2024

Abu Dhabi Global Market (ADGM) FSRA Updates

1. Proposed Miscellaneous Amendments to FSRA Regulations, Rules, and Guidance

On 12 November 2024, the FSRA sought feedback on amendments to its regulatory framework, focusing on virtual assets, AML/CFT rules, and reporting standards.

Deadline for Comments: 10 December 2024

2. Proposed Regulatory Framework for the Issuance of Fiat-Referenced Tokens (FRT)

The FSRA is consulting on a framework for Fiat-Referenced Tokens (FRT) issuance, referencing global jurisdictions like EU MiCA and MAS Singapore.

Read more here.

Deadline for Comments: 3 October 2024

3. Proposals for a Whistleblowing Framework for ADGM

The FSRA proposed a Whistleblowing Framework to strengthen transparency and integrity through protections for good-faith disclosures.

Deadline for Comments: 30 April 2024

4. Enhancing the Sustainable Finance Regulatory Framework for ADGM

The FSRA seeks feedback on integrating climate-related risks into risk management and governance frameworks for ESG-labelled investment vehicles.

Deadline for Comments: 19 July 2024

KSA Capital Market Authority (CMA) Updates

CMA Invites Feedback on Investment Account Amendments

The CMA is seeking public consultation on amendments to streamline investment account procedures and enhance Saudi Arabia's capital market.

Key Highlights:

• Simplified account opening for diverse investor categories, including GCC residents and former residents.

• Provisions to allow former GCC residents continued investment access.

• Streamlined processes for local investors like endowments.

These amendments aim to attract foreign investments and align with Saudi Arabia’s technological advancements.

Read the full details here.

Deadline for Comments: 20 December 2024

UK Financial Conduct Authority (FCA) Updates

1. Improving the UK Transaction Reporting Regime

The FCA published a discussion paper on enhancing the UK’s transaction reporting regime to address inefficiencies and accommodate new technologies.

Key Focus Areas:

• Alignment with global reporting regimes.

• Harmonisation within UK wholesale markets.

• Technological developments and supervisory improvements.

Read the full paper here.

Deadline for Comments: 14 February 2025

2. Sustainability Disclosure Requirements (SDR) and Investment Labels Regime

The FCA’s SDR and investment labels regime entered into force on 2 December 2024. Firms can now use investment labels that meet specific criteria, ensuring transparency.

Read FCA's illustrative examples here.

3. Prudential Assessment of Acquisitions and Increases in Control

The FCA published final guidance outlining expectations for acquisitions and increases in control within UK-authorised firms.

Key Areas Include:

• Identifying controllers and assessing significant influence.

• Change of control notifications and submission criteria.

• Practical examples using structure charts.

Read the full guidance here.

4. FCA Crypto Ownership Survey and Plans for Regulation

The FCA reported a 12% increase in crypto adoption in the UK and outlined plans for a regulatory framework by 2026.

Key Insights:

• Average individual crypto holdings increased to £1,842 in 2024.

• Planned rules for fiat-pegged stablecoins, DeFi activities, and market abuse.

This initiative underscores the FCA's commitment to regulating the evolving crypto industry.

[Further details will be available on the FCA website].

Conclusion

This month’s regulatory updates demonstrate ongoing efforts across jurisdictions to foster financial innovation, enhance market resilience, and ensure investor protection. Stakeholders are encouraged to review these proposals, provide feedback, and align business practices with evolving regulatory standards.

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