Abu Dhabi Global Market Launches Consultation on Amendments to Beneficial Ownership & Control Regulations 2018

Abu Dhabi Global Market Launches Consultation on Amendments to Beneficial Ownership & Control Regulations 2018 News developments

Abu Dhabi Global Market Launches Consultation on Amendments to Beneficial Ownership & Control Regulations 2018

The Registration Authority of Abu Dhabi’s Global Market has launched a consultation on proposed amendments to the Beneficial Ownership & Control Regulations 2018. It ends on 23 December 2021.

The amendments are aimed at aligning and strengthening the regulations more with international standards and best practice.

If approved, the amendments will clarify the cascade approach for identifying beneficial owners of ADGM Persons who are natural persons who indirectly have a material ownership interest in an ADGM Person through an intermediate holding entity and impose duties on ADGM Persons which have one or more nominee directors to maintain a record of nominee directors and the identity of the person on whose behalf each nominee director acts and to keep their particulars.

They will also clarify that ADGM Persons must ensure no share transfer or change of ownership in the entity will be recognised or given any effect unless the record of beneficial owners is updated and the required particulars are provided to the Registrar.

In addition, a power will be given to the Registrar to recommend that a person is removed from the record of beneficial owners of the ADGM Person if the Registrar considers that having that person as a beneficial owner is contrary to the ADGM regulations or prejudicial to the interests of ADGM.

Finally, a power will be given to the Registrar to cancel the licence of, or strike-off, an ADGM Person for failing to comply with a notice given by the Registrar.

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Marlé Van Sandwyk