Abu Dhabi: A new regulatory framework is in place to track “robo advisers” operating at Abu Dhabi Global Market.
These digital entities provide investment management services using algorithm-based tools to interact with more tech-savvy clients. The supporting technology allows for tailored investment services to clients.
“Robo-advice leveraging AI (artificial intelligence) and data analytics is an area of fintech that has enormous potential to improve investment decision making in the Middle East and Africa region,” said Richard Teng, CEO of the Financial Services Regulatory Authority at ADGM.
“With this guidance, we aim to make it easier for digital investment businesses to operate in ADGM and in turn provide investors with greater access to professional investment tools to help achieve their financial goals.”
The new guidance also states that the FSRA will permit digital investment managers to hold a lesser amount of prudential capital should they meet the stipulated criteria.
“As an international financial centre, ADGM actively enhances its framework and platform to support innovation and the varying financial needs of businesses, investors and consumers. We look forward to welcoming more robo-advisers to establish their presence in Abu Dhabi in ADGM and support investors with their innovative solutions.”