ADGM seeks comments on levy of fines

abu dhabi — The Registration Authority of Abu Dhabi Global Market (ADGM) has published two consultation papers inviting comments from ADGM-registered entities, advisors and stakeholders on proposed guidance regarding its approach to the imposition of fines for (a) late filings of annual accounts and (b) for late commercial licence renewals.

All entities registered in ADGM are required to hold a valid commercial licence issued by the ADGM Registration Authority, while certain legal entity types such as companies limited by shares and limited liability partnerships are also required to file financial accounts annually with the Registrar. Entities that fail to comply with these requirements are liable to fines under ADGM’s commercial legislation. Fines are a common administrative punishment for failure to comply with a requirement and act as a deterrent to encourage timely compliance.

Dhaher bin Dhaher Al Mheiri, CEO of the ADGM Registration Authority, said: “ADGM’s commercial legislation provides a robust and internationally recognised legal platform for incorporating and maintaining companies. This proposed guidance, which sets out the Registration Authority’s proportionate approach to issuing fines, reinforces ADGM’s commitment regulatory best practice and provides certainty and clarity for the benefit of its entities.”