ADGM issues public consultation on commercial licence renewal and fines for late account filing
The Registration Authority of Abu Dhabi Global Market (ADGM), the International Financial Centre in Abu Dhabi, 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, whilst 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.
The Registration Authority is committed to best practice regulation by being transparent and consultative in relation to its policy and procedures for taking disciplinary action under ADGM’s commercial legislation, including actions such as imposing fines.
The Registration Authority has prepared these guides setting out its approach to fines regarding commercial licence renewal and annual accounts requirements. The proposed approaches are designed to be proportionate and provide clarity and certainty to ADGM registered entities.
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".
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