Digital investment managers provide investment management services using algorithm-based tools and technology to interact with more tech-savvy clients.
Tuesday 16, July 2019 BY KUDAKWASHE MUZORIWA
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has issued its regulatory framework for digital investment managers, robo-advisors, operating in ADGM.
Richard Teng, the CEO of Financial Services Regulatory Authority of ADGM, said that robo-advice has enormous potential to improve investment decision making in the Middle East and Africa region.
The guidance outlines regulatory permissions that may be required to provide digital investment services in or from ADGM as well as how the FSRA will apply its authorisation criteria in key existing areas of technology governance, suitability and disclosure, and newer areas such as algorithm governance.
In a statement, the ADGM said that digital investment managers have the potential to play an important role in promoting financial inclusion and providing a wider range of options for retail client investors in the MENA region.