ADGM Financial Services Regulatory Authority consults on streamlined business transfer regime, limiting mandatory court sanctioning to most insurance transfers

The ADGM Financial Services Regulatory Authority has published a consultation on proposed changes to the framework for transferring financial services businesses in or from ADGM. The central change is a more proportionate regime that would keep mandatory court sanctioning under Part 7 of the Financial Services and Markets Regulations for insurance business transfers, while moving other business transfers to a lighter process based on regulatory notification or consent requirements under a new Chapter 8A of the General Rulebook. Under the proposals, mandatory court sanctioning would be narrowed to insurance business transfers, except for intragroup insurance transfers where all policyholders consent and reinsurance transfers where the ceding insurer, representing policyholders, consents. For non-insurance transfers and those two excluded insurance scenarios, court approval would remain available but would no longer be compulsory. Where firms use this non-court route, the proposed "Modified Transfer Scheme" would require prior written notification to the FSRA, direct and timely notice to each client explaining the potential impact, and timely public notice of the proposed transfer. Banks and the two excluded insurance transfer categories would face an additional requirement to obtain an FSRA no-objection acknowledgement before proceeding. Domestic fund transfers would remain subject to the existing Part 6 of the Fund Rulebook and are unaffected. The consultation closes on 21 September 2026. After reviewing feedback, the FSRA said it will consider whether modifications are needed before enacting the proposed amendments, and firms should not act on the proposals until the relevant regulations and rules are issued.