Abu Dhabi International launches hedging system amendments

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The Financial Services Regulatory Authority (ADSM) has launched a series of amendments to the hedging system for investment companies, insurance brokers and banks through the publication of new amendments to the Hedge Laws – Investment, Insurance and Banking Law the past.

The new amendments, which are being implemented immediately, cover the regulatory aspects of the hedging systems used by banks, insurance brokers and investment companies operating on the Abu Dhabi Global Market. They also support the global recognition of their systems in accordance with international best practices and standards that are consistent with the current regulatory hedging system developed by the Basel Committee Banking Supervision.

The new amendments come within the framework of the ongoing commitment of the Financial Services Regulatory Authority to provide a structured, integrated and dynamic platform to meet the needs of financial institutions in accordance with the requirements of law writers and to support the efficiency of the management and effectiveness of business.

The new amendments include the establishment of capital requirements through the application of additional capital to mitigate the effects of cyclical fluctuations, the adjustment of the credit rating and the central frameworks of counterparties, the enhancement of the ability of some capital instruments to absorb losses at a point where the work becomes useless, The disclosure of the leverage ratio and liquidity coverage ratio, the development of new reporting requirements and the adoption of a number of other sporadic amendments that will give greater visibility to the financial institutions operating in the Abu Dhabi Global Market.