PraxisIFM is celebrating its fifth year of establishment in the ADGM financial district and has been awarded a licence to operate as a Corporate Service Provider (CSP) and preferred partner, capable of advising and administering Special Purpose Vehicles and Foundations.
The company, which is based on Al Maryah Island in Abu Dhabi, welcomes the financial centre’s recent adoption of a new framework for operating estate planning tools and has been working closely with the ADGM Registration Authority to achieve panel status and operate in the region.
PraxisIFM first established a business in the ADGM International financial district in September 2016, when it was granted a Trustee Licence to operate. Now with the CSP Licence, the office is fielding new business enquiries from clients wishing to open new Special Purpose Vehicles and Foundations.
Speaking about these new opportunities, Dan Toft, Senior Executive Officer for PraxisIFM in ADGM, commented: “We are extremely grateful to the ADGM Registration Authority for conducting such a thorough process before awarding our CSP Licence, approving us a preferred partner for SPV and Foundation mandates. At PraxisIFM we pride ourselves on offering the very best personal service and with the framework changes announced in the ADGM we are now in a very strong position to deliver that service for the benefit of Private Clients and Corporates looking to appoint a new Corporate Service Provider in the region. It is great to receive our licence on the fifth anniversary of our office establishment in Al Maryah, and we look forward to working with the outstanding business community and authorities long into the future.”
Martyn Crespel, Group Board member and Chairman of the UAE Operations, said: “Our Abu Dhabi office continues to go from strength to strength and our strategic move into the region five years ago recognised the UAE as a major financial centre and a key growth area for the Group. We are continually impressed with how the region develops and the thriving business community continues to attract global investment and investors. Receiving the licence to operate as a CSP within the new framework is a great boost to the PraxisIFM office and we look forward to continuing servicing our existing client base of Private Clients and Corporate Clients while developing new relationships and business opportunities in this most exciting of regions.”
The new framework to regulate Company Service Providers was announced in March 2021 and implemented in April 2021 following the completion of a public consultation on the introduction of a CSP framework to be administered by the ADGM Registration Authority. The framework was designed to address the challenges and risks associated with the increasing demand for ADGM’s Special Purpose Vehicles and Foundations structures, particularly where these entities do not have a direct connection to the UAE or to ADGM.
The CSP Framework follows international best practice to enhance ADGM’s existing regulatory framework and introduces requirements for certain ‘non-exempt’ SPVs and Foundations to appoint an ADGM-based CSP and, where appropriate, strengthens the regulatory obligations for providing company services in ADGM. This positions ADGM as a leading jurisdiction in the UAE regarding the oversight of providing company services.
The regulatory obligations on CSPs include requirements to be fit and proper persons, maintain adequate insurance coverage and showcase adequate financial systems and human resources. In addition, CSPs that hold or control ‘client money’ have additional obligations with the introduction of client money rules, which are designed to safeguard money belonging to clients against potential misuse, misappropriation, or fraud.