How to Set Up an Asset Management Firm in ADGM: Licensing, Capital, and Post-License Tech Stack

ADGM as a Global Hub for Asset Managers

Abu Dhabi Global Market (ADGM) has rapidly become one of the leading financial centers in the Middle East, attracting fund managers, wealth managers, investment advisers, family office platforms, and fintech providers from across the world.

Its appeal comes from:

• A UK common-law framework
• Business-friendly regulations
• FSRA’s reputation for clarity and collaboration
• Straightforward licensing processes
• 100% foreign ownership
• Growing ecosystem of service providers
• Attractive regional market access

For firms looking to establish themselves in the UAE, ADGM provides one of the most respected and scalable regulatory environments. This guide explains exactly how to obtain an FSRA license for asset management and what comes next.

1. Understanding the Types of ADGM Asset Management Licenses

ADGM’s regulator ― the Financial Services Regulatory Authority (FSRA) ― offers several license categories relevant to asset and fund managers.

1.1 "Managing Assets" License

For firms managing:

• Discretionary portfolios
• Investment mandates
• Separate accounts

This is typically used for:

• Wealth managers
• Portfolio managers
• Multi-family offices

1.2 “Managing a Collective Investment Fund”

For firms managing or operating:

• Public funds
• Exempt funds
• Qualified investor funds
• Venture capital or private equity vehicles

1.3 Dual Licensing (Optional)

Many firms apply for both:

• Managing Assets
• Managing a Collective Investment Fund

This supports a hybrid model (e.g., discretionary portfolios + funds).

1.4 Exemptions for Single-Family Offices

Single-family offices may operate without full FSRA authorization, provided they meet specific conditions — but multi-family offices require formal licensing.

2. Minimum Capital Requirements

FSRA capital requirements depend on the nature and risk of activities.

Typical capital categories:

• Managing Assets | USD 250,000
• Managing a Fund | USD 250,000–500,000
• Custody / Dealing | Higher requirements
• Holding Client Money | Additional capital + safeguarding controls

Firms must also maintain:

• Expense-Based Capital Minimum (EBCM)
• ‍Professional Indemnity Insurance (PII) ‍
• Liquidity requirements

FSRA is flexible but expects financial robustness from day one.

3. Step-by-Step Licensing Process with FSRA

Step 1: Submit a “Regulatory Business Plan” (RBP)

This is the core of your application. It must include:

• Business model & services
• Target clients (HNWIs, institutions, funds, advisory clients)
• Asset management strategies
• Risk management framework
• Governance structure
• Outsourcing arrangements
• Technology and operational stack
• Three-year financial forecasts
• Capital adequacy calculations

A well-written RBP accelerates approval.

Step 2: Appoint Mandatory Roles

FSRA requires the following Approved Individuals:

• Senior Executive Officer (SEO) – must be resident in UAE ‍
• Finance Officer ‍
• Compliance Officer ‍
• MLRO (Money Laundering Reporting Officer) ‍
• Risk Officer (sometimes combined role) ‍
• Board of Directors

Some roles may be outsourced if properly justified.

Step 3: Incorporate an ADGM Legal Entity

Common structures:

• Private Company Limited by Shares
• ADGM Foundation (for family office structures)
• SPV for fund structuring

You must have:

• Registered office in ADGM
• Local corporate services provider
• Articles of association aligned with regulated activities

Step 4: Submit Application Pack to FSRA

The full package includes:

• Regulatory Business Plan
• Compliance & AML manuals
• Risk framework
• Internal controls & policies
• Outsourcing agreements
• Business continuity plan
• Capital evidence
• Personal questionnaires (PQs) for all controlled functions

FSRA is highly responsive and often schedules Q&A meetings.

Step 5: Pre-Authorization Meeting with FSRA

A call/meeting to discuss:

• Business model
• Risk controls
• Client types
• Operational readiness
• Outsourcing
• Technology stack

Strong preparedness here often shortens timelines.

Step 6: Receive "In-Principle Approval" (IPA)

IPA is conditional upon:

• Hiring mandatory staff
• Opening a bank account
• Paying regulatory fees
• Completing operational setup
• Providing final documentation (e.g., PII policy)

Once complete → full Authorization is issued.

4. Post-License Activation: What Happens Next

Many firms underestimate this phase. FSRA requires proof of full operational readiness before live client activity.

Post-license obligations include:

• Implementing AML/KYC workflows
• Setting up client onboarding processes
• Deploying your PMS, CRM & reporting systems
• Establishing custody/trading relationships
• Setting up transaction reporting (if applicable)
• Finalizing compliance calendar

Operational setup is often more work than the licensing phase itself.

5. Building the Required Technology Stack for ADGM Firms

FSRA expects regulated firms to have a documented and operational technology setup. The key pillars:

5.1 Client Onboarding & KYC Tools

Requirements include:

• Client classification
• Risk scoring
• KYC document capture
• AML screening
• Suitability assessment
• Ongoing transaction monitoring

Digital onboarding is strongly recommended.

5.2 Portfolio Management System (PMS)

Your PMS must support:

• Multi-asset portfolios
• Multi-custodian aggregation
• Real-time valuations
• Reconciliations
• Performance calculations
• Reporting
• Order management (if applicable)

For fund managers:

• NAV support
• Waterfall structures
• Fee calculations
• AUM monitoring

5.3 Client Reporting & Client Portal

ADGM firms must provide transparent reporting:

• Portfolio statements
• Performance analytics
• Exposures & risk metrics
• Fee breakdowns
• Secure document sharing

A branded client portal is now market standard.

5.4 Compliance & Regulatory Reporting

ADGM firms may need automated support for:

• AML/CTF monitoring
• Trade surveillance
• Client suitability
• Transaction reporting (if applicable)
• Internal audit checks
• Compliance calendar workflows

5.5 Document & Workflow Management

Policies, client files, investment committee minutes, approvals, and audit logs must be centrally managed with proper access controls.

6. Why Many ADGM Firms Choose Reluna

Reluna provides a fully integrated wealth & asset management platform tailored for regulated firms in ADGM.

Reluna delivers:

• Client onboarding & digital KYC
• Investment & portfolio management
• Multi-custodian data aggregation
• Real-time performance analytics
• Document management & audit trail
• Secure client reporting portal
• Compliance workflows & reporting tools
• Full operational infrastructure in one system

Advantages for newly licensed ADGM firms:

• Faster go-live times
• Lower operational overhead
• Seamless compliance & reporting
• Scalable infrastructure as AUM grows
• Reduced reliance on spreadsheets

Reluna’s integrated approach helps firms demonstrate operational readiness to FSRA from day one.

7. Timeline & Cost Overview

Phase

Duration

Notes

• Pre-Application | 2–4 weeks | RBP preparation, scoping
• FSRA Review | 2–4 months | Meetings + clarifications
• In-Principle Approval |2–6 weeks | Hiring + operational setup
• Full Authorization | Total 4–7 months | Depending on complexity
• Post-License Operational Setup | 1–3 months |Tech stack + onboarding

8. Common Mistakes & How to Avoid Them

• Underestimating post-license operational requirements
• Manual spreadsheets for reconciliations
• Incomplete onboarding framework
• Weak documentation for outsourcing
• Insufficient capital planning
• No integrated technology stack

Firms that prepare early with the correct tech stack reduce risk and accelerate launch timelines.

9. Next Steps: Launch Your ADGM Asset Management Firm Efficiently

If you’re preparing to establish an asset management firm in ADGM — or are in the middle of the FSRA application — now is the best time to plan your operational and technology infrastructure.

Reluna helps you:

• Structure your tech stack
• Build onboarding & portfolio workflows
• Set up compliance & reporting pipelines
• Launch with a fully compliant, modern infrastructure

👉 Request a Reluna demo to see how we support ADGM-regulated firms from licensing to launch.