Guidance overview and application

1.3 This guidance is issued under section 28 of the ADGM Commercial Licensing Regulations 2015 and section 18 of the ADGM Commercial Licensing Regulations 2015 (Client Money) Rules 2021 (Client Money Rules).
1.4 This guidance should be read in conjunction with the Client Money Rules.
1.5 This guidance applies to Licensed Firms to whom the Client Money Rules apply by operation of Rule 2 of the Client Money Rules. That is –
a) Licensed Firms who are required to comply with the Client Money Rules in accordance with the Commercial Licensing Regulations 2015 (Conditions of Licence and Branch Registration) Rules 2021, and
b) any other person whose conditions of licence require it to hold Client Money solely in accordance with the Client Money Rules.
1.6 This guidance has been prepared to provide information and clarification on the operation and requirements of the Client Money Rules.
1.7 The RA considers that the proper safeguarding of money belonging to Clients against misuse, misappropriation, loss or theft is essential to the pursuit of its regulatory objectives. Licensed Firms that hold or control Client Money are obliged to have in place the necessary policies, systems and controls in relation to, for example, the identifying, handling, segregating and withdrawal of Client Money from Client Accounts.
1.8 Unless otherwise defined or the context otherwise requires, the terms contained in this guidance have the same meaning as defined in the Client Money Rules.
1.9 A copy of the Client Money Rules is available on the ADGM website here.