ADGM’s financial regulator fines firm $122,500

ADGM financial regulator

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has fined Sarwa Digital Wealth $122,500 for offering securities in ADGM without an approved prospectus. Sarwa offered an opportunity to invest in securities related to its parent entity without providing sufficient information to potential investors. The FSRA imposed a requirement on Sarwa to undertake an independent review of its governance arrangements. Despite Sarwa's cooperation and prompt reversal of committed subscriptions, it was penalized for its regulatory breach. The investigation was conducted in collaboration with the Dubai Financial Services Authority (DFSA), highlighting the strong collaborative approach between UAE regulators. This enforcement action emphasizes the FSRA's commitment to investor protection and maintaining high standards of conduct in the financial ecosystem.