ADGM Category 4 License

A Category 4 license is a specialized financial authorization issued by the Financial Services Regulatory Authority (FSRA) that permits entities to advise on financial products, arrange credit, or introduce investments.

Under updated FSRA prudential rules, the standard base capital requirement for a Category 4 advisory and arranging firm is US$ 50,000. Specialized commercial activities, such as operating a Private Financing Platform that holds client assets, require a higher base capital threshold of US$ 150,000.

Generally, standard Category 4 advisory firms do not hold client assets. However, if an ADGM Category 4 firm operates a Private Financing Platform and holds client assets or insurance money, it is explicitly subject to strict Expenditure-Based Capital Minimum (EBCM) rules.

The regulatory framework mandates appointing approved Authorized Individuals (Key Persons). This includes a resident Senior Executive Officer (SEO) with extensive industry experience, a Compliance Officer (CO), and a dedicated Money Laundering Reporting Officer (MLRO).