The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) has taken enforcement action against Terra Nova Holdings Ltd (Terra Nova) by cancelling its ADGM commercial licence to carry out business activities in or from ADGM.
It's decision to cancel Terra Nova's licence was based on concerns relating to the company's failure to meet the general conditions of its licence and failure to maintain adequate accounting records as required under Companies Regulations 2020.
Terra Nova's annual accounts also failed to give fair representation for the years 2019, 2020 and 2021, and the various risks posed by Terra Nova to ADGM.
Terra Nova's commercial licence was cancelled "on the grounds that Terra Nova is no longer considered fit and proper to hold a licence to conduct business activities in or from ADGM. The decision comes in line with protecting the interests of ADGM.
"ADGM-licenced companies must remain fit and proper, maintain adequate and reliable accounts and accounting records, be transparent in their dealings with the RA and mitigate any risks associated with their business activities", the statement said.
Hamad Sayah Al Mazrouei, chief executive officer of the Registration Authority said: "ADGM licenced companies must provide full visibility of their true financial position to the RA, where required. When reasonable concerns exist about the source of assets, legitimacy of business activities or failure to meet conditions of the ADGM licence, the RA will take appropriate action, including, where necessary, licence cancellation to protect the interests of ADGM, its participants and stakeholders".
