ACA Group has acquired Effecta Compliance Group, a regulatory consultancy serving financial services firms in the UK and the United Arab Emirates (UAE). This strategic move marks ACA’s entry into the Middle East, enhancing its ability to support clients operating in or expanding to the UAE.
The UAE’s financial sector has seen significant growth recently. In 2023, the Dubai Financial Services Authority received a record 157 applications—a 45% increase from the previous year. Similarly, the Abu Dhabi Global Market reported a 20% rise in licenses issued by mid-2024 compared to the prior year. This surge highlights the region’s emergence as a global financial hub, bolstered by favourable legal, tax, and regulatory frameworks in its financial free zones.The United Arab Emirates (UAE) has several financial free zones, including the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM).
Raj Somal, ACA Group Country Manager, highlighted the alignment between the UAE’s financial regulatory frameworks and those of the UK and EU. “The regulatory frameworks in the Middle Eastern and particularly the financial free zones in the UAE (DIFC and ADGM) are broadly based on the regulatory regime in the UK and so align accordingly. As the UK regime was, in parts, derived from EU directives, there is a degree of overlap between the approach and substantive regimes in the UK, EU, and DIFC/ADGM,” she explained to RegTech Insights.
She further noted that the UK’s Financial Conduct Authority (FCA) is exhibiting increased regulatory independence by “addressing issues they perceive to materially impact the local financial services ecosystem, specifically remuneration, ESG, and (re-)bundling of research costs/execution commissions,” she said.
Drawing parallels to the UAE, Somal observed a similar trend in the free zones. “There appears to be a similar dynamic in the DIFC and ADGM, in response to capital growth in the region and the increasing maturity and number of regulated firms. The local regulators are required to engage and evaluate to ensure the regulatory framework is responsive to the rapid innovation in the region, and remains robust but attractive to foreign firms,” she explained.
Clare Curtis, founder of the Effecta Compliance Group, will oversee ACA’s capabilities in the UAE under the brand ACA Effecta. Clare has more than 20 years of experience in regulatory compliance for financial services firms in the UK and Middle East, working with investment banks, asset managers, corporate finance, broker-dealers, and exchanges.
“We are excited to join forces with ACA, a globally known brand, and this partnership brings the financial and operational support needed to further build our expertise and continue providing scalable compliance solutions,” said Clare Curtis, Head of ACA Effecta and Middle East Regulatory Advisory. “The acquisition of Effecta significantly enhances our ability to support clients as they look to launch, grow, and protect their presence in the rapidly developing financial canters of the UAE,” says Patrick Olson, Chief Executive Officer of ACA. “This strategic move not only strengthens our global footprint and leadership position but also ensures that our clients have access to the comprehensive GRC services they need to succeed in their international ventures.”
With the acquisition, ACA now operates 10 offices worldwide, including new locations in Dubai and Abu Dhabi, in addition to existing offices in New York City, London, Malta, Pune, and across the United States.
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