DFSA Becomes First Middle Eastern IOSCO Signatory

by Lorys Charalambous, Tax-News.com, Cyprus

07 June 2006

The Dubai Financial Services Authority (DFSA) has announced that it has become a signatory to a multilateral memorandum of understanding with the International Organisation of Securities Commissions (IOSCO) - making it the first regulator in the Middle East to be admitted as a signatory.

The initiative, covering consultation and cooperation and the exchange of information, began in response to increasing international activity in the securities and derivatives markets, and the corresponding need for mutual cooperation among securities regulators to ensure compliance with, and enforcement of, their laws and regulations.

The announcement was made by Mr. David Knott, DFSA Chief Executive, who is attending the IOSCO Annual Conference in Hong Kong. He explained that:

"As former Chairman of the Technical Committee of IOSCO, I am particularly delighted to see the DFSA has now satisfied the highest level of cooperation standards that exist between international securities regulators."

"Acceptance as an IOSCO multilateral MoU signatory is only permitted after rigorous assessment of the applicant's legislative and regulatory regime. In the DFSA's case, this was conducted over the past 5 months by a specialist team from four countries, confirmed by a group from another fourteen jurisdictions and finalised with an endorsement from the chairmen of IOSCO’s three governing committees."

The DFSA is the only regulator in the GCC, and the first in the Arab World, to be admitted as a signatory. Other signatories include the United Kingdom, France, Germany, the United States, Hong Kong, and Singapore.

Mr Knott added that the DFSA has established best practice, utilising a modern legal framework and a risk-based approach to its regulatory measures.

"In signing this multilateral MoU, the DFSA heralds in a new era of cooperation with the major world regulatory bodies in combating illegal use of the securities and derivatives markets, including market abuse and fraud," he noted.

Dr. Habib Al Mulla, DFSA Chairman, commented: “The DFSA is committed to international cooperation which is an essential requirement in rapidly globalising markets."

"Becoming a signatory to this multilateral MoU (in addition to a number of existing bilateral MoUs) is an important step in developing international relationships with other well regulated jurisdictions and a significant advance as the DFSA further builds its reputation as a world-class regulator," he concluded.

Created in 1983, IOSCO seeks to promote higher standards of market regulation among its membership by facilitating exchange of information between regulators, and by establishing an effective system of surveillance of international securities transactions.

Recommended