Dubai Introduces New Rules For Trust Services Providers

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

24 March 2006

Following public consultation with the trust services industry, the Dubai Financial Services Authority (DFSA) has announced that new rules relating to the regulation of trust service providers in the Dubai International Financial Centre (DIFC) have now come into effect.

The rules stipulate that all trust service providers must apply to the DFSA for a licence to provide trust services in the DIFC.

Commenting on this development, the Chief Executive of the DFSA, Mr. David Knott observed that:

"The DFSA believes that trust service providers, like other financial service providers in the DIFC, must be subject to robust regulatory oversight.

"This accords with the DFSA’s strong commitment to transparency, integrity and efficiency and the anti money laundering recommendations established by FATF."

The DFSA says that financial and ancillary services institutions within the DIFC, which was launched in 2003 and began operations in late 2004, operate to the standards of "world-class regulation."

The core legislation is made up of the Regulatory Law, the Markets Law, Data Protection Law and the Law Regulating Islamic Financial Business.

Further legislation has been drafted to deal with commercial and civil matters in the DIFC. For example, a set of laws has been drafted which constitute a ‘commercial code’. These laws include the Companies Law, Contract Law, Arbitration Law and Insolvency Law.

Other laws deal with the application of civil and commercial laws in the DIFC and the DIFC Court.

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