Dubai Regulator To Cooperate With Luxembourg And Switzerland

by Lorys Charalambous, Tax-News.com, Cyprus

07 May 2007

The Dubai Financial Services Authority (DFSA) entered into Memoranda of Understanding last week with the national banking and securities regulators in Switzerland and Luxembourg.

The MoU signings coincided with a visit to Berne and Luxembourg by David Knott, Chief Executive of the DFSA. On April 30 in Berne, Knott met with Daniel Zuberbuhler, Director of the Swiss Federal Banking Commission (the SFBC). Knott then met with Jean-Nicolas Schaus, Directeur General of Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF) on May 2.

The SFBC was established in 1934, and is Switzerland’s independent federal agency responsible for the supervision of banks, investment funds, securities and derivatives exchanges, securities and derivatives dealers as well as the disclosure of qualified shareholdings in listed companies. It is also responsible for the regulation of public takeover bids.

Established in 1998, the CSSF is responsible for the prudential supervision of the entire financial sector in Luxembourg, except for the insurance sector. Its responsibilities also extend to the regulation and supervision of the securities markets.

Knott observed that: “Switzerland and Luxembourg have long been regarded as among Europe’s leading international financial centres and the SFBC and CSSF have played an important role as the regulators of these centres."

“As such, each of these memoranda of understanding is a most significant initiative, recognising the importance of these arrangements for cooperation and information sharing between the two regulators,” he added.

“This week’s bilateral agreements reflect each agency’s responsibilities, in the area of banking and securities,” Knott went on to state, concluding:

“There are already a number of significant Swiss financial institutions operating from the DIFC and there is a level of interest from financial entities in Luxembourg. In addition, there is a possibility of the development of additional business between traded markets in the DIFC and Luxembourg. These two bilateral relationships will assume increasing importance as each regulator relies on the quality of regulatory standards administered in the other’s jurisdiction.”

Recommended