MoU Between Dubai And UAE Regulators Will Enhance Oversight Of Local Markets

by Lorys Charalambous, Tax-News.com, Cyprus

05 October 2005

The Dubai Financial Services Authority (DFSA) and the Securities and Commodities Authority of the United Arab Emirates (ESCA) have signed a Memorandum of Understanding (MoU) in a bid to further enhance regulatory cooperation and information sharing between the two agencies.

The MoU, finalised last month, was signed in Abu Dhabi by H.E Abdulla Salem Al Turifi, CEO of ESCA, and Dr. Habib Al Mulla, Chairman of the DFSA. The document reiterated the commitment of two of the leading securities regulators in the Middle East to work together in ensuring that securities and commodities markets in the UAE and DIFC are fair, transparent, efficient and regulated to world class standards.

According to the DFSA, the memorandum cements an already excellent level of co-operation between the two independent agencies. Each regulator will be able to rely on the MoU to ensure compliance with applicable legislation and to collaborate in regulating inter-jurisdictional dealings as well as share technical know-how and joint training in enhancing the credibility of financial markets and protect investor rights.

“The MoU aims at supporting the national economy and minimising the risk that is usually involved in financial market transactions," observed H.E. Shaikha Lubna Bint Khalid Al Qassimi, Minister of Economy and Planning and the Chairman of ESCA.

He added that the agreement will help prevent fraud, money laundering, market manipulation and other prohibited practices in the securities markets of the DIFC and the United Arab Emirates.

Describing the MoU as a "significant milestone" in the development of the DIFC and the UAE as the region's principal securities markets, Dr. Al Mulla added that: "Although securities markets today are increasingly international in nature and accordingly require cooperation at an international level, no securities markets are more important to the DIFC than those in the UAE."

H.E Abdulla Al Turifi noted that the agreement also comes at a time when financial markets and regulatory entities are facing many challenges.

"The MoU will greatly support the regulatory legislations of the financial markets in accordance to the highest standards prescribed by IOSCO and global financial markets," he explained.

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