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  • 2011

    • 5 December 2011 — DFSA Enters Into Memorandum of Understanding With Central Bank of Cyprus

      Click here to view PDF

      Dubai, UAE, 20 June 2012: The Dubai Financial Services Authority (DFSA) announces today that His Highness Sheikh Mohammed Bin Rashid Al Maktoum, in his capacity as the Ruler of Dubai, has enacted two Dubai International Financial Centre (DIFC) Laws. These Laws are the Markets Law 2012 and the Regulatory Law Amendment Law 2012, which are both administered by the DFSA.

      The new Markets Law 2012, which replaces the current Markets Law 2004, brings about a number of significant changes including changes to prospectus disclosure, what activities constitute an offer, market misconduct provisions and corporate governance. The prospectus disclosure changes include the requirement for a prospectus to be formally approved by the DFSA before it can be used to make an offer of securities to the public, or to have the securities referred to in the prospectus admitted to the Official List of Securities maintained by the DFSA. The new Laws are designed to promote investor protection in a manner that better aligns the DIFC to international standards, particularly European Union (EU) requirements and the Organisation for Economic Co-operation and Development.

      The amendments to the Regulatory Law 2004 support the changes brought about by the new Markets Law regime, for example, the law now provides for the DFSA to undertake regulatory oversight of auditors of DIFC incorporated companies listed on an Authorised Market Institution (AMI) or any other exchange. The amendments also make changes to the recognition powers of the DFSA with respect to cross-border trading including recognition of alternative trading systems, the quasi exchanges which are developing an increasingly important role in trading of financial instruments on the international capital markets. The changes permit non-DIFC exchanges and clearing houses meeting certain regulatory standards to provide access to their facilities to persons located in the DIFC and permit non-DIFC firms meeting certain regulatory requirements to be remote members of an AMI in order to trade investments on a DIFC exchange from a place of business outside the DIFC.

      In Singapore, the DFSA met with HE Tharman Shanmugaratnam, Deputy Prime Minister and Minister of Finance of Singapore and Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore, as well as with several senior bankers and the Chief Executive of the Singapore Exchange.

      Mr Ian Johnston, Chief Executive Officer of the DFSA said: “These changes bring our markets regime into closer alignment with the EU requirements while retaining features necessary to accommodate regional needs and circumstances. The DFSA's supervisory oversight has also been expanded to include auditors for companies incorporated in the DIFC which seek listing on an exchange in the DIFC or in another jurisdiction. Such regulatory oversight of auditors would allow for the passporting of auditors registered by the DFSA into the EU, thus enabling those auditors to conduct audits of DIFC-based companies where they seek listings in the EU. These changes will also allow the DFSA to meet Principle 8 of the Core Principles of Independent Audit Regulators by the International Forum for Independent Audit Regulators, of which the DFSA is a member.”

      The new Markets Law 2012 and the Regulatory Law Amendment Law 2012 were enacted on 7 June 2012 and come into force on 5 July 2012 and are available on the DFSA website: www.dfsa.ae/Legal Framework/Legislation/Amendments to Legislation.

    • 29 November 2011 — The UAE Ministry of Economy and the DFSA Hosted Regional Audit Conference

      Dubai, UAE, 29 November 2011: The Dubai Financial Services Authority (DFSA) and the UAE Ministry of Economy jointly hosted the Second Regional Audit Conference entitled “Professional scepticism: raising the bar”, last week in Dubai.

      Delegates were welcomed by HE Abdullah M Saleh, Governor of the Dubai International Financial Centre (DIFC) and heard key note addresses from HE Yaser Abdalla Amiri, Director General of Financial Audit Department and Member of the Executive Council, Government of Dubai and Mr Paul M Koster, Chief Executive of the DFSA.

      HE Abdullah M Saleh, Governor of the DIFC, in his welcome address mentioned: “It is wonderful to see the growing collaboration between government entities on such an important matter that has a direct impact on audit quality and ultimately financial statements. Secondly, this annual conference is reflective of the DFSA's and the Ministry of Economy's dedication to training and development of the auditing profession in the Middle East.”

      HE Yaser Abdalla Amiri, Director General of Financial Audit Department and Member of the Executive Council, Government of Dubai stated that: “The important issues that are under consideration and discussion at this conference came in a timely manner because we in the UAE are looking forward to put in place rules and principles of corporate governance commensurate with our needs and with the business environment in our region”.

      The event attracted some 230 delegates from nine countries in the region and internationally. Conference speakers and panelists included Brian Walsh, Member, International Ethics Standards Board for Accountants; George Botic, Deputy Director, Division of Registration and Inspections, Public Company Accounting Oversight Board; Gavin Aspden, Director Qualifications, ICAEW; and Dr Obaid Saif Al Zaabi, Director of Research and Development, UAE Securities and Commodities Authority.

      Keynote speakers from global regulatory bodies, industry experts and academia raised issues including:

      •   Professional scepticism and the public interest — who does the auditor serve?;
      •   Ethical considerations for accountants;
      •   The use of financial instruments and their future use in audits; and
      •   Audit quality and inspections;

      Interactive panel discussions with industry experts, regulatory bodies, the Big 4 accounting and audit firms discussed various issues including:

      •   Providing an industry viewpoint on professional scepticism;
      •   Lessons learned from the crisis, from a Big 4 perspective;
      •   Auditing in the small business environment — challenges and developments; and
      •   The role of regulators in enhancing the professional scepticism of auditors.

      The DFSA also highlighted the role of the DFSA and shared recent developments in the DFSA's audit monitoring approach and some key inspection findings.

      Mr Paul M Koster, Chief Executive of the DFSA said: “The year-end 2011 may be the most challenging auditors have ever faced. After four consecutive years of the worst financial crisis we have seen since World War II, auditors will have to make very difficult judgment calls requiring and demanding scepticism which is integrally linked to independence and objectivity.”

    • 18 October 2011 — DFSA Withdraws Licence of Siraj Capital (Dubai) Limited

      Dubai, UAE, 18 October 2011: The Dubai Financial Services Authority (DFSA) today announced that it has withdrawn the Licence of Siraj Capital (Dubai) Limited (Siraj) to provide financial services in the Dubai International Financial Centre (DIFC).

      The DFSA took this action because Siraj contravened the Laws and Rules administered by the DFSA by failing to:

      •    Maintain adequate Capital Resources during the period from 1 October 2010 to the date of the withdrawal of Licence;
      •    Have adequate systems and controls to enable it to determine and monitor its Capital Requirements;
      •    Advise the DFSA immediately in regard to the occurrence of an action which would result in material changes in its capital adequacy or solvency;
      •    Disclose a matter which reasonably tends to show a breach or likely breach of the DFSA Laws or Rules;
      •    Ensure that its affairs were managed effectively and responsibly by its senior management; and
      •    Have adequate systems and controls to ensure, as far as is reasonably practical, that it complied with legislation applicable in the DIFC.

      As a result of the above contraventions, the DFSA found Siraj was not fit and proper to remain as an Authorised Firm in the DIFC and withdrew Siraj's Licence. The DFSA's exercise of its powers in this regard was in the pursuit of the DFSA's regulatory objective of preventing, detecting and restraining conduct that causes or may cause damage to the reputation of the DIFC or the financial services industry in the DIFC.

      The DFSA withdrew the Licence on 18 September 2011. No clients of the Firm suffered a loss as a result of the Firm's contraventions.

      Mr Paul M Koster, Chief Executive of the DFSA said, "Financial Services Firms operating in the DIFC are required to maintain adequate Capital Resources to satisfy day-to-day claims on the business and to meet future contingencies. The DFSA's Capital Requirement provides investors and customers with the confidence that institutions will be able to meet claims as and when they fall due. The DFSA will take appropriate action where Firms fail to maintain adequate Capital Resources."

    • 9 October 2011 — DFSA Fines Licensed Directors for Failing to Inform the DFSA

      Dubai, UAE, 9th October 2011: The Dubai Financial Services Authority (DFSA) has fined Arun Panchariya and Satish Panchariya AED 44,000 (USD 12,000) each for failing to disclose material information to the DFSA.

      The fines follow an investigation by the DFSA, in which the DFSA found that Arun Panchariya and Satish Panchariya failed to disclose material information to the DFSA in their applications to the DFSA to become Authorised Individuals in February 2009. Their failure to disclose material information continued after they were Authorised by the DFSA in November 2009.

      Arun Panchariya and Satish Panchariya failed to disclose:

      •   All director and controller positions which they were required to disclose in the applications for Authorisation; and
      •   Investigations and regulatory actions by the Securities and Exchange Board of India in relation to their conduct and the conduct of companies associated with them which they were required to disclose in their applications for Authorisation and/or after they became DFSA Authorised Individiuals.

      By failing to disclose the abovementioned information, Arun Panchariya and Satish Panchariya contravened Laws and Rules administered by the DFSA requiring them to disclose material information to the DFSA and to deal with the DFSA in an open and co-operative manner.

      Mr Paul Koster, Chief Executive of the DFSA said, “It is imperative that Authorised Firms and Authorised Individuals are open and co-operate fully with the DFSA. The DFSA relies on Firms and Individuals to disclose appropriately any mandatory information and any other information of which the DFSA would reasonably be expected to be notified.Accordingly, the DFSA will take action where Firms and Individuals have breached these requirements”.

      Fine:

      Details of the fines are posted on the DFSA website: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

    • 13 September 2011 — DFSA and NASDAQ Dubai Announce the Transfer of the Official List of Securities

      Dubai, UAE, 13 September 2011: The Dubai Financial Services Authority (“DFSA”) and NASDAQ Dubai today announce that with effect from 1 October 2011 the responsibility for maintaining the Official List of Securities will be transferred from NASDAQ Dubai to the DFSA (the “Transfer”).

      The Transfer will result in the streamlining of the regulatory process for approving prospectuses and listing, for the benefit of issuers and investors. It is also in line with international best practice. NASDAQ Dubai will continue to be exclusively responsible for the admittance to trading of securities on its market and its role as an Authorised Market Institution licensed to operate an exchange and clearing house remains unchanged.

      The DFSA and NASDAQ Dubai agreed to effect the Transfer in view of the DFSA's proposed new Markets Rules. Without the Transfer the Markets Rules would have had the effect of considerably increasing the regulatory burden on issuers in the Dubai International Financial Centre, by duplicating regulatory oversight in respect of prospectus and listing approval processes. The Transfer ensures that these processes will instead be centralised at the DFSA, providing an efficient and effective regulatory structure.

      For more information about the Transfer please view the Q&As on http://www.dfsa.ae/Documents/Official%20List/PDF%20QAs%20DFSA%20ND%20Official%20List%20of%20Securities%20Sept%202011.pdf

    • 7 September 2011 — Appointment of DFSA Chairman and Board

      Dubai, 7 September 2011: The Deputy Ruler of Dubai, His Highness Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum in his capacity as President of the Dubai International Financial Centre (DIFC), appoints Mr Saeb Eigner, as the new Chairman of the Dubai Financial Services Authority (DFSA). His Highness also appointed the existing DFSA Board Members for a further three-year term.

      Mr Eigner said, "The DFSA has strengthened its reputation as a world-class regulator under the leadership of the former Chairman Mr Abdullah Saleh, who takes on his new responsibility as Governor of the DIFC. I look forward to continuing to work with my colleagues and to leading the DFSA in its vital role as the regulator of the DIFC. In doing so I am fortunate to have a highly respected and experienced international Board of Directors and an excellent Executive team.

      The DFSA looks forward to continuing to fulfill the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai, to position the DIFC as a global financial Centre with strong and independent regulation." Mr Eigner said that one of his key priorities is the DFSA's continued engagement with international standard-setting bodies and regulators, as well as the implementation of international regulatory standards.

      Mr Paul Koster, Chief Executive of the DFSA, warmly welcomed the appointment of the new Chairman and the stability provided by the re-appointment of Board members.

      The DIFC is the purpose built financial centre in Dubai which has attracted more than 250 financial firms, including many of the world's largest institutions.

      The DFSA Board comprises:
      Saeb Eigner, as Chairman;
      Fadel Abdulbaqi Al Ali;
      Abdul Wahid Al Ulama;
      The Honourable Apurv Bagri;
      Michael Blair QC;
      Robert L Clarke;
      Lord Currie of Marylebone;
      The Earl of Home;
      Robert Owen;
      J Andrew Spindler;
      Georg Wittich; and
      Paul Koster, in his capacity as Chief Executive.

    • 27 July 2011 — DFSA Renews Ties With Swiss Counterpart

      Bern, Switzerland, 27 July 2011: The Dubai Financial Services Authority (DFSA) yesterday entered into a Memorandum of Understanding (MoU) with the Swiss Financial Market Supervisory Authority (FINMA).

      The MoU was signed on behalf of the DFSA by its Chief Executive, Mr Paul M Koster and Professor Anne Héritier Lachat, Chair of the Board of Directors of FINMA, in advance of a meeting of the DFSA Board in Zurich.

      FINMA was established in June 2007 by Federal legislation, the Swiss Financial Market Supervisory Authority (FINMASA) Act, which merged the Federal Office of Private Insurance (FOPI), the Swiss Federal Banking Commission (SFBC) and the Anti-Money Laundering Control Authority into one agency responsible for all financial regulation in Switzerland.

      Mr Paul M Koster, Chief Executive of the DFSA said, "The DFSA Board meeting in Zurich this week underlines the significant presence of Swiss financial institutions in the Dubai International Financial Centre and the importance the DFSA attaches to Switzerland, which has long been regarded as among the world's leading international financial centres. FINMA plays a critical role as the national regulator, as did its predecessors, FOPI and the SFBC. In fact, this initiative reflects FINMA's status as an integrated financial services regulator and in adding co-operation in relation to insurance supervision; it enhances an existing relationship by extending the reach of an MoU which the DFSA and the SFBC have had in place since April 2007.

      As active members of the International Organisation of Securities Commissions and the International Association of Insurance Supervisors, FINMA and the DFSA strive to embrace best practice and seek to reflect the resolutions of the international standard-setters. This initiative should be seen as an affirmation of a mutual willingness to co-operate and share information to those standards."

    • 16 June 2011 — DFSA Strengthens Ties with the Reserve Bank of India

      Mumbai, India, 16 June 2011: The Dubai Financial Services Authority (DFSA), has this week, entered into a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI).

      The MoU was signed by the Chief Executive of the DFSA, Mr Paul Koster and Executive Director of the RBI, Mr G Gopalakrishna, during a visit by Mr Koster and senior DFSA executives to Mumbai. The ceremony at the Central office of the RBI took place in the presence of Dr KC Chakrabarty, Deputy Governor of the Bank. One of the DFSA Board Members, the Honourable Apurv Bagri, also attended the meeting and later in the evening hosted a dinner to mark the occasion.

      The Reserve Bank of India was established in 1935 as the Central Bank of the country entrusted with monetary stability, the management of currency and the supervision of the financial as well as the payments system.

      Mr Paul M Koster, Chief Executive of the DFSA said, "The DFSA is honoured to be the first regulator, after the China Banking Regulatory Commission to sign an MoU with the Reserve Bank of India, a respected supervisor of one of the world's largest financial systems. Indian banks have a significant, and growing, presence in the Dubai International Financial Centre (DIFC), so this enhancement of information sharing and assistance between the RBI and the DFSA is a critical step to ensuring confidence in each of our regulatory regimes."

      "This initiative reflects each authority's commitment to co-operation in relation to prudential oversight and inspections. It adopts the model for information sharing developed by the Basel Committee on Banking Supervision and follows similar arrangements the DFSA has with other significant banking supervisors such as the UK Financial Services Authority, Germany's Bundesanstalt für Finanzdienstleistungsaufsicht, Banque de France, China Banking Regulatory Commission and the United States Federal Reserve. The DFSA looks forward to working with RBI for the benefit of both India and the DIFC."

    • 1 May 2011 — DFSA Takes Action on Failures in E*TRADE's Anti-Money Laundering Systems and Controls

      Dubai, Sunday, 1 May 2011: The Dubai Financial Services Authority (“DFSA”) announced, today, that it has accepted an Enforceable Undertaking (“EU”) from E*TRADE Securities Ltd (Dubai International Financial Centre Branch) (“E*TRADE”).

      The written undertaking follows a periodic risk assessment in 2010 conducted by the DFSA of E*TRADE, which identified a number of deficiencies in E*TRADE's anti-money laundering (“AML”) systems and controls. E*TRADE acknowledges these deficiencies which include failing to:

      • Obtain sufficient documentary evidence of its clients' origin of funds and/or sources of wealth;
      • Obtain, for some of its clients, sufficient documentary evidence of address or appropriately certified copy documents;
      • Have adequate polices in place to ensure that documentation concerning a client's identity remains accurate and up-to-date, resulting in E*TRADE's failure to request and obtain updated Know Your Customer documents;
      • Have policies, procedures, systems and controls to adequately address the need to assess the money laundering risk of its clients; and
      • Ensure that its compliance resources were sufficient given the nature and scale of its business activities.

      In the EU, E*TRADE has agreed to pay a financial penalty of AED 1,101,870 (USD $300,000), with AED 734,580 (USD $200,000) payable within 30 days and the remaining amount of AED 367,000 (USD $100,000) being suspended subject to E*TRADE fulfilling a number of undertakings including:

      • Submitting to a further risk assessment by the DFSA;
      • Taking all necessary steps to remediate the DFSA's concerns arising from the risk assessment; and
      • Making arrangements to ensure it has appropriately skilled compliance resources to conduct and manage its affairs in accordance with the DFSA's Laws and Rules.

      Mr Paul M Koster, Chief Executive of the DFSA said, “This is a new era for financial services, and Firms must be more vigilant in meeting today's requirements. The action taken against E*TRADE shows that the DFSA considers the anti-money laundering and Know Your Client systems and controls of Firms in the DIFC to be of fundamental importance in this new era. In taking this action, the DFSA recognises that E*TRADE has co-operated fully in the investigation.”

      Enforceable Undertaking:

      A copy of the EU between the DFSA and E*TRADE is posted on the DFSA website at: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

      - Ends -

      For further information please contact:

      Angharad Irving-Jones (Ms)
      Head of Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate
      Dubai, UAE
      Tel: +971 (0)4 362 1661
      Fax: +971 (0)4 362 0801
      Email: airvingjones@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purposebuilt financial free-zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      Paul M Koster was appointed Chief Executive of the DFSA on 1 December 2008. Prior to becoming Chief Executive, he was Commissioner and Member of the Executive Board of the Autoriteit Financiële Markten (AFM), the national, integrated conduct of business financial services regulator for the Netherlands, where he was identified as one of the four leaders shaping the conscience of Dutch business. Mr Koster joined the AFM in March 2001 and in addition to his duties as a Commissioner, he chaired, from May 2006 until December 2007, CESR-Fin, the permanent working party of the Committee of European Securities Regulators that co-ordinates the endorsement and enforcement of financial reporting standards in Europe.

      For the previous two years he had chaired CESRs Sub-committee on International Standards Endorsement. During his time with the AFM, he was also a Member of the IOSCO Chairs' Committee and, as Chief Executive of the DFSA, he remains actively involved in the work of IOSCO.

      Mr Koster previously served as Executive Vice President (Corporate Internal Audit) at Royal Philips Electronics 1998 to 2001; as Managing Partner Corporate Finance, Coopers & Lybrand 1988 to 1998; and as Chief Compliance Officer and Acting Commissioner of Quotations, Amsterdam Stock Exchange 1986 to 1988; and carried out a number of senior finance functions in his earlier career, having trained as an accountant with Arthur Andersen. Mr Koster is a licensed Registered (Chartered) Accountant having qualified through the Royal Dutch Institute of Chartered Accountants in 1977 and certified as a registered auditor in 1983.

      In May 2009, Mr Koster joined the Advisory Board of the Emirates Securities and Commodities Authority (SCA), the UAE's federal securities regulator, and in July 2009, he also became a Member of the Consultative Advisory Groups of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA).

      In September 2010, Mr Koster won the 'CEO of the Year for Financial Services' award and was voted one of the most influential expatriates living and working in the region today.

    • 27 April 2011 — DFSA Signs MoU With UAE Insurance Authority

      Dubai, Wednesday, 27 April 2011: The Dubai Financial Services Authority (DFSA) entered today into a Memorandum of Understanding (MoU) with the Insurance Authority (IA) of the UAE regarding co-operation and exchange of regulatory information.

      The MoU was signed in the presence of His Excellency Eng Sultan Bin Saeed Al Mansouri, UAE Minister of the Economy and Chairman of the IA, in the Dubai Office of the Ministry, by Mr Paul Koster, Chief Executive of the DFSA, and Her Excellency Fatima Mohammed Ishaq Al-Awadi, Deputy Director-General of the IA.

      The Insurance Authority is responsible for regulating and monitoring the activity of the UAE insurance sector to secure a suitable environment for its development and to provide security for both the relevant individuals (the consumers, the public, the professions, the insurance companies, the insured, the beneficiaries, applicants for insurance) and property. The DFSA is the regulator of Authorised Firms, including banks, insurance companies, investment banks, asset managers and fund administrators, providing financial services in the Dubai International Financial Centre (DIFC).

      Mr Paul M Koster, Chief Executive of the DFSA said, "I am very pleased to be signing this MoU with our federal insurance counterpart, the Insurance Authority, and I am particularly honoured by the presence and support of His Excellency the Minister of the Economy. The DFSA already enjoys a strong relationship with the Authority and both agencies are members of the insurance standard-setter, the International Association of Insurance Supervisors (IAIS) and last year the IA was a major sponsor for, as well as a participant in, the IAIS Annual Conference hosted by the DFSA in Dubai."

      "The signing of today's MoU extends that co-operation to day-to-day regulatory issues, formalising arrangements for information sharing. It recognises that both supervisors place reliance on the quality of regulatory standards administered federally and in the DIFC. This also marks a formal collaborative link between the DFSA and all three federal financial supervisors; MoUs having been signed with the Emirates Securities and Commodities Authority in 2005 and with the Central Bank of the UAE in 2009."

      "Continuing close co-operation and future joint initiatives between the DFSA and the Insurance Authority will reinforce our mutual commitment to ensuring financial stability and promote sound economic growth in the UAE," Mr Koster said.

      - Ends -

      For further information please contact:

      Angharad Irving-Jones (Ms)
      Head of Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate
      Dubai, UAE
      Tel: +971 (0)4 362 1661
      Fax: +971 (0)4 362 0801
      Email: airvingjones@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purposebuilt financial free-zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      Paul M Koster was appointed Chief Executive of the DFSA on 1 December 2008. Prior to becoming Chief Executive, he was Commissioner and Member of the Executive Board of the Autoriteit Financiële Markten (AFM), the national, integrated conduct of business financial services regulator for the Netherlands, where he was identified as one of the four leaders shaping the conscience of Dutch business. Mr Koster joined the AFM in March 2001 and in addition to his duties as a Commissioner, he chaired, from May 2006 until December 2007, CESR-Fin, the permanent working party of the Committee of European Securities Regulators that co-ordinates the endorsement and enforcement of financial reporting standards in Europe.

      For the previous two years he had chaired CESRs Sub-committee on International Standards Endorsement. During his time with the AFM, he was also a Member of the IOSCO Chairs' Committee and, as Chief Executive of the DFSA, he remains actively involved in the work of IOSCO.

      Mr Koster previously served as Executive Vice President (Corporate Internal Audit) at Royal Philips Electronics 1998 to 2001; as Managing Partner Corporate Finance, Coopers & Lybrand 1988 to 1998; and as Chief Compliance Officer and Acting Commissioner of Quotations, Amsterdam Stock Exchange 1986 to 1988; and carried out a number of senior finance functions in his earlier career, having trained as an accountant with Arthur Andersen. Mr Koster is a licensed Registered (Chartered) Accountant having qualified through the Royal Dutch Institute of Chartered Accountants in 1977 and certified as a registered auditor in 1983.

      In May 2009, Mr Koster joined the Advisory Board of the Emirates Securities and Commodities Authority (SCA), the UAE's federal securities regulator, and in July 2009, he also became a Member of the Consultative Advisory Groups of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA).

      In September 2010, Mr Koster won the 'CEO of the Year for Financial Services' award and was voted one of the most influential expatriates living and working in the region today.

      The Insurance Authority of the UAE was established in 2009 and is responsible for regulating and monitoring the activity of the UAE insurance sector to secure a suitable environment for its development and to provide security for both the relevant individuals (the consumers, the public, the professions, the insurance companies, the insured, the beneficiaries, applicants for insurance) and for property. Her Excellency Fatima Mohammad Ishaq Al-Awadi, was appointed the first Deputy Director General on the Insurance Authority ………………..

    • 17 April 2011 — DFSA Introduces New Regime for Financial Services Marketing

      Dubai, Sunday, 17 April 2011:The Dubai Financial Services Authority (DFSA) announced, today, that His Highness Sheikh Mohammed Bin Rashid Al Maktoum, in his capacity as Ruler of Dubai, has enacted amendments to the Regulatory Law 2004 which further enhance the requirements and prohibitions relating to financial services marketing (“financial promotions”). These amendments, and the rules made under the law, provide greater clarity as to who can make a Financial Promotion in the Dubai International Financial Centre (DIFC) and under what circumstances.

      The new provisions build upon the current financial promotion restrictions and prohibitions contained in the Collective Investment Law 2010 and the Markets Law 2004 which will continue to apply.

      The new legislation provides the DFSA with a greater degree of regulatory oversight and control over who may conduct Financial Promotions in or from the DIFC, and in particular oversight of the standards which such promotions must meet with respect to retail investors. The DFSA will also have greater scope to bring enforcement action in a Financial Promotion case when it deems it necessary in light of its statutory objectives.

      Mr Paul M Koster, Chief Executive of the DFSA said, “Our new and enhanced legislation provides greater protection for investors and potential investors against misleading promotions, especially those coming into the DIFC from outside.”

      - Ends -

      For further information please contact:

      Angharad Irving-Jones (Ms)
      Head of Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate
      Dubai, UAE
      Tel: +971 (0)4 362 1661
      Fax: +971 (0)4 362 0801
      Email: airvingjones@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purposebuilt financial free-zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      Paul M Koster was appointed Chief Executive of the DFSA on 1 December 2008. Prior to becoming Chief Executive, he was Commissioner and Member of the Executive Board of the Autoriteit Financiële Markten (AFM), the national, integrated conduct of business financial services regulator for the Netherlands, where he was identified as one of the four leaders shaping the conscience of Dutch business. Mr Koster joined the AFM in March 2001 and in addition to his duties as a Commissioner, he chaired, from May 2006 until December 2007, CESR-Fin, the permanent working party of the Committee of European Securities Regulators that co-ordinates the endorsement and enforcement of financial reporting standards in Europe.

      For the previous two years he had chaired CESRs Sub-committee on International Standards Endorsement. During his time with the AFM, he was also a Member of the IOSCO Chairs' Committee and, as Chief Executive of the DFSA, he remains actively involved in the work of IOSCO.

      Mr Koster previously served as Executive Vice President (Corporate Internal Audit) at Royal Philips Electronics 1998 to 2001; as Managing Partner Corporate Finance, Coopers & Lybrand 1988 to 1998; and as Chief Compliance Officer and Acting Commissioner of Quotations, Amsterdam Stock Exchange 1986 to 1988; and carried out a number of senior finance functions in his earlier career, having trained as an accountant with Arthur Andersen. Mr Koster is a licensed Registered (Chartered) Accountant having qualified through the Royal Dutch Institute of Chartered Accountants in 1977 and certified as a registered auditor in 1983.

      In May 2009, Mr Koster joined the Advisory Board of the Emirates Securities and Commodities Authority (SCA), the UAE's federal securities regulator, and in July 2009, he also became a Member of the Consultative Advisory Groups of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA).

      In September 2010, Mr Koster won the 'CEO of the Year for Financial Services' award and was voted one of the most influential expatriates living and working in the region today.

    • 5 April 2011 — DFSA Strengthens Ties With its Cayman Islands Counterpart

      Dubai, Tuesday, 5 April 2011: The Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) with the Cayman Islands Monetary Authority (CIMA), last week.

      The MoU was signed on behalf of the DFSA by Chief Executive, Mr Paul Koster, having been signed earlier in Grand Cayman by the Managing Director of CIMA, Mrs Cindy Scotland. The ceremony in the Dubai International Financial Authority (DIFC) took place during a State Visit by the Premier of the Cayman Islands, The Honourable McKeeva Bush, Government representatives and business leaders, in the presence of the Governor of the DIFC, His Excellency Ahmed Humaid Al Tayer, and senior officials from DIFC Authority and the DFSA.

      CIMA was established in 1997 as the single regulatory authority for banks insurance companies, mutual funds, securities business and all other financial services operating in the Cayman Islands. CIMA also manages the Cayman Islands currency, and advises the Cayman Islands government on financial-services regulatory matters.

      Mr Paul Koster, Chief Executive of the DFSA said, “The DFSA is pleased to have entered this formal arrangement with the Cayman Islands Monetary Authority. Both authorities are integrated regulators striving to embrace best practice and seekingto reflect the resolutions of the international standard-setters. Both the DFSA and CIMA are already signatories to multi-lateral MoU of the International Organisation of Securities Commissions (IOSCO) which reflects the highest standards of cooperation and assistance among capital market regulators. This bi-lateral initiative extends that commitment to the banking and insurance sectors.”

      “Given the international nature of the Centre, the DFSA has always valued the importance of its links with and trust between supervisors and regulators. We now have a bi-lateral MoU network with 53 fellow regulators, including the central banks and banking supervisors in the UAE, the United Kingdom, the United States, Canada, France, Germany, the Netherlands, Belgium, South Africa, Jordan, China, Singapore and Japan.”, Mr Koster said.

      - Ends -

      For further information please contact:

      Angharad Irving-Jones (Ms)
      Head of Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate
      Dubai, UAE
      Tel: +971 (0)4 362 1661
      Fax: +971 (0)4 362 0801
      Email: airvingjones@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purposebuilt financial free-zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      Paul M Koster was appointed Chief Executive of the DFSA on 1 December 2008. Prior to becoming Chief Executive, he was Commissioner and Member of the Executive Board of the Autoriteit Financiële Markten (AFM), the national, integrated conduct of business financial services regulator for the Netherlands, where he was identified as one of the four leaders shaping the conscience of Dutch business. Mr Koster joined the AFM in March 2001 and in addition to his duties as a Commissioner, he chaired, from May 2006 until December 2007, CESR-Fin, the permanent working party of the Committee of European Securities Regulators that co-ordinates the endorsement and enforcement of financial reporting standards in Europe.

      For the previous two years he had chaired CESRs Sub-committee on International Standards Endorsement. During his time with the AFM, he was also a Member of the IOSCO Chairs' Committee and, as Chief Executive of the DFSA, he remains actively involved in the work of IOSCO.

      Mr Koster previously served as Executive Vice President (Corporate Internal Audit) at Royal Philips Electronics 1998 to 2001; as Managing Partner Corporate Finance, Coopers & Lybrand 1988 to 1998; and as Chief Compliance Officer and Acting Commissioner of Quotations, Amsterdam Stock Exchange 1986 to 1988; and carried out a number of senior finance functions in his earlier career, having trained as an accountant with Arthur Andersen. Mr Koster is a licensed Registered (Chartered) Accountant having qualified through the Royal Dutch Institute of Chartered Accountants in 1977 and certified as a registered auditor in 1983.

      In May 2009, Mr Koster joined the Advisory Board of the Emirates Securities and Commodities Authority (SCA), the UAE's federal securities regulator, and in July 2009, he also became a Member of the Consultative Advisory Groups of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA).

      In September 2010, Mr Koster won the 'CEO of the Year for Financial Services' award and was voted one of the most influential expatriates living and working in the region today.

      The Cayman Islands Monetary Authority (CIMA): CIMA was established on 1 January 1997 as the primary financial services regulator of the Cayman Islands. Its regulatory role encompasses regulation and supervision of financial services, the monitoring of compliance with money laundering regulations, the issuance of a regulatory handbook on policies and procedures and the issuance of rules and statements of principle and guidance. It also has a cooperative role that contemplates the provision of assistance to overseas regulatory authorities, including the execution of memoranda of understanding to assist with consolidated supervision. CIMA also manages the Cayman Islands currency, and advises the Cayman Islands government on financial-services regulatory matters. Further details are available on its website, www.cimoney.com.ky

      Cindy Scotland was appointed Managing Director of the CIMA in June 2002. In this role she oversees the implementation of policies to ensure the sound management of the Cayman Islands' currency and the effective supervision of the more than 14,000 regulated entities operating in and from the Cayman Islands. She also has responsibility for the development and maintenance of strong working relationships between CIMA and other international regulatory bodies. Joining the Authority at its inception in January 1997 as the Head of Currency Operations, Mrs. Scotland was appointed General Manager six months later. She had previously spent six years with one of CIMA's predecessors, the Cayman Islands Currency Board, the last three of those years as the Board's Manager she represents the jurisdiction extensively on regulatory matters to organisations including the Offshore Group of Banking Supervisors, the International organisation of Securities Commissions, the International Monetary Fund and the Caribbean Financial Action Task Force, as well as on a regulator-to-regulator basis.

      Mrs Scotland holds a number of board and committee posts. She is chairman of the Cayman Islands Guidance Notes Committee, a member of the Cayman Islands Stock Exchange Authority board, and the Anti-Money Laundering Steering Committee of the Private Sector Consultative Committee.

      She was the 2004 recipient of the Young Caymanian Leadership Award and was made a life member of the International Association of Business Leaders in 2005. A notary public, Mrs. Scotland holds a Bachelor of Arts degree in economics from Macalester College (1991) and a certificate with distinction and diploma with merit, both in offshore business management, from the Institute of Chartered Secretaries and Administrators (2001).

    • 4 April 2011 — DFSA Board Extends Chief Executive's Contract to 2013

      Dubai, Monday, 4 April 2011: The Dubai Financial Services Authority (DFSA) today, announced the DFSA Board's decision to extend the employment contract of its Chief Executive to December 2013.

      Mr Abdullah M Saleh, Chairman of the DFSA Board of Directors said, “Paul Koster has served as Chief Executive of the DFSA since December 2008 and I am very pleased that he has accepted the Board's offer. Extending his employment contract to December 2013 will allow him to continue to drive the aims and goals of the Authority during this important period in the regulation of financial services globally.”

      Mr Paul M Koster, Chief Executive of the DFSA said, “I am honoured that the DFSA Board has given me the opportunity to further shape and attune financial services regulation that best meets the dynamics and development of the Dubai International Financial Centre (DIFC). I am very happy that they have entrusted me to continue working with this professional team and for such a distinguished Board.”

      - Ends -

      For further information please contact:

      Angharad Irving-Jones (Ms)
      Head of Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate
      Dubai, UAE
      Tel: +971 (0)4 362 1661
      Fax: +971 (0)4 362 0801
      Email: airvingjones@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purposebuilt financial free-zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      Abdullah M Saleh was appointed as Chairman of the DFSA Board of Directors on 17 June 2007, having served as a Director of the DFSA since 2004.

      Mr Saleh is former Vice Chairman of Emirates NBD PJSC, the largest banking entity in the Middle East. Emirates NBD PJSC was formed by the merger of National Bank of Dubai (NBD) and Emirates Bank International (EBI). Mr Saleh was one of NBD's founders in 1963, the Managing Director from 1982 until January 2004, and Chairman from 2005 until the merger with EBI.

      Mr Saleh is a former adviser on financial matters to the Late Ruler of Dubai, HH Sheikh Rashid Bin Saeed Al Maktoum. Mr Saleh served as an Arbitrator on the Paris-based High Board of the Euro- Arab Arbitration Centre, from 1988 to 2000. He has been a Member of the Board of Qatar Fuel Additives Company since 1990 and has been Chairman of International Octane Limited since 1990. He is the Deputy Chairman and major shareholder of Dubai Transport Company LLC (DUTCO), the holding company of the DUTCO Group of Companies. He has been Chairman of MARSH INSCO (insurance brokers) since 1976. He is a Director of K S Energy Services Limited.

      He was educated in Sharjah and London and also attended the Institute of Bankers after completing his academic studies.

      Paul M Koster was appointed Chief Executive of the DFSA on 1 December 2008. Prior to becoming Chief Executive, he was Commissioner and Member of the Executive Board of the Autoriteit Financiële Markten (AFM), the national, integrated conduct of business financial services regulator for the Netherlands, where he was identified as one of the four leaders shaping the conscience of Dutch business. Mr Koster joined the AFM in March 2001 and in addition to his duties as a Commissioner, he chaired, from May 2006 until December 2007, CESR-Fin, the permanent working party of the Committee of European Securities Regulators that co-ordinates the endorsement and enforcement of financial reporting standards in Europe.

      For the previous two years he had chaired CESRs Sub-committee on International Standards Endorsement. During his time with the AFM, he was also a Member of the IOSCO Chairs' Committee and, as Chief Executive of the DFSA, he remains actively involved in the work of IOSCO.

      Mr Koster previously served as Executive Vice President (Corporate Internal Audit) at Royal Philips Electronics 1998 to 2001; as Managing Partner Corporate Finance, Coopers & Lybrand 1988 to 1998; and as Chief Compliance Officer and Acting Commissioner of Quotations, Amsterdam Stock Exchange 1986 to 1988; and carried out a number of senior finance functions in his earlier career, having trained as an accountant with Arthur Andersen. Mr Koster is a licensed Registered (Chartered) Accountant having qualified through the Royal Dutch Institute of Chartered Accountants in 1977 and certified as a registered auditor in 1983.

      In May 2009, Mr Koster joined the Advisory Board of the Emirates Securities and Commodities Authority (SCA), the UAE's federal securities regulator, and in July 2009, he also became a Member of the Consultative Advisory Groups of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA).

      In September 2010, Mr Koster won the 'CEO of the Year for Financial Services' award and was voted one of the most influential expatriates living and working in the region today.

    • 23 March 2011 — DFSA Launches Web Pages on "How To Avoid Being Scammed"

      Dubai, UAE, 23 March 2011: The Dubai Financial Services Authority (DFSA) launches, today, on its website information on "How To Avoid Being Scammed." The aim of this initiative is to further inform members of the public on common scams being perpetrated on the financial services community.

      The DFSA's Head of Enforcement, Mr Stephen Glynn said: "We are launching the web pages, today, in both English and Arabic in response to the growing number of investors being targeted by scammers who are increasingly using electronic facilities to market their illegal schemes."

      "There seem to be new scams created everyday and they are becoming increasingly sophisticated." Mr Glynn said. "Public awareness and education are the most effective means of eradicating this menace."

      The DFSA regularly publishes Alerts on its website about the most recent scams affecting the Dubai International Financial Centre (DIFC) and investors. The Alerts, together with the "How To Avoid Being Scammed" web pages, will give investors more information about scams and how best to avoid them.

      If investors have queries or concerns about any product offered to them then they should consult a financial advisor from a reputable and licenced financial services provider or their financial services regulator before making any investment.

      The DFSA has an electronic portal through which members of the public can make complaints. The DFSA will respond to all complaints within 24 hours. The link to the "complaints portal" can be found at:
      http://www.dfsa.ae/Pages/Complaints/Complaints.aspx

      A link to the "How To Avoid Being Scammed" web page in English may be found at: http://www.dfsa.ae/Pages/Alerts/HowToAvoidBeingScammed.aspx

      A link to the "How To Avoid Being Scammed" web page in Arabic may be found at: http://www.dfsa.ae/ar/Pages/Alerts/HowToAvoidBeingScammed.aspx

      A link to the DFSA's Alerts may be found at: http://www.dfsa.ae/Alerts/Alerts.aspx

      For further information please contact the DFSA.

    • 20 March 2011 — DFSA Censures Saxo Bank for Client Take-On and AML Systems and Controls Failings

      Dubai, UAE, 20 March 2010: The Dubai Financial Services Authority (DFSA) today censured Saxo Bank Dubai Limited (SBDL) for its failure to comply with the DFSA's Rules regarding the on-boarding of clients.

      The censure followed admissions by SBDL that it had breached the client take-on and anti-money laundering (AML) systems and controls requirements in the DFSA's Rules by failing to:

      •    Properly classify clients;
      •    Enter into client agreements with clients;
      •    Obtain sufficient and satisfactory verification of clients' identities, permanent addresses and sources of wealth;
      •    Perform ongoing due diligence on clients;
      •    Adequately monitor client transactions; and
      •    Establish and maintain appropriate systems and controls in relation to Politically Exposed Persons (PEPs).

      These failings increased the risk of SBDL's Dubai International Financial Centre (DIFC) business being used for the purposes of money laundering. However, the DFSA found no evidence of any money laundering having taken place

      SBDL consented to the DFSA's censure.

      The censure arises from a DFSA investigation into the conduct of SBDL which found that SBDL's failures arose, in part, because SBDL referred its clients to its parent, Saxo Bank A/S in Denmark, and did not carry out sufficient client classification in accordance with the Laws and Rules of the DIFC.

      In censuring SBDL, the DFSA acknowledges the mitigating factors in regard to SBDL's conduct, which are set out in the censure.

      Mr Ian Johnston, Deputy Chief Executive and Managing Director of the DFSA said, "The DFSA considers the know your client and AML systems and controls of Firms in the DIFC to be of fundamental importance to maintaining the DIFC's integrity."

      Mr Stephen Glynn, DFSA's Head of Enforcement said, "The DFSA vigilantly supervises and detects systems and control failures relating to know your client, AML and counter terrorist financing obligations. The DFSA expends considerable resources educating the regulated community in respect of these obligations and will take strong action to enforce the applicable Laws and Rules when lapses occur."

      "The DFSA expects all Firms, as part of their compliance regimes, to establish and maintain strong and effective know your client, AML and counter terrorist financing systems and controls. Clients, therefore, should expect Firms in the DIFC to request information from them to confirm their identity, residential address and source of funds. The request for this information is to fulfill not only the Firms' obligations under the DIFC Laws and Rules but also the Federal Law and international standards."

      Censure:

      A copy of the censure is posted on the DFSA website: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions