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  • Media Releases

    • 2018

      • 5 November 2018 — Robo-advisory Firm Sarwa, First to Graduate from DFSA's Regulatory Sandbox

        Click here to view PDF.

        Dubai, UAE, 05 November 2018: The Dubai Financial Services Authority ("DFSA") is pleased to announce that robo-advisory firm, Sarwa, has become the first participant to graduate from its regulatory sandbox following nearly 12 months of testing. As the first firm within the Dubai International Financial Centre ("DIFC") to be granted an Innovation Testing Licence ("ITL"), Sarwa promises to: "make investing easier, secure and more affordable by offering customers simpler way to invest their earnings for long-term financial growth."

        During the testing period, the DFSA closely observed Sarwa as the company fine-tuned its automated business, while simultaneously developing its internal capabilities. This included continuous monitoring, ongoing engagement and frequent feedback. The rigorous process allowed the DFSA to deepen its understanding of Sarwa's underlying operating model, while the firm tested its services within a safe and controlled environment.

        Sarwa's successful completion of its Regulatory Test Plan, and exiting the ITL, demonstrates the importance of regulatory sandboxes in fostering innovation and facilitating both established companies and start-ups as they create new and exciting solutions in financial services.

        The DFSA's support of FinTech development is aligned with the National Innovation Strategy set out by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minster of the UAE and Ruler of Dubai to form an innovation-friendly nation. Other initiatives that the DFSA supports in similar vein include the Dubai Plan 2021 and Smart Dubai.

        Bryan Stirewalt, Chief Executive of the DFSA, said "When we first introduced the ITL programme our goal was to offer firms the flexibility to test their new business models and solutions, so they can develop innovative products and services to tackle the growing needs of the region's financial services industry. Sarwa's progress is the first tangible demonstration that this goal can be achieved. We look forward to more firms following suit."

        The DFSA continues to receive positive feedback around its regulatory sandbox and encourages firms with innovative ideas to apply for the 2018 winter cohort, which is currently accepting applications through the DFSA website. A list of the firms that have been accepted into the cohort will be finalised on 16 December, after which they may submit an ITL application by 17 January 2019. Online submission links will only be active during these dates; therefore, firms should put together their submission forms at the earliest opportunity.
        The DFSA's cohort process and ITL initiatives go hand in hand with FinTech Hive at DIFC, the region's first FinTech accelerator, which aims to bring together the next generation of leaders and entrepreneurs to address the growing needs of the region's financial services industry.

        For more information on the ITL programme and cohort application process please visit the following FAQ section or email: Fintech@dfsa.ae

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Bryan Stirewalt was appointed Chief Executive of the DFSA on 1 October, 2018, after nearly 8 years as the DFSA's Managing Director of the Supervision Division. In his role as Chief Executive, Bryan will take the lead in steering the work of the DFSA and further developing its capability as a robust regulator delivering world-class financial regulation in the DIFC. Bryan has played a vital part in executing the DFSA's regulatory mandate and developing its risk-based supervision framework. Bryan plays an active role in supporting the work of international standard-setting bodies. He now serves as the Co-Chair of the Basel Consultative Group (BCG), which provides a forum for deepening the Basel Committee on Banking Supervision's engagement with non-member, global supervisors on banking supervisory issues. Through this role, Bryan also serves as an Observer at the Basel Committee on Banking Supervision.

        Sarwa
        Sarwa is an automated investment advisory firm based in the Dubai International Financial Centre and the first company to be granted an Innovation Testing Licence by the Dubai Financial Services Authority. Sarwa combines innovative technology and human advice to make expert level investing available for everyone. With a low account minimum and a low advisory fee, Sarwa aims to make investing easy, secure and affordable by offering customers the simplest and most cost-effective way to invest their earnings for long-term financial growth. The platform provides rebalancing services, algorithms combined with personalised human advice, account opening in a few minutes via facial recognition, and more. The company was founded by a team of finance, technology, and user-experience experts and is backed by top regional and international Venture Capital firms.

      • 24 October 2018 — DFSA to Open Second Cohort for Innovation Testing Licence ("ITL") Applications

        Click here to view PDF.

        Dubai, UAE, 24 October 2018: The Dubai Financial Services Authority ("DFSA") is pleased to announce that round two of the cohort process, which enables companies to apply for an Innovation Testing Licence ("ITL"), is set to open shortly. Interested firms, locally-based or international, are encouraged to apply online to be part of the cohort through the DFSA website between 1 and 30 November, 2018.

        The cohort system was developed in response to the positive responses generated by the ITL programme and is a prerequisite for firms to be able to apply for an ITL. Going forward, there will be two open cohorts per year, in which applicants for the cohort should provide the DFSA with a clear understanding of their business model and proposed innovation.

        A list of the firms that have been accepted into the cohort will be finalised on December 16, after which they may submit an ITL application by 17 January 2019. Online submission links will only be active during these dates; therefore, firms are encouraged to put together their submission forms at the earliest. The DFSA will also be launching a FAQ section on their website setting out key information related to the ITL programme and cohort application.

        Bryan Stirewalt, Chief Executive of the DFSA, said "The industry's response to the ITL programme has been overwhelmingly positive as demonstrated by the volume of applications received since its launch. Its value and the overall attractiveness of DIFC's FinTech environment is clear in the eyes of our stakeholders. Therefore, we will continue to evaluate the programme and improve it as we move forward, to ensure it remains useful and serves the purpose it is designed for efficiently. We look forward to welcoming applications from innovative FinTech firms."

        The ITL programme, which was first introduced in May 2017, works by enabling firms to test FinTech solutions in or from the Dubai International Financial Centre ("DIFC"). As part of the DFSA's strategy to foster an innovation-friendly ecosystem, the programme's core benefit lies in allowing companies to apply for a restricted financial services licence that provides the flexibility to test and develop their concepts without being subject to the full regulatory requirements that normally apply to regulated firms.

        For more information about the cohort application process or ITL programme, please email: Fintech@dfsa.ae

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Bryan Stirewalt was appointed Chief Executive of the DFSA on 1 October, 2018, after nearly 8 years as the DFSA's Managing Director of the Supervision Division. In his role as Chief Executive, Bryan will take the lead in steering the work of the DFSA and further developing its capability as a robust regulator delivering world-class financial regulation in the DIFC. Bryan has played a vital part in executing the DFSA's regulatory mandate and developing its risk-based supervision framework. Bryan plays an active role in supporting the work of international standard-setting bodies. He now serves as the Co-Chair of the Basel Consultative Group (BCG), which provides a forum for deepening the Basel Committee on Banking Supervision's engagement with non-member, global supervisors on banking supervisory issues. Through this role, Bryan also serves as an Observer at the Basel Committee on Banking Supervision.

        DIFC Fintech Hive
        The DFSA's cohort process and Innovation Testing Licence ("ITL") initiatives go hand in hand with the FinTech Hive, which was launched at the beginning of 2017 at the DIFC, to bring together the next generation of leaders and entrepreneurs to compete and address the growing needs of the region's financial services industry, using innovative technology solutions.

      • 3 October 2018 — Mohammed bin Rashid Enacts DIFC Regulatory Amendment Law

        Click here to view PDF.

        Dubai, UAE, 3 October 2018: His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and the Ruler of Dubai, has enacted the Regulatory Law Amendment Law, DIFC Law No. (6) of 2018. The Law, which amends the Regulatory Law 2004, will come into force on 29 October 2018 and, together with changes to DFSA Anti-Money Laundering Rules, will make a number of important changes to the regulatory regime in the Dubai International Financial Centre (DIFC).

        The amendments follow a self-assessment of the DIFC framework in preparation for the upcoming UAE Financial Action Task Force (FATF) Mutual Evaluation in 2019. The amendments will enhance the anti-money laundering and counterterrorist financing (AML/CTF) regime. This will support the ongoing alignment of the DIFC regime with the FATF recommendations.

        The changes include updating the DFSA's approach to registration and supervision of Designated Non-Financial Businesses or Professions (DNFBPs). This includes a prohibition from conducting any DNFBP activities, in or from the DIFC, without registration by the DFSA. The changes also include enhancements to the supervisory regime, which will enable the DFSA to suspend or withdraw the registration of a DNFBP, if it is in breach of the Law or the Rules or other AML legislation.

        In order to ensure the orderly transition of DNFBPs already established in the Centre to the new regime, the DFSA clarified that the transitional arrangements would apply over a three-month period from effective date of the Law. These matters would include confirming the identity of the Money Laundering Reporting Officer, senior management and beneficial ownership information.

        The changes also strengthen the DFSA's regulatory approach to how firms carry out Customer Due Diligence to ensure alignment with FATF Recommendations. The DFSA has prepared a Question and Answer document, addressing the most commonly posed questions in response to Consultation Papers 118 and 120, which proposed the changes discussed above.

        Bryan Stirewalt, Chief Executive Officer of the DFSA said: “The DFSA welcomes these changes and sees them as an important step towards enhancing the AML/CTF regime. I believe they will also improve the supervisory oversight of DNFBPs. We also see these as appropriate changes to support the growth of the DIFC, to continue to position it as the financial hub of choice for international firms in the region, and to contribute to the UAE's upcoming FATF Mutual Evaluation that is due in 2019.

        The DFSA's work on AML will continue, to ensure our approach is in line with best international practice. We expect that there will be further enhancements to our regime as the UAE completes its preparation for the Mutual Evaluation."

        The Amendments to DIFC laws, together with associated amendments to DFSA Rules, will come into force on 29 October, 2018 and are available on the DFSA website under: http://www.dfsa.ae/MediaRelease/News/Notice-of-Amendments-to-Legislation-(6)
        The Questions and Answers document prepared by the DFSA, can be found on the following link: https://www.dfsa.ae/CMSPages/GetFile.aspx?guid=f51814ed-f99e-4479-9190-7c9643b396e8

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (RoC).

        Bryan Stirewalt was appointed Chief Executive of the DFSA on 1 October, 2018, after nearly 8 years as the DFSA's Managing Director of the Supervision Division. In his role as Chief Executive, Bryan will take the lead in steering the work of the DFSA and further developing its capability as a robust regulator delivering world-class financial regulation in the DIFC.

        Over his time with the DFSA, Bryan has played a vital part in executing the DFSA's regulatory mandate and developing its risk-based supervision framework. His responsibilities have included prudential and conductoriented oversight of financial service providers in the Dubai International Financial Centre (DIFC), in addition to the DFSA's regulatory role with Registered Auditors and Credit Rating Agencies. He has also directed the DFSA's efforts in fighting methods of illicit finance, including the crucial regulatory relationships with Designated Non- Financial Businesses and Professions.

        Prior to joining the DFSA, Bryan developed his skills over a career that spans more than 30 years. He has held a number of senior positions in financial regulation, both in the public and in private sectors. From 1985 to 1996, he worked for the US Treasury's Office of the Comptroller of the Currency as a National Bank Examiner, specialising in policy development and implementation, problem bank rehabilitation and banking fraud initiatives. From 1996 until joining the DFSA in 2008, he worked for an international consulting and advisory firm, focusing on emerging markets development programmes in Poland, Ukraine, Cyprus and Kazakhstan.

        In relation to international development, Bryan plays an active role in supporting the work of international standardsetting bodies. He now serves as the Co-Chair of the Basel Consultative Group (BCG), which provides a forum for deepening the Basel Committee on Banking Supervision's engagement with non-member, global supervisors on banking supervisory issues. Through this role, Bryan also serves as an Observer at the Basel Committee on Banking Supervision.

      • 27 September 2018 — DFSA signs FinTech Agreement with Japan's Financial Services Agency

        Click here to view PDF.

        Dubai, UAE, 27 September 2018: With its continued efforts to encourage the adoption of technological advancements in the market, the Dubai Financial Services Authority (DFSA) entered yesterday into an Exchange Of Letters with the Financial Services Agency of Japan (FSA) to cooperate in the development of financial technology (FinTech). The cooperation framework reflects efforts by both authorities to foster innovation in the Dubai International Financial Centre (DIFC) as well as in Japan.

        The agreement was signed by Ian Johnston, Chief Executive of the DFSA, and Toshihide Endo, Commissioner at Japan's FSA. Under the terms, and given the global nature of innovation in financial services, the authorities will share information on developments in FinTech and ensure the efficient entry of financial innovators into the respective markets.

        Ian Johnston said: "We are very pleased to strengthen our long-established collaboration with Japan's FSA and to enhance our cooperation on matters related to innovation in financial services. This is testament to our commitment to foster effective agreements with peer regulators across the globe, engaging on emerging FinTech topics. We look forward to working with Japan's FSA to develop our FinTech proposition and contribute to the efficiency and further enhancements of our respective financial markets. This step aligns seamlessly with the National Innovation Strategy to make the UAE a global hub for innovation, as set out by UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum."

        The purpose of this cooperation is to provide a regulatory framework for discussion and a referral mechanism, which will enable the authorities to refer financial innovators between their respective innovation functions. It also sets out how the Authorities plan to share and use relevant information in their respective markets.

        A series of other initiatives took place in Japan during the same week to support FinTech developments. A delegation of senior DFSA executives, led by Peter Smith, Managing Director, Policy and Strategy, met with FSA counterparts in Tokyo to initiate collaboration between the DFSA and Japan's FSA on FinTech and crypto-asset developments. The visit also included participation in FIN/SUM, the largest FinTech summit in Japan, connecting the global financial and technology industries and promoting disruptive innovation across the globe. Mr Smith also spoke on international cooperation in the oversight of crypto-assets at a roundtable co-hosted by the FSA and by the International Organization of Securities Commissions (IOSCO).

        The DFSA has consistently been advocating regulatory collaboration, as illustrated by the wide network of agreements so far put in place with other international financial regulators in relation to FinTech, namely: the Australian Securities and Investment Commission, the Hong Kong Monetary Authority, the Hong Kong Securities and Futures Commission, the Hong Kong Insurance Authority, the Malaysian Securities Commission among others.

        With its extensive efforts to support FinTech, the DFSA is changing the face of financial regulation and setting precedents in the region with an extensive innovation strategy, a key part of which was the earlier launch of DFSA's Innovation Testing Licence, which allows FinTech firms to develop and test innovative concepts from the DIFC. In August last year, the DFSA became the first regulator to launch a tailored regime for loan and investment crowdfunding platforms in the GCC. The DFSA also participated this year in the issuance of a discussion paper for the establishment of a Global Financial Innovation Network (GFIN) of leading global regulators, which seeks to conduct joint work and share experiences of financial innovation, to improve financial stability, integrity, customer outcomes and inclusion.

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Mr Johnston is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

        The DFSA's initiatives go hand in hand with the FinTech Hive, which was launched at the beginning of 2017 at the DIFC, to bring together the next generation of leaders and entrepreneurs to compete and address the growing needs of the region's financial services industry, using innovative technology solutions.

      • 12 September 2018 — DFSA Board Appoints Bryan Stirewalt as Next Chief Executive

        Click here to view PDF.

        Dubai, UAE, 12 September 2018: The Board of Directors ("Board") of the Dubai Financial Services Authority ("DFSA") has today announced, following a global search, the appointment of Bryan Stirewalt as the next Chief Executive of the DFSA. Bryan will succeed Ian Johnston, who in late 2017 announced his intention to retire from the DFSA. The appointment will take effect from 1 October 2018. During his tenure, Ian made a significant contribution to the DFSA and was key to its development as a strong and internationally respected regulator, as well as to the development of the Dubai International Financial Centre ("DIFC").

        Bryan Stirewalt is an acclaimed financial regulator with a career that spans over 30 years in various public and private sector roles. He has been with the DFSA for 10 years, serving for the last eight years as Managing Director, Supervision. Bryan has extensive experience in financial regulation and played an active role in supporting the work of international standard-setting bodies. He now serves as the Co-Chair of the Basel Consultative Group (BCG), which provides a forum for deepening the Basel Committee on Banking Supervision's engagement with country supervisors.

        Bryan commented on his appointment saying: "I am honoured to take on this role and would like to extend my thanks and appreciation to the Board for entrusting me with this responsibility. I am very privileged to step into the Chief Executive role and look forward to further contributing to the DFSA's work in delivering world-class financial regulation in the DIFC."

        Saeb Eigner, Chairman of the DFSA, commented: "The DFSA plays a crucial role as the independent financial regulator of the DIFC. Bryan has played a vital part in executing the DFSA's regulatory mandate and developing its risk-based supervision framework. He comes with wide international experience combined with a thorough knowledge of the workings of the DFSA and the context in which it operates. The Board of Directors and I are looking forward to working with and supporting Bryan as he takes the lead in steering the work of the DFSA and further developing its capability as a robust regulator."

        Mr. Eigner added: "On behalf of the Board, I wish to convey our warm appreciation to Ian for his many achievements, which include his leading role in enhancing the reputation of the DFSA as an internationally respected regulator, driving regulatory policy formation, participating in the work of international standard-setting bodies and managing the DFSA efficiently. During his term, the DFSA became a signatory to important international bodies such as the International Organisation of Securities Commissions and the International Association of Insurance Supervisors, to name but two. He has also strengthened our relationship with other UAE regulatory authorities. I am sure that Bryan will build successfully on this legacy."

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC.

        Bryan Stirewalt, Managing Director, Supervision, joined the DFSA in 2008 and has served as a Managing Director since 2010. Mr Stirewalt's responsibilities include prudential and conduct-oriented oversight of financial service providers and overseeing the DFSA's role with Registered Auditors and CRAs. Mr Stirewalt also directs the DFSA's efforts to fight methods of illicit finance within his primary areas of responsibilities, as well as with DNFBPs. He has extensive experience in financial regulation in public and private sector roles.

        From 1985 to 1996, he worked for the US Treasury's Office of the Comptroller of the Currency as a National Bank Examiner, where he specialised in policy development and implementation, problem bank rehabilitation and banking fraud initiatives. From 1996 to 2008, he worked for an international consulting and advisory firm, focusing on emerging markets development programmes in Poland, Ukraine, Cyprus and Kazakhstan. Mr Stirewalt serves as the Co-Chair of the Basel Consultative Group (BCG) which provides a forum for deepening the BCBS's engagement with global supervisors on banking supervisory issues.

        Saeb Eigner was appointed DFSA Chairman in August 2011. He has been a member of the Board since October 2004 and served as Deputy Chairman from 2007 until 2011. Formerly a Senior Manager at ANZ Grindlays Bank PLC, in London, Mr Eigner headed the Middle East and Indian Subcontinent Division of the private bank, which he left to found Lonworld, a private investment group in the early 1990s. Mr Eigner holds a Master's Degree in Management from London Business School. He is a former Governor of London Business School, Chairman of its Audit and Risk Committees and currently a member of its Estate Committee. He is the co-author of the management books Sand to Silicon (2003),Sand to Silicon - Going Global (2009), and author of Art of the Middle East (2010 and 2015). He holds and/or has held a number of Board appointments in Banking, Strategy, Education, Regulation and Investment.

      • 29 August 2018 — DFSA and Monetary Authority of Singapore Sign FinTech Agreement

        Click here to view PDF.

        Dubai, UAE, 29 August, 2018: The Dubai Financial Services Authority (DFSA) and the Monetary Authority of Singapore (MAS) today entered into an agreement that provides a framework for cooperation and referrals between the innovation teams of each authority. The agreement reflects the commitment of both authorities to develop an environment that supports the sustainable development of financial services through emerging technology.

        The DFSA's Chief Executive, Ian Johnston said: “We are pleased to formalise an agreement with MAS to support the growth of innovation in financial services. Cooperation between MAS and the DFSA will help create synergies and greater understanding between our two markets and will enable FinTech firms to extend their reach globally."

        The agreement centres on a referral mechanism which will enable the authorities to refer innovator businesses between their respective innovation functions. It also sets out a process to share and use information on innovation in their respective markets.

        Furthermore, the agreement formalises intensions of both authorities to work on joint innovation projects on the application of key technologies such as digital and mobile payments, blockchain and distributed ledgers, big data, flexible platforms (API), and other areas of new technologies.

        The DFSA and MAS are both also members of the recently established Global Financial Innovation Network (GFIN), which consists of 12 financial regulators and associated organisations from around the world. The GFIN seeks to conduct joint work and share experiences of financial innovation, to improve financial stability, integrity, customer outcomes and inclusion. Members of GFIN include regulators from the United Kingdom, Hong Kong and Australia.

        The GFIN builds upon the bilateral relationships each regulator has in place. For example, the DFSA has bilateral FinTech cooperation agreements in place with the Australian Securities and Investment Commission, the Hong Kong Monetary Authority, the Hong Kong Securities and Futures Commission, the Hong Kong Insurance Authority, and the Malaysian Securities Commission.

        The collaboration around FinTech extends a long-standing relationship between the DFSA and the MAS who have had a memorandum of understanding in place since 2008, providing a formal basis for supervisory cooperation in banking, insurance and capital markets. It facilitates the exchange of information for supervisory purposes between the two authorities.

        This latest initiative forms part of the DFSA's innovation strategy, which complements the National Innovation Strategy, as set out by UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, to make the UAE a global hub for innovation.

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services Regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

      • 7 August 2018 — DFSA Joins Peers in discussion on a Global Financial Innovation Network

        Click here to view PDF.

        Dubai, UAE, 07 August, 2018: The Dubai Financial Services Authority (DFSA), in collaboration with 11 other financial regulators and associated organisations from around the world, has today issued a discussion paper announcing the establishment of a Global Financial Innovation Network (GFIN) and consulting on its proposed functions.

        The GFIN is a network of leading global regulators, which will seek to conduct joint work and share experiences of financial innovation, to improve financial stability, integrity, customer outcomes and inclusion, through the responsible adoption of emerging technologies and business models. GFIN has launched this paper to seek views on its mission statement, its proposed functions, and where it should prioritise activity. Members of GFIN include regulators from the United Kingdom, Hong Kong and Australia.

        Ian Johnston, Chief Executive at the DFSA, said: “The DFSA has always been an advocate of regulatory collaboration to build strong and stable financial markets that work for all, as illustrated by our active membership on international standardsetting bodies and our extensive network of bi-lateral and multi-lateral agreements. By joining the GFIN, the DFSA intends to continue this work to ensure that the development of innovative financial services takes place sustainably and effectively, across borders."

        The GFIN will complement the DFSA's existing initiatives in FinTech, which includes a regulatory framework for crowdfunding platforms and its own sandbox under the Innovation Testing Licence (ITL) programme. The ITL programme was launched in May last year to provide FinTech operators a controlled environment to test out innovative financial services concepts with clients in or from the Dubai International Financial Centre (DIFC).

        The DFSA also has bilateral FinTech cooperation agreements in place with the Australian Securities and Investment Commission, the Hong Kong Monetary Authority, the Hong Kong Securities and Futures Commission, the Hong Kong Insurance Authority, the Malaysian Securities Commission, and discussions with other key, innovative counterparts are underway.

        This latest development forms part of the DFSA's innovation strategy, which complements the National Innovation Strategy, as set out by UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, to make the UAE a global hub for innovation.

        The paper can be accessed here [https://www.dfsa.ae/getattachment/1e2b52a3-00a6-4890-a5a3-094ccdd554d4/5779-GFIN-consultation-paper-draft-FINAL.PDF.aspx].

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services Regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

      • 16 July 2018 — DFSA fines Al Ramz and former employee for failing to cooperate and provide information regarding an investigation

        Click here to view PDF.

        Dubai, UAE, 16 July, 2018: The Dubai Financial Services Authority (DFSA) today announced that it has fined Al Ramz Capital LLC (Al Ramz) and its former Head of Information Technology, Mr Najim Al Attar, for serious failures to provide complete and accurate information relevant to a DFSA investigation which commenced in 2014.

        The DFSA imposed a fine of USD 205,200 (AED 753,084) on Al Ramz, which is a Recognised Member of NASDAQ Dubai. Al Ramz is also required to pay USD 100,000 (AED 367,000) towards the DFSA's investigation costs. In addition, the DFSA imposed a fine of USD 32,640 (AED 119,789) against Mr Al Attar.

        The DFSA's action follows an investigation that initially focused on trading on NASDAQ Dubai by Al Ramz and others, which the DFSA suspected may have breached Part 6 of the DIFC Markets Law 2012. The DFSA later expanded the scope of its investigation to include further suspected contraventions, including obstructing the DFSA's investigation and providing information which was false, misleading and deceptive.

        While the trading in question was eventually found not to be in breach of Part 6 of the DIFC Markets Law 2012, the DFSA found that during the investigation Al Ramz had failed to comply fully with requirements to provide the DFSA with information relevant to the investigation and deal with the DFSA in an open and cooperative manner. Al Ramz's misconduct included:

        •   misleading the DFSA about the users of computers used by two Al Ramz brokers at the time of the trading in question;
        •   selectively withholding from the DFSA certain material communications (including emails and recordings of telephone calls) relevant to certain trading;
        •   failing to disclose that a member of Al Ramz's senior management was centrally involved in such trading; and
        •   failing to disclose close family relationships between the Al Ramz client connected to the trading and certain senior members of Al Ramz's staff, including its senior management.

        In relation to Mr Al Attar, the DFSA found that he:

        •   engaged in conduct intended to obstruct the DFSA in the exercise of its powers, without having a reasonable excuse for doing so; and
        •   provided information that was false or misleading to the DFSA, and concealed information where the concealment of such information was likely to mislead the DFSA.

        Mr Al Attar's misconduct included:

        •   reconfiguring computers of two Al Ramz brokers and providing these to the DFSA while claiming falsely that they were the computers used by the brokers at the time of the trading in question. In so doing, Mr Al Attar attempted to mislead the DFSA into believing they were the computers used by the brokers when that was not the case;
        •   altering the email account of one of the Al Ramz brokers in an attempt to remove all email messages sent or received by that broker for the relevant period and conceal them from the DFSA;
        •   deleting relevant electronic data collected during a DFSA inspection visit;
        •   refusing to provide the DFSA with certain relevant electronic data stored on Al Ramz's IT system, and instructing a junior member of Al Ramz's IT team not to provide the DFSA with such data; and
        •   providing false and misleading information to the DFSA regarding Al Ramz's IT system.

        Mr Ian Johnston, Chief Executive at the DFSA, said: "The DFSA takes the failure to provide complete and accurate information very seriously. It is imperative that regulated persons, including Recognised Members of an Exchange, deal with the DFSA in an open and cooperative manner. In this matter, Al Ramz's conduct prolonged the DFSA's investigation and prevented the DFSA from obtaining relevant information at the appropriate time.

        "This conduct caused the DFSA to incur considerable and otherwise unnecessary investigative costs, which is why it is appropriate for Al Ramz to reimburse the DFSA. Further, the DFSA has very low tolerance for individuals who take steps to obstruct our investigations or provide us with false and misleading information."

        Al Ramz and Mr Al Attar each agreed to settle the DFSA's action against them. In reaching settlement, the DFSA agreed to reduce the fine imposed on Al Ramz by 10%, and the fine imposed on Mr Al Attar by 20%, under the DFSA's policy for early settlement. Were it not for these discounts, the fines would have been USD 228,000 (AED 836,760) for Al Ramz, and USD 40,800 (AED 149,736) for Mr Al Attar.

        The detailed reasons for the DFSA's action against Al Ramz are set out in the DFSA's Decision Notice dated 28 June 2018 which can be found in the Regulatory Actions section of the DFSA website: https://www.dfsa.ae/en/What-WeDo/Enforcement#Regulatory-Actions

        The detailed reasons for the DFSA's action against Mr Al Attar are set out in the DFSA's Decision Notice dated 28 May 2018 which can be found in the Regulatory Actions section of the DFSA website: https://www.dfsa.ae/en/What-WeDo/Enforcement#Regulatory-Actions

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services Regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

      • 2 July 2018 — DFSA Hosts 4th Annual Supervision Session

        Click here to view PDF.

        Dubai, UAE, 02 July, 2018: The Dubai Financial Services Authority (DFSA) held its Annual Supervision Outreach Session with the Compliance Officers Network Group (CONG) last week, to discuss key developments and priorities for the financial services industry in the Dubai International Financial Centre (DIFC). The annual event serves as a platform for the DFSA to engage with its regulated community and other stakeholders in respect of its key regulatory priorities such as cyber risks, fighting financial crime, and ensuring suitability of financial products and services.

        Over the course of the event, the DFSA provided updates on its current and future policy agenda, trends in recent regulatory actions, and current risks and issues in the banking, broking, insurance and wealth management sectors. The event also enabled participants to discuss the continued opportunities presented by FinTech, InsurTech and RegTech and the various initiatives being undertaken by the DIFC and the DFSA to support the United Arab Emirate's National Innovation Strategy launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, to make the UAE a global hub for innovation.

        In his opening remarks, Bryan Stirewalt, Managing Director, Supervision at the DFSA, said: "The DIFC continues to serve as the hub for financial services in the Middle East and North Africa region. It is a key part of our mandate to ensure that we are effectively engaged with our regulated population to understand evolving trends and the impact these will have on our market. This event has become a strong tradition for the DFSA as a chance to reach out to the regulated community in the DIFC."

        The event was targeted at the DFSA-regulated entities, including compliance officers and money laundering reporting officers from its Authorised Firms and Designated Non-Financial Businesses or Professions (DNFBPs). Over 300 participants attended this year's event, representing many of the 491 Authorised Firms, 121 DNFBPs and 16 Registered Auditors now operating in the DIFC.

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Bryan Stirewalt, Managing Director, Supervision, joined the DFSA in 2008 and has served as a Managing Director since 2010. Mr Stirewalt's responsibilities include prudential and conduct-oriented oversight of financial service providers and overseeing the DFSA's role with Registered Auditors, CRAs and DNFBPs. Within his primary areas of responsibilities, he also directs the DFSA's efforts in fighting methods of illicit finance. He has extensive experience in financial regulation in public and private sector roles. From 1985 to 1996, he worked for the US Treasury's Office of the Comptroller of the Currency as a National Bank Examiner, where he specialised in policy development and implementation, problem bank rehabilitation and banking fraud initiatives. From 1996 to 2008, he worked for an international consulting and advisory firm, focusing on emerging markets development programmes in Poland, Ukraine, Cyprus and Kazakhstan. Mr Stirewalt serves as the Co-Chair of the Basel Consultative Group (BCG), which provides a forum for deepening the BCBS's engagement with global supervisors on banking supervisory issues.

      • 21 June 2018 — DFSA signs MoU with Astana Financial Services Authority

        Click here to view PDF.

        Dubai, UAE, 21 June, 2018: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with the Astana Financial Services Authority (AFSA).

        The MoU was signed in the Dubai International Financial Centre (DIFC) by Mr Bryan Stirewalt, Managing Director, Supervision of the DFSA, and Mr Stephen Glynn, Chief Executive Officer, AFSA . The signing was also attended by Mr Waleed Saeed Al Awadhi, Chief Operating Officer at the DFSA.

        The MoU follows the close collaboration between the DIFC bodies and the Republic of Kazakhstan to establish the Astana International Financial Centre which has been modelled on the DIFC. It sets out a framework for the two authorities to work together for the continued development of their legal and regulatory regimes including through information and personnel exchange and training.

        Mr Stirewalt said: "We are pleased to enter into an agreement with the Astana Financial Services Authority setting out a framework of cooperation for the continued development of sound and fair financial regulatory mechanisms and capital markets in both our markets. We firmly believe that cooperation between regulators is paramount to creating a more stable financial system."

        Mr Al Awadhi said: "The DFSA has 104 bi-lateral MoUs with regulators globally, and five multi-lateral MoUs. These agreements demonstrate our commitment to building strong relationships with regional and international regulators and this comes from our focus on cooperation and collaboration in the sustainable development of global financial markets."

        Mr Glynn said: "The AFSA looks forward to a long and productive relationship with the DFSA. The DFSA lead the development of bespoke international financial centres in the Middle East and has become a model of sound regulatory practice. Our vision is to create a regulatory ecosystem equal to the DIFC and other advanced international jurisdictions. Part of our success will be dependent on our ability to share information with our peers so that we can deliver an international standard of regulation."

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Bryan Stirewalt, Managing Director, Supervision, joined the DFSA in 2008 and has served as a Managing Director since 2010. Mr Stirewalt's responsibilities include prudential and conduct-oriented oversight of financial service providers and overseeing the DFSA's role with Registered Auditors, CRAs and DNFBPs. Within his primary areas of responsibilities, he also directs the DFSA's efforts in fighting methods of illicit finance. He has extensive experience in financial regulation in public and private sector roles. From 1985 to 1996, he worked for the US Treasury's Office of the Comptroller of the Currency as a National Bank Examiner, where he specialised in policy development and implementation, problem bank rehabilitation and banking fraud initiatives. From 1996 to 2008, he worked for an international consulting and advisory firm, focusing on emerging markets development programmes in Poland, Ukraine, Cyprus and Kazakhstan. Mr Stirewalt serves as the Co-Chair of the Basel Consultative Group (BCG), which provides a forum for deepening the BCBS's engagement with global supervisors on banking supervisory issues.

        Waleed Saeed Al Awadhi, Chief Operating Officer joined the DFSA in March 2013. He has over 16 years of international and local experience in leadership and strategy roles in financial services, Islamic banking, real estate, media and telecommunication industries. He is responsible for strategic operational excellence at the DFSA by leading the development and implementation of world-class, innovative solutions and smart initiatives. Mr. Al Awadhi represents the DFSA on strategic initiatives with Government entities and with local and regional regulators and standard-setters. He plays a leading role in building UAE National capabilities both at the DFSA and the broader society. Previously, Mr Al Awadhi led the Marketing and Communication division at the Abu Dhabi Media, Priority Banking at Emirates Islamic Bank, and was Deputy Head of Retail Banking and Deputy Chief Marketing Officer at Dubai Bank, where he led Royal Banking and Wealth Management, Branding, Marketing and Communications. He was also the Global Director of Marketing and Sales at Sama Dubai, a member of Dubai Holding, and was responsible for over 20 international markets. Mr Al Awadhi has a Master of Laws with double major in Arbitration & Dispute Resolution and Financial Crimes & Money Laundering and a Bachelor degree in Applied Business Science. He is a Harvard Alumni and has completed the General Management Program (GMP) at the Harvard Business School. Mr Al Awadhi has published his first book entitled 'The Sustainability of Family Businesses in the United Arab Emirates – A Legal and Operational Perspective For Best Practice.' An article based on his book has been published in the International Company and Commercial Law Review.

      • 28 May 2018 — DFSA obtains DIFC Courts Judgement to Enforce a Fine

        Click here to view PDF.

        Dubai, UAE, 28 May 2018: The Dubai Financial Services Authority (DFSA) has recently obtained judgment in the DIFC Courts' Court of First Instance to enforce payment of a fine imposed by the DFSA on an individual.

        In May 2017, the DFSA took action against Mr Andrew John Grimes including imposing a fine of USD 52,500 (AED192,675) and restricting him from performing any function in connection with the provision of Financial Services in or from the DIFC.

        The action taken against Mr Grimes in summary, was because the DFSA found that from January 2014 to July 2014, he:

        •   was knowingly concerned in undertaking Insurance Intermediation activities which contravened DFSA legislation;
        •   failed to take reasonable care to ensure that the business for which he was responsible complied with applicable DIFC legislation; and
        •   misled the DFSA.

        The DFSA notes that Mr Grimes did not challenge the DFSA's findings against him and failed to pay the fine by the date it was due. The DFSA therefore commenced proceedings in the DIFC Courts to enforce payment of the fine by Mr Grimes.

        A copy of the DIFC Courts' judgment can be found on the DFSA's website via https://www.dfsa.ae/Documents/DIFC-Court-Order-2018/CFI-055-2017.pdf

        The detailed reasons for the DFSA's action against Mr Grimes are set out in the DFSA's Decision Notice dated 3 May 2017 which can be found in the Regulatory Actions section of the DFSA website: http://www.dfsa.ae/getattachment/753e5509- fa14-4880-a2f7-819f0a6d650e/attachment

        - Ends -

        Editor's notes:

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

      • 16 May 2018 — DFSA Expands FinTech Innovation Testing Programme

        Click here to view PDF.

        Dubai, UAE, 16 May 2018: The Dubai Financial Services Authority (DFSA) today announced the expansion of its Innovation Testing Licence (ITL) programme in response to continued interest in FinTech and the digital economy. The ITL programme enables firms to test innovations in financial technology (FinTech) in or from the Dubai International Financial Centre (DIFC).

        Six companies will form a new Cohort (Cohort 1) that will today begin the ITL application process, which includes the development of a regulatory test plan describing the proposed business model, product or service. Over the next few weeks, the DFSA will work with the applicants to navigate the on-boarding process. Should the firms be successful, they will begin a testing period lasting up to 12 months, at the end of which the firms must demonstrate that they have met the agreed targets of the test plan, and can meet the full DFSA authorisation requirements, to obtain a full licence.

        The ITL was introduced by the DFSA in May 2017, as part of its strategy to foster an innovation-friendly ecosystem in the DIFC. The restricted financial services licence allows qualifying FinTech firms to develop and test innovative concepts from within the DIFC, without being subject to the full regulatory requirements that normally apply to regulated firms.

        Bryan Stirewalt, Managing Director of Supervision at the DFSA, said: “Since introducing the ITL in May last year, we have been impressed with the volume of applications from firms wanting to test from the DIFC. This is clearly indicative of the value they place on the established ecosystem available to them here. Although a number of firms have already been granted an ITL, in order to provide the necessary support to these applicants, we have introduced the Cohort approach to reviewing applications and believe this will provide the best outcome for firms with hopes of contributing to the Dubai and UAE economy."

        The firms making up Cohort 1 illustrate the diversity of innovations in the FinTech field and the global interest to test these innovations from the DIFC.

        Cohort 1 Applicants include

        Bridg is one of the Middle East's first FinTech startups and is building a software-based payment solution that allows smartphones to process face-to-face transactions without the need to be connected to the internet.

        Delio is creating a digital ecosystem to enable deal providers to showcase investment opportunities in private assets to both institutional and private investors. The opportunities include private equity, private debt and real estate investments. Delio also intends to offer regional specific functionality, for example the ability to distinguish between Sharia and non-Sharia compliant opportunities.

        Fastnet is a FinTech adviser that aims to link cutting edge risk profiling with simple, liquid, low cost investment solutions. Its premise is that the greatest enhancement to retail investors will be in providing a much deeper and sharper understanding of investors' needs and ambitions. Fastnet's focus is on developing a detailed understanding of the client, by helping investors truly understand how their financial personality affects their investment outcomes, providing investors with the tools to manage their wealth with confidence.

        HedgeSPA offers Sophisticated Predictive Analytics to hedge funds and institutions. Its mission is to democratise access to advanced investment analytics for large institutions and sophisticated investors. HedgeSPA's core platform, powered by artificial intelligence, big data, and cloud computing, empowers professional investors with asset selection.

        MarketsFlow is a sophisticated, and innovative Machine Learning and AI-based Intelligent Robo Advisor and Digital Wealth Management platform. It offers customised portfolio strategies that are suitable to the client. The platform allows clients to manage their assets actively on a daily basis, inclusive of rebalancing, readjustments, and risk management.

        Jibrel Network, a Swiss blockchain development company, will be developing a UAEspecific financial services blockchain solution, to enable the deployment of virtual mobile accounts. Jibrel's implementation will include consumer protection, awareness and support - as well as compliance / risk management and mitigation capabilities.

        Cohort 2 applications will open in September to coincide with the second edition of the DIFC's FinTech Hive@DIFC accelerator programme. The 12-week programme, which was announced in January 2017 and went live in August in partnership with Accenture, a leading global professional services company. It is designed to bridge the gap between innovative tech entrepreneurs and financial industry giants, while providing a platform that enables the development of cutting-edge innovation in line with Dubai Plan 2021 and the DIFC's 2024 Strategy.

        Of the first 12 firms to have completed the FinTech Hive@DIFC programme, two transitioned to the DFSA's ITL to test out a FinTech innovation from the DIFC.

        This latest development forms part of the DFSA's innovation strategy, which complements the National Innovation Strategy, as set out by UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, to make the UAE a global hub for innovation. In line with the goals of the Dubai 2021 strategy, the DFSA also formalised its approach to crowdfunding loan and crowdfunding investment platforms in 2017, making it the first to introduce a bespoke framework in the GCC. Specifically, loan crowdfunding has become a valuable source of financing for SMEs in several jurisdictions.

        For details of the application process please visit dfsa.ae/fintech

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Bryan Stirewalt, Managing Director, Supervision, joined the DFSA in 2008 and has served as a Managing Director since 2010. Mr Stirewalt's responsibilities include prudential and conduct-oriented oversight of financial service providers and overseeing the DFSA's role with Registered Auditors and CRAs. Mr Stirewalt also directs the DFSA's efforts to fight methods of illicit finance within his primary areas of responsibilities, as well as with DNFBPs. He has extensive experience in financial regulation in public and private sector roles. From 1985 to 1996, he worked for the US Treasury's Office of the Comptroller of the Currency as a National Bank Examiner, where he specialised in policy development and implementation, problem bank rehabilitation and banking fraud initiatives. From 1996 to 2008, he worked for an international consulting and advisory firm, focusing on emerging markets development programmes in Poland, Ukraine, Cyprus and Kazakhstan. Mr Stirewalt serves as the Co-Chair of the Basel Consultative Group (BCG) which provides a forum for deepening the BCBS's engagement with global supervisors on banking supervisory issues.

      • 3 April 2018 — DFSA Hosts Accounting Standard-Setters for Islamic Finance

        Click here to view PDF.

        Dubai, UAE, 03 April March, 2018: The Dubai Financial Services Authority (DFSA) hosted the International Accounting Standards Board (IASB) Islamic Finance Consultative Group (IFCG) meeting last week. The DFSA's involvement reflects its commitment to develop an effective and supportive regulatory framework for Islamic finance.

        Mr Ian Johnston, Chief Executive of the DFSA, delivered the opening address where he said that the DFSA places great importance on maintaining the highest international standards in its regulatory processes including for financial institutions applying Islamic principles.

        Mr Johnston said: "Since its inception, the DFSA has been tasked with supporting the Dubai Government's ambitions to develop Dubai into a centre for Islamic finance. In line with the Islamic Economy Initiative of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, Ruler of Dubai, the DFSA has focused considerable effort on developing an effective and supportive regulatory framework for all types of Islamic finance activity, including the listing of Sukuk on Nasdaq Dubai."

        The DFSA is a member of the IFCG that was formed by IASB in 2013 with a mandate to focus on challenges that may arise in the application of International Financial Reporting Standards (IFRS) to instruments and transactions commonly referred to as Islamic finance. The meeting was attended by IFCG members from Bahrain, Indonesia, Malaysia, Pakistan, Saudi Arabia, UAE and the United Kingdom.

        Following the IFCG meeting, the DFSA hosted an Outreach session with the IASB where an IASB board member and senior technical staff shared their approach to supporting implementation of IFRSs, in particular IFRS 9 (Financial Instruments), IFRS 15 (Revenue from Contracts with Customers), IFRS 16 (Leases) and IFRS 17 (Insurance Contracts). The session provided an opportunity for the stakeholders to provide comments about their experiences in implementing IFRS.

        The event was attended by the DFSA Registered Auditors, UAE regulators, academia and professional accounting bodies. Over 50 stakeholders attended the event.

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services Regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

      • 19 February 2018 — DFSA Hosts Annual Audit Outreach

        Click here to view PDF.

        Dubai, UAE, 19 February 2018: The Dubai Financial Services Authority (DFSA) hosted its annual outreach event for Registered Auditors (RAs) this week, during which it shared the results of its annual audit inspections carried out in 2017.

        Mr Ian Johnston, Chief Executive of the DFSA, delivered the opening address where he commented on the significant progress being made in financial accounting standards, while noting that risks still remain in the audit process. He cited the International Forum of Independent Audit Regulators (IFIAR) fifth annual survey of findings issued last March for the year ended 31 December 2016, which noted a general decline in adverse inspection findings, yet a continued high level of material findings.

        Mr Johnston said: "Major audit failures usually result in a regulatory response and as regulators, we seek to ensure that any regulatory response is conducted by persons independent of those involved in the regulatory failure. Once faults are identified, it is also incumbent upon the regulator to take the appropriate and proportionate course of action.

        "The overarching objective of DFSA enforcement activities is to prevent, detect and restrain conduct that causes or may cause damage to the reputation of the Dubai International Financial Centre. We work proactively, where possible, to resolve regulatory concerns by taking remedial action to bring firms back into compliance with our legal and regulatory regime," he said.

        The DFSA also briefed the participants about the DFSA's preparedness for the upcoming Financial Action Task Force (FATF) mutual evaluation and provided an update on the Supervision Division restructuring plans. Presentations also covered the 2018 Audit Monitoring Focus as issued by the DFSA at the start of the year.

        The event was targeted at managing partners, audit principals, money laundering reporting officers and senior audit staff of RAs. Over 90 stakeholders attended the event.

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services Regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

      • 11 February 2018 — DFSA Signs MoU with Central Bank of Oman

        Click here to view PDF.

        Dubai, UAE, 11 February 2018: The Dubai Financial Services Authority (DFSA) and the Central Bank of Oman signed a Memorandum of Understanding (MoU) to cooperate in the supervision and authorisation of firms operating in both markets.

        The MoU was signed in the Dubai International Financial Centre by Mr Bryan Stirewalt, Managing Director, Supervision of the DFSA, and His Excellency, Tahir Bin Salim Bin Abdullah Al Amri, Executive President of the Central Bank of Oman. Signing was also attended by; Mr Waleed Saeed Al Awadhi, Chief Operating Officer and Mr Mark McGinness, Head of International Relations at DFSA. From the Central Bank of Oman; Mr Bader Khalid Al-Aghbari, Vice President, Financial Services and Operations, Mr Rashid Zayid Al Ghassani, Senior Manager, Banking Examination and Surveillance Departments, Mr Mazin Hamed Al Riyami, Economist, Economic Research and Statistics Department, and Mr Salim Hamed Al khanbashi, Assistant Manager, Executive President's Office were also present.

        Mr Stirewalt said: "We are honoured to host His Excellency, Executive President of the Central Bank of Oman. This agreement is indicative of the value we place on regional cooperation and sustainable growth of financial services in our respective markets. DFSA already enjoys a warm relationship with the Capital Markets Authority of Oman, with whom we signed a MoU in October 2008."

        His Excellency, Tahir Bin Salim Bin Abdullah Al Amri, Executive President of the Central Bank of Oman, said: "The MoU aims at strengthening the bilateral relationship and enhancing mutual cooperation between ourselves and DFSA. It also aims at supporting and developing banking, financial and economic operations for both the Sultanate of Oman and DIFC and the UAE."

        The agreement is the third MoU signed by DFSA with a Central Bank in the Gulf and reflects the level of trust and confidence each Authority has for the other. In January, DFSA signed an MoU with the Central Bank of Bahrain to cooperate in the supervision and authorisation of firms operating in both markets. This builds upon an MoU signed with the Central Bank of the UAE in 2009.

        DFSA has 103 bi-lateral MoUs with regulators globally, and five multi-lateral MoUs. The agreements reflect the continued need for regulatory cooperation in global financial markets.

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA)

        The DFSA is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Bryan Stirewalt joined the DFSA in 2008 and has served as a Managing Director since 2010. Mr Stirewalt's responsibilities include prudential and conduct-oriented oversight of financial service providers and overseeing the DFSA's role with Registered Auditors and CRAs. Mr Stirewalt also directs the DFSA's efforts to fight methods of illicit finance within his primary areas of responsibilities, as well as with DNFBPs. He has extensive experience in the financial regulation public and private sector roles. From 1985 to 1996, he worked for the US Treasury's Office of the Comptroller of the Currency as a National Bank Examiner, where he specialised in policy development and implementation, problem bank rehabilitation and banking fraud initiatives. From 1996 to 2008, he worked for an international consulting and advisory firm, focusing on emerging markets development programmes in Poland, Ukraine, Cyprus and Kazakhstan. Mr Stirewalt serves as the Co-Chair of the Basel Consultative Group (BCG), which provides a forum for deepening the BCBS's engagement with global supervisors on banking supervisory issues.

      • 31 January 2018 — DFSA Publishes Findings of Client Classification and Suitability Review

        Click here to view PDF.

        Dubai, UAE, 31 January 2018: The Dubai Financial Services Authority (DFSA) today published the findings of a thematic review of client classification and suitability practices at regulated firms. The review is part of the DFSA's risk-based supervisory efforts.

        The thematic review started with a comprehensive survey followed by detailed analysis of responses and follow-up visits to selected firms over the course of the year. The review had two primary objectives. First, the DFSA wished to verify that Clients of regulated firms in the DIFC were classified appropriately, according to the rules set out by the DFSA and according to each firm's authorised activities. Secondly, the DFSA wished to assess how each firm determined the suitability of products and services for each Client, based on that Client's knowledge, expertise and risk appetite. The review also focused on how firms were documenting the suitability assessments.

        The review found that while overall processes for client classification and suitability assessments had improved since the last review in 2012, concerns remained. This included in some cases, insufficient training and guidance provided to staff to perform client classification assessments; inadequate and often unclear documentation to support assessments; and over-reliance on 'tick-box' assessment approaches rather than detailed qualitative assessments. The DFSA noted continued concerns around the appropriateness of using "suitability waivers" and other language in Client Agreements to limit liability, duties and obligations in respect of suitability.

        In light of the findings of the review, the DFSA offered recommendations to regulated firms to support the enhancement of relevant systems and controls and to ensure Clients' interests are properly considered and protected. These include:

        •   Develop appropriate policies and procedures, including operational procedures, to:
        •   provide sufficient guidance on the steps required to carry out assessments supporting client classification;
        •   document client assessments in a more robust manner, including the final client classification; and
        •   ensure all Clients are notified of their right to be classified as a Retail Client.
        •   Provide training programmes to ensure all client-facing staff are knowledgeable of client classification.

        Mr Ian Johnston, Chief Executive of the DFSA, said: "The Dubai International Financial Centre (DIFC) has evolved into a hub for wealth management and advisory services for individuals, families, and other Clients who should be able to rely upon the judgments of our financial professionals. All firms must keep in mind that client classification and suitability assessments, and all forms of investor protections, are and will continue to be very high DFSA priorities and will feature in the DFSA's future supervisory agenda.

        "We expect this report to be instructive to Firms and their staff and to promote certain behaviours conducive to the best interests of Clients in the DIFC."

        Click on the Client Classification Report to access the report on the DFSA's website.

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor. Mr Johnston is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

      • 22 January 2018 — DFSA and Central Bank of Bahrain sign MoU

        Click here to view PDF.

        Dubai, UAE, 22 January 2018: The Dubai Financial Services Authority (DFSA) and the Central Bank of Bahrain signed a Memorandum of Understanding (MoU) last week to cooperate in the supervision and authorisation of firms operating in both markets.

        The MoU was signed by Saeb Eigner, Chairman of the DFSA, and His Excellency Rasheed Mohammed Al-Maraj, Governor of the Central Bank of Bahrain, in Manama.

        Mr Eigner said: "The DFSA places great importance on the relationships we have with our counterparts in the GCC. The signing of this MoU formalises arrangements for cooperation and information sharing between us. It underscores our shared commitment to maintaining the highest standards of supervision and the joint promotion of a stable financial services sector in our region.

        "It also builds upon Dubai and the UAE leadership's Vision of continued regional and international engagement. I am particularly grateful to His Excellency, the Governor for hosting our meeting and for the opportunity to share the experiences of two neighbouring regulators of international financial centres with much in common."

        The DFSA and the Central Bank of Bahrain have for some years, been cosignatories of the multi-lateral MoU of the International Organisation of Securities Commissions. The bi-lateral MoU between the two authorities enhances this relationship, reflecting both authorities' commitment to international standards.

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA)

        The DFSA is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Saeb Eigner

        Saeb Eigner was appointed DFSA Chairman in August 2011. He has been a member of the Board since October 2004 and served as Deputy Chairman from 2007 until 2011.

        Formerly a Senior Manager at ANZ Grindlays Bank PLC, in London, Mr Eigner headed the Middle East and Indian Subcontinent Division of the private bank, which he left to found Lonworld, a private investment group in the early 1990s. Mr Eigner holds a Master's Degree in Management from London Business School. He is a former Governor of London Business School, Chairman of its Audit and Risk Committees and currently a member of its Estate Committee. He is the co-author of the management books Sand to Silicon (2003),Sand to Silicon - Going Global (2009), and author of Art of the Middle East (2010 and 2015).

        He holds and/or has held a number of Board appointments in Banking, Strategy, Education, Regulation and Investment.

    • 2017

      • 23 November 2017 — DFSA and ASIC sign FinTech agreement

        Click here to view PDF.

        Dubai, UAE, 23 November 2017: The Dubai Financial Services Authority (DFSA) and the Australian Securities and Investments Commission (ASIC) entered into an agreement today that sets out a framework for cooperation on financial technology (FinTech) innovation. The agreement demonstrates a commitment by both Authorities to provide a regulatory framework that promotes innovation in financial services and regulatory compliance in their respective markets.

        The signing took place between Mr Ian Johnston, Chief Executive of the DFSA, and Mr John Price, Commissioner of ASIC, in Melbourne. Under the terms of the agreement, the Authorities will share information on developments in innovation in each market. The agreement also introduces a referral mechanism that enables the Authorities to refer innovative businesses to their respective authorities.

        Mr Johnston said: "Today's agreement underscores our commitment to maintaining strong channels of communication with our regulatory peers and creates a regulatory framework that supports the latest developments in FinTech innovation. We have a long-standing productive relationship with our colleagues at ASIC, which we look forward to extending to this fast-developing industry."

        John Price, Commissioner, ASIC, said: "We are excited to partner with the DFSA to help encourage fintech innovation in Australia and Dubai. RegTech is becoming more and more important — this is a new frontier in our bilateral cooperation that will benefit both regulators and businesses."

        This latest cooperation agreement forms part of the DFSA's innovation strategy, which complements the National Innovation Strategy, as set out by UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, to make the UAE a global hub for innovation. In August, the DFSA launched the first tailored regime for loan and investment crowdfunding platforms in the GCC. In May, the DFSA launched its Innovation Testing Licence, a special class of financial services licence that allows FinTech firms to develop and test innovative FinTech concepts in or from the DIFC. The DFSA's initiatives follow the launch of the FinTech Hive at the DIFC, bringing together the next generation of leaders and entrepreneurs to address the growing needs of the region's financial services industry, using innovative technology solutions. Its aim is to catalyse growth and efficiency in a variety of areas including trade finance, alternative finance and Shariah-based services.

        In March 2015, ASIC, an early leader in this field, established the Innovation Hub to assist innovative FinTech businesses navigate its regulatory system. Through its Innovation Hub, ASIC engages with the FinTech community, provides assistance to innovative FinTech start-ups and liaises with FinTech experts through ASIC's Digital Finance Advisory Committee.

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Mr Johnston is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

        In September 2006, the DFSA and the Australian Securities and Investments Commission (ASIC) signed a Memorandum of Understanding (MoU) to establish a framework for mutual assistance and the exchange of information. Its aim was to enhance supervision of cross-border transactions and create an environment conducive to the prevention of fraud.

        The Authorities are also co-signatories of the International Organization of Securities Commissions Multilateral-MoU (MMoU) initiative, covering consultation and cooperation and the exchange of information, and the International Forum of Independent Audit Regulators MMoU to increase cooperation with the oversight of audit professionals.

      • 9 November 2017 — DFSA grants Sarwa Digital Wealth Ltd In-Principle Approval for Innovation Testing Licence

        Click here to view PDF.

        Dubai, UAE, 9 November 2017: The Dubai Financial Services Authority (DFSA) today granted Sarwa Digital Wealth Limited (Sarwa), an automated investment advice service, in-principle approval1 for its Innovation Testing Licence (ITL). The DIFC-based company becomes the first FinTech operator to receive approval for this special class of financial service licence developed specifically for FinTech firms.

        The DFSA's ITL is a restricted financial services licence that allows qualifying FinTech firms to develop and test innovative concepts from within the DIFC, without being subject to all the regulatory requirements that normally apply to regulated firms. It was introduced in May this year, as part of the DFSA's efforts to develop a regulatory framework that promotes growth and innovation in the sector.

        Ian Johnston, Chief Executive, DFSA, said: "The DFSA has worked closely with Sarwa's management to understand its business proposal and the appropriate controls for the safety of customers involved, as the company works towards receiving an ITL."

        Sarwa is the first automated investment advice service for young professionals in the Middle East, which combines investment strategies with technology to reduce investments costs. It is among the 12 start-ups to participate in the FinTech Hive at DIFC, the region's first accelerator programme launched by the DIFC in partnership with Accenture in January this year.

        The 12-week programme went live in August to facilitate collaboration between cutting-edge technology companies and leading regional and international financial institutions. It intends to catalyse growth and efficiency in a variety of areas including Regulatory Technology (RegTech), alternative finance and mobile payments, and concludes with an Investor Day on 12 November 2017.

        Mr Johnston added: "We have been impressed by the proposals presented by the Hive participants. We expect several others to apply for DFSA regulation and are already considering the regulatory test plans of some."

        Ms Raja Raja Al Mazrouei, Acting Executive Vice President of FinTech Hive at DIFC, said: "This announcement is a true testament to the success of Fintech Hive at DIFC and the opportunities we provided to our finalists. We remain committed to driving the development of the financial sector in the region and we look forward to seeing more success stories coming out of this Programme."

        In addition to the FinTech Hive at DIFC finalists, the DFSA is in discussions with a range of FinTech firms interested in applying for the ITL or a full financial services licence, with business models including robo-advisors, crowdfunding platforms and digital wallets and payment services. The DFSA is also engaging with a number of RegTech firms, who do not need to be licenced, to understand developments in this area and facilitate progress where possible.

        The DFSA's efforts to support the sustainable development of FinTech and RegTech in the DIFC compliments the UAE National Innovation Strategy set out by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, to make the UAE a hub for innovation and technology. In addition to the ITL, the DFSA introduced a tailored regime for loan and investment crowdfunding platforms in August, the first such framework in the GCC region.

        - Ends -

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        The DFSA issues an in-principle approval when it is satisfied that the applicant firm can meet the relevant regulatory requirements. The firm then needs to take practical steps, such as obtaining premises, before it receives the formal licence.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Mr Johnston is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

      • 31 October 2017 — DFSA Continues to Develop its Funds Regime

        Click here to view PDF.

        Dubai, UAE, 31 October 2017: The Dubai Financial Services Authority (DFSA) has today consulted on a comprehensive package of proposals to support the continued development of the growing funds industry in the Dubai International Financial Centre (DIFC).The proposals are wide-ranging and are designed to provide greater flexibility for investors and fund managers in the Centre.

        Ian Johnston, the Chief Executive of the DFSA, said: "These proposals, to enhance our funds regime, mark yet another milestone in the evolution and development of the funds industry in the DIFC. The changes reflect our ongoing commitment to maintaining international standards, while being fully aware of the need to tailor our regime to take account of DIFC specific factors and the regional requirements."

        The funds industry in the DIFC has been growing steadily with 18 Funds being registered so far in the current year, reinforcing the status of the DIFC as the largest fund hub in the region. The DFSA aims to provide further opportunities for industry development by:

        •  removing the current limits on the number of investors which a DIFC fund can have. Currently only a Public Fund is able to have 101 or more investors, with an Exempt Fund being limited to 100 or fewer investors and a Qualified Investor Fund ("QIF") to 50 or fewer investors. The proposals will not change the current approach to regulation of these funds, based on the type of investors (e.g. Public Funds, being open to retail investors, face greater regulatory requirements). These proposals will give fund managers more flexibility in structuring Funds.
        •  introducing a new class of specialist funds for Exchange-Traded Funds (ETFs). These open-ended funds, listed and traded on exchanges, are popular with both retail and institutional investors in other jurisdictions. Their introduction would give fund managers greater choice of the type of Funds they could offer in or from the DIFC.
        •  introducing a new model for internal management of an Investment Company, where such a company can be internally managed by its licensed sole Corporate Director. This is a model available in the European Union and the proposals introduce it with some adjustments to suit the DIFC regime.

        The proposals strengthen the DFSA's commitment to meeting international standards, particularly of the Financial Stability Board and the International Organization of Securities Commissions, through measures to enhance liquidity risk management in open-ended funds. Open-ended funds give investors the right to have units redeemed at a price calculated based on the net asset value of the fund's portfolio of assets.

        One of the key areas of recent funds growth in the DIFC is in the Property Funds sector, particularly in Real Estate Investment Trusts (REITs), with two REITs already listed and traded on Nasdaq Dubai. The proposals remove the current restriction that all Property Funds must be closed-ended. Instead, only Public Property Funds will need to be closedended funds. Exempt Funds and QIFs which are Property Funds would be able to choose whether they wish to be closed-ended or open-ended.

        The name REIT is currently restricted to Public Property Funds investing in income generating real estate and distributing at least 80% of their net annual income. Exempt Funds and QIFs, which are Property Funds, will, under the proposals, be allowed to use the name REIT if they invest in income generating real estate and distribute 80% of their annual income.

        The consultation paper can be accessed by the following link:
        https://www.dfsa.ae/MediaRelease/News/Notice-of-Consultation-Paper-Release-(6)

        - Ends -

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The DFSA is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Council of the Islamic Financial Services Board (IFSB), the global standard-setting body for Islamic finance. Ian was a member of the Board of Directors of the Financial Planning Standards Board, from January 2011 to March 2016.

      • 25 October 2017 — DFSA to co-host 2nd Annual FinTech Summit

        Click here to view PDF.

        Dubai, UAE, 25 October 2017: The Dubai Financial Services Authority (DFSA) is delighted to co-host the 2nd Annual FinTech Summit with Naseba a business facilitation company at Park Hyatt Dubai, on October 30. The summit will provide a platform for the region's Banking, Financial Services and Insurance (BFSI) decision makers to discuss and evaluate the latest developments in FinTech.

        The DFSA's involvement in the summit reflects its efforts to develop an innovation-friendly ecosystem, and compliments the UAE National Innovation Strategy set out by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, to make the UAE a hub for innovation and technology.

        The summit is being held under the theme 'Transforming BFSI Enterprises' and will feature keynote addresses from industry thought leaders, as well as business meetings between FinTech solution providers and BFSI senior executives who are seeking to adopt FinTech solutions. Delegates will hear from a distinguished panel of experts, who will discuss the latest developments and innovations in FinTech including Artificial Intelligence, Blockchain, Digital Payments, and Cyber Security.

        In May, the DFSA introduced the DFSA's Innovation Testing Licence, a special class of restricted financial services licence that allows FinTech firms to develop and test innovative FinTech concepts from the Dubai International Financial Centre (DIFC). In addition, the DFSA introduced a tailored regime for loan and investment crowdfunding platforms in August.

        Mr Bryan Stirewalt, Managing Director, Supervision, at the DFSA, said: "We are firm believers in the value that FinTech can bring to this region and are providing the regulatory infrastructure to ensure its sustainable development in and from the DIFC. We are delighted to use this platform to bring together market practitioners and experts to discuss the latest developments in this new and exciting area."

        Speakers at the summit include; Mr Stirewalt, Alastair Lukies CBE, the UK Prime Minister's Business Ambassador for FinTech, Sagheer Mufti, Chief Operating Officer of Abu Dhabi Islamic Bank, Naimish Shah, SVP of Innovation and FinTech at Emirates NBD.

        - Ends -

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Bryan Stirewalt joined the DFSA in 2008 and has served as a Managing Director of the Supervision Division since 2010. The Supervision Division includes prudential and conduct-oriented oversight of a variety of financial service providers, including: commercial banks, investment banks, insurance companies, wealth managers, and a variety of advisory services.

        The Supervision Division also oversees the DFSA's role with auditors and credit rating agencies. Mr Stirewalt is active in the DFSA's efforts to fight methods of illicit finance with respect to the entities mentioned above, as well as with other DNFBPs. Mr Stirewalt has extensive experience in the financial regulatory sphere, in both public and private sector roles. From 1985 to 1996, he worked for the US Treasury's Office of the Comptroller of the Currency as a National Bank Examiner, where he specialised in policy development and implementation, problem bank rehabilitation and banking fraud initiatives.

        From 1996 to 2008, he worked for an international consulting and advisory firm, focusing his attention on emerging markets development programmes, including management of large-scale and multi-faceted projects in Poland, Ukraine, Cyprus and Kazakhstan. These projects related to a wide array of topics including financial sector development, risk management policies and practices, anti-money laundering systems and controls and methods of supervising complex financial conglomerates.

      • 4 October 2017 — DFSA Censures Finance Officer

        Click here to view PDF.

        Dubai, UAE, 4 October 2017: The Dubai Financial Services Authority (DFSA) has censured Mr Prabhakar Kamath, a former Finance Officer of a DFSA Authorised Firm for submitting an inaccurate financial report to the DFSA.

        Mr Kamath, in his capacity as Finance Officer, was responsible for submitting the Firm's monthly financial reports to the DFSA, and its compliance with the DFSA's Rules in relation to prudential requirements.

        In June 2015, Mr Kamath provided the DFSA with the Firm's monthly financial report for May 2015. The report was incorrect because it represented that the Firm continued to meet the DFSA's prudential requirements. In fact, the Firm's current account balance was significantly less than stated and, therefore, the Firm was in breach of the DFSA's prudential requirements.

        Before Mr Kamath submitted the financial report to the DFSA, a member of the Firm's senior management gave Mr Kamath inaccurate information about the Firm's current account balance. However, Mr Kamath failed to take steps to verify the balance of the Firm's current account. In particular, he did not obtain and review relevant bank statements.

        The DFSA considers that Mr Kamath breached the DFSA's Principles for Authorised Individuals by failing to exercise sound judgment and diligence in performing the role of Finance Officer.

        Following the conclusion of the DFSA's investigation, Mr Kamath accepted responsibility for his conduct and agreed to settle the matter at an early stage. While breaches of the DFSA's Principles for Authorised Individuals have, in the past, resulted in a financial penalty, the DFSA concluded that a public censure is the most appropriate action given the circumstances of this matter. Mr Kamath also cooperated fully with the DFSA's investigation.

        A copy of the DFSA's Decision Notice given to Mr Kamath can be found on the DFSA website under Regulatory Actions.

        https://www.dfsa.ae/en/What-We-Do/Enforcement#Regulatory-Actions

        - Ends -

        Editor's notes:

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1612
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      • 18 September 2017 — DFSA Signs MoU with Lebanon's CMA

        Click here to view PDF.

        DFSA Signs MoU with Lebanon's CMA

        Dubai, UAE, 18 September 2017: The Dubai Financial Services Authority (DFSA) has today entered into a Memorandum of Understanding (MoU) with Lebanon's Capital Markets Authority (CMA). The agreement will enhance information sharing and cooperation around supervisory issues, further extending the existing relationship between the two markets.

        Mr Ian Johnston, Chief Executive of the DFSA, and Mr Sami Saliba, Executive Board Member of the CMA, signed the MoU in the offices of the DFSA. It also provides the foundation to facilitate the entry of some financial institutions into the Dubai International Financial Centre (DIFC) from Lebanon, through information sharing.

        Mr Johnston said: "Building strong frameworks of cooperation with our regional peers has always been a strategic objective for us. We have MoUs in place throughout the GCC as well as in Egypt, Jordan and, through our MoU with the Banque du Liban (BDL).

        "Today's MoU affirms the success of our relationship with the Lebanese authorities and recognises the joint oversight of brokerage firms, investment banks and other non-banking financial institutions in the two jurisdictions."

        The MoU reflects growing relations between the DIFC and Lebanese markets. The DFSA entered into a MoU with the BDL in 2013, to enhance information sharing and cooperation. Meanwhile in May this year, the DIFC hosted the "Lebanese Banks Day in DIFC" under the patronage and in the presence of H.E. Riad Salamé, Governor, BDL and H.E. Essa Kazim, Governor, DIFC. Senior representatives of the Lebanese banking community attended the event in an effort to further build relationships among the well-established sector.

        - Ends -

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Mr Johnston is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

        The Capital Markets Authority (CMA) was established in August 2011 as the independent, autonomous regulatory body responsible for regulating, supervising, licensing and monitoring the activities of Lebanese Capital Markets. The CMA has two main objectives that underline its strategic mission and vision: (I) promoting and developing the Lebanese Capital Markets; and (II) protecting investors from fraudulent activities, through issuing regulations that are in line with international best practices, and proper control and audit of all institutions that deal with financial instruments.

        Sami Saliba is currently Executive Board Member of the CMA. Prior to his appointment, Mr. Saliba held several responsibilities, as Head of the accounting and financial control in Bank of Beirut and the Arab Countries ("BBAC") between 2005 and 2012, Director of Financial Control and the Department of Informatics, Managing Director at Bank of Beirut between 1998 and 2005. Mr. Saliba also worked as finance director for the LINORD Project between 1995 and 1998, Consultant Director in the BankMed between 1993 and 1995, Head of the Department of Studies and banking relations/section of investments in the Arab Monetary Fund, Abu Dhabi – between 1985 and 1993, and Registered Representative at Merrill Lynch International New York – Dubai between 1983 and 1985.

        Mr. Saliba holds a master's degree in International Business Administration from the Western New England College in the United States, and a BA in international management from the University of Lowell in the United States.

      • 12 September 2017 — DFSA and Malaysia's Securities Commission sign FinTech Agreement

        Click here to view PDF.

        Dubai, UAE, 12 September 2017: The Dubai Financial Services Authority (DFSA) and Securities Commission Malaysia (SC) last week entered into an agreement to cooperate in the development of financial technology (FinTech) innovation. The agreement reflects efforts by both authorities to provide a robust regime that fosters innovation in the Dubai International Financial Centre (DIFC) and Malaysia.

        The agreement was signed by Mr Ian Johnston, Chief Executive of the DFSA, and Tan Sri Ranjit Ajit Singh, Chairman of the SC. Under the terms, the authorities will share information on developments and innovations in FinTech, and intend to consider participating in joint innovation projects on the application of novel approaches to FinTech in each market. Given the significance of Islamic finance in both Malaysia and Dubai, FinTech developments in that sector will be of particular interest.

        The agreement also provides a framework for cooperation and referrals between the innovation functions of each authority. The framework sets out a referral mechanism, which will enable the authorities to refer Innovator Businesses between their respective Innovation Functions and to provide the businesses with regulatory guidance.

        Mr Johnston said: "Our FinTech regime is developed to enhance and improve access to finance and the efficiency of markets. We also want to encourage innovative financial services and solutions. By collaborating with the SC, we will further strengthen our FinTech proposition across traditional and Islamic finance markets."

        The DFSA and SC have a long-standing relationship to support developments in each other's markets. In 2007, the authorities signed a mutual recognition agreement related to cross-border distribution and marketing of Islamic funds between Malaysia and the DIFC. It followed a 2006 joint initiative on regulatory alignment to facilitate Islamic finance transactions between the DIFC and Malaysia.

        The latest cooperation agreement forms part of the DFSA's innovation strategy, which complements the National Innovation Strategy, as set out by UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, to make the UAE a global hub for innovation. In August, the DFSA became the first regulator to launch a tailored regime for loan and investment crowdfunding platforms in the GCC. In May, the DFSA launched its Innovation Testing Licence, a special class of financial services licence that allows FinTech firms to develop and test innovative FinTech concepts from the DIFC.

        The DFSA's initiatives follows the launch of the FinTech Hive at the DIFC, bringing together the next generation of leaders and entrepreneurs to compete and address the growing needs of the region's financial services industry, using innovative technology solutions. Its aim is to catalyse growth and efficiency in a variety of areas including trade finance, alternative finance and Shariah-based services.

        In May, the SC introduced a framework to facilitate digital investment services. This follows the 2015 launch of the 'alliance of FinTech community' initiative in to engage with the tech entrepreneur community on innovative digital finance business models and technology related regulatory and policy matters.

        - Ends -

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Mr Johnston is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

        The Securities Commission Malaysia (SC) is a statutory body established under the Securities Commission Act 1993 (SCA) to regulate and develop the Malaysian capital market. The SC's mission is to promote and maintain fair, efficient and transparent securities and derivatives markets to facilitate the orderly development of an innovative and competitive capital market. It is committed to ensuring investor protection, fair and orderly markets and reducing systemic risks. The SC's powers and authorities are clearly defined and transparently set out in securities laws, namely the SCA, Capital Markets and Services Act 2007 (CMSA) and Securities Industry (Central Depositories) Act 1991 (SICDA)

        Tan Sri Dato' Seri Ranjit was appointed the Vice-Chairman of the governing Board of the International Organization of Securities Commissions (IOSCO), the global body of capital market regulators and was elected as the Chairman of IOSCO's Growth and Emerging Markets Committee (GEM) which represents 94 countries. In 2014, Tan Sri Dato' Seri Ranjit was appointed Chairman of the ASEAN Capital Markets Forum (ACMF), a body tasked to spearhead market integration efforts within the region and comprises capital market authorities from ASEAN.

        Tan Sri Dato' Seri Ranjit chairs the Securities Industry Development Corporation (SIDC), the Malaysian Venture Capital and Private Equity Development Council (MVCDC) and the Capital Market Development Fund (CMDF). He is also the Vice- Chairman of the Asian Institute of Finance and a member of the Board of the Labuan Financial Services Authority and the Financial Reporting Foundation as well as a board member of the Malaysian Institute of Integrity (IIM).

        Tan Sri Dato' Seri Ranjit is trained as a financial economist and accountant. He holds a Bachelor of Economics (Honours) degree and a Master of Economics degree in Finance from Monash University, Melbourne. He was also conferred the degree of Doctor of Laws honoris causa by Monash University Melbourne. He is a fellow of CPA Australia and has worked in academia, consulting and accounting in Australia and Malaysia.

        Tan Sri Dato' Seri Ranjit's term as Executive Chairman has been extended for a further three years effective 1 April 2017.

      • 28 August 2017 — DFSA and Hong Kong's SFC sign FinTech Cooperation Agreement

        Click here to view PDF.

        Dubai, UAE, 28 August 2017: The Dubai Financial Services Authority (DFSA) and the Securities and Futures Commission (SFC) in Hong Kong today entered into an agreement to establish a framework of cooperation on financial technology (FinTech) innovation. The agreement will further strengthen the efforts of both authorities to develop an innovations-friendly ecosystem in their respective markets.

        The signing took place between Mr Ian Johnston, Chief Executive of the DFSA, and Mr Ashley Alder, Chief Executive of the SFC, in Hong Kong.

        Under the agreement, both authorities will share information on developments and innovations in FinTech in their respective markets. The agreement also intends to encourage both regulators to refer innovative firms to one another's markets and to provide them with regulatory guidance.

        Mr Johnston said: "Providing a regime that fosters innovation in the Dubai International Financial Centre (DIFC), is a strategic priority for us. This agreement with Hong Kong's SFC deepens cooperation between our two markets and will build a common understanding of the principles of good innovation."

        "This agreement underscores the SFC's efforts to strengthen regulatory collaboration and promote innovation in financial services," said Mr Alder.

        "We look forward to working closely with the DFSA to support FinTech development in both our markets."

        The agreement extends the existing relationship between the SFC and the DFSA with a joint commitment to maintain the highest standards of cooperation. Both regulators are signatories to the 10SCO Multi-lateral Memorandum of Understanding (MMoU). They also entered into a bi-lateral MoU in 2008.

        The agreement marks the latest step in the DFSA's roadmap to build a framework that supports innovation in the DIFC. It follows the introduction of regulations formalising a tailored regime for loan and investment crowdfunding platforms on August 1, the first in the GCC. On May 24, the DFSA launched its Innovation Testing Licence (ITL), a special class of financial services licence that allows FinTech firms to develop and test innovative FinTech concepts from the DIFC.

        The DFSA's innovation strategy is aligned with the National Innovation Strategy set out by UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, to make the UAE a global hub for innovation. It follows the launch of the FinTech Hive at DIFC, which will bring together the next generation of leaders and entrepreneurs to compete and address the growing needs of the region's financial services industry, using innovative technology solutions. It intends to catalyse growth and efficiency in a variety of areas including trade finance, alternative finance and Shari'ah-based services.

        For its part, the SFC established the FinTech Contact Point (FTCP) in March 2016 to enhance communication with businesses involved in the development and application of FinTech and regulatory technology in Hong Kong. The FTCP also facilitates an understanding of the SFC's current regulatory regime while enabling it to stay informed of the development of the local industry.

        - Ends -

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Mr Johnston is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (10SCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 - Mar 2016).

        The Securities and Futures Commission (SFC) is an independent statutory body charged with regulating the securities and futures markets in Hong Kong and overseeing their orderly development. The SFC derives its investigative, remedial and disciplinary powers from the Securities and Futures Ordinance (SFO) and subsidiary legislation. As a financial regulator in an international financial centre, it strives to strengthen and protect the integrity and soundness of Hong Kong's securities and futures markets for the benefit of investors and the industry.

        Ashley Alder was appointed as Chief Executive Officer of the SFC on 1 October 2011.

        Prior to joining the SFC, Mr Alder was Head of Asia of the international law firm Herbert Smith LLP in Hong Kong, focusing on equity capital markets as well as mergers and acquisitions, private equity and venture capital. He also handled regulatory and compliance work.

        Currently, Mr Alder is the Chairman of the Board of the International Organization of Securities Commissions.

      • 9 August 2017 — DFSA Action against Former DIFC Employee

        Click here to view PDF.

        Dubai, UAE, 9 August 2017: The Dubai Financial Services Authority (DFSA) has recently taken enforcement action against Chetan Parmar, a former employee of Deutsche Bank AG's DIFC branch (DBDIFC).

        The DFSA found that, in July 2012 and April 2013, Mr Parmar provided the DFSA with false information regarding DBDIFC's private wealth management activities with the result that the DFSA was misled.

        The DFSA imposed a fine of USD 25,000 (AED 91,750) on Mr Parmar for his misconduct. The action taken against Mr Parmar is final as he has not referred the DFSA's decision to the Financial Markets Tribunal for review.

        In April 2015, the DFSA published its related action against DBDIFC for misleading the DFSA, and for failures in DBDIFC's internal governance and systems and controls and in its client take-on and anti-money laundering processes.

        - Ends -

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1612
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The DFSA is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      • 1 August 2017 — DFSA launches Crowdfunding Framework

        Click here to view PDF.

        Dubai, UAE, 01 August 2017: The Dubai Financial Services Authority (DFSA) has today launched its regulatory framework for loan and investment-based crowdfunding platforms, the first such framework in the GCC countries. The regime forms part of the DFSA's regulatory roadmap to create an innovation-friendly ecosystem, in line with the UAE Government's National Innovation Strategy.

        The DFSA crowdfunding regulations have the ability to catalyse growth in the financial technology (FinTech) industry in the UAE and the region, by targeting the specific requirements of crowdfunding platforms. The regulations ensure clear governance for FinTech businesses and provide appropriate protection for their customers. They also formalise the DFSA's approach to regulating crowdfunding platforms which had operated through interim arrangements since 2016.

        The introduction of the regulation comes as crowdfunding is becoming an increasingly important route for small and medium sized enterprises (SMEs) to access financing. Global loan-based crowdfunding is forecast to reach more than USD 300 billion and global equity-based crowdfunding more than USD 93 billion by 20201.

        SMEs are significant contributors to the UAE economy. In 2014, they made up around 85% of businesses in the UAE, contributing to nearly 60% to the UAE GDP and employing 60-65% of the UAE work force. In Dubai, SMEs represent nearly 95% of all establishments in the Emirate accounting for 42% of the workforce and contributing around 40% to the total value of Dubai's economy.

        Data provided by the Khalifa Fund shows that approximately 50-70% of SMEs have had their applications for funding from conventional banks rejected and loans to SMEs account for just 4% of outstanding bank credit in the UAE, significantly below the MENA average of 9.3%. Conventional lenders are sometimes unwilling or unable to support SMEs given their often-limited asset pool or lack of a proven record of company operations. This makes it difficult for SMEs to do business; when they do get financing it can be expensive or with inflexible terms.

        The UAE government has an ambition to enhance the contribution and performance of the SME sector. It has taken a major role in establishing initiatives and programmes to help with sources of funding for SMEs. Initiatives include the Mohammed Bin Rashid Establishment for SME Development and the Khalifa Fund. Given the significant role that SMEs play in the UAE economy, crowdfunding is expected to grow further in importance in the UAE as entrepreneurs seek alternative sources of funding.

        Ian Johnston, Chief Executive at the DFSA, said: “We are pleased to be the first in the GCC region to formalise a tailored regime for loan and investment crowdfunding platforms, which represent an increasingly important source of financing for the SME sector. By creating a clear set of rules for operators, we hope to encourage the sustainable development of this industry and is part of our contribution to the UAE Government strategy to develop the SME sector.”

        The DFSA's crowdfunding framework follows the launch of its Innovation Testing Licence in May. That restricted financial services licence allows qualifying FinTech firms to develop and test innovative concepts from within the Dubai International Financial Centre (DIFC), without being subject to all the regulatory requirements that normally apply to regulated firms.

        The DFSA's innovation strategy is aligned with the National Innovation Strategy set out by UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, to create an innovation-friendly ecosystem. It also follows the launch of the FinTech Hive at DIFC, which will bring together the next generation of leaders and entrepreneurs to compete and address the growing needs of the region's financial services industry, using innovative technology solutions. It intends to catalyse growth and efficiency in a variety of areas including trade finance, alternative finance and Shari'ah-based services.


        1Based on CFX Alternative Investing Crowdfunding Statistics from 2015.


        - Ends -

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1612
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The DFSA is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services Regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 — Mar 2016).

      • 19 July 2017 — DFSA Fines and Bans former Senior Executive Officer

        Click here to view PDF.

        Dubai, UAE, 19 July 2017: The Dubai Financial Services Authority (DFSA) has fined Mr Andrew Grimes, a former Senior Executive Officer (SEO) of a DFSA Authorised Firm USD 52,500 (AED 192,675) and imposed a restriction preventing him from performing any function in connection with the provision of Financial Services in or from the Dubai International Financial Centre (DIFC).

        This action follows an investigation conducted in co-operation with the Insurance Authority of the UAE which found that, from January 2014 to July 2014, Mr Grimes:

        •   was knowingly concerned in undertaking Insurance Intermediation activities which contravened DFSA legislation;
        •   failed to take reasonable care to ensure that the business for which he was responsible complied with applicable DIFC legislation; and
        •   misled the DFSA.

        From April 2013 to September 2014, Mr Grimes was the SEO of a DFSA Authorised Firm that carries on the Financial Service of Insurance Intermediation. During this time, the firm was restricted under DFSA Rules from intermediating a Contract of Insurance in the UAE unless the risk is situated in the DIFC or the contract is one of re-insurance.

        The DFSA found that Mr Grimes was actively involved in providing prohibited Insurance Intermediation services. Further, as the SEO, Mr Grimes was ultimately responsible for the day-to-day management, supervision and control of the firm's activities and he should have ensured that such prohibited activities did not occur. He also failed to ensure that the firm's customers were on-boarded properly as Clients.

        Mr Grimes also provided false and misleading information to the DFSA in April 2014 by stating that the firm had not intermediated any direct insurance (as opposed to re-insurance) in the UAE when that in fact was not true.

        Mr Ian Johnston, Chief Executive of the DFSA said: "The DFSA expects SEOs of Authorised Firms to meet their obligations and perform their duties to the standards required of them. Mr Grimes did not do so and made matters worse by failing to deal with the DFSA in a frank and open manner.

        This action also demonstrates that the DFSA works closely with our colleagues at other financial regulators to address misconduct that affects our respective jurisdictions. I am grateful to the UAE Insurance Authority for its co-operation and assistance in this matter".

        The DFSA previously took a separate action against the firm after taking into consideration its initiative to self-report the misconduct to the DFSA, the steps it took to remediate its deficiencies, including voluntarily replacing Mr Grimes as SEO and for co-operating fully with the DFSA's investigation.

        A copy of the DFSA's Decision Notice issued to Mr Grimes can be found in the Regulatory Actions section of the DFSA website:

        http://www.dfsa.ae/en/What-We-Do/Enforcement#Regulatory-Actions

        - Ends -

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1612
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The DFSA is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services Regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 — Mar 2016).

      • 24 May 2017 — DFSA Launches Innovation Testing Licence for FinTech Firms

        Click here to view PDF

        Dubai, UAE, 24 May 2017: The Dubai Financial Services Authority (DFSA) has today announced that it will allow financial technology (FinTech) firms to apply for a class of financial services licence referred to as an Innovation Testing Licence (ITL). This initiative signals the next phase of the DFSA's regulatory roadmap to foster innovation in Dubai.

        The restricted financial services licence will allow qualifying FinTech firms to develop and test innovative concepts from within the Dubai International Financial Centre (DIFC), without being subject to all the regulatory requirements that normally apply to regulated firms. The DFSA will work with applicants to understand the business proposal and establish the appropriate controls for the safety of any customers involved, on a case-by-case basis.

        Ian Johnston, Chief Executive at the DFSA, said: "FinTech is changing the landscape for financial services, providing more opportunities to seek financing and increasing financial inclusion. As regulators, it is our responsibility to provide a framework which supports the sustainable development of this industry while protecting consumers and financial stability."

        The DFSA's approach is aligned with the National Innovation Strategy set out by UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, to create an innovation-friendly ecosystem. In line with the goals of the Dubai 2021 strategy, the DFSA is also formalising its approach to loan-based and investment-based crowdfunding platforms. Specifically, loan-based crowdfunding has become a valuable source of financing for SMEs in several jurisdictions.

        Mr Johnston added: "Our efforts to develop a regulatory framework that promotes growth and innovation, while protecting financial stability and consumers, is part of our contribution to Dubai's greater vision of becoming an information-based society and a smart city."

        FinTech firms will be able to use the restricted licence to test an innovative product or service for six to 12 months. In exceptional cases, the DFSA will consider extending that period. If a firm has met the outcomes detailed in the regulatory test plan, and it can meet the full DFSA Authorisation requirements, it will migrate to full authorisation. If it does not, the company will have to cease carrying on activities in the DIFC that need regulation.

        The DFSA's latest initiative follows the launch of the FinTech Hive at DIFC, which will bring together the next generation of leaders and entrepreneurs to compete and address the growing needs of the region's financial services industry, using innovative technology solutions. It intends to catalyse growth and efficiency in a variety of areas including trade finance, alternative finance and Sharia-based services.

        Interested firms should contact the DFSA at FinTech@dfsa.ae to discuss proposals prior to application.

        The Innovation Testing Licence Guidance can be found on the following link:
        http://dfsa.complinet.com/en/display/display_main.html?rbid=1547&element_id=23453

        Ends —

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The DFSA is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Mr Johnston was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Mr Johnston played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services Regulation, and spent several terms as an acting Commissioner. In 2005, Mr Johnston took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 — Mar 2016).

      • 15 May 2017 — DFSA Takes Action against Senior Executive Officer

        Click here to view PDF.

        Dubai, UAE, 15 May 2017: The Dubai Financial Services Authority (DFSA) has accepted an Enforceable Undertaking (EU) from Mr S Ravishankar Naidu, Senior Executive Officer (SEO) at Royal Shield Limited (RSL), an Insurance Intermediary licensed by the DFSA.

        The EU resulted from the DFSA's concerns that, with respect to RSL's insurance business, Mr Naidu failed to:

        •  arrange re-insurance cover in accordance with a Client's instructions and allowed incorrect information to be provided to the Client about their cover;
        •  comply with the DFSA's requirement that, as the SEO, he must be resident in the UAE;
        •  ensure that RSL's financial statements for the financial year 2014 accurately reflected the financial position of RSL; and
        •  ensure that RSL had adequate systems and controls to undertake its Insurance Intermediation business.

        As an Authorised Individual performing the Licensed Function of the SEO of RSL, Mr Naidu was ultimately responsible for the day-to-day management, supervision and control of RSL's Financial Services activities. However, Mr Naidu's conduct fell short of the high standard expected of him. In particular, Mr Naidu failed to act with due skill, care and diligence and take reasonable care to ensure that RSL's business was organised so that it could be managed and controlled effectively.

        In deciding to accept the EU offered by Mr Naidu, the DFSA acknowledges that Mr Naidu co-operated fully with the DFSA. Further, to resolve the DFSA's concerns, Mr Naidu has voluntarily undertaken to step down as RSL's SEO and ensure that RSL appoints a new SEO.

        Mr Naidu will remain as a Licensed Director and Controller of RSL, and he has agreed to appoint another Licensed Director to RSL's Board of Directors, so that RSL's Board comprises of at least three directors.

        Mr Naidu also agreed to pay a financial penalty of USD 70,000 (AED 256,900) to the DFSA, of which USD 10,000 (AED 36,700) is payable on or by 6 June 2017. The remaining USD 60,000 (AED 220,200) is suspended indefinitely and becomes payable if Mr Naidu fails to comply with the EU.

        A copy of the EU can be found in the Regulatory Actions section of the DFSA website:
        http://dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The DFSA is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      • 10 May 2017 — DFSA, FinTech Hive at DIFC, Hawkamah Institute and MEIRA host seminar on FinTech in the Middle East

        Click here to view PDF.

        Dubai, UAE, 10 May 2017: The Dubai Financial Services Authority (DFSA) hosted an outreach session on the opportunities financial technology (FinTech) presents in the Middle East. The seminar was held jointly with the FinTech Hive at DIFC, Hawkamah Institute for Corporate Governance and the Middle East Investor Relations Association (MEIRA) on May 8.

        The event provided a forum to discuss the current conditions for establishing a FinTech operation in the region, with applications such as financing for small to medium-sized enterprise and financial inclusion. Over 120 delegates from the region's FinTech industry as well as firms operating in the Dubai International Financial Centre (DIFC) attended the event.

        In his opening remarks, Bryan Stirewalt, Managing Director of Supervision at the DFSA, gave an overview on how the FinTech movement is proving to be disruptive to the traditional financial sector and regulators alike. Mr Stirewalt highlighted the need to have balance between promoting growth, protecting financial stability and consumers, and allowing market innovation and development.

        Mr Stirewalt said: "We at the DFSA have a regulatory framework that facilitates the development of FinTech and maintains appropriate safeguards. This year, the DFSA has added a focus on innovation to its list of strategic themes, and we look forward to working with the new FinTech accelerator in the DIFC."

        Dr Ashraf Gamaleldin, Chief Executive Officer (CEO) of Hawkamah Institute for Corporate Governance, said: "As Dubai and the UAE push for further innovations, good governance always has to be present fuelling this growth. During this high-growth phase for FinTech, regulators must be flexible to encourage the growth of the industry while keeping their eyes on the risks and rights of investors and stakeholders."

        Alex MacDonald-Vitale, Chairman of MEIRA, said: "We are delighted to continue supporting the efforts of the FinTech Hive at DIFC, the DFSA and Hawkamah in delivering the latest in industry developments. New technologies have already brought exciting and evolutionary steps forward for markets across the world. FinTech is offering listed companies and their investors access to a range of highly efficient and versatile tools, helping improve communication and engagement, as well as regulatory governance overall; all of which are key requirements for an industry in which operational resilience and consumer protection are paramount."

        Raja Al Mazrouei, Acting Executive Vice President at the FinTech Hive at DIFC, said: "The UAE government has a strong national agenda for innovation which enables the adaptation of technological advancement in the region. FinTech Hive at DIFC is the MEASA's first FinTech accelerator, and the Dubai International Financial Centre, positioned at the heart of the region and offering a world-class ecosystem, is committed to leading initiatives that answer the growing needs of its financial services sector."

        Other speakers at event included Paul Boots, Founding Partner of Osprey Advisory, Former COO of Beehive, and Sam Quawasmi, Co-CEO and Co-Founder of Eureeca, who shared their experiences of establishing a FinTech business in the region. Yuvraj Singh, Head of Application Development at Thomson Reuters moderated the discussion.

        The DFSA's efforts follow the launch of the FinTech Hive at DIFC which will bring together the next generation of leaders and entrepreneurs to compete and address the growing needs of the region's financial services industry, using innovative technology solutions. It intends to catalyse the growth and efficiency in a variety of areas including trade finance, alternative finance such as peer-to-peer (P2P) payments, and Sharia-based services.

        Since the start of 2017, the DFSA has published two consultation papers on Crowdfunding, which aim to formalise its approach to loan-based and investment-based platforms. The DFSA also issued a consultation paper on Innovations Testing Licence that will allow FinTech firms to test out their strategy in the DIFC within the existing regulatory framework, making it the first such licence in the UAE.

        Ends —

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The DFSA is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Bryan Stirewalt joined the DFSA in 2008 and has served as a Managing Director of the Supervision Division since 2010. The Supervision Division includes prudential and conduct-oriented oversight of a variety of financial service providers, including: commercial banks, investment banks, insurance companies, wealth managers, and a variety of advisory services.

        The Supervision Division also oversees the DFSA's role with auditors and credit rating agencies. Mr Stirewalt is active in the DFSA's efforts to fight methods of illicit finance with respect to the entities mentioned above, as well as with other DNFBPs. Mr Stirewalt has extensive experience in the financial regulatory sphere, in both public and private sector roles. From 1985 to 1996, he worked for the US Treasury's Office of the Comptroller of the Currency as a National Bank Examiner, where he specialised in policy development and implementation, problem bank rehabilitation and banking fraud initiatives.

        From 1996 to 2008, he worked for an international consulting and advisory firm, focusing his attention on emerging markets development programmes, including management of large-scale and multi-faceted projects in Poland, Ukraine, Cyprus and Kazakhstan. These projects related to a wide array of topics including financial sector development, risk management policies and practices, anti-money laundering systems and controls and methods of supervising complex financial conglomerates.

        Mr Stirewalt serves as the Co-Chair of the Basel Consultative Group (BCG) which provides a forum for deepening the Basel Committees' engagement with emerging markets supervisors around the world on banking supervisory issues.

      • 8 May 2017 — DFSA Hosts 3rd Annual Supervision Outreach Session

        Click here to view PDF.

        Dubai, UAE, 8 May, 2017: The Dubai Financial Services Authority (DFSA) held its 3rd Annual Supervision Outreach Session last week, in conjunction with the Compliance Officers Networking Group (CONG), to discuss the latest trends and developments in the financial sector.

        The event was targeted at the DFSA's regulated community, including compliance officers and money laundering reporting officers from its Authorised Firms and Designated Non-Financial Businesses or Professions (DNFBPs). Over 250 participants attended this year's event, representing many of the 457 Authorised Firms and 119 DNFBPs now operating in the Dubai International Financial Centre (DIFC). This year's number of attendees is reflective of the significant growth that the DIFC continues to see in its financial services community and supporting industries.

        The event also represented an opportunity for the DFSA to provide an update on its current and future policy agenda, trends in recent regulatory actions and current risks and issues in the wealth management, broking, banking and insurance sectors.

        In his opening remarks, Mr Ian Johnston, Chief Executive of the DFSA, commented that in the past twelve months, the global supervisory agenda had shifted from policy development to implementation, and more recently to new technologies and business models as seen through financial technology (FinTech).

        Mr Johnston said: "The challenge that regulators face is around the speed of customer adoption and market penetration of these new business models, as well as the right balance of investor protection. While there is agreement that regulators should not stand in the way of innovation, there is also an understanding that we must not lose focus on market integrity, financial stability and customer protection."

        Mr Bryan Stirewalt, DFSA's Managing Director of Supervision, discussed a variety of macroeconomic and compliance trends around the globe, as well as the current areas of focus for supervision of firms operating in and from the DIFC. Mr Stirewalt noted new areas of emphasis for supervision in fostering innovation in financial services, focusing more attention to operational risks and becoming even more efficient as a regulator.

        Participants also discussed the opportunities and challenges posed by FinTech, including the DFSA's regulatory framework for crowdfunding and the evolving Dubai ecosystem for FinTech. Recent initiatives to support the development of this market include the DIFC's accelerator programme, FintechHive@DIFC, and the proposed introduction of the DFSA's Innovation Testing Licence to facilitate the testing of new technology.

        — Ends —

        For further information please contact:

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011–Mar 2016).

      • 1 May 2017 — DFSA Co-hosts Seminar on Islamic Finance

        Click here to view PDF.

        Dubai, UAE, 1 May 2017: The Dubai Financial Services Authority (DFSA) hosted a seminar on "Liquidity Generating Innovations in Islamic Finance" in conjunction with the Islamic Financial Services Board (IFSB). The event was held at the Ritz Carlton, Dubai International Financial Centre (DIFC), yesterday.

        The seminar served as a platform to explore the use of existing Islamic capital market instruments such as Sukuk and securitisation, to manage liquidity risks at Islamic financial institutions, including Takaful operators. It brought together senior delegates and subject matter experts from across the banking, financial services, regulatory and legal industries.

        Mr Ian Johnston, Chief Executive of the DFSA, said: "Islamic institutions continue to be challenged by the shortage of liquidity management tools, with some relying primarily on cash and central bank placements. While exchanges and other advisers play a role in addressing some of the challenges in the UAE, and globally, we should focus on identifying opportunities in other asset classes."

        Participants recognised that, with insufficient assets available on the balance sheets of Islamic banks to support the issuance of Sukuk or to securitise; other commodities such as crude oil should be considered as alternatives. Participants also acknowledged that the development of a repurchase agreement market — which has yet to gain significant traction in the GCC region — should remain a priority in the absence of alternatives.

        The establishment of an Islamic financial market has been a key objective for the DFSA since its formation in 2004, and is in alignment with the Dubai Government's 2021 Strategy and the Islamic Economy Initiative. One of the main targets set by Vice President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, in his 2013 initiative is to make Dubai the capital of the Islamic economy.

        In 2016, the total value of outstanding Sukuk listings in the Emirate reached USD 53 billion, most of which represented USD denominated international issuances listed in the DIFC. The market continues to see greater diversification by issuer type, with listings coming from governments, multilateral and corporate issuers across the MENA region and East Asia.

        The IFSB plays a key role in promoting and enhancing the soundness and stability of the Islamic financial services industry. The industry body has been issuing global prudential standards and guiding principles for the banking, capital markets and Takaful sectors for over a decade. The DFSA has supported the key work of the IFSB in its capacity as a full member of the IFSB and as a member of the Council of the IFSB.

        The seminar kicked off the meetings of the IFSB Working Groups, which will be held on May 1 to May 3 in the DIFC.

        — Ends —

        For further information please contact:

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011–Mar 2016).

      • 10 April 2017 — DFSA Censures Individual for Misleading Conduct

        Click here to view PDF.

        Dubai, UAE, 10 April 2017: The Dubai Financial Services Authority (DFSA) has censured Mrs Jai Surve, a former employee of a DFSA Authorised Firm, for providing the DFSA with false and misleading information.

        Mrs Surve was a Business Consultant at an Authorised Firm which operated an online trading platform. From 2012 to 2016 Mrs Surve introduced clients to the platform and gave training to clients on how to use this platform.

        In late 2015, the DFSA received information that Mrs Surve may have executed unauthorised trades on the platform using the online account of one of her clients. The DFSA interviewed Mrs Surve in December 2015 about the allegation and Mrs Surve stated to the DFSA that she did not know the password for the client's online account and did not execute any trades on the client's online account.

        The DFSA commenced an investigation, and interviewed Mrs Surve again in November 2016. During this interview, Mrs Surve admitted that she knew the password to the client's online trading account and that she had executed trades on the client's online account after receiving instructions from a third party.

        Mrs Surve accepted responsibility for misleading the DFSA and agreed to settle the matter at an early stage following the conclusion of the investigation. While conduct like Mrs Surve's has, in the past, resulted in a financial penalty, the DFSA has concluded that a public censure is the most appropriate action given the circumstances of this matter and, in particular, Mrs Surve's personal situation. The DFSA did not make any findings of contraventions in relation to Mrs Surve's trading activities

        Mr Ian Johnston, Chief Executive of the DFSA said: "For a regulator to be effective, it is imperative that it receives information which is true, precise and complete. The DFSA will therefore take action against any person who provides information to the DFSA which is false and misleading."

        A copy of the DFSA's Decision Notices can be found in the DFSA website under Regulatory Actions.

        https://www.dfsa.ae/en/What-We-Do/Enforcement#Regulatory-Actions

        — Ends —

        For further information please contact:

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011–Mar 2016).

      • 5 April 2017 — DFSA Signs International Agreement on Audit Oversight

        Click here to view PDF.

        Dubai, UAE, 5 April 2017: The Dubai Financial Services Authority (DFSA) today joined 21 of the world's leading regulators of auditors in an agreement to increase co-operation with the oversight of audit professionals.

        DFSA Chief Executive, Mr Ian Johnston, signed the International Forum of Independent Audit Regulators' (IFIAR) Multilateral Memorandum of Understanding (MMoU), during the IFIAR Plenary Meeting in Tokyo.

        The MMoU aims to encourage and strengthen information sharing and co-operation to offer mutual assistance among IFIAR Members. It was first approved by the IFIAR Membership in June 2015, and follows a rigorous verification process to satisfy the highest standards of co-operation and confidentiality.

        Mr Johnston said: "I am pleased to see that the DFSA is among the first regulators to satisfy these new international standards. We have always placed a high priority on co-operation and our ability to share information and assist fellow regulators. In signing this MMoU, we continue to affirm our commitment to international co-operation.

        "Audit has become a borderless activity and it is important that audit regulators are able to co-operate seamlessly in a challenging business environment," Mr Johnston added.

        — Ends —

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011–Mar 2016).

      • 13 March 2017 — DFSA Hosts Annual Audit Outreach

        Click here to view PDF.

        Dubai, UAE, 13 March 2017: The Dubai Financial Services Authority (DFSA) hosted its annual outreach event for Registered Auditors (RAs) last week, during which it shared the results of its annual audit inspection.

        Mr Ian Johnston, Chief Executive of the DFSA, delivered the opening speech at the event. He highlighted the impact of technology on the audit industry, and encouraged greater use of data analytics to improve risk assessment.

        Mr Johnston said: "Audit data analytic techniques can be used in audit planning and in procedures to identify and assess risk by analysing data. Although our assessment indicates that audit firms are still at an early stage with big data, we do note the use of technology on audit procedures such as bank confirmations, analytical procedures and journal-entry testing."

        Mr Johnston added that, internationally, audit regulators were watching technological developments in this area with great interest. He cited the work currently underway by the International Auditing and Assurance Standards Board (IAASB)'s Data Analytics Working Group. The group was established in 2015 to provide insights into the opportunities and challenges with the use of data analytics in the audit of financial statements.

        "DFSA welcomes the work undertaken by the IAASB's Data Analytics Working Group," said Mr Johnston.

        The DFSA also discussed the impact of the changes resulting from Consultation Paper 106 on Regulation of Arranging, Representative Office Activities and Financial Promotions and global enforcement trends in audit.

        The event was targeted at the Managing Partners, Audit Principals, Money Laundering Reporting Officers and senior audit staff of RAs. Over 65 stakeholders attended the event.

        — Ends —

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011–Mar 2016).

      • 6 March 2017 — DFSA Strengthens Dubai's Financial Technology Proposition

        Dubai, UAE, 6 March 2017: The Dubai Financial Services Authority (DFSA) is enhancing its contribution to Dubai's position as the region's leading hub for innovation through the publication of a new FinTech consultation paper today. The paper is the third in a series, setting out the DFSA's approach to the regulation of pioneering financial technology (FinTech) activities.

        The DFSA has been following developments in the FinTech industry and, in 2016, determined that the current regime for regulating firms in the Dubai International Financial Centre (DIFC) is already flexible enough to accommodate many aspects of FinTech without introducing new rules. Today's consultation sets out the DFSA's approach to FinTech firms that want to test innovative products and services in the DIFC.

        Firms meeting the qualifying criteria will receive a Financial Services Licence, referred to as an Innovation Testing Licence, which reflects the nature of the activities to be conducted during the testing phase. The DFSA will put in place limits on the FinTech testing activities to ensure appropriate controls for the safety of any customers involved. Given the limits on activities permitted during testing, FinTech firms will not have to comply with DFSA Rules where they are inappropriate at a testing stage.

        The testing phase is a step towards the FinTech firm obtaining a full Financial Services Licence.

        Ian Johnston, Chief Executive at the DFSA, said: "The DFSA's approach to Fintech has been to regulate where needed, in order to create an environment that encourages innovation in technology in its many forms and applications. The DFSA will continue to watch as the market develops and respond to the evolving requirements of this industry."

        Peter Smith, Managing Director, Policy and Strategy, at the DFSA, added: "The DFSA has been discussing opportunities with a number of interested FinTech firms. We have concluded that it would be helpful to current stakeholders, and to the wider public, for us to set out more explicitly how we will deal with future enquiries from those interested in establishing a presence in the DIFC for a FinTech business."

        The DFSA is committed to providing the regulatory infrastructure to support the sustainable development of FinTech in the DIFC. Earlier this year the DFSA launched two consultations which proposed frameworks for the regulation of loan-based and investment-based crowdfunding platforms.

        The DFSA's consultations follow the DIFC's launch of the FinTech Hive Accelerator programme in January 2017, the first such accelerator programme in the region. The programme provides a platform for financial services and technology firms to build solutions for the financial sector.

        The DFSA's approach is also aligned with the UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, National Innovation Strategy to create an innovation-friendly ecosystem. Technology is a pivotal part of this strategy, and plays a central role in the Dubai Plan 2021 to develop the Dubai economy, as evidenced by initiatives such as the Dubai Future Accelerators and the Dubai Blockchain Strategy.

        The Consultation Paper can be accessed by the following link:

        http://www.dfsa.ae/MediaRelease/News/NOTICE-OF-CONSULTATION-PAPER-RELEASE-(3)

        — Ends —

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011–Mar 2016).

        Peter Smith, Managing Director of Head of Policy and Strategy, joined the DFSA in June 2012 as Head of Policy to lead further development of the DFSA's policy framework. He joined the Executive Committee in early 2015, and was appointed a Managing Director in early 2016. Mr Smith is also responsible for overseeing the DFSA's strategic planning, including its annual business planning cycle, and the organisation's approach to setting its Risk Tolerance and managing non-firm specific risks.

        He is an alternate member of the IAIS Financial Stability and Technical Committee, and is also involved in IAIS working groups. Mr Smith has over 25 years of regulatory experience. Prior to joining the DFSA, he was Head of the Investments Policy Department at the UK Financial Services Authority. Earlier roles in the UK included policy areas, supervision, bank resolution, internal audit and risk management. From 2003 to 2007, Mr Smith was seconded to the European Commission in Brussels, working on banking issues, supervision of financial groups, and the future of supervision within the European Union. Mr Smith holds a Master's degree in finance from London Business School.

      • 27 February 2017 — DFSA Hosts Outreach on International Financial Reporting Standard (IFRS) 9

        Click here to view PDF.

        Dubai, UAE, 27 February 2017: The Dubai Financial Services Authority (DFSA) and the Institute of Chartered Accountants in England and Wales (ICAEW) jointly organised an outreach event last week, on the implementation of the new IFRS 9.

        The event was opened by Mr Ian Johnston, Chief Executive of the DFSA, who discussed the importance of a regulatory framework that reflects international standards in the development of financial centres, citing the Dubai International Financial Centre (DIFC) as an example. Speakers included Ms Neslihan Alankus Erkazanci, Chief Financial Officer MENA — HSBC Bank Middle East Limited; Mr Asim Rasheed, Group Financial Controller — Emirates NBD; Mr Zulfiqar Unar, Director Capital Markets and Accounting Advisory Services — PwC; and Mr Trevor Skinner, Banking Supervision Expert. The session was moderated by Mr Bryan Stirewalt, Managing Director, Supervision at the DFSA.

        The event was targeted at DFSA regulated financial institutions, DFSA Registered Auditors and ICAEW members and other stakeholders and was well attended by over a 100 participants.

        The panel discussed the new requirements for financial institutions under IFRS 9 which will take effect on 1 January 2018. The panellists shared their experience about the practical challenges and opportunities in implementing the same.

        In his Opening Remarks, Mr Johnston said: "Since our inception, the DFSA has been fully committed to the implementation of IFRS, including the new and revised IFRS 9. From our continuous communication with the financial institutions in the DIFC, as well as their home regulators, we trust that they are well positioned to deal with the new standard."

        Mr Michael Armstrong, FCA and ICAEW Regional Director for the Middle East, Africa and South Asia (MEASA), said: "IFRS 9 is a milestone in the world of financial reporting but preparing for it is complex. The key to ensuring compliance is to start preparing now to instigate the required changes. Regional banks and financial institutions must speed up their efforts and get ready before IFRS 9 is introduced in just 10 months from now. While preparation for IFRS 9 requires time and money, it will bring financial institutions into a new world of long term forecasting."

        — Ends —

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor. Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

        ICAEW is a world leading professional membership organisation that promotes, develops and supports over 147,000 chartered accountants worldwide. ICAEW provide qualifications and professional development, share knowledge, insight and technical expertise, and protect the quality and integrity of the accountancy and finance profession.

        Breakfast Briefing is a joint initiative between the DFSA and ICAEW to discuss topics of interest to the audit community. Previous topics include:

        •    Extended Audit Report (May 2016)
        •    The Challenges of Emiratisation: Attracting Talent into the Finance Industry (April 2013)
        •    Detection of Fraud: Whose role is it? (March 2012)
        •    The Importance of Professional Accounting Bodies (September 2011)
        •    The Future of Audit (September 2010)
        •    The role of audit monitoring in improving the quality of and confidence in financial information in the Middle East (March 2010).

      • 22 February 2017 — DFSA Signs MoU with European Securities and Markets Authority

        Click here to view PDF.

        Dubai, UAE, 22 February 2017: The Dubai Financial Services Authority (DFSA) and the European Securities and Markets Authority (ESMA) have entered into information sharing and cooperation arrangements regarding DIFC based central counterparties (CCPs) compliance with conditions set out in The European Union's Market Infrastructure Regulation (EMIR).

        The MoU was signed on behalf of the DFSA by Chief Executive, Mr Ian Johnston, and by the Chairman of ESMA, Dr Steven Maijoor, in Milan today.

        It follows a decision published in mid-December 2016 by the European Commission, which found the DFSA's regulatory framework for CCPs as equivalent to that of the European Union. The European Commission's decision also confirmed that the DFSA's framework is compliant with international standards set out under the International Organisation of Securities Commissions' (IOSCO) Principles for Financial Market Infrastructures.

        Mr Johnston said: "Today's signing signals a new phase in the good relationship between the DFSA and ESMA and enables us to cooperate and exchange information in connection with monitoring of DIFC-based CCPs.

        "The DFSA has always placed a high priority on cooperation and its ability to share information and assist fellow regulators; particularly where the DIFC firms have strong links with the European Union market participants."

        The MoU marks the 100th MoU signed by the DFSA and the second with ESMA. The first MoU between the two regulators was signed in 2013 on cooperation in relation to credit rating agencies. The DFSA also has MoUs in place with counterparts in France, Germany, the United Kingdom, and with most other European Union securities regulators through multilateral arrangements.

        "The DFSA remains committed to international best practice and continues to work with the EC and ESMA in other areas of their responsibilities," Mr Johnston added.

        — Ends —

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The recognition conditions are set out in Article 25 of the European Market Infrastructure Regulation (EMIR) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories. EMIR requires the establishment of cooperation arrangements by way of an MoU as a precondition for ESMA to recognise a CCP established in the DIFC to provide clearing services to clearing members or trading venues established in the European Union.

        CCPs are entities that sit in between buyers and sellers of derivatives contracts to become the sole counterparty to all trades. Its main purpose is to manage the risk of one counterparty defaulting (i.e. not being able to make the required payments when they are due), thereby reducing the overall risk in the system.

        The DFSA is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

      • 20 February 2017 — DFSA Honours Graduates of prestigious Tomorrow Regulatory Leaders Programme

        Click here to view PDF.

        Dubai, UAE, 20 February 2017: The Dubai Financial Services Authority (DFSA) honoured the graduates of its prestigious Tomorrow's Regulatory Leaders (TRL) Programme, that develops the skills of young UAE Nationals, at an award's ceremony being held at DFSA last week.

        The DFSA launched the two-year programme in 2006 to train Emirati university graduates to become leaders in the field of financial services and regulation. This year's graduate group joined the programme in 2015 as TRL Associates and received classroom training, on-the-job coaching from experienced DFSA colleagues and industry experience with Dubai International Financial Centre authorised Firms. Upon graduating, the group qualified to managerial roles within the DFSA.

        Mr Ian Johnston, Chief Executive at the DFSA, said: “We are delighted to recognise the distinguished achievements of the graduates of the TRL Programme at the awards ceremony. Now in its 11th year, the programme continues to serve as a key initiative of the DFSA to support the development of UAE National capabilities by providing training, and importantly, career opportunities in the financial sector. The TRL Programme has produced 33 managers since inception, with some now in senior roles across the organisation.”

        Mr Waleed Saeed Al Awadhi, Chief Operating Officer at the DFSA, said: “We are not only celebrating the success of the graduates of the TRL Programme but also welcoming them into the ranks of the DFSA as regulatory professionals. The TRL Programme was specifically designed to ensure the sustainable development of the financial sector by offering a conduit for young UAE Nationals who want to build a career in financial services. At the DFSA, UAE Nationals represent 33% of the workforce and we are proud to have these graduates amongst us.”

        — Ends —

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The DFSA is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

      • 13 February 2017 — DFSA Launches Second Consultation into Crowdfunding Framework to support SME Financing

        Click here to view PDF.

        Dubai, UAE, 13 February 2017: The Dubai Financial Services Authority (DFSA) has today launched the next phase of consultations on its proposed framework for regulating crowdfunding platforms in the Dubai International Financial Centre (DIFC), with a paper detailing its approach to investment-based crowdfunding.

        The consultation is the second in a series of papers which outline the DFSA's measures to support the sustainable development of crowdfunding, and financial technology more broadly, within the DIFC. In January, the DFSA issued its first consultation on a proposal for regulating loan-based crowdfunding platforms under a new Financial Service, that provides the fundamental framework for crowdfunding firms.

        Today's consultation is an extension of that proposal and deals with the specific risks associated with investment-based crowdfunding. This model of crowdfunding differs to loan-based funding by enabling start-up companies or small businesses to raise financing by selling stakes in their business. The growth of this market accelerated in the wake of the 2008 financial crisis when access to traditional funding sources became constrained.

        In the UAE, in particular, crowdfunding is expected to become a more established form of financing for the important small to medium sized enterprise sector in the region. A regulatory framework that targets the specific requirements of crowdfunding platforms contribute to the sustainable development of this valuable funding source for SMEs and the UAE economy.

        Ian Johnston, Chief Executive at the DFSA said: "This is our second consultation on our proposed framework for regulating crowdfunding platforms and reflects the increasing importance of this funding source to the UAE's SME sector. Our approach remains consistent for loan-based and investment-based crowdfunding platforms in its aim to define a clear structure for the sustainable development of this industry."

        Key proposals in today's consultation paper include:

        •    A tailored regime specifically designed for those operating such a platform;
        •    Appropriate systems and controls placed on the platform's operations;
        •    Operational transparency and adequate disclosure made to all participants — Issuers and investors — on the platform;
        •    Suitable checks on the platform¡¦s participants — Issuers and investors;
        •    Appropriate safeguarding and segregation of Client Assets;
        •    The development of business cessation plans; and
        •    Allowing the transfer of securities between investors.

        The DFSA's proposals for regulating crowdfunding platforms form part of its approach to creating an infrastructure that fosters innovation in financial services. It aligns with the UAE's National Innovation Strategy, promoted by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, to create an innovation-friendly ecosystem.

        The DFSA's consultations on crowdfunding follow the launch of the DIFC's FinTech Hive Accelerator programme earlier in the year. The programme provides a platform for financial services and technology firms to build solutions for the financial sector.

        The consultation paper can be accessed by the following link: http://dfsa.ae/MediaRelease/News/Notice-of-Consultation-Paper-Release-(2)

        — Ends —

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) on FinTech
        In 2015, the DFSA said that is was looking at the evolving world of financial technology, or FinTech, and how this could be accommodated within the DFSA's regulatory regime and facilitated within the DIFC. The DFSA has been encouraged by the number of firms wanting to discuss opportunities in the FinTech area with the DFSA. Some of these firms are considering activities that would — in the normal course of events — be regulated, while some are considering, or already carrying out, activities that do not need to be regulated by the DFSA. The DFSA has stated that it is very much 'open for business' when it comes to FinTech and will deal with each firm, proposition, or idea, and its unique circumstances, on a case-by-case basis.

        The DFSA is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011–Mar 2016).

      • 31 January 2017 — DFSA Proposes Framework for Loanbased Crowdfunding to support SME Financing

        Click here to view PDF.

        Dubai, UAE, 31 January 2017: The Dubai Financial Services Authority (DFSA) has today launched a consultation on its proposed framework for regulating loan-based crowdfunding platforms. The consultation is the first in a series of papers which set out the DFSA's approach to the regulation of crowdfunding platforms and the financial technology (FinTech) industry within the Dubai International Financial Centre (DIFC).

        The DFSA has been monitoring developments in FinTech both internationally and regionally since 2015, and has been engaged in discussions with firms looking to establish a presence in the DIFC. In some cases, these firms have been considering activities that would be regulated, such as loan-based crowdfunding.

        Crowdfunding is a way in which individuals, organisations and businesses, including business start-ups, can raise money through online portals, or crowdfunding platforms, to finance or re-finance their activities and enterprises. Specifically, loan-based crowdfunding has become a valuable source of financing for the SME sector in several jurisdictions. Well-regulated crowdfunding can contribute to the development of this important sector for Dubai and the UAE economy.

        Ian Johnston, Chief Executive at the DFSA said: "Crowdfunding offers an additional avenue for the SME sector to access financing. Establishing a clearly defined regulatory framework, that takes into account the specific needs of loan-based crowdfunding operators, supports the sustainable development of this important funding source for SMEs."

        The key proposals in the consultation paper include:

        •    A tailored regime specifically designed for loan-based crowdfunding platform operators.
        •    Minimum standards for systems and controls.
        •    Operational transparency and adequate disclosure to all participants — borrowers and lenders — on the platform.
        •    Suitable checks on platform participants (borrowers and lenders).
        •    Appropriate safeguarding and segregation of client money.
        •    The development of business cessation plans.
        •    Enabling the transfer of rights or obligations under a loan agreement between lenders.

        The consultation is part of the DFSA's contribution to creating an infrastructure that fosters innovation. It aligns with the UAE's National Innovation Strategy, promoted by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, to create an innovation-friendly ecosystem.

        The initiative follows the launch of DIFC's FinTech Hive Accelerator programme earlier this month. The programme provides a platform for financial services and technology firms to build solutions for the financial sector.

        The consultation paper can be accessed by the following link: http://dfsa.complinet.com/en/display/display_main.html?rbid=1547&element_id=23297

        — Ends —

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) on FinTech
        In 2015, the DFSA said that is was looking at the evolving world of financial technology, or FinTech, and how this could be accommodated within the DFSA's regulatory regime and facilitated within the DIFC. The DFSA has been encouraged by the number of firms wanting to discuss opportunities in the FinTech area with the DFSA. Some of these firms are considering activities that would — in the normal course of events — be regulated, while some are considering, or already carrying out, activities that do not need to be regulated by the DFSA. The DFSA has stated that it is very much 'open for business' when it comes to FinTech and will deal with each firm, proposition, or idea, and its unique circumstances, on a case-by-case basis.

        The DFSA is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

      • 16 January 2016 — DFSA Publishes Findings of Trade Finance Review in DIFC

        Click here to view PDF.

        Dubai, UAE, 16 January 2017: The Dubai Financial Services Authority (DFSA) published a Trade Finance Report detailing key findings of a review of trade finance activities carried out in and from the Dubai International Financial Centre (DIFC). The review assessed the quality of systems and controls, in particular measures to mitigate trade-based money laundering risks, at banks and other financial service providers in the DIFC.

        The report notes that trade finance has grown in the DIFC over recent years. While the report shows that in general trade finance is conducted satisfactorily, it highlights several improvement opportunities surrounding trade finance risks. The report also contains a list of recommended best practices that firms engaged in trade finance activities are encouraged to implement. In particular the report notes the importance of guarding against financial crime.

        Mr Ian Johnston, Chief Executive of the DFSA said: "There is an increased focus globally, on trade-based money laundering risks from international groups such the Financial Action Task Force, and financial service regulators. Our review and the published report are further testament to the DFSA's commitment to maintaining the highest international standards in the DIFC. Given the importance of trade to this region, regulators need to effectively oversee and supervise trade finance without hindering actual trade. We urge firms to benefit from all international guidance issued in that regard."

        Mr Johnston added: "The DFSA continues to work toward enhancing the quality of systems and controls of regulated firms in the DIFC. Where we detect weaknesses or failures, we will rectify them through supervisory or enforcement actions."

        Click on the Trade Finance Report to access the report on the DFSA's website.

        — Ends —

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 — Mar 2016).

      • 24 January 2017 — DFSA Deepens Ties with Hong Kong and Asia

        Click here to view PDF.

        Dubai, UAE, 24 January 2017: The Dubai Financial Services Authority (DFSA) Chairman, Mr Saeb Eigner, delivered an address on the opening morning of the tenth annual Asian Financial Forum (AFF) in Hong Kong, emphasising Dubai's role as a financial hub for the region. The forum was attended by 2,800 participants from Asia, Europe and the US, including finance ministers, heads of government, central bankers and business leaders from 50 countries, to discuss global economic developments and business trends.

        Mr Eigner said: "The shift towards Asia of the world's economic centre of gravity is making itself felt strongly in the Middle East. Chinese, Japanese and Indian banks now occupy the top slots in the Dubai International Financial Centre (DIFC) in terms of assets. Trade between China, the Middle East and much of Africa is now being financed through Dubai."

        Mr Eigner added that the financial markets across Asia are also becoming more integrated. "The increasing role of the Chinese renminbi (RMB) in settling trade transactions contributes to this process. The role of the UAE as a RMB clearing centre is growing," he said.

        Mr Eigner commented on the factors that make an international financial centre successful, including quality of life, transport links, efficient communications, the rule of law, a respected judiciary, a low tax environment, and an efficient and trusted regulatory system. "These are all well-established characteristics of Hong Kong. I believe we can fairly say that, in the 12 years since the DIFC was established, we have created a similar eco-system in our part of the world," said Mr Eigner.

        In his comments, Mr Eigner also addressed the growing role of Financial Technology (FinTech) in the post-crisis world, and the balance regulators have to strike between protecting financial stability and allowing market innovation and development.

        "We at the DFSA are working hard to get this balance right, while playing our part in implementing the recently-announced FinTech strategy of Dubai and DIFC. The DIFC is very much "open for business" in this space."

        The AFF was jointly organised by the Hong Kong Special Administrative Region Government and the Hong Kong Trade Development Council, bringing together some of the most influential members of the global financial and business community under the theme of "Asia: Driving Change, Innovation and Connectivity".

        "Now in its tenth year, the Asian Financial Forum continues to attract a high-calibre attendance from government, financial and business sector professionals, with the common goal of ensuring the continued competitiveness of Asia's financial markets and their sustainable development," said Eigner.

        — Ends —

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Fax: +971 (04) 362 0801
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (RoC).

        Saeb Eigner was appointed DFSA Chairman in August, 2011. He has been a member of the Board since October 2004 and served as Deputy Chairman since 2007 until 2011. Formerly a Senior Manager at ANZ Grindlays Bank PLC, in London, Mr Eigner headed the Middle East and Indian Subcontinent Division of the private bank, which he left to found Lonworld, a private investment group in the early 1990s. Mr Eigner holds a Masters Degree in Management from London Business School. He is a former Governor of London Business School, Chairman of its Audit and Risk Committees, and currently a member of its Estate Committee. He is the co-author of the management books Sand to Silicon (2003) and Sand to Silicon-Going Global (2009) and author of Art of the Middle East (2010 and 2015). He holds and/or has held a number of Board appointments in Banking, Strategy, Education, Regulation and Investment.

      • 9 January 2017 — DFSA's Framework Receives Regulatory Equivalency to European Union Regime

        Click here to view PDF.

        Dubai, UAE, 9 January 2017: The Dubai Financial Services Authority (DFSA) is pleased to announce that its regulatory framework for central counterparties (CCPs) has been classified as equivalent to that of the European Union.

        The determination, made by the European Commission (Commission), acknowledges the work undertaken by the DFSA to instil internationally-recognised best practices including a robust framework that promotes financial stability through a reduction in systemic risk. The distinction will encourage cross-border activity between European clearing members and CCPs located in the Dubai International Financial Centre (DIFC) by reducing the regulatory burden to participate in the market.

        This development further evidences the DFSA's commitment to implementing a regulatory framework for the DIFC that is in line with international standards set out under the Principles for Financial Market Infrastructures issued by the International Organisation of Securities Commissions. In so doing, the DIFC continues to cement its position as the leading hub for international financial services in the region.

        Mr Ian Johnston, Chief Executive of the DFSA, said: "The DIFC has firmly established itself as the central gateway through which international and regional financial institutions conduct business across the region. The recognition received from the Commission for our regulatory framework for CCPs, will further strengthen the confidence market participants already have when operating in our Centre."

        Nasdaq Dubai is the DFSA-licensed CCP operating in the DIFC in respect of equites and derivatives trading. Alongside the DIFC, the Commission published equivalence decisions for the regulatory frameworks for CCPs of India, Brazil, New Zealand, Japan and the UAE. Other jurisdictions whose CCP regimes are also recognised include the US, Canada, Switzerland, Australia, Hong Kong and Singapore.

        — Ends —

        For further information please contact:
        Saima Farooqi
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1613
        Email: DFSAcorpcomms@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The equivalence status is given effect through a legally binding implementing act in accordance with Article 25(6) of the European Market Infrastructure Regulation (EMIR) (Regulation (EU) No 648/2012).

        CCPs are entities that sit in between buyers and sellers of derivatives contracts to become the sole counterparty to all trades. Its main purpose is to manage the risk of one counterparty defaulting (i.e. not being able to make the required payments when they are due), thereby reducing the overall risk in the system.

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 — Mar 2016).

    • 2016

      • 19 December 2016 — DFSA Hosts Outreach Event on Cyber Risks

        Click here to view PDF.

        Dubai, UAE, 19 December 2016: The Dubai Financial Services Authority (DFSA) hosted an outreach event last week for its regulated community and other stakeholders to discuss known and emerging cyber risks and trends, and the steps that should be taken to prevent, detect and respond to them.

        It was acknowledged that globally, cyber-attacks are increasing in scale and sophistication from highly organised groups of hackers with malicious intent. The DFSA expects its regulated firms not only to look at their own arrangements but also to assess the cyber security arrangements of third-party providers to which they outsource key functions.

        The event was opened by Mr Ian Johnston, Chief Executive of the DFSA, who provided an overview of the current challenges being addressed by international standard-setting bodies, regulators and financial institutions. Mr. Johnston pointed out the global growth of FinTech and the concentrated efforts on addressing cyber risks as apriority on their agendas.

        Mr Johnston highlighted that: "Cyber threats are growing in sophistication. Most businesses across all industries, regardless of their location or size, now rely on digital technology. While the use of technology, and FinTech innovation in the finance sector, drives efficiency and development, it can also increase vulnerability to cyber-attacks in the UAE and around the world".

        A number of cyber risk specialists spoke at the event including; Mr Mohammed Nader Fikri, Monitoring Incident Handling and Response Analyst at the Telecommunication Regulatory Authority Computer Emergency Response Team (aeCERT), Mr Stuart Paterson, Partner at Herbert Smith Freehills, Mr Darren Mullins, Director Forensic Technology at Deloitte, Mr Hamid Qureshi, Territory Sales Manager at Thales E-Security, and Mr Oliver Fairbank, Senior Analyst, Cyber Threat Intelligence from Control Risks.

        The discussions highlighted that cyber risks pose a serious and persistent threat to all financial institutions and to the resilience of the financial system.

        Mr Bryan Stirewalt, Managing Director, Supervision at the DFSA said that: "Cyber security is now a risk that must be considered at Board level with day-today responsibility allocated to a member of senior management. Boards of directors and senior management need to focus on prevention and detection measures, while planning and rehearsing their responses".

        In his closing remarks Mr Stirewalt, referring to the importance of collaboration between the DFSA, DIFC, and UAE Cyber Agencies such as aeCERT, and Authorised Firms, said: "Open, honest and frequent communication is critical to getting this right, and today we are embarking on the first of many steps."

        The outreach session primarily targeted DIFC companies and was attended by senior management as well as compliance, risk and IT professionals.

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 — Mar 2016).

      • 24 October 2016 — Rasmala Investment Bank Limited Resolves Compliance Concerns with the DFSA

        Click here to view PDF.

        Dubai, UAE, 24 October 2016: The Dubai Financial Services Authority (DFSA) has accepted an Enforceable Undertaking (EU) from Rasmala Investment Bank Limited (RIBL), a company incorporated in the Dubai International Financial Centre and a DFSA Authorised Firm.

        The EU resulted from DFSA concerns about RIBL's anti-money laundering (AML) systems and controls, and about whether it had carried out the Financial Service of Providing Custody to its clients without being licensed to do so.

        Though RIBL does not agree with the DFSA's findings, it acknowledges the DFSA's concerns and agrees to engage an independent expert to ensure that the concerns are remedied.

        RIBL also agreed to pay a financial penalty of USD 60,000 (AED 220,200) to the DFSA of which USD 30,000 (AED 110,100) is payable on or by 17 November 2016. The remaining USD 30,000 (AED 110,100) is suspended indefinitely and becomes payable if RIBL fails to comply with the EU.

        The DFSA acknowledges that RIBL co-operated fully with the DFSA's inquiries, and has already carried out significant remedial work.

        Mr Ian Johnston, Chief Executive of the DFSA said: "The DFSA's action again highlights the importance of firms having robust and effective AML systems and controls. The DFSA also reminds firms to operate within the scope of their licence. The DFSA urges firms to review their systems and controls and operations regularly, and to identify and remedy any concerns."

        A copy of the Enforceable Undertaking can be found in the Public Register of the DFSA website under Regulatory Actions:

        http://www.dfsa.ae/en/What-We-Do/Enforcement#Regulatory-Actions

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 — Mar 2016).

      • 27 September 2016 — DFSA Strengthens Regional Regulatory Co-operation

        Click here to view PDF.

        Dubai, UAE, 27 September 2016: The Dubai Financial Services Authority (DFSA) earlier this week signed a Memorandum of Understanding (MoU) with the Jordan Securities Commission (JSC).

        The MoU was signed on behalf of the DFSA by Chief Executive, Mr Ian Johnston, and on behalf of the JSC by Commissioner Mr Mazen Wathaifi, at the DFSA offices in Dubai.

        The JSC was established as an autonomous public institution in 1997 to develop, regulate, and monitor Jordan's securities market and capital market institutions. The JSC's major objective is to provide a sound and transparent market to protect holders of securities, investors and the public from irregular market practices.

        Mr Ian Johnston, Chief Executive of the DFSA said: “While the DFSA remains committed to international best practice and the work of the standard-setters, its recent focus, has been on our region. In 2006 and 2007 the DFSA signed co-operative arrangements with the Insurance Commissioner and the Central Bank of Jordan and I am delighted to be signing this MoU with Commissioner Wathaifi today. The Jordan Securities Commission has long been an active participant in the International Organisation of Securities Commissions (IOSCO) and, like the DFSA, was an early signatory of the IOSCO Multilateral MoU, an initiative which remains the high-water mark for co-operation and information sharing among securities regulators.

        "The DFSA has always attached great importance to its ability to assist, and to receive assistance from, its regulatory counterparts as financial activity increasingly crosses borders and calls for greater collaboration and enhanced responsiveness. As we sign our 98th bi-lateral MoU, we, with our Jordanian colleagues, confirm that commitment."

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 — Mar 2016).

      • 26 September 2016 — DFSA Fines Clements (Dubai) Limited

        Click here to view PDF.

        Dubai, UAE, 26 September 2016: The Dubai Financial Services Authority (DFSA) has imposed a fine of USD 85,191 (AED 312,650.97) on Clements (Dubai) Limited (CDL). The fine was imposed following a DFSA investigation conducted in collaboration with the Insurance Authority of the United Arab Emirates (UAE). The investigation found that, from January 2014 to July 2014, CDL engaged in prohibited insurance activities in breach of DFSA administered Rules. The fine includes the giving up of commissions earned by CDL from the prohibited activities.

        CDL is authorised by the DFSA to provide the Financial Service of Insurance Intermediation in the Dubai International Financial Centre (DIFC). In providing this service, CDL is restricted under DFSA Rules from intermediating a Contract of Insurance for a risk situated in the UAE unless:

        •    the risk is situated in the DIFC; or
        •    the contract is one of re-insurance.

        The DFSA's investigation identified that CDL provided prohibited Insurance Intermediation services in breach of DFSA Rules on 21 occasions and failed to have adequate systems and controls in place to detect, monitor and prevent such activities from occurring.

        The DFSA discounted the amount of the fine imposed on CDL after taking into consideration CDL's initiative to self-report the misconduct to the DFSA, take steps to remediate its deficiencies and co-operate fully with the DFSA's investigation.

        The DFSA also notes that CDL voluntarily appointed a new Senior Executive Officer, and Compliance and Money Laundering Reporting Officer.

        CDL agreed to settle the DFSA's action at an early stage of the investigation, and therefore qualified for a further discount under the DFSA's policy for early settlement. Were it not for the mitigating factors and settlement discount, the DFSA would have imposed a fine of USD 102,191 (AED 375,040.97).

        Mr Ian Johnston, Chief Executive of the DFSA said: “Intermediating direct insurance in the UAE (outside of the DIFC) is prohibited by DFSA administered legislation and the UAE Federal Law. The DFSA will take appropriate action against firms in the DIFC that engage in any unlicensed insurance activities.

        We worked closely with our colleagues at the UAE Insurance Authority on this matter, and I am grateful to the Authority for their co-operation and assistance.” A copy of the DFSA's Decision Notice can be found in the Regulatory Actions section of the DFSA website:

        http://dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 — Mar 2016).

      • 23 August 2016 — DFSA Strengthens Regulatory Co-operation in the UAE

        Click here to view PDF.

        Dubai, UAE, 23 August 2016: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM). The MoU was signed on behalf of the DFSA by Chief Executive, Mr Ian Johnston, and on behalf of the FSRA by Chief Executive Officer, Mr Richard Teng, at the offices of the DFSA.

        Mr Ian Johnston, Chief Executive of the DFSA said: "The DFSA is pleased to engage with its counterparts in the GCC and especially with a fellow regulator in the United Arab Emirates. As regulators of financial centres, founded on Common Law principles, we embrace best practice and apply regulation which meets the requirements of the international standard-setters: the Basel Committee on Banking Supervision; the International Organisation of Securities Commissions; the International Association of Insurance Supervisors; and the Financial Action Task Force. Signing this MoU demonstrates a mutual willingness to co-operate and share information to those standards."

        "The importance of effective co-ordination and co-operation between regulators cannot be overstated and to that end the DFSA has concluded some 97 MoUs with its counterparts since our establishment in 2004. This agreement also builds on the agreements already signed with other UAE regulators, including; the Central Bank, the Securities and Commodities Authority and the Insurance Authority.", Mr Johnston added.

        Mr Richard Teng, CEO, FSRA said: "The MoU with the DFSA underscores FSRA's commitment to foster greater investor protection and support the development and innovation of regulations and supervision in the UAE and wider region. ADGM will continue to work closely with our fellow GCC counterparts and global like-minded regulators to foster high regulatory standards, advance financial development and safeguard financial market integrity in our jurisdictions. As a member of the IOSCO, the FSRA will play its part to co-operate and maintain fair, efficient and responsible markets in Abu Dhabi and beyond."

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 — Mar 2016).

      • 18 July 2016 — European Commission Recognises DFSA's Audit Oversight System

        Click here to view PDF.

        Dubai, UAE, 18 July 2016: Following a lengthy and rigorous assessment of the supervisory regime for auditors in the Dubai International Financial Centre (DIFC), the European Commission (the Commission) announced its recognition of the adequacy of the Dubai Financial Services Authority's (DFSA's) oversight of audit firms.

        The Commission had already recognised the DFSA's audit regulation as having “equivalent status”, which allows DFSA Registered Auditors to conduct their audit activity in the European Union Member States, without going through a full registration process. With this announcement, the Commission has concluded that the DFSA has competence in oversight, external quality assurance and investigation of auditors and audit firms. In the Commission's view, the DFSA has implemented adequate safeguards to prohibit unlawful disclosure of confidential information to any third person or authority.

        Mr Ian Johnston, Chief Executive of the DFSA said: "This is further testament to the DFSA's commitment to the highest international standards. The DFSA becomes the first audit regulator in the region to meet European standards for information sharing and confidentiality. The ability to share confidential information with other regulators is integral to the efficient oversight of company audits. Audit has become a borderless activity and it is important that regulators are able to operate in a similar manner. We look forward to fruitful cooperation with our counterparts in Europe."

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai, UAE.

        The DFSA's regulatory mandate includes 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing anti-money laundering (AML) and counter-terrorist financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 — Mar 2016).

      • 20 June 2016 — The DFSA Hosts Annual Supervision Outreach Session

        Click here to view PDF.

        Dubai, UAE, June 20 2016: The Dubai Financial Services Authority (DFSA) held its Annual Supervision Outreach Session last month to discuss key regulatory priorities and issues. The event brought together various speakers from the DFSA, the Compliance Officers Network Group (CONG), the Dubai International Financial Centre (DIFC) Authority and the DIFC Insurance Association. Over 200 participants attended the event, representing a sizeable percentage of the 418 Authorised Firms operating in the DIFC.

        The event was opened by Mr Ian Johnston, Chief Executive of the DFSA, who provided an overview of the DFSA's strategic themes, regulatory priorities and some of the current challenges faced by financial institutions and regulators.

        The DFSA noted that one of its new priorities includes better understanding of the risks and opportunities posed by FinTech, in respect of which the DFSA aims to develop an appropriate regulatory response that balances the need to protect investors, without stifling innovation.

        The event also provided an opportunity for the DFSA to provide an update on its current and future policy agenda; trends in recent enforcement actions; and current risks and issues in the wealth management, broking, banking and insurance sectors.

        In his opening remarks, Mr Ian Johnston said: "Our regulated population continues to expand and we continue to see an increase in the depth and complexity of activities undertaken in or from the DIFC. The DFSA continues to put a lot of effort into communicating with the industry we regulate. We consider events like this outreach session as an important part of our engagement with our regulated population, and in particular, compliance officers and money laundering reporting officers who play a key role in ensuring financial institutions meet their regulatory obligations, which we believe will ensure better compliance, but also enable better business."

        Mr Bryan Stirewalt, Managing Director, Supervision said: "We continue to focus on the areas of financial crime and conduct of business risks. At the same time, as financial institutions continue to expand their balance sheets, we will focus on relevant prudential risks. In 2016, these areas continue to be important regulatory priorities."

        The event was primarily targeted at DFSA's regulated community and the various compliance officers and money laundering reporting officers from its Authorised Firms and Designated Non-Financial Business Professions.

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 — Mar 2016).

      • 7 June 2016 — The DFSA Signs MoU with the Telecommunications Regulatory Authority

        Click here to view PDF.

        Dubai, UAE, June 07 2016: The Dubai Financial Services Authority (DFSA), entered into a Memorandum of Understanding (MoU), last week with the Telecommunications Regulatory Authority (TRA), represented by its subsidiary, the UAE Computer Emergency Response Team (aeCERT). ae CERT is an initiative launched by the TRA to improve the standards and practices of information security, and protect the Information Technology infrastructure in the United Arab Emirates (UAE). It aims at supporting and ensuring a safer cyber space of the UAE.

        The MoU sets the means of co-operation between the DFSA and the TRA in the field of cyber-security and facilitates the detection, prevention, education, awareness and response to cyber-security incidents.

        Mr Ian Johnston, Chief Executive of the DFSA said: "I would like to express my appreciation to the TRA for the comprehensive support that they will provide to the DFSA. The DFSA is pleased to co-operate with the TRA to limit and reduce the challenges and risks in the world of cyber space.

        Mr Waleed Saeed Al Awadhi, Chief Operating Officer of the DFSA said: "Today we are delighted to sign this MoU with the TRA, and look forward to co-operate with the TRA on an on-going basis. This step comes in line with the UAE's Government continuous efforts to raise awareness in the field of cyber security; furthermore the DFSA is very keen to collaborate with prominent federal authorities such as the TRA in the field of cutting edge cyber-security and to be part of the UAEs success by ensuring a sustainable and safe electronic environment in the financial services sector. Through this MoU the DFSA seeks to be proactive in its security stance by ensuring the latest safeguards of its core infrastructure and the continuity of its efforts to raise cyber-security awareness to its stakeholders in the Dubai International Financial Centre (DIFC).

        H.E. Hamad Obaid Al Mansoori, Director General, TRA, said: "In the era of smart cities and free flow of information across the digital space, safety becomes of utmost concern for many people. The UAE has entered into this era with full understanding of its prospects and challenges and armed with determination to increase the benefits and limit the challenges and risks. We should unify the efforts to achieve this target, with all concerned. We thank the DFSA staff for their work and efforts to achieve this agreement to promote the collaboration between the two parties and for TRA to be able to provide full support through aeCERT in the form of technical assistance and providing protection and cyber-security against virus attacks and intrusion attempts. We hope to ensure a safe e-environment where data flow is protected and secured against any risks from cyberspace."

        "aeCERT is fully aware and responsible to ensure the safety of the country's virtual borders. The team works to address and prevent all risks and threats, in line with the TRA's mandate to provide the highest form of protection and safety for all government entities and thereby enable them to meet the country's strategic goal of promoting e-lifestyle," H.E. Al Mansoori added.

        Engineer Mohamed Al Zarooni, Director Policy and Programs Department at TRA, noted that the aeCERT team are proactive in ensuring online safety in the UAE — providing guidance, education, monitoring, responding, researches and analytical services for all government entities aiming to achieve a safe e-environment.

        The aeCERT was established as a national team by Decree 5/89 of 2008 issued by the Ministerial Council for Services. Its goal is to improve the standards and practices of information security, and protect IT infrastructures from risks and violations, in conformity with the TRA's strategy and goal to ensure a safer cyberspace, both for UAE Nationals and residents.

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 — Mar 2016).

      • 1 June 2016 — DFSA Hosts Outreach on Extended Audit Reports

        Click here to view PDF.

        Dubai, UAE, 1 June 2016: The Dubai Financial Services Authority (DFSA) and the Institute of Chartered Accountants in England and Wales (ICAEW) jointly organised an outreach event last week to conduct a briefing on the new Extended Audit Reports.

        The event was opened by Mr Ian Johnston, Chief Executive of the DFSA, who provided an assessment of the DFSA's approach to audit, and speakers included Mr Bryan Stirewalt, Managing Director, Supervision — DFSA; Mr Edward Quinlan, Audit Committee Member; Mr Richard Ackland, Partner — KPMG LLP and Mr Umar Saleem, Chief Finance Officer — Depa Limited. The session was moderated by Mr Michael Armstrong, FCA and ICAEW Regional Director for the Middle East, Africa and South Asia (MEASA).

        The event was targeted at publicly listed companies, DFSA Registered Auditors and ICAEW members and other stakeholders.

        The panel discussed the new Extended Audit Reports which will be effective for audits of financial statements for periods ending on or after 15 December 2016. The panelists expressed their views about the challenges and opportunities of implementing Extended Audit Reports and also shared practical experience in implementing such reports in the United Kingdom (UK).

        In his Opening Remarks, Ian Johnston said: "The Auditor's Report is the primary means by which the auditor communicates information regarding the audit of the financial statements to investors and other financial statement users. As currently designed, however, the auditor's report conveys very little of the information obtained and evaluated by the auditor. In recent years, many investors and others have stated that auditors should provide additional information in the auditor's report to make the report more relevant and useful. The communication of key audit matters would inform investors and other financial statement users of matters arising from the audit."

        Mr Michael Armstrong said: "The extended audit report is definitely a game changer for all market participants. It does not only provide the key audit risks of material misstatement, but also a simplified insight into complex accounting treatments and transactional issues.

        "The need to disclose information on the scope, materiality and areas of focus in audits will greatly increase the quality of debate auditors have with management, audit committees and boards."

        The event was well attended by over 75 stakeholders.

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

        ICAEW is a world leading professional membership organisation that promotes, develops and supports over 145,000 chartered accountants worldwide. ICAEW provide qualifications and professional development, share knowledge, insight and technical expertise, and protect the quality and integrity of the accountancy and finance profession.

        Breakfast Briefing is a joint initiative between the DFSA and ICAEW to discuss topics of interest to the audit community. Previous topics include:

        •   The Challenges of Emiratisation: Attracting Talent into the Finance Industry (April 2013)
        •   Detection of Fraud: Whose role is it? (March 2012)
        •   The Importance of Professional Accounting Bodies (September 2011)
        •   The Future of Audit (September 2010)
        •   The role of audit monitoring in improving the quality of and confidence in financial information in the Middle East (March 2010)

      • 11 May 2016 — DFSA Restricts Former Trader Noyan Ayhan

        Click here to view PDF.

        Dubai, UAE, 11 May 2016: The Dubai Financial Services Authority (DFSA) announced today that it has imposed a restriction on Mr Noyan Ayhan, a former trader at a DFSA Authorised Firm, after he inflated the value of his trading book by around USD 11,000,000 (AED 40,425,000) to cover up losses.

        The DFSA imposed the restriction because it found that Mr Ayhan's misconduct demonstrated that he lacked integrity. As a result, the DFSA concluded that he is not fit and proper to perform any functions in connection with the provision of Financial Services in or from the Dubai International Financial Centre (DIFC).

        The DFSA's action follows an investigation which found that, while a trader at a DFSA Authorised Firm (the Firm), Mr Ayhan:

        •   falsified internal Firm records on at least 163 occasions from May to July 2014, by entering false prices in the records. The effect of this was to overstate his trading profits or conceal his trading losses by approximately USD 11,000,000 (AED 40,425,000) — a practice known as "mismarking";
        •   colluded with traders on a Turkish market to "mark the close" on the last trading day of the month in April, May and June 2014, by creating closing prices that would match his mismarks. He did so to avoid the Firm's internal controls and conceal his mismarking;
        •   instructed a subordinate employee to enter false daily marks on one occasion while Mr Ayhan was out of the office; and
        •   denied any wrongdoing when the Firm questioned him, despite the Firm having presented him with evidence showing that he had mismarked the Firm's records.

        The Firm carried out an internal investigation and found that Mr Ayhan acted dishonestly and committed gross misconduct under the Firm's codes of conduct. The Firm notified the DFSA of the misconduct, and co-operated fully with the DFSA's investigation. The DFSA has not taken any enforcement action against the Firm.

        Mr Ian Johnston, Chief Executive of the DFSA said: "The DFSA expects employees of Authorised Firms in the DIFC to act with integrity when performing their duties. Mr Ayhan was a senior and experienced trader who held a position of trust at the Firm. Mr Ayhan's actions in deliberately mismarking his positions and engaging others in his misconduct fell far short of the DFSA's expectations."

        After a period of six years, the DFSA may consider varying or revoking the restriction on application by Mr Ayhan.

        A copy of the DFSA's Decision Notice can be found in the Regulatory Actions section of the DFSA website:

        http://dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

      • 9 May 2016 — DFSA Fines Former Licensed Directors

        Click here to view PDF.

        Dubai, UAE, 9 May 2016: The Dubai Financial Services Authority (DFSA) has fined two individuals USD 56,000 (AED 205,520) each for failing to act with due skill, care and diligence, which caused an Authorised Firm to breach the DFSA's Anti-Money Laundering (AML) Rules.

        Mr Raphael Lilla and Mr Kapparath Muraleedharan were both Licensed Directors and members of the Board of Directors at a DFSA Authorised Firm.

        In August 2014, Mr Lilla and Mr Muraleedharan instructed the Firm's Senior Executive Officer and the Compliance and Money Laundering Reporting Officer to open three accounts for clients which had been assessed as “high risk”. Under the DFSA's AML Rules, the Firm was required to carry out Enhanced Customer Due Diligence on these clients before opening the accounts. However, Mr Lilla and Mr Muraleedharan dismissed the advice from the Senior Executive Officer and the Compliance and Money Laundering Reporting Officer that opening the accounts without the completion of Enhanced Customer Due Diligence would contravene the DFSA's AML Rules. In their senior positions as Board members of the Firm, Mr Lilla and Mr Muraleedharan told the staff to follow their instructions.

        The DFSA's investigation also found that Mr Lilla and Mr Muraleedharan:

        •   received confirmation from external legal counsel shortly after the accounts were opened that the advice of the Senior Executive Officer and the Compliance and Money Laundering Reporting Officer was correct;
        •   were aware that opening the accounts in such circumstances did not comply with the Firm's account-opening policies; and
        •   attempted to control the Senior Executive Officer and the Compliance and Money Laundering Reporting Officer from reporting the opening of two of the accounts to the DFSA.

        Mr Lilla and Mr Muraleedharan accepted responsibility for their actions and agreed to settle the matter at an early stage following the conclusion of the investigation. The DFSA therefore reduced the fines by 20% under the DFSA's policy for early settlement. Were it not for discount for early settlement, Mr Lilla and Mr Muraleedharan would have each been fined USD 70,000 (AED 256,900).

        The DFSA decided not to take any action against the Firm. After the accounts were opened, the Firm promptly notified the DFSA and other relevant authorities in the UAE that the accounts had been opened and also took steps to prevent the accounts from being used to receive funds.

        Mr Ian Johnston, Chief Executive of the DFSA said: “Mr Lilla and Mr Muraleedharan were given clear advice that opening the accounts without completing the required due diligence would contravene the DFSA's Rules. They ignored this advice and caused the accounts to be opened, which put the Firm in breach of its regulatory obligations. The DFSA considers their actions to be serious and expects a higher standard of behaviour from persons in such senior positions.

        The DFSA also commends the Senior Executive Officer and the Compliance and Money Laundering Reporting Officer for taking action to mitigate the risks to which the Firm was exposed, and for notifying the DFSA.”

        A copy of the DFSA's Decision Notices can be found in the DFSA website under Regulatory Actions.

        https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

        — Ends —

        For further information please contact:

        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 purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

      • 3 May 2016 — DFSA Hosts Outreach on Corporate Governance and Investor Relations

        Click here to view PDF.

        Dubai, UAE, 3 May 2016: The Dubai Financial Services Authority (DFSA), together with Hawkamah, the Dubai International Financial Centre (DIFC) Institute for Corporate Governance, and the Middle East Investor Relations Society (MEIRS), organised an outreach event last week on topics of Corporate Governance and investor relations. Panelists from each of these groups covered key topics, provided market insight and answered questions at the event.

        The event was targeted at representatives of companies listed on the DIFC markets, companies considering a listing, advisors and legal professionals advising firms on listing in the DIFC, investment bankers representing the buy-side for such listings, as well as investor relations professionals. Over 60 stakeholders attended the event.

        The DFSA explained its regulatory requirements for Corporate Governance and the panelists discussed the challenges of implementing Corporate Governance principles with a case study outlining the day to day implementation of Corporate Governance. The case study highlighted the role of Sharia compliance in attracting foreign capital.

        Ian Johnston, Chief Executive of the DFSA, said: "This was a significant event, bringing together three key organisations to hold an interactive forum on topics of direct relevance to listed companies, as well as companies seeking to list. The aim of this event was to raise awareness of the DFSA's framework on Corporate Governance applicable to listed companies as well as to discuss key issues within the realm of Corporate Governance and investor relations affecting companies day to day".

        Dr Ashraf Gamal-El Din, CEO Hawkamah, said: "We look at governance as a corporate asset, it adds value, and it protects investors and other stakeholders. Therefore, an event like this is crucial in making sure that companies do not look at governance only from the compliance point of view, but from the strategic point of view as well".

        Alex MacDonald-Vitale, Chairman of the Middle East Investor Relations Society (MEIRS) said: "This is a successful and positive forum encouraging further exchange of ideas and shared challenges around the strategic roles of Corporate Governance and investor relations, both crucial to the region's development. MEIRS is delighted to be part of a trend of increasing openness in dialogue around investor perception and engagement, and welcomes the opportunity to continue working closely with its co-organisers in helping promote and foster best practice across our markets".

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980s and has spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

      • 13 April 2016 — The DFSA and Society of Lloyd's establish a Framework for Co-operation

        Click here to view PDF.

        Dubai, UAE, 13 April 2016: The Dubai Financial Services Authority (DFSA) entered into an arrangement today with the Society of Lloyd's to establish a Framework for co-operation.

        The Framework was signed by the Chief Executive of the DFSA, Mr Ian Johnston, and the Chairman of Lloyd's, Mr John Nelson. The Framework promotes an efficient and effective flow of information between the DFSA and the Society of Lloyd's in relation to Lloyd's syndicate service companies and other coverholders who operate in the Dubai International Financial Centre.

        This Framework for co-operation recognises the mutual benefit of sharing information to promote effective supervision of Lloyd's coverholders. While the DFSA has the responsibility for the licensing and supervision of Lloyd's coverholders in the DIFC, the Society of Lloyd's has statutory and supervisory powers relating to Lloyd's market participants who appoint the coverholders. Through a DIFC subsidiary, Lloyd's Ltd, it will provide a number of services to those coverholders. This creates a common interest between the DFSA and Lloyd's in seeking to ensure that these entities conduct their business properly and effectively.

        Mr Ian Johnston, Chief Executive of the DFSA, said: "The establishment of the Framework marks a significant step in the evolution of Lloyd's presence in the DIFC. While several Lloyd's participants have been licensed to conduct insurance activities in the DIFC for over a decade, Lloyd's Ltd's' presence in the DIFC, began in 2015. Its presence adds depth to the DIFC insurance market. We welcome them and look forward to strengthening our relationship with the Society of Lloyd's."

        Lloyd's Chairman John Nelson said: "This Framework for co-operation recognises the responsibilities and common interests between Lloyd's and the DFSA in ensuring the activities of Lloyd's coverholders in the DIFC are appropriately conducted and supervised.

        The Lloyd's market has evolved over 328 years and, in doing so, we have developed a robust and tested framework for monitoring the syndicates and business within the market and sharing our intelligence and insights with regulatory bodies.

        We are delighted to mark the first anniversary of the Lloyd's Dubai platform. The presence of the Lloyd's underwriting community in the DIFC allows us to build stronger relationships and deeper risk insights across the region and we are seeing promising business growth as a result of this investment."

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head-up the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 – Mar 2016).

      • 10 February 2016 — DFSA makes changes to the Collective Investment Rules

        Click here to view PDF.

        Dubai, UAE, 10 February 2016: The DFSA Board has enacted changes to the regime for Collective Investment Funds, which came into force on Monday 1 February 2016.

        Amendments have been made to the Rules for Property Funds, to simplify the current regime and align our regime better with international standards while still catering to specific features of the Dubai International Financial Centre (DIFC) market. Key changes are to the valuation and Related Person transaction requirements, as well as amendments to the borrowing limits, investment restrictions and custody requirements for these Funds.

        The DFSA has also introduced a framework for the regulation of Money Market Funds (MMFs), drawing on the work that the Financial Stability Board (FSB) and the International Organization of Securities Commission (IOSCO) have done in this area. The Rules define what structure an MMF can have, and set out specific requirements for the liquidity, credit quality, and other features of allowable investments for MMFs and Islamic MMFs.

        Mr Ian Johnston, Chief Executive of the DFSA said: "The DFSA continues to work with stakeholders to improve the regulatory environment. These new Rules provide clarity and certainty to fund managers and give greater flexibility to those operating Property Funds."

        The amendments to DFSA Rules are available on the DFSA website under: Notice of Amendments to Legislation.

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head-up the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). He is a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board (FPSB).

      • 1 February 2016 — DFSA Launches Mobile Application and New Website

        Click here to view PDF.

        Dubai, UAE, 1 February 2016: The Dubai Financial Services Authority (DFSA) announced today the launch of a new free IOS and Android mobile application and its newly revamped website. The new application and revamped website will provide stakeholders with a more innovative and direct way to access information about the DFSA's activities.

        The development of the mobile application aims to facilitate easy access to information about Authorised Firms and Authorised Individuals through the Public Register. It features push notifications that will enable users to be alerted about DFSA alerts, media releases and other DFSA regulatory updates and warnings of scams as and when they happen.

        The new website is highly visual, with a focus on modern design and a user friendly interface. It has been designed for an optimal viewing and interactive experience, easy reading and navigation with a minimum of resizing, panning, and scrolling, across a wide range of devices from desktop computer monitors to mobile phones.

        Mr Waleed Al Awadhi, DFSA Director, Operations and Corporate Affairs said: "Today we are proud to announce the introduction of our new mobile application and launch of our newly revamped website. This move comes in line with the strategy of His Highness Shaikh Mohammad bin Rashid Al Maktoum, Vice-President, Prime Minister of the UAE and Ruler of Dubai, to transform Dubai into a "Smart City". The new application and website will allow us to communicate more directly and transparently with our stakeholders on all levels, and will facilitate better stakeholder interaction. As we continue to move forward in this Information Technology age, we at the DFSA are committed to enhance stakeholder engagement. Today smart technology has become part of every government entity in Dubai, and the DFSA intends to stay ahead in ways to contribute to the success story of Dubai."

        To visit the new DFSA website please visit the following link: www.dfsa.ae

        To download the DFSA IOS mobile app please visit the following link:
        https://geo.itunes.apple.com/us/app/dfsa/id1073575697?mt=8

        To download the DFSA Android mobile app please visit the following link:
        https://play.google.com/store/apps/details?id=com.thampy.dfsa

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Mr Waleed Saeed Al Awadhi joined the DFSA in March 2013 and is an experienced professional who has led key functions in financial services, Islamic banking, real estate investment and development, media and telecommunication industries.

        Through his international and local responsibilities, he has developed expertise in strategy and market intelligence, sales and marketing, communications, project management, product development, business development, business excellence and knowledge management.

        Before joining the DFSA, Mr Al Awadhi worked as Executive Director of Marketing and Communication at Abu Dhabi Media, Head of Priority Banking at Emirates Islamic Bank and Deputy Head of Retail Banking Group and Deputy Chief Marketing Officer at Dubai Bank where he led Royal Banking and Wealth Management, Branding, Corporate Communications and Customer Services Enhancement. He has also been Global Director of Marketing and Sales and Head of Research Intelligence Department at Sama Dubai (a Dubai Holding company), where he was responsible for over 20 international markets spanning the Far East, Australia, Middle East, North Africa, Turkey and the Levant region.

        Previously, Mr Al Awadhi worked as Key Accounts Manager in the Top Corporate Customers Department in Emirates Telecommunication Company.

    • 2015

      • 21 December 2015 — DFSA Censures MAS Clearsight and Directs it to Compensate Investors

        Click here to view PDF.

        Dubai, UAE, 21 December 2015: The Dubai Financial Services Authority (DFSA) has censured MAS Clearsight Limited (MAS) and directed MAS to pay compensation of USD3,200,000 (AED12,044,800) to 20 investors for contravening DFSA's Law and Rules. Had it not been for MAS' financial position and the DFSA's decision to require MAS to pay compensation to the investors, the DFSA would also have imposed a financial penalty on MAS.

        In June 2015, the DFSA suspended MAS' DFSA License to stop it from conducting any Financial Services in the DIFC.

        During 2010 to 2011 MAS marketed investment opportunities in the production of limited-edition publications. MAS told investors they would be repaid 100% of their initial investment, plus a further minimum return of 50% of their total investment. In fact, the publications have not been produced and the investors have not been repaid the amount of their initial investment or the returns they were promised. In July 2013, some of the investors complained to the DFSA about their investments through MAS.

        The DFSA investigated the matter and found that MAS had promoted a Collective Investment Fund in a manner that did not comply with the applicable Laws and Rules. In addition, the investors were not properly treated as clients by MAS and were thereby excluded from receiving the other protections they were entitled to under the DFSA's regulatory regime.

        Mr Ian Johnston, Chief Executive of the DFSA said: "The DFSA's Laws and Rules provide important protections for investors. These protections are designed to ensure that investors are fully informed about the investments they make and that the investments are suitable for them. As this action against MAS shows, the DFSA will take appropriate action against anyone who fails to provide investors with the required regulatory protections."

        MAS initially challenged the DFSA's Decision Notice and referred the decision to the Financial Markets Tribunal (FMT), which is empowered to review decisions made by the DFSA. However, on 19 November 2015 the DIFC Courts ordered a liquidator to be appointed to MAS. The liquidator decided not to proceed with the challenge against the DFSA's decision. Accordingly, the FMT dismissed the appeal thereby confirming that the DFSA's Decision Notice remains in effect

        Copies of the FMT's Decisions in this matter will be published on the FMT's website in due course.

        A copy of the DFSA's Decision Notice can be found in the Public Register on the DFSA website under Regulatory Actions: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@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 purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head-up the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). He is a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board (FPSB).

        The FMT is operationally independent of the DFSA and it has its own rules of procedure. The FMT conducts a full merits review of DFSA decisions that are referred to it and determines the appropriate action for the DFSA to take. This would have been the first case considered by the FMT since the changes were made to the DFSA's decision-making framework in August 2014. .

      • 7 December 2015 — The DFSA Reminds Investors of their Obligations — Connected Person Disclosures

        Click here to view PDF.

        Dubai, UAE, 7 December 2015: The Dubai Financial Services Authority (DFSA) reminds shareholders of companies listed on Nasdaq Dubai of their disclosure obligations under the DIFC Markets Law and DFSA Markets Rules (the “Regulation”). When a shareholder acquires 5% or more of the voting shares of a company listed on Nasdaq Dubai, such person is a Connected Person under DFSA administered laws and Rules. The obligations apply to shareholders, whether they are natural or legal persons.

        A Connected Person is required to file a report with the DFSA and listed company within 5 days of acquiring a holding of 5% or more of the voting shares of the listed company. Any further change of 1% increase or decrease triggers a report to the DFSA and the listed company.

        Once the listed company receives such a report from a Connected Person, it will disclose the information to the market via a public announcement. This disclosure is to ensure the market is informed about shareholders who control a significant number of voting shares.

        The obligation to monitor their shareholding and to file a Connected Persons report within the required 5 day period rests with the shareholder. As such, shareholders in companies listed on Nasdaq Dubai will be held responsible for meeting their obligations.

        Shareholders could face regulatory action in the event of failure to comply with the above requirements. Such regulatory action could be in the form of monetary penalties or a public censure and could lead to banning from transacting on the market in the case of repeated non-compliance.

        Please consider this as a reminder of your obligations to the DFSA and the market.

        For further information on Connected Person disclosures please click on the links below:

        DFSA Markets Rules (MKT)

        DFSA Markets Brief 6

        Should you have any queries in relation to the contents of this release or your obligations under the DIFC Law and the DFSA Rules applicable to Connected Persons, please contact markets@dfsa.ae

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@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 purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

        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.

        In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      • 24 November 2015 — DFSA Facilitates Certification of 10 UAE Nationals in the Fundamentals of Islamic Banking and Finance

        Click here to view PDF.

        Dubai, UAE, 24 November 2015: The Dubai Financial Services Authority (DFSA) announces today ten UAE Nationals who the DFSA will facilitate to obtain a certified qualification on Fundamentals of Islamic Banking and Finance from the Chartered Institute for Securities & Investment (CISI), UK. The ten were selected by the DFSA through an assessment made at a workshop hosted by the DFSA last month on Islamic finance. The seminar is part of the DFSA's Bawabaty 'My Gateway' initiative launched last year. The initiative aims to assist UAE Nationals wishing to pursue a career in financial services; to provide lifelong learning opportunities for our local community; and to support community education in financial services.

        The workshop participants came from a number of universities and government entities across the UAE. The content of the workshop was developed by CISI and delivered by DFSA's Islamic finance expert. The non-sponsored participants will receive a 50% discount on the examination fees.

        Mr Waleed Saeed Al Awadhi, Director, Operations and Corporate Affairs of the DFSA said: "We are very happy to congratulate the ten UAE Nationals who scored the highest in the assessment conducted by the DFSA last month and wish them all the best in their exam. The DFSA's objective is continue to be an active role player in the preparation of an innovative Emirati generation in the field of Islamic finance that contributes to the "Dubai the Capital of Islamic Economy" initiative which is in line with the vision of the UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum."

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@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 purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

        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.

        In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      • 4 November 2015 — DFSA fines ABN AMRO for Anti-Money Laundering Deficiencies

        Click here to view PDF.

        Dubai, UAE, 4 November 2015: The Dubai Financial Services Authority (DFSA) has imposed a fine of USD 640,000 (AED 2,350,720) on ABN AMRO Bank N.V. DIFC Branch (ABN).

        The fine was imposed following a DFSA investigation which found that, over the period from 1 January 2013 to 31 December 2014, ABN contravened a number of DFSA's Rules requiring it to implement appropriate safeguards to prevent opportunities for money laundering.

        ABN brought the contraventions to the DFSA's attention after the firm received internal whistle-blower complaints concerning the operation of its Private Banking International business line in the DIFC (PBI). In response to the complaints, ABN initiated an internal investigation which revealed that certain of its staff, within the DIFC branch, had engaged in practices that breached ABN's own policies and DFSA administered laws and Rules.

        The DFSA imposed the fine because ABN did not:

        •   ensure that its anti-money laundering (AML) related systems and controls operated effectively;
        •   monitor and supervise the activities of all its PBI employees and ensure that they were adequately trained, understood and adhered to ABN's AML policies and procedures;
        •   undertake adequate risk based assessments of every customer or conduct adequate customer due diligence (CDD) for many of its clients; and
        •   undertake adequate transaction monitoring of client accounts.

        ABN's failings were widespread and exposed its business, and the DIFC, to a high risk of financial crime and money laundering. However the DFSA does not allege that any money laundering took place.

        The DFSA reduced the amount of the fine after taking into consideration ABN's initiative to act quickly on the issues raised in the complaints, to self-report the misconduct to the DFSA, to take significant steps to remediate its deficiencies and to co-operate fully with the DFSA's investigation.

        ABN also agreed to settle the DFSA's action at an early stage of the DFSA investigation and therefore qualified for a further discount under the DFSA's policy for early settlement.

        Were it not for the mitigating factors and settlement discount, the DFSA would have imposed a fine of USD 1,000,000 (AED 3,670,000) on ABN.

        As well as imposing the fine, the DFSA directed ABN to undertake further steps to remediate its AML related deficiencies.

        The DFSA's investigation was conducted in close co-operation with ABN's home regulator, De Nederlandsche Bank N.V. (DNB).

        Mr Bryan Stirewalt, Managing Director, Supervision, Acting Chief Executive of the DFSA said: "Although the contraventions in this matter are serious, ABN has taken significant proactive steps to report, investigate and remediate its failings. ABN co-operated fully with the DFSA's investigation. Consequently, the DFSA has taken these factors into consideration and adjusted the penalty proportionally. The DFSA seeks to encourage good governance and compliance with its standards by incentivising those who embrace compliance with its regulatory regime. In this case, ABN received a proportionate discount for exercising a good compliance culture after it found misconduct which contravened its own standards as well as the DFSA administered regulatory regime.

        The DFSA wishes to thank the DNB for the assistance it provided to the DFSA's investigation."

        A copy of the DFSA's Decision Notice can be found in the Public Register on the DFSA website under Regulatory Actions: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

        — Ends —

        For further information please contact:
        Kaja Mohaisen
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@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 purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

        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.

        In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      • 23 August 2015 — The DFSA Appoints New General Counsel

        Click here to view PDF.

        Dubai, 23 August 2015: The Dubai Financial Services Authority (DFSA) today announced that Ms Muna Dandan will join them as General Counsel. Ms Dandan has held a number of senior legal positions in the private sector and has significant experience in legal practice. As General Counsel, Ms Dandan will have overall responsibility for all legal work carried out in the regulator.

        Ms Dandan's appointment follows an international search carried out by Hedley May LLP.

        Mr Ian Johnston, Chief Executive of the DFSA said: "I am pleased to welcome Muna to our executive team. The position of General Counsel carries significant responsibilities for the DFSA and its Board and it is clear that Muna brings an excellent balance of legal and industry knowledge to the DFSA".

        Mr Johnston acknowledged the contributions made by the outgoing General Counsel, Mr Michael Ridgeway and the Managing Director of Policy and Legal Services, Mr Errol Hoopmann each of whose contracts are at an end and plan to return to their home country. "I would like to thank Errol and Michael for the excellent work they did at the DFSA. Each added greatly to our reputation and that of the Dubai International Financial centre (DIFC), and we are sorry to see them go".

        Ms Dandan will take up her role at the end of September.

        The DFSA also confirmed that Mr Peter Smith, Head of Policy and Strategy will now have oversight of all policy work at the regulator.

        — End —

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@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 purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

        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.

        In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti- Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Mr Ian Johnston was appointed Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director heading the Policy and Legal Services Division.

        Mr Johnston was admitted to practice law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was the CEO of one of Australia's major trustee companies. During that time, he played a leading role in the trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he was Executive Director, Financial Services regulation, and spent several terms as an Acting Commissioner. In 2005, he took up a position as a special advisor with the Hong Kong Securities and Futures Commission.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board.

      • 6 August 2015 — The DFSA Signs MoU with Australia's Prudential Supervisor

        Click here to view PDF.

        Sydney, 6 August 2015: The Dubai Financial Services Authority (DFSA) entered into an agreement with the Australian Prudential Regulation Authority (APRA) last week. The Memorandum of Understanding commits the DFSA and APRA to information sharing and co-operation in the supervision of financial institutions.

        The MoU was signed on behalf of the DFSA by Chief Executive, Mr Ian Johnston, and by the Chairman of APRA, Mr Wayne Byres, in Sydney on the side-lines of the Boao Forum for Asia, at which they were both speaking.

        Mr Ian Johnston, Chief Executive of the DFSA said: "I am very pleased to sign this MoU with APRA and to meet Mr Byres again. Much has been done to advance the critical work of the international standard-setters in the areas of insurance and banking supervision". Mr Johnston noted APRA's membership of the International Association of Insurance Supervisors (the IAIS) and Mr Byres' membership of the Basel Committee on Banking Supervision (BCBS). Mr Byers was formerly its Secretary General. "As a member of the IAIS and as an Observer on the Basel Committee, the DFSA also appreciates the importance of international standards in the insurance and banking sectors", Mr Johnston said.

        He added: "This bilateral MoU with APRA reflects the presence of a number of Australian firms offering financial services in the DIFC and reflects each Authority's commitment to co-operation in relation to their regulation. It also follows similar arrangements the DFSA has with other significant supervisors in the UK, Germany, Italy, France, the US, India, China, Japan and Singapore, as well as in the Region".

        — End —

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@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 purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

        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.

        In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti- Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Mr Ian Johnston was appointed Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director heading the Policy and Legal Services Division. Mr Johnston was admitted to practice law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was the CEO of one of Australia's major trustee companies. During that time, he played a leading role in the trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he was Executive Director, Financial Services regulation, and spent several terms as an Acting Commissioner. In 2005, he took up a position as a special advisor with the Hong Kong Securities and Futures Commission.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board.

        The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the Australian financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurance, friendly societies, and most of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding $4.9 trillion in assets for Australian depositors, policyholders and superannuation fund members.

        Mr Wayne Byres was appointed as a Member and Chairman of APRA from 1 July 2014 for a five-year term.

        Mr Byres' early career was in the Reserve Bank of Australia (RBA), which he joined in 1984. After more than 13 years with the RBA, including a secondment to the Bank of England in London, he transferred to APRA on its establishment in 1998 and held a number of senior executive positions in APRA's policy divisions and supervisory divisions. In 2004, Mr Byres was appointed Executive General Manager, Diversified Institutions Division with responsibility for the supervision of Australia's largest and most complex financial groups. He held this role until the end of 2011, when he was appointed to the role of Secretary General of the Basel Committee on Banking Supervision (BCBS), based at the Bank for International Settlements in Basel, Switzerland.

        Mr Byres is APRA's representative on the Payments System Board, the Council of Financial Regulators, the Trans-Tasman Council on Banking Supervision, the Basel Committee and its oversight body, the Governors and Heads of Supervision.

      • 29 July 2015 — Arqaam Capital Limited Resolves Compliance Deficiencies with the DFSA

        Click here to view PDF.

        Dubai, UAE, 29 July 2015: The Dubai Financial Services Authority (DFSA) has accepted an Enforceable Undertaking (EU) from Arqaam Capital Limited (Arqaam), a company incorporated in the Dubai International Financial Centre (DIFC), and a DFSA Authorised Firm.

        The EU resulted from a DFSA investigation following a periodic DFSA risk assessment that focused on Arqaam's compliance with anti-money laundering (AML) obligations in the DIFC. The risk assessment identified a number of deficiencies in Arqaam's AML systems and controls, assessment of customer AML risks and customer due diligence (CDD) practices.

        Although the EU does not mention any specific contraventions of DFSA-administered laws or regulations, the DFSA is concerned that Arqaam may not have:

        •   acted with due skill, care and diligence;
        •   ensured that its affairs were managed effectively and responsibly; and
        •   complied with certain DFSA AML Rules requirements.

        In light of the DFSA's concerns, Arqaam will engage an independent compliance expert to assist the firm to remedy the AML deficiencies the DFSA has identified and any other issues the expert may identify.

        Arqaam also agreed to pay a financial penalty of USD50,000 (AED183,652). Arqaam cooperated fully at an early stage of the DFSA investigation.

        Mr Ian Johnston, Chief Executive of the DFSA said: "Having robust and effective AML systems and controls, including customer AML risk assessments and CDD practices, are important in deterring financial crime. Firms should review their AML systems and controls regularly and ensure staff are given appropriate training concerning the firm's AML responsibilities. Furthermore, willingness to co-operate with the DFSA and remediate regulatory deficiencies at an early stage mitigates risks for both the firm and the DIFC."

        A copy of the Enforceable Undertaking can be found in the Public Register of the DFSA website under Regulatory Actions: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@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 purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head-up the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). He is a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board (FPSB).

      • 10 June 2015 — Kuwait Turkish Participation Bank (Dubai) Limited Resolves Compliance Concerns With The DFSA

        Click here to view PDF.

        Dubai, UAE, 10 June 2015: The Dubai Financial Services Authority (DFSA) has accepted an Enforceable Undertaking (EU) from Kuwait Turkish Participation Bank (Dubai) Limited (KTD), a company incorporated in the Dubai International Financial Centre and a DFSA Authorised Firm.

        The EU resulted from a DFSA investigation which identified deficiencies and areas for improvement in KTD's systems and controls regarding risk management, anti-money laundering (AML) and corporate governance. The DFSA had concerns that KTD may not have:

        •   acted with due skill, care and diligence;
        •   ensured that its affairs were managed effectively and responsibly; and
        •   established and maintained adequate systems and controls.

        In light of the DFSA's concerns, KTD agreed to pay a financial penalty of USD150,000 (AED551,250) to the DFSA of which USD50,000 (AED183,750) is payable on or by 8 July 2015. The remaining USD100,000 (AED367,500) is suspended indefinitely and becomes payable if KTD fails to comply with the EU.

        KTD also agreed to improve its corporate governance arrangements and engage an independent compliance expert to ensure the deficiencies identified by the DFSA's investigation have been remedied.

        The DFSA notes that no specific contraventions of DFSA Laws and Rules by KTD are cited in the EU. The DFSA also acknowledges that KTD co-operated fully with the DFSA's investigation and has already carried out significant remedial work.

        Mr Ian Johnston, Chief Executive of the DFSA said: "The DFSA's action highlights the importance of Firms having robust and effective risk management, corporate governance and AML systems and controls. The DFSA urges Firms to review their systems and controls regularly to identify and remedy any deficiencies."

        A copy of the Enforceable Undertaking can be found in the Public Register of the DFSA website under Regulatory Actions: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@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 purpose-built 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Mr Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head-up the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). He is a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board (FPSB).

      • 7 June 2015 — DFSA Signs MoU with Kuwaiti Counterpart

        Click here to view PDF.

        The Dubai Financial Services Authority (DFSA) has last week entered into a Memorandum of Understanding (MoU) with the Capital Markets Authority of Kuwait (CMA).

        The MoU was signed at the DFSA offices by Mr Ian Johnston, Chief Executive of the DFSA, and His Excellency Dr Nayef Falah Al-Hajraf, Chairman of the Board of Commissioners of the CMA, Kuwait.

        The CMA was established in 2010 to regulate and develop the capital markets in the state of Kuwait while supervising and monitoring regulated companies with the aim of promoting fairness and transparency in transactions related to the securities markets, giving confidence to investors by protecting them from illegal practices, and by enforcing the securities law.

        Mr Johnston said, "I am honoured to welcome His Excellency, Dr Nayef Falah Al- Hajraf, to Dubai and to the DFSA, for this important initiative. Along with its commitments to the international standard-setters and its relationship with key home regulators in Europe, India and China, the DFSA maintains its focus on the region, particularly its links with counterparts in the Gulf Cooperation Council (GCC). As relatively young regulators — the DFSA was established in 2004; the CMA in 2010 — the DFSA and CMA see value in developing our capacity as capital markets regulators. Both authorities have agreed on a secondment programme that will allow regulatory members of staff to learn from each other and, in turn, to share this knowledge and experience with their colleagues."

        The Chairman of the DFSA, Mr Saeb Eigner, said, "I am very pleased to see that, as part of its focus on the Region, the DFSA is deepening its engagement with regulators in the GCC. In this spirit, the DFSA looks forward to working closely with the CMA, enhancing information sharing and cooperation and providing the foundation for facilitating the entry of financial institutions in the DIFC from Kuwait".

        The MoU signing was attended by the International Relations Director Mark McGinness, and Corporate Affairs Director, Waleed Saeed Al Awadhi in the DFSA, as it was attended by the Board of Commissioners Office Director, Moayed Al-Shakhs, and International Relations Office Director in the CMA.

      • 20 May 2015 — DFSA Fines United Investment Bank Limited

        Click here to view PDF.

        Dubai, UAE, 20 May 2015: The Dubai Financial Services Authority (DFSA) has imposed a fine of USD 56,000 (AED 205,800) on United Investment Bank Limited (UIB).

        The fine was imposed following a DFSA investigation which found that, from April to July 2014, UIB contravened a number of the DFSA's Rules, dealing with systems and controls to prevent money laundering (Anti-Money Laundering (AML) Rules). In particular, UIB:

        •   did not take sufficient steps to identify and assess the money laundering risk to which its business was exposed;
        •   established a business relationship with customers where the ownership or control arrangements of the customers prevented UIB from identifying one or more of the customers' beneficial owners;
        •   failed to obtain properly certified documents verifying the identity of customers;
        •   failed to properly document adequate information on the purpose and intended nature of its business relationships with customers;
        •   failed to properly document its understanding of its customers' sources of funds and wealth; and
        •   did not undertake sufficient due diligence on customers which UIB itself had identified as being high risk.

        As well as imposing the fine, the DFSA directed UIB to implement a plan to address the problems with its AML systems and controls and engage a suitably experienced and independent third party to oversee UIB's take-on of new clients.

        It is not alleged that any money laundering took place.

        UIB and its senior management, including its SEO, have accepted responsibility for the contraventions and have cooperated fully with the DFSA to resolve the shortcomings in UIB's AML systems and controls.

        UIB agreed to settle the matter following the conclusion of the investigation and the fine was imposed by way of a Decision Notice agreed with UIB. The DFSA therefore reduced the fine by 20% under the DFSA's policy for early settlement. Were it not for this discount, the fine imposed on UIB would have been USD 70,000 (AED 257,250).

        Mr Ian Johnston, Chief Executive of the DFSA said: "Firms in the DIFC must conduct proper due diligence on clients and have effective systems and controls to prevent opportunities for money laundering. The DFSA will take appropriate action against any person who does not comply with the DFSA's AML Rules."

        A copy of the DFSA's Decision Notice can be found in the Public Register on the DFSA website under Regulatory Actions: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@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 purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

        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.

        In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Mr Ian Johnston was appointed Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director heading the Policy and Legal Services Division.

        Mr Johnston was admitted to practice law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was the CEO of one of Australia's major trustee companies. During that time, he played a leading role in the trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he was Executive Director, Financial Services regulation, and spent several terms as an Acting Commissioner. In 2005, he took up a position as a special advisor with the Hong Kong Securities and Futures Commission.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board.

      • 19 May 2015 — The DFSA and the DIFC Registrar of Companies Co-host FATCA Outreach Workshop

        Click here to view PDF.

        Dubai, UAE, 19 May 2015: The Dubai Financial Services Authority (DFSA) and the Dubai International Financial Centre (DIFC), Registrar of Companies (RoC), jointly hosted an outreach workshop last week regarding the Foreign Account Tax Compliance Act (FATCA). FATCA is extra-territorial US legislation that affects Financial Institutions (FIs), particularly those which have accountholders who are US Persons, as defined by the law.

        The event was specifically targeted at senior office holders of Authorised Firms in the DIFC that are affected by FATCA. In addition to background information regarding FATCA, details regarding the DIFC's reporting processes were explained. Private consultants were present at the session to respond to pre-submitted general questions regarding FATCA.

        Ian Johnston, DFSA Chief Executive, said: "The United States (US) and the United Arab Emirates (UAE) are close to signing an intergovernmental agreement that will facilitate FIs' reporting of information on their US accountholders. Certain DIFC firms will be required to report their US accountholder data to RoC, which will forward it to the UAE Ministry of Finance. The Ministry of Finance will then report the information onward to the US Internal Revenue Service. The aim of this workshop was to further outline the roles of the DFSA and the RoC and to provide the necessary information regarding the recent developments surrounding FATCA efforts."

        Khalid Al Zarouni, DIFC Registrar of Companies, said: "DIFC's compliance to FATCA reiterates our overall commitment to the inter-governmental agreement that is set to be signed between the UAE Ministry of Finance and the US Treasury Department. Under the agreement, DIFC is mandated to facilitate, update and inform the community of firms based at the financial hub about the necessary reporting requirements. However, DIFC recommends all corporates and foreign financial institutions to seek external guidance for interpreting the clauses of FATCA on a case-by-case basis."

        The event attracted some 200 participants who were welcomed by Michael Ridgeway, DFSA General Counsel, Khalid Al Zarouni, Registrar of Companies. They focused on the reporting process, rather than the substance of the law, and made the point that, because FATCA is a foreign law, neither the Registrar nor any other DIFC official including the DFSA is authorised or qualified to interpret or advise regarding the law. Attendees were counseled to seek advice about their specific circumstances from lawyers or other consultants who are qualified to give advice.

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@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 purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

        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.

        In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Mr Ian Johnston was appointed Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director heading the Policy and Legal Services Division.

        Mr Johnston was admitted to practice law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was the CEO of one of Australia's major trustee companies. During that time, he played a leading role in the trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he was Executive Director, Financial Services regulation, and spent several terms as an Acting Commissioner. In 2005, he took up a position as a special advisor with the Hong Kong Securities and Futures Commission.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board.

      • 26 April 2015 — Dubai Delegation Visits India to Promote Collaboration Between The Financial Centres

        Click here to view PDF.

        India, 26 April 2015: A senior delegation from Dubai, led by the Chairman of the Dubai Financial Services Authority (DFSA), Mr Saeb Eigner, met with the Governor of the Reserve Bank of India (RBI), H.E. Dr Raghuram Rajan, in Mumbai, on Thursday, 23rd April, to enhance co-operation and to discuss initiatives to promote further growth in these two leading financial centres.

        Mr Saeb Eigner was joined by The Honourable Apurv Bagri, a Board member of the DFSA, Ian Johnston, the Chief Executive and Mark McGinness, the Director of International Relations.

        The delegation also met with the Deputy Governor of the RBI, Shri S.S. Mundra, and other prominent dignitaries from the financial services and other leading industries in India.

        This visit reflects the increasing ties between Dubai and India as leading international financial centres and important partners in supporting the growing investment and trade flows between the UAE and India.

        The DFSA has in place MoUs with the Securities and Exchange Board of India (SEBI) and the RBI. At the time, the Dubai regulator was the first regulator, after the China Banking Regulatory Commission, to sign an MoU with the respected RBI.

        Mr Saeb Eigner said: "We thank the Governor for a warm welcome. This is an important milestone in implementing the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to become a leading financial centre and a knowledge-based economy. Knowledge sharing between the two financial hubs is an important contributor to sustainable and continued growth."

        RBI Deputy Governor, Mr S.S. Mundra said: "The RBI and the DFSA have an excellent working relationship. I am pleased to see their increasingly close co-operation and the growth in the presence of Indian banks in the DIFC. The quality of supervision of all overseas branches and subsidiaries of Indian banks is obviously a matter of great importance to the RBI."

        Under the direction of Dubai International Financial Centre's (DIFC) President, His Highness Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Dubai's Deputy Ruler, the Centre has witnessed consistent year-on-year growth. The DFSA has entered into regulatory agreements with RBI in 2011. Indian banks have become well established at the DIFC and their business and banking assets have been increasing significantly. Combined assets of Indian banks in the Centre have almost tripled since 2011. There are currently eight of India's largest banks in the Centre, with increasing interest from banks to enter the DIFC. Building on the long-established trading links between India and the UAE, Dubai represents a natural hub for conducting trade finance, lending operations and capital-raising in the GCC, Africa and beyond.

        This month, H.E. Essa Kazim, the Governor of the DIFC, together with officials from the DFSA and DIFC Courts, welcomed an Indian delegation led by The Indian Union Minister of State for Finance, Mr Jayant Sinha. At the request of the Minister, the Governor shared best practices, used at the DIFC, in creating a successful financial hub with modern infrastructure. This illustrates our co-ordinated efforts, led by the Governor of the DIFC, to strengthen our relations with one of the most important economies in the world, in alignment with His Highness' vision. India is one of the UAE's top trading partners. The DFSA will seek to ensure that collaboration in the financial sector continues to grow strongly in parallel.

        - End -

        For further information please contact:
        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@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 purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

        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.

        In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Saeb Eigner was appointed DFSA Chairman in August, 2011. He has been a member of the Board since October 2004 and served as Deputy Chairman since 2007.

        Formerly a Senior Manager at ANZ Grindlays Bank PLC, in London, Mr Eigner headed the Middle East and Indian Subcontinent Division of the private bank, which he left to found Lonworld, a private investment group in the early 1990's.

        Mr Eigner holds a Master's Degree in Management from London Business School. He is a Governor of London Business School and Chairman of its Audit and Risk Committee.

        He is the co-author of the management books Sand to Silicon (2003) and Sand to Silicon-Going Global (2009) and author of Art of the Middle East (2010).

        Mr Eigner holds and/or has held a number of Board appointments in banking, strategy, education, regulation and investment.

      • 22 April 2015 — DFSA Takes Action Against Hany Lotfy Awwad Abdelwahab

        Click here to view PDF.

        Dubai, UAE, 22 April 2015: The Dubai Financial Services Authority (DFSA) has imposed a fine of USD 45,000 (AED 165,150) and a restriction, on Mr Hany Lotfy Awwad Abdelwahab (Mr Abdelwahab) for providing the DFSA with false, misleading or deceptive information, and for obstructing the DFSA by failing to comply with DFSA investigative notices.

        The restriction imposed by the DFSA prevents Mr Abdelwahab from performing any functions in connection with the provision of financial services in or from the Dubai International Financial Centre (DIFC), for a period of 3 years, starting on 16 March 2015.

        On 27 March 2013, Mr Abdelwahab applied to become the Controller of a DFSA Authorised Firm.

        As part of the application process Mr Abdelwahab provided false information to the DFSA. During the DFSA's investigation into the provision of the false information it served investigative notices on Mr Abdelwahab requiring him to produce information and documents and to attend an interview with the DFSA. Mr Abdelwahab failed to produce the information and documents and present himself for interview.

        Mr Ian Johnston, Chief Executive of the DFSA said: "Those who apply to be licensed or approved by the DFSA, including as a controller of a firm, must provide the DFSA with correct and accurate information. Furthermore recipients of investigative notices must comply with their requirements. The DFSA will take appropriate action against anyone who provides it with false and misleading information or fails to comply with investigative notices when required."

        Neither Mr Abdelwahab, nor any of his companies, are regulated by the DFSA.

        A copy of the DFSA's Decision Notice can be found in the Public Register of the DFSA website under Regulatory Actions: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@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 purpose-built financial freezone 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head-up the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). He is a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board (FPSB).

        Restricting Persons or Suspending or Withdrawing Authorisations: If the DFSA reasonably concludes that a person is not a fit and proper person to perform any functions in or in connection with the provision of Financial Services or Ancillary Services in the DIFC, whether or not they are Licensed Functions, it may by means of written notice restrict such person from performing any or all such functions.

      • 15 April 2015 — DFSA Fines Deutsche Bank AG for Serious Breaches

        Click here to view PDF.

        Dubai, UAE, 15 April 2015: The Dubai Financial Services Authority ("DFSA"), announced today, that it has fined the DIFC branch of Deutsche Bank AG ("DBDIFC"), USD $8,400,000 (AED 30,849,000) for serious contraventions.

        Those contraventions include misleading the DFSA, failures in DBDIFC's internal governance and systems and controls and in its client take-on and anti-money laundering processes.

        The DFSA's action follows an investigation into DBDIFC which focussed on its activities from January 2011 to January 2014. The DFSA was initially concerned that DBDIFC had failed to properly classify some of its customers as Clients under DFSA Rules and, therefore, deprived them of certain protections under the DFSA's regulatory regime. However, over the course of the investigation, it became clear that there were wider failings at DBDIFC.

        The DFSA therefore broadened the scope of its investigation. In particular, the DFSA uncovered that DBDIFC was aware that its Private Wealth Management business (PWM) was operating in breach of DFSA requirements, but did not take adequate steps to address the issue. In addition, certain staff of DBDIFC provided false information to the DFSA on several occasions about the nature and scope of activities undertaken by PWM. The DFSA also found material failings in DBDIFC's governance and has made directions to DBDIFC to remediate the DFSA's concerns.

        Mr Ian Johnston, Chief Executive of the DFSA said: "The provision of false information to the DFSA is a serious matter. One of the pillars of the DIFC regulatory framework is that Authorised Persons must deal with the DFSA in an open and co-operative manner and must disclose appropriately any information of which the DFSA would reasonably be expected to be notified."

        "The DFSA expects firms to have governance structures and systems and controls in place which encourage compliance with our rules and which promptly identify and remedy any regulatory failings. As demonstrated by the action against DBDIFC, the DFSA will take a robust stance where firms or individuals have breached these obligations. Had DBDIFC cooperated at an early stage of the investigation, the matter would have been resolved far sooner and at significantly less costs to both the DFSA and the firm. The fine imposed in this case reflects the seriousness with which the DFSA views these failings."

        The DFSA acknowledges that it was a small number of individuals in the firm who provided false information to the DFSA but believes that, with better governance within the Bank, this would have been identified and addressed earlier.

        Since January 2014, DBDIFC has worked openly and cooperatively with the DFSA to remedy the failings. The Bank has also made a number of changes to its operating model and improved its internal governance arrangements.

        DBDIFC agreed to settle the matter following the conclusion of the investigation and the fine was imposed by way of a Decision Notice agreed with the Bank. The DFSA therefore reduced the fine by 20% under the DFSA's policy for early settlement. Were it not for this discount, the fine imposed on DBDIFC would have been USD $10,500,000 (AED 38,561,250).

        A copy of the DFSA's Decision Notice can be found in the Public Register on the DFSA website under Regulatory Actions: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@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 purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

        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.

        In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti- Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Mr Ian Johnston was appointed Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director heading the Policy and Legal Services Division.

        Mr Johnston was admitted to practice law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was the CEO of one of Australia's major trustee companies. During that time, he played a leading role in the trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he was Executive Director, Financial Services regulation, and spent several terms as an Acting Commissioner. In 2005, he took up a position as a special advisor with the Hong Kong Securities and Futures Commission.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board.

      • 8 April 2015 — DFSA Takes Action Against Former Licensed Directors

        Click here to view PDF.

        Dubai, UAE, 8 April 2015: The Dubai Financial Services Authority (DFSA) announced today, that it has imposed restrictions on Mr Abdul Rahman Al Ansari (Mr Al Ansari) and Mr Anthony Robert D'Aniello (Mr D'Aniello) for providing the DFSA with false and misleading information.

        The restrictions imposed by the DFSA prevent Mr Al Ansari and Mr D'Aniello from performing any function in connection with the provision of financial services in or from the Dubai International Financial Centre (DIFC). Both may apply to the DFSA to vary or revoke the restrictions after a period of six years.

        Mr Al Ansari and Mr D'Aniello were former Licensed Directors of First Capital of Switzerland Investment Bank Limited (FCSIB), a former Authorised Firm in the DIFC. The restrictions follow an investigation in which the DFSA found that Mr Al Ansari and Mr D'Aniello:

        •   provided the DFSA with false, incomplete and misleading information regarding the shareholding structure of FCSIB and its controllers; and
        •   demonstrated a fundamental lack of integrity in that they failed to be candid and truthful in all their dealings with the DFSA.

        As a result, the DFSA has concluded that Mr Al Ansari and Mr D'Aniello are not fit and proper to be involved in the provision of financial services in the DIFC.

        Mr Ian Johnston, Chief Executive of the DFSA said: "Authorised Persons must deal with the DFSA openly and co-operatively, and must disclose appropriately and in a timely manner any relevant information. The DFSA will take appropriate action when anyone provides information, which is false and misleading."

        A copy of the DFSA's Decision Notice can be found in the Public Register of the DFSA website under Regulatory Actions. https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

        - Ends -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@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 purpose-built financial freezone 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. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head-up the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). He is a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board (FPSB).

        Restricting Persons or Suspending or Withdrawing Authorisations: If the DFSA reasonably concludes that a person is not a fit and proper person to perform any functions in or in connection with the provision of Financial Services or Ancillary Services in the DIFC, whether or not they are Licensed Functions, it may by means of written notice restrict such person from performing any or all such functions.

      • 6 April 2015 — The DFSA Strengthens Ties With Indonesian Regulator

        Click here to view PDF.

        Jakarta, 6 April 2015: The Dubai Financial Services Authority (DFSA) last week extended its formal ties with its counterparts in South East Asia, by entering into a Memorandum of Understanding (MoU) with its Indonesian counterpart, the Otoritas Jasa Keuangan (OJK).

        The MoU was signed by the Chief Executive of the DFSA, Mr Ian Johnston, and the Chairman of the OJK Board of Commissioners, Dr Muliaman D. Hadad.

        This signing followed a meeting a few days earlier in Bangkok between Mr Johnston and Khun Tipsuda Thavaramara, Deputy Secretary General of the Securities and Exchange Commission, Thailand (SEC). The SEC was among the first foreign regulators to sign an MoU with the DFSA in 2006 and, since then, the DFSA has forged formal links with its ASEAN counterparts, namely Malaysia's Bank Negara, its Securities Commission and the Monetary Authority of Singapore.

        Similarly to the DFSA, the OJK is the independent integrated authority. It regulates and supervises financial services institutions and all financial services sector activities in the Republic of Indonesia.

        Mr Ian Johnston, Chief Executive of the DFSA said: “I would like to thank the OJK Chairman, Dr Muliaman D. Hadad, and his fellow Commissioners, for their presence and for their welcome. Both the OJK and the DFSA, as signatories of the Multilateral MoU of the International Organisation of Securities Commissions (IOSCO), have already met the rigorous and respected standards of cooperation between capital market regulators. This enhancement of information sharing and assistance between the OJK and the DFSA to exchanging views on global regulatory reforms and capacity building is a critical step to ensuring confidence in each of our regulatory regimes. The DFSA looks forward to working with the OJK for the benefit of both Indonesia and our Centre in the UAE.”

        Mr Johnston added: "In addressing the authorisation and supervision of Islamic Finance, this initiative underscores Indonesia's position as the world's most populous Islamic market. Indonesia is a founding member of the Islamic Finance Standards Board (IFSB) and the OJK, with the Central Bank of Indonesia, has this week hosted a meeting of the IFSB Council, which I also attended.

        Dubai's Islamic Finance Initiative, led by His Highness Sheikh Mohamad Bin Rashid Al Maktoum, in His Highness's capacity as Ruler of Dubai, has inspired the Dubai International Financial Centre (DIFC), to become a centre for excellence in Islamic Finance in the Middle East and, with its tailor-made regulatory system for Islamic Finance. The DFSA looks forward to working with the OJK, under this MoU, to promote and develop this sector.”

        - End -

        For further information please contact:

        Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1662
        Email: kmohaisen@dfsa.ae
        www.dfsa.ae

        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 purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

        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.

        In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Mr Ian Johnston was appointed Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director heading the Policy and Legal Services Division.

        Mr Johnston was admitted to practice law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was the CEO of one of Australia's major trustee companies. During that time, he played a leading role in the trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he was Executive Director, Financial Services regulation, and spent several terms as an Acting Commissioner. In 2005, he took up a position as a special advisor with the Hong Kong Securities and Futures Commission.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board.

        The Otoritas Jasa Keuangan (OJK) regulates and supervises financial services institutions on integrated basis throughout all of the financial services sector activities as stipulated under the Law No. 21 of 2011 of the Republic of Indonesia concerning Otoritas Jasa Keuangan. The main function of the OJK is to promote integrated regulatory and supervisory framework in the financial services sector and to protect the interests of consumers. The OJK performs its regulatory and supervisory duties over financial services activities in banking, capital markets, and non-bank financial institutions.

        Dr Muliaman Darmansyah Hadad was appointed Chairman of Board of Commissioners of the Financial Services Authority (OJK) on July 18th, 2012, by Presidential Decree.

        Dr Hadad graduated from the Faculty of Economics at University of Indonesia in 1984 before continuing his Master's degree at John F. Kennedy School of Government of Harvard University in Massachusetts, the U.S., in 1990 and earned Master of Public Administration degree a year later. In 1996, he was awarded a Ph.D. in business and economics from Monash University in Melbourne.

        Dr Hadad began his carrier as a member of general staff at the Mataram office of Central Bank of Indonesia in 1986. In 2003, he was promoted as Head of Financial System Stability Bureau, and two years later he served as Director of Directorate for Banking Research and Management. Dr Hada was promoted as Bank Indonesia Deputy Governor, by Presidential Decree, on December 22nd, 2006, and inaugurated on January 11th, 2007.

        Dr Hadad is also active as Head of Indonesian Sharia Economic Community and is a lecturer at several universities, including postgraduate lecturer at Trisakti University, and was once in charge as Head of Alumni Association of Faculty of Economics in 2007-2010.

        The former Secretary General of the Central Committee for the Indonesian Association of Economists or ISEI (2003- 2006 and 2006-2009), Dr Hadad was re-elected as Bank Indonesia Deputy Governor for his second term of office in December 2011, before being appointed to his current role.

    • 2014

      • 15 December 2014 — DFSA Congratulates UAE National Graduates

        Click here to view PDF.

        Dubai, UAE, 14 December 2014: The Dubai Financial Services Authority (DFSA) held its annual Tomorrow's Regulatory Leaders (TRL) awards ceremony last week. The awards mark the successful completion of a two-year development programme for UAE Nationals.

        The programme prepares newly graduated UAE Nationals to become financial services regulators. Initially, graduates join the DFSA as TRL Associates and over the two years undergo over 400 hours of class room training along with on-job coaching delivered by regulatory colleagues, where they benefit from a wealth of regulatory experience and gain an international perspective. The programme is written and delivered by DFSA regulators with training materials being updated every year to reflect changes in legislation and the market environment. The DFSA also works closely with many DIFC-based firms to provide the Associates with the opportunity to gain experience in financial services institutions as part of the TRL Programme. This results in them receiving first-hand knowledge of financial services issues and a better understanding of the regulated community.

        Mr Ian Johnston, Chief Executive of the DFSA said, “The DFSA has been investing in developing young UAE Nationals to become leaders in the area of financial services regulation for eight years. To date, 24 people have graduated the TRL Programme and we have a further nine undergoing training. Currently, 35% of our regulatory workforce are UAE Nationals. We are very proud of these results and we will continue to deliver appropriate and sustainable benefits to UAE Nationals by equipping them for long-term career advancement and future leadership.”

        - End -

        For further information please contact:
        Ms Angharad Irving-Jones
        Head of Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1661
        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 purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

        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.

        In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Mr Ian Johnston was appointed Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director heading the Policy and Legal Services Division.

        Mr Johnston was admitted to practice law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was the CEO of one of Australia's major trustee companies. During that time, he played a leading role in the trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he was Executive Director, Financial Services regulation, and spent several terms as an Acting Commissioner. In 2005, he took up a position as a special advisor with the Hong Kong Securities and Futures Commission.

        Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board.

      • 10 December 2014 — DFSA and DIFC Host Hong Kong Leaders Visiting the UAE

        Click here to view PDF.

        Dubai, UAE, 10 December 2014: The Dubai Financial Services Authority (DFSA) hosted today, in Dubai, a delegation of 35 government, financial and business leaders from Hong Kong, led by The Honourable John Tsang, GBM, JP, Financial Secretary of the Government of the Hong Kong Special Administrative Region.

        The delegation was welcomed by HE Essa Kazim, Governor of the Dubai International Financial Centre (DIFC), Mr Saeb Eigner, Chairman of the DFSA, colleagues from the DIFC Authority and DFSA Boards and prominent members of the UAE government and business community.

        This high level visit attests to the increasing links between Dubai and Hong Kong as leading international financial centres in their respective time zones and as gateways for the fast growing trade and investment flows between China and the Middle East.

        Following the signing of regulatory agreements between the DFSA and the relevant Chinese regulators and the accompanying increased regulatory co-operation, the four leading Chinese banks have become well-established in the DIFC with rapidly growing business. The recent listing in the DIFC as well as in Hong Kong of the Hong Kong government's first Sukuk issue established the basis for further co-operation in the field of Islamic finance. The USD1 billion Sukuk, the first AAA rated government Sukuk, was oversubscribed some five times. Close co-operative relationships exist between the DFSA and financial market regulators in Hong Kong, including the Securities and Futures Commission and the Hong Kong Monetary Authority.

        Mr Saeb Eigner, Chairman of the DFSA said: "The DFSA has learned much from the highly successful development of Hong Kong as a global financial centre in a rapidly growing region of the world. We are honoured to have Hong Kong's Financial Secretary and his visiting delegation with us in Dubai today. One of our Board members, Mr Robert Owen, was the founding Chairman of the Hong Kong Securities and Futures Commission. I believe the Centre today has become for our region what Hong Kong is for the region of Asia, building on the natural strengths of the UAE and implementing the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the founding President of the DIFC. His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Dubai's Crown Prince, welcomed the decision by the Hong Kong government to list its Sukuk on NASDAQ Dubai. This took place under the Dubai Islamic economy initiative, further exemplifying the strong economic and commercial ties. Under the leadership of DIFC's President, His Highness Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Dubai's Deputy Ruler, the Centre has witnessed consistent year-on-year growth. The DIFC's Governor HE Essa Kazim visited China last year. I also visited Hong Kong and China, and we are all in the DIFC working under the energetic and clear co-ordinating leadership of the Governor to strengthen our relations with this important part of the world, in line with His Highness' vision. By way of example, we are particularly pleased to have with us at the DFSA a student from Beijing working under the Dubai Business Internship Programme, run under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, a further testament to the bridge-building that is taking place. Asia is a region we know well, and we are working on a number of initiatives between Hong Kong and China and Dubai to further develop this important relationship."

      • 18 September 2014 — DFSA Statement: ES Bankers (Dubai) Limited

        Click here to view PDF.

        Dubai, UAE, 18 September, 2014: The Dubai Financial Services Authority (DFSA) has, today, exercised its power under the Dubai International Financial Centre (DIFC) Regulatory Law 2004 to impose a restriction on ES Bankers (Dubai) Limited (ESBD) the effect of which is to restrict the firm from taking or paying deposits and to require the firm to maintain and preserve its assets.

        The imposition of the restriction was considered necessary, at this time, due to the failure of a Swiss-domiciled bank in the ES Group, Banque Privee Espirito Santo (BPES), to honour contractual commitments to ESBD and to repay deposits owed to ESBD in the normal course of business. Mr José Manuel Espirito Santo is Chairman of BPES. The failure of BPES to honour its legal obligations has seriously compromised ESBD's operations and solvency.

        Given the rapid onset of financial difficulties of the wider ES Group in recent months, the DFSA has taken a series of regulatory actions to protect the interests of depositors and other clients of the DIFC bank. These included actions under the Regulatory Law restricting the bank from transferring any assets to other ES Group companies and requiring a Manager to act in place of the Board of Directors of ESBD (with effect from 11 August 2014). The DFSA also suspended the status of Mr Ricardo Espirito Santo Silva Salgado as an Authorised Individual, as the DFSA considered Mr Salgado no longer to be a fit and proper person to be a Licensed Director of the bank.

        ESBD is a bank operating in the DIFC, licensed by the DFSA. It is part of the Espirito Santo Group (ES Group) of companies, and is a subsidiary of Espirito Santo Financial Group S.A. (ESFG), which is domiciled in Luxembourg.

        As a DIFC bank, ESBD is not permitted to deal with retail clients, nor to accept deposits from UAE clients.

      • 10 September 2014 — DFSA Releases Findings of Corporate Governance Review in DIFC

        Click here to view PDF.

        Dubai, UAE, 10 September 2014: The Dubai Financial Services Authority (DFSA) recently concluded a thematic review of the corporate governance of firms licensed to provide financial services in the Dubai International Financial Centre (DIFC). The review focussed on twelve themes fundamental to good corporate governance including management structures and practices, systems and controls, internal audit and management information flows.

        While the DFSA routinely reviews the quality of governance in regulated businesses in the DIFC, this review is the first full scale corporate governance review and is the first occasion on which the DFSA has issued a Report on this subject.

        The DFSA generally found a good level of compliance by institutions and that governance structures and arrangements generally reflected the nature, scale and complexity of the businesses reviewed. However, the practices of some institutions fell short of their own stated policies. The DFSA noted that governance arrangements and responsibilities often did not align to business plans and strategies and that those institutions need to comply with their stated polices or amend them to reflect current practices.

        A significant finding of the review, documented in the Report, was that firms often did not carry out structured, periodic reviews of their Governing Bodies and their committees, or their effectiveness. The Governing Body is generally a company's Board of Directors.

        Mr Ian Johnston, Chief Executive Officer of the DFSA said: "The findings of the review provide a benchmark and reference that should be used by institutions to assess their corporate governance frameworks and practices. The DFSA is working to enhance the quality of governance of regulated businesses in the DIFC and where we detect governance failures we will rectify them through supervisory methods or enforcement action."

        The Report of the findings can be accessed on the DFSA website.

      • 1 September 2014 — Bawabaty — DFSA Congratulates UAE Nationals on Completion of Summer Training Programme

        Click here to view PDF.

        Dubai, UAE, 1 September 2014: The Dubai Financial Services Authority (DFSA) last week congratulated Ms Noora Gargash and Mr Sultan Qabeel on their successful completion of the DFSA's Summer Training Programme as part of Bawabaty initiative.

        Both received a completion certificate for their achievement working for eight weeks with DFSA's Finance and IT departments respectively.

        Mr Ian Johnston, Chief Executive of the DFSA said: "The DFSA is proud to provide developmental programmes that provide financial education within the Emirati community. The DFSA is also committed to providing the time and resources required to create a solid platform for developing young talent in the Emirati community, equipping them with skills and expertise in the financial services industry, particularly in areas of personal finances and work ethic."

        "I hope that the two individuals have learned valuable skills through the DFSA's Summer Training Programme that will help them in developing their skill sets and future careers, added Mr Johnston."

        Ms Noora Gargash, Finance undergraduate, Zayed University said: "The DFSA is a globally respected and independent regulator with high responsibilities; hence I chose to join its Summer Training Programme to enhance both my professional and personal skills in relation to finance."

        Mr Sultan Qabeel, Information Technology undergraduate, HCT Dubai Men's College said: "One of the most things I wanted to achieve is to enrich my knowledge, gain experience and develop my network as those are assets that I need in the future. I believe I have accomplished them greatly here in DFSA with the help of my co-workers and managers."

        Mr Waleed Saeed Al Awadhi, Director, Corporate Affairs of the DFSA said: "The DFSA is committed in contributing to the awareness of the Emirati community aligning with the vision of the UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum. The DFSA launched Bawabaty in March earlier this year and is one of our corporate social responsibility initiatives, that aims to raise awareness of the financial services industry to the UAE National community. Under Bawabaty, meaning 'My Gateway', the Summer Training Programme was developed to allow UAE National undergraduates to have the experience of working at the DFSA."

      • 19 August 2014 — DFSA Welcomes Changes Resulting from New Amendment Law

        Click here to view PDF.

        Dubai, UAE, 19 August 2014: His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister in his capacity as the Ruler of Dubai, has enacted the Dubai International Financial Centre (DIFC), DIFC Laws Amendment Law 2014. The Law, which amends the Regulatory Law 2004 and various other DIFC laws, will come into force on Thursday, 21 August 2014 and will make a number of significant changes to the DFSA's regulatory regime.

        The amendments simplify and improve the structure and process for DFSA regulatory decisions and for appeals against those decisions. Under the changes, the DFSA will make all first instance decisions and must follow specified procedures designed to ensure its decisions are fair and reasonable. The process for appealing against DFSA decisions will be simplified with the Financial Markets Tribunal (FMT) continuing as an independent tribunal but with a revised role of reviewing DFSA decisions. The Regulatory Appeals Committee (RAC) which used to hear appeals from DFSA decisions will be abolished (as its role will now be undertaken by the FMT.

        The changes also strengthen the DFSA's supervisory and enforcement powers in line with international practice. A new provision has been introduced which prohibits misleading, deceptive, fraudulent or dishonest conduct related to financial products or services in the DIFC. New powers are also given to the DFSA to suspend a licence or registration for up to twelve months and to prohibit Firms from using misleading names. The DFSA already has the right to withdraw licences.

        The current framework for the supervisory oversight of Auditors in the DIFC is also improved by, for example, introducing the registration of Audit Principals, strengthening Rules on Auditor independence and making other changes to ensure consistency with international auditing standards.

        Also, the Collective Investment Law 2010 is amended to allow the creation of a new category of fund, called a “Qualified Investor Fund” (QIF). This type of fund would be available to professional investors willing to make an investment of at least USD 500,000. Each QIF would be limited to 50 investors. As an addition to the existing categories of DIFC funds, the new QIF rules provide for lower regulation of funds specifically designed for higher net worth investors.

        Mr Ian Johnston, Chief Executive Officer of the DFSA said: “These amendments are an important step in simplifying and improving the structure and procedures for decision making and review of DFSA decisions. They will also strengthen DFSA supervisory and enforcement powers, improve the supervisory oversight of auditors and provide new opportunities for fund managers and investors. They are considered desirable and appropriate for the maturity of the DIFC, given that it has now experienced a decade of operations. They also ensure that the regulatory regime continues to evolve to reflect best international practice.”

        The Amendments to DIFC laws, together with associated amendments to DFSA Rules, will come into force on Thursday, 21 August 2014 and are available on the DFSA website under: Notice of Forthcoming Amendments to Legislation 2014.

      • 16 June 2014 — DFSA Signs Agreement with UK Financial Regulator

        Click here to view PDF.

        Dubai, UAE, 16 June 2014: The Dubai Financial Services Authority (DFSA) last week entered into a Memorandum of Understanding with the United Kingdom's Prudential Regulation Authority (PRA).

        At a meeting in London, Mr Andrew Bailey, Chief Executive of the PRA and a Deputy Governor of the Bank of England, and Mr Ian Johnston, Chief Executive of the DFSA, signed the MoU on behalf of their respective authorities.

        The PRA was established in April 2013 and is a part of the Bank of England. It is responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms.

        Mr Ian Johnston, Chief Executive of the DFSA said: "The strong links between UK financial firms and the Dubai International Financial Centre make the PRA the DFSA's most important regulatory relationship outside the UAE. The PRA is the home regulator of a number of significant firms authorised by the DFSA to conduct business in and from the DIFC.

        “I have already, in April 2013, signed a similar, complementary MoU with my counterpart at the Financial Conduct Authority, which regulates the conduct of financial firms. These formalised arrangements for cooperation and information sharing recognise the reliance placed by us on the quality of regulatory standards administered in our respective jurisdictions,” said Mr Johnston.

      • 27 May 2014 — DFSA Signs Agreement With Egyptian Regulator

        Click here to view PDF.

        Dubai, UAE, 27 May 2014: The Dubai Financial Services Authority (DFSA) has finalised an important Memorandum of Understanding (MoU) with the Egyptian Financial Supervisory Authority (EFSA).

        The MoU was signed in Dubai by Mr Ian Johnston, Chief Executive of the DFSA and by Mr Sherif Samir Samy, Chairman of EFSA, in Cairo.

        The EFSA was established in 2009 and is responsible for supervising and regulating non-banking financial markets and instruments including the Capital Market, the Exchange, Insurance Services, Mortgage Finance, Financial Leasing, Factoring and Securitisation. The EFSA performs its duties to ensure markets' stability and the protection of its participants.

        The agreement is designed to enhance information sharing and co-operation between the two authorities in important aspects of their particular supervisory roles.

        Mr Ian Johnston, Chief Executive of the DFSA said: "The DFSA and the Egyptian regulator have enjoyed a good and co-operative relationship since the Dubai International Financial Centre (DIFC) was established. The DFSA and the Capital Market Authority of Egypt signed our first MoU as early as September 2006. It was the DFSA's first MoU with another securities regulator in the Middle East, outside the UAE. We are delighted that this supplementary arrangement, reflecting the broader jurisdiction and additional responsibilities of the CMA's successor, the EFSA, reconfirms this link. It is particularly pleasing that the DFSA, as one of the youngest authorities in the region, has such ties with the regulator of the oldest capital markets in the Middle East."

        Mr Sherif Samy, Chairman of the EFSA said: "We were keen to sign this agreement due to the DFSA's growing role and activity witnessed from companies across both jurisdictions." He added, "I look forward to closer co-operation between the two regulators."

      • 17 March 2014 — DFSA Launches Bawabaty — a Financial Services Awareness Initiative for the Local Community

        Click here to view PDF.

        Dubai, UAE, 17 March 2014: The DFSA announced the creation of a new initiative today. Bawabaty meaning 'My Gateway' is a DFSA idea to reach out to the local community, and in the first instance, will target the UAE youth sector through a series of seminars and events. Bawabaty aims to address topics such as business ethics and financial literacy. Facilitating learning and understanding of the financial services industry as a whole will better provide young UAE Nationals with the skills and knowledge that employers typically look for.

        The principal objectives of Bawabaty are to 1) to meet the growing needs of UAE National university graduates wishing to pursue a career in financial services; 2) to support lifelong learning opportunities for our local community; and 3) to provide community education in financial services, in the UAE.

        Bawabaty's inaugural event held at the DIFC Centre of Excellence today focused on 'Integrity at Work' and saw the DFSA partnering with the Chartered Institute for Securities & Investment (CISI). The workshop included individual voting machines, realtime results and lively debates, providing participants with the unique opportunity to vote on a range of ethical challenges, drawn from real-life situations from the workplace.

        CISI, the largest respected professional body for those who work in the securities and investment industry in the UK, evolved from the London Stock Exchange. CISI has more than 40,000 members in 110 countries. The DFSA chose to partner with the CISI for the inaugural event as it reflected the standards and professional aspirations that the DFSA has for professional conduct in the Dubai International Financial Centre (DIFC).

        Mr Waleed Saeed Al Awadhi, Director, Corporate Affairs of the DFSA said: “It is the DFSA's wish to align with the vision of the UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, in that we realise that strengthening the knowledge economy will strengthen competitiveness in business. Our wish is to provide a platform for our local community to come together to learn more about the financial services industry, particularly in areas that we are faced with every day such as personal finances and work ethics. Bawabaty will partner with professional organisations to ensure that our local community are given the skills and tools needed to play an active part in the workforce”.

        He added: “Our plans for 2014 include a summer training programme; a financial services training programme and the continuation of our Universities Outreach. We hope to raise awareness of differing aspects of financial services and increase employability skills amongst UAE Nationals”.

        Highlights of the inaugural workshop included lively, well-informed and instructive discussions, allowing for fruitful exchanges of ideas, experiences and opinions between the participants on wide ranging ethical issues faced in the business environment in the UAE.

      • 09 February 2014 — DFSA Obtains Court Orders Against Deutsche Bank AG

        Click here to view PDF.

        Dubai, UAE, 9 February 2014: The DIFC Courts have declared that Deutsche Bank AG (Dubai International Financial Centre branch), was in material non-compliance with requirements to produce information and documents to the Dubai Financial Services Authority (DFSA).

        The DFSA filed proceedings in the DIFC Courts on 31 October 2013 seeking orders that Deutsche Bank AG deliver information and documents, relating to a DFSA investigation into the conduct of Deutsche Bank AG.

        The DFSA brought the Court proceedings for the purpose of enforcing compliance with two investigative Notices served on Deutsche Bank AG requiring information and documents to be delivered to the DFSA.

        An investigative Notice is a tool used by many regulators to assist them to obtain information and documents that relate to their investigations.

        Deutsche Bank AG consented to the Court Orders and agreed to produce specified information and documents to the DFSA within 28 days and ensure that any consolidated response is verified by a statement of truth.

        Deutsche Bank AG also agreed to pay the DFSA's costs in respect of the proceedings.

        Mr Ian Johnston, Chief Executive of the DFSA said: “The DFSA's powers to request information and documents are important regulatory tools that assist the DFSA in conducting supervisory and enforcement activities. Where a person, without reasonable excuse, fails to comply with a DFSA Notice requiring it to deliver information and documents, the DFSA will enforce compliance with such a Notice by seeking orders in the DIFC Courts.”

        The DFSA will make no further comment in respect of the matter as the investigation is ongoing.

      • 21 January 2014 — Dubai Regulator Strengthens Links With Hong Kong and Asia

        Hong Kong, 21 January 2014: In order to further strengthen relations in financial services between Dubai, Hong Kong and Asia, the Chairman of the Dubai Financial Services Authority (DFSA), Mr Saeb Eigner, delivered an address in Hong Kong on the opening morning of the seventh Asian Financial Forum. The forum was attended by 2,400 delegates from Asia, Europe and America, where finance ministers, central bankers, heads of governments and business leaders gathered to discuss economic developments and business trends in China and the rest of Asia.

        Mr Eigner, Chairman of the DFSA said: "The focus of this year's forum was the challenges and opportunities powering world growth. We all know that the UAE is highly competitive as a trading and financial hub. Financial institutions in Dubai and the Dubai International Financial Centre (DIFC) are playing a central role in driving trade, investment and infrastructure finance. The future will belong to vibrant cities like Hong Kong and Dubai which continue to pioneer, innovate and implement strategies quickly and efficiently with visionary leadership and efficient governments."

        Mr Eigner added: "Dubai has been successful in attracting major global organisations by being a regional business hub. The emirate's growth plays testament to the founding father of Dubai and now through the skill and exemplary leadership of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai."

        Dubai enjoys excellent trade and finance relationships with Hong Kong and the rest of Asia. These will continue to grow in 2014, including in the Islamic finance arena. Since His Highness the Ruler of Dubai announced the initiative for Dubai to be the global hub for the Islamic economy, plans are moving ahead, with the necessary legislation already in place. In 2013, the DFSA witnessed many successful issues of sukuk on NASDAQ Dubai, where USD $6 billion worth of sukuk were listed, up from USD $1 billion in 2012.

        Mr Eigner added: "The highly international nature of the DIFC causes us at the DFSA to place great emphasis on international collaboration with other regulators in supervisory colleges of the world's largest financial institutions, as well through active participation in the work of the global financial sector standard-setters; the Basel Committee, the International Organisation of Securities Commissions, the International Association of Insurance Supervisors and the Islamic Finance Services Board. We currently have nearly 100 bi-lateral Memoranda of Understanding (MoUs) with other regulators worldwide".

        Due to the highly international nature of Dubai and the DIFC, the DFSA has placed great emphasis in its work on international co-operation and collaboration. This has included building regulatory relationships with the Hong Kong Securities and Futures Commission, the China Banking Regulatory Commission, the China Securities Regulatory Commission and with the Reserve Bank of India. Asia is now a key driver of the Centre's growth.

    • 2013

      • 30 December 2013 — DFSA Signs Agreements With Italian Regulators

        Rome, Italy, 30 December 2013: The Dubai Financial Services Authority (DFSA) entered into two important agreements, last week, with the Commissione Nazionale per le Società e la Borsa (Italian Securities and Exchange Commission) or CONSOB and Bank d'Italia (Bank of Italy), in Rome.

        CONSOB is the public authority responsible for regulating the Italian securities market and protecting the investing public. It also conducts investigations with respect to potential infringements of insider dealing and market manipulation law.

        The Bank of Italy is the central bank of the Republic of Italy and is responsible, among other issues, for the stability and efficiency of the financial system, regulating, coordinating, and controlling the provision of credit.

        Mr Ian Johnston, Chief Executive of the DFSA said: "The DFSA is very pleased to have settled these protocols with each of Italy's financial supervisors. In doing so, our Italian counterparts have expressed their confidence in the DFSA's equivalence with international standards and our willingness and ability to share information and assist. This is especially important as two of Italy's largest financial institutions have branches in the Dubai International Financial Centre (DIFC). These just completed arrangements will give confidence to investors that both home and host supervisors are working closely together in Dubai and in Rome to ensure sound supervision of these institutions."

        - Ends -

        For further information please contact:

        Ms Angharad Irving-Jones
        Head of Corporate Communications
        Dubai Financial Services Authority
        Level 13, The Gate, West Wing
        Dubai, UAE
        Tel: +971 (0)4 362 1661
        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 purpose-built financial freezone in Dubai, the United Arab Emirates (UAE).

        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.

        In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

        Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head-up the Policy and Legal Services Division.

        Ian was admitted to practice Law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

        In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

        Ian is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). He is a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board (FPSB).

        Giuseppe Vegas was appointed Chairman of Commissione Nazionale per le Società e la Borsa (CONSOB) in January, 2011 and has served as a councillor for the Italian Senate, and has also been a journalist, a publicist, and has served as a visiting professor.

        He was nominated Undersecretary of the State for the first time under the Dini Government (1995), first for Finances and then for the Treasury, and then later under the Berlusconi Government. He was nominated Undersecretary of the State for Economy and Finance in 2001 and 2008.

        He served as the Vice-Minister for the Economy and Finance from 2005 – 2006 and from 2009–2010. From 1996 to 2010 he served in the Parliament, first as a Senator, and then from 2008, as a Member of Parliament. He has always been involved with public finance, in particular in terms of financial manoeuvring and the national budget, including the recent legal reform of public accounting, which he played an active role in developing.

        Mr Vegas is the author of a number of publications on legal and economic matters, both scientific and didactic, which include: "Spesa pubblica e confessioni religiose"(1990); "Il bilancio dello Stato" (with D. Da Empoli and P. De Ioanna, 1988, 1995, 2000 and 2005); "Cittadino, economia e Stato" (with A. Pescosolido, 2000, 2001 and 2003); "Il nuovo bilancio pubblico" (2010).

      • 21 November 2013 — DFSA Clarifies DIFC Courts Action

        Dubai, UAE, 21 November 2013: The Dubai Financial Services Authority (DFSA) announced, this week, that it had commenced proceedings in the DIFC Courts in respect of a DIFC Authorised Firm.

        The announcement stated that the DFSA had brought the proceedings for the purpose of enforcing compliance with two investigative Notices.

        The DFSA's Particulars of Claim filed in the DIFC Courts makes reference to Mr Munir Kaloti, who was a customer of the Firm.

        The DFSA confirms that neither Mr Munir Kaloti nor the Kaloti Group of companies are or were the subjects of the DFSA's investigation.

      • 18 November 2013 — DFSA Fines Unregistered Auditor

        Dubai, UAE, 18 November 2013: The Dubai Financial Services Authority (DFSA) announced, today, that it had fined a Dubai-based auditor, Middle East Auditing Office, AED 55,000 (USD $15,000) for conducting audits of the financial statements of a Dubai International Financial Centre (DIFC) company without being registered as an auditor.

        Auditors who audit DIFC-based companies are required to be registered by the DIFC Registrar of Companies (RoC). An auditor not registered by the RoC is prohibited from auditing companies based in the DIFC.

        An investigation found that Middle East Auditing Office, a licensed accounting firm in Dubai, consented to conduct an audit of three sets of financial statements of a DIFC-based company, but was not registered to do so.

        The AED 55,000 fine was imposed on Middle East Auditing Office by the DFSA, acting under a delegation from the RoC to conduct investigations on its behalf. The fine is the first such fine imposed by the DFSA acting under such a delegation.

        Mr Ian Johnston, Chief Executive of the DFSA said: "Auditors play an integral role in complying with governance, compliance and financial standards. They are the first line of defence against impropriety and systems and controls failures. The Registrar of Companies and the DFSA registers auditors so that they comply with our high audit standards. In so doing clients of DIFC companies are better protected."

      • 17 November 2013 — DFSA Commences DIFC Courts Action

        Dubai, UAE, 17 November 2013: The Dubai Financial Services Authority (DFSA) has commenced proceedings in the DIFC Courts to enforce compliance by Deutsche Bank AG, Dubai (DIFC) Branch (DBDIFC), with a Notice requiring information.

        The DFSA has brought the proceedings for the purpose of enforcing compliance with two investigative Notices served on DBDIFC, under Article 80 of the Regulatory Law 2004, requiring the production of information and documents.

        The DFSA will make no further comment until the proceedings are resolved.

      • 7 October 2013 — DIFC Financial Adviser Banned by the DFSA

        Dubai, UAE, 7 October 2013: The Dubai Financial Services Authority (DFSA) announced, today, that it had restricted a former financial adviser of a Dubai International Financial Centre (DIFC) Authorised Firm, Mr Jaime Corona (Mr Corona), for unethical conduct when he was advising clients about the value of their investment portfolios.

        The restriction imposed by the DFSA prevents Mr Corona from performing any functions in connection with the provision of Financial Services in the DIFC for a period of six years.

        The DFSA took this action because Mr Corona engaged in misleading and deceptive conduct, in relation to investments, by providing two Dubai-based clients falsified portfolio account statements which indicated that the value of their portfolios were significantly greater than their actual value. The conduct of Mr Corona came to the attention of the DFSA after he left the UAE. By engaging in this conduct the DFSA found that Mr Corona is not a person who is fit and proper to provide financial services in the DIFC.

        During the course of the DFSA's investigation and decision making, Mr Corona failed to respond to any DFSA communications. Mr Ian Johnston, Chief Executive of the DFSA said: "People who act unethically cannot avoid the DFSA's scrutiny by leaving the jurisdiction or failing to communicate with the regulator. The DFSA may impose sanctions on those who contravene its laws regardless of their location. Furthermore, the DFSA is taking an increasing interest in the conduct of financial advisers to improve the quality of advice provided to consumers."

        Mr Johnston added, "financial advisers are required to make accurate disclosures to consumers and if a consumer is concerned about the validity of advice provided then they should inform their financial services regulator of their concerns."

        A copy of the Notice of Restriction can be found in the Public Register of the DFSA website under Regulatory Actions.

      • 2 October 2013 — DFSA Signs MoU with Lebanese Counterpart

        Dubai, UAE, 2 October 2013: The Dubai Financial Services Authority (DFSA) earlier this week entered into a Memorandum of Understanding (MoU) with the Banque du Liban (BDL), the Central Bank of Lebanon.

        The MoU was signed at the DFSA by Mr Ian Johnston, Chief Executive of the DFSA, and Mr Usama R Mikdashi, Chairman of the Banking Control Commission of Lebanon (BCCL), on behalf of the Governor of the BDL.

        The BCCL was established in 1967 to supervise banks, financial institutions, money dealers, brokerage firms and leasing companies in Lebanon. The BCCL exercises its supervisory functions independently but in close co-operation with the Governor of the BDL. The BCCL performs its duties through periodic on-site and off-site examinations and evaluates financial soundness of regulated entities.

        Mr Ian Johnston, Chief Executive of the DFSA said: "Since its inception, the DFSA has been keen to engage with our counterparts in this region. This MoU confirms a growing relationship between the Dubai International Financial Centre (DIFC) and the Central Bank of Lebanon and reflects the importance of links between neighbouring regulators."

        Mr Johnson added: "This agreement will enhance information sharing and co-operation between us and assume increasing importance as both regulators rely on the quality of regulatory standards administered in the other's jurisdiction."

      • 30 September 2013 — DFSA Disciplines Former Senior Executive of DIFC Firm

        Dubai, UAE, 30 September 2013: The Dubai Financial Services Authority (DFSA) announced, today, that Mr Tareck Fouad Farah (Mr Farah), will pay a financial penalty of AED 27,525 (USD $7,500) for issuing a letter containing false information.

        Mr Farah was a former Senior Executive Officer (SEO) of a Dubai International Financial Centre (DIFC) Authorised Firm. In April 2009, Mr Farah issued a bank reference letter on behalf of a client containing false information that was addressed to another financial institution. The bank reference letter stated that the client held a portfolio of securities valued at approximately AED 18,350,000 (USD $5,000,000). The actual value of the client's portfolio was only approximately AED 697,000 (USD $190,000).

        By engaging in this conduct, the DFSA was concerned that Mr Farah had breached DFSA Principles requiring SEOs to perform their functions with integrity, skill, care and diligence.

        Mr Farah acknowledged the DFSA's concerns and made a settlement offer in the form of an Enforceable Undertaking (EU), in which he agreed to pay the financial penalty. Mr Farah co-operated fully with the DFSA's investigation and no person suffered any financial loss as a result of the conduct. The Authorised Firm brought the matter to the DFSA's attention in December 2012.

        Mr Stephen Glynn, Head of Enforcement at the DFSA said: "The DFSA expects Senior Executive Officers to perform their functions to the high standards required of them and as set out in the DFSA's Laws and Rules. SEOs of Authorised Firms occupy positions of trust and their stakeholders are entitled to rely upon the integrity of their statements, whether they be written or oral. In this instance the written statement was prepared for use by another financial institution and the DFSA was concerned the letter may have been relied upon to extend credit or for some other purpose."

        Mr Glynn added: "SEOs should expect the DFSA to take action when they fail to meet standards required of them under the Laws and Rules administered by the DFSA."

        A copy of the EU can be found in the Public Register of the DFSA website under Regulatory Actions.

      • 23 September 2013 — DIFC Private Banker Sanctioned by the DFSA

        Dubai, UAE, 23 September 2013: The Dubai Financial Services Authority (DFSA) announced today, that Mr Nikhil Das (Mr Das), a former private banker, will pay a financial penalty of AED 73,400 (USD $20,000) and be restricted, for a period of six years, from performing any functions in, or in connection with, the provision of a financial service in the Dubai International Financial Centre (DIFC).

        The announcement follows the conclusion of a DFSA investigation into the conduct of Mr Das when he was a former employee of a DFSA Authorised Firm.

        Between July 2012 and January 2013 Mr Das executed two transactions, valued at AED 12,478,000 (USD $3.4 million) and AED 18,350,000 (USD $5 million) respectively, on behalf of a client without his consent.

        Furthermore, Mr Das forged the client's signature on a number of documents and sent fraudulent letters and account statements, containing false and misleading information about his investments. The client did not suffer any financial loss as a consequence of Mr Das' fraudulent conduct and unauthorised investments.

        Mr Das co-operated fully with the DFSA's investigation and acknowledged forging the client's signature, executing unauthorised investments and providing the client with falsified documents.

        Mr Das agreed to settle the DFSA's concerns by making a settlement offer, in the form of an Enforceable Undertaking (EU), to comply with the sanctions.

        The EU requires Mr Das to comply with all of its conditions. Should Mr Das fail to comply with any condition of the EU then the DFSA may seek to enforce that condition in the DIFC Courts.

        Mr Ian Johnston, Chief Executive of the DFSA said: "Consumers who rely on the advice and services of private bankers are entitled to expect high standards of conduct from them. The DFSA expects private bankers who provide services in or from the DIFC to act ethically and with integrity. Bankers who do not meet these minimum standards will have to answer to the DFSA."

        Mr Johnston reinforced his message that, "the DFSA will continue to uphold high standards of probity and will not permit any individual, who does not meet its standards, to provide financial services in the DIFC."

        A copy of the EU can be found in the Public Register of the DFSA website under Regulatory Actions.

      • 11 September 2013 — DFSA Sanctions United Investment Bank Limited

        Dubai, UAE, 11 September 2013: The Dubai Financial Services Authority (DFSA) announced, today, that it had accepted an Enforceable Undertaking (EU) from United Investment Bank Limited (UIB), a Dubai International Financial Centre (DIFC) Authorised Firm.

        UIB agreed:

        •    to pay a financial penalty of AED 183,500 (USD $50,000) to the DFSA; and
        •    to not Provide Custody to any persons until it had implemented measures including remedying its systems and controls to the satisfaction of the DFSA.

        The EU resulted from a DFSA investigation into the manner in which UIB was Providing Custody. During 2012, UIB was contracted to provide custodian services for six funds.

        The investigation revealed that:

        •    UIB did not maintain adequate systems and controls to comply with DFSA's safe custody requirements;
        •    corporate governance deficiencies prevented UIB's management from acting in the best interest of the Firm; and
        •    for one of its funds, UIB had failed to provide any custodian services even though it was contracted to do so and was identified as the fund's custodian in the fund's Offering Memorandum. Further, UIB knew this and failed to notify the DFSA until nine months later.

        UIB co-operated with the DFSA's investigation.

        A copy of the EU can be found in the public register of the DFSA website under Regulatory Actions.

      • 25 August 2013 — DFSA signs 26 Agreements with EU Regulators

        Dubai, UAE, 25 August 2013: Continuous collaboration with international regulators has been at the forefront of the Dubai Financial Services Authority's (DFSA's) engagement objective this year, and as such, the DFSA has entered into 26 supervisory co-operation agreements with European Union (EU) and European Economic Area (EEA) securities regulators. Under these agreements, each regulator agrees to help each other supervise fund managers operating across borders, between the Dubai International Financial Centre (DIFC) and Europe.

        The DFSA negotiated the agreements with the European Securities and Markets Authority (ESMA). The DFSA's Chief Executive Mr Ian Johnston signed the Memoranda of Understanding (MoUs) with 26 EU regulators last month. The EU signatories to these agreements are: France, UK, Netherlands, Ireland, Portugal, Spain, Italy, Luxembourg, Cyprus, Sweden, Finland, Denmark, Norway, Iceland, Liechtenstein, Hungary, Malta, Lithuania, Greece, Belgium, Bulgaria, Poland, Estonia, Latvia, Czech Republic and Romania.

        The agreements under the MoUs allow fund managers in the DIFC to manage and market Alternative Investment Funds (AIFs) to professional investors in the EEA under the rules of the Alternative Investment Fund Managers Directive (AIFMD). AIFs include hedge funds, private equity funds and real estate funds. Managing and marketing such funds into Europe will allow DIFC-based fund managers to access a greater pool of investors. It is hoped that with a strong distribution network and a sustainable distribution model, the MoUs will prove beneficial for the industry in the DIFC.

        Mr Ian Johnston, Chief Executive of the DFSA said: “The DFSA's efforts to improve cross-border opportunities will further facilitate investment flows and will benefit investors and the funds industry. In addition, it reflects the DFSA's commitment to enhance the economy of the UAE and Dubai, furthering Dubai's position as a prominent financial centre.”

        The DFSA already has in place bi-lateral agreements with 13 of its European counterparts and enjoys strong and close relationships with them ensuring that fund managers are well supervised in the DIFC and in Europe.

      • 5 August 2013 — European Commission Recognises DFSA's Audit Oversight System

        Click here to view PDF

        Dubai, UAE, 5 August 2013: The European Commission (Commission) announced its decision, recently, to grant the Dubai Financial Services Authority's (DFSA's) audit monitoring system 'equivalent status' with European Union (EU) member states.

        Following an assessment of the supervisory regime for auditors in the Dubai International Financial centre (DIFC), the Commission considered the DFSA's audit oversight system equivalent with that of EU member states. On the basis of this decision, individual EU audit regulators may enter co-operative agreements with the DFSA with the view to relying on each other's work on the supervision of auditors and audit firms.

        Mr Ian Johnston, Chief Executive of the DFSA said: "This is further confirmation of the recognition of the DFSA as a regulator of international standing and of the DIFC as a reputable financial centre. Confidence in capital markets is absolutely fundamental to long-term growth. Instilling and maintaining that confidence is, in no small part, the obligation of auditors. The DFSA has already established a Memorandum of Understanding with the audit oversight regulator in the United States, and we look forward to similar fruitful collaboration with our counterparts in Europe."

        The DFSA will now commence discussions with those individual EU regulators where DIFC debt and equity instruments are listed on their respective exchanges.

      • 5 May 2013 — DFSA Releases Key Findings of Audit Inspections

        Dubai, UAE, 5 May 2013: The Dubai Financial Services Authority (DFSA) released, today, an Audit Monitoring Report (Report) detailing key findings of audit inspections conducted by the DFSA from January 2008 to December 2012. This is the first public report issued by the DFSA on its monitoring programme of Auditors registered in the Dubai International Financial Centre (DIFC) and able to conduct audits of financial firms and exchanges.

        Mr Ian Johnston, Chief Executive of the DFSA said: “The DFSA's audit monitoring programme aims to promote high-quality audits of the financial statements of financial institutions, domestic funds, DIFC exchanges and their publicly listed entities. Our regulation and supervision is risk-based and involves both desk-based surveillance and intensive on-site verification to assess whether Auditors meet our requirements and applicable international standards.”

        During the period, covered by the Report the DFSA conducted thirty three (33) on-site assessments, assessed fifty six (56) Audit Principals and reviewed one hundred and six (106) audit engagement files.

        Mr Johnson added: “Overall, we observed improvements in the conduct of audit work over the five (5) year period. Our on-site audit inspections commenced in 2008 with all registered and appointed Auditors being seen at least twice during that five year period. However, the Report identifies a number of areas where Auditors need to focus their attention and make further improvements to ensure audit quality.”

        Issuing the DFSA's Report is consistent with principles of transparency and accountability of regulation, observed by Audit regulators internationally.

      • 24 April 2013 — DFSA Hosts Event on Attracting UAE Nationals into the Financial Sector

        Dubai, UAE, 24 April 2013: The Dubai Financial Services Authority (DFSA) and the Institute of Chartered Accountants in England and Wales (ICAEW), today, held a breakfast briefing to discuss ways in which to attract and retain UAE Nationals into the finance industry. The event was held at the Dubai International Financial Centre (DIFC).

        The speakers comprised industry experts who shared experiences and advice on ways to attract, retain, develop and provide industry specific qualifications to UAE Nationals wishing to pursue a career in financial services. Speakers included: Mr Khaled Al Zaabi, Manager, Supervision - DFSA; Ms Jeanette Vinke, Senior Lecturer Finance and Accounting - American University of Sharjah; Mr Anis Sadek, Managing Partner Deloitte & Touche (ME), Dubai office; Mr Ahmed Al Maqtari, Managing Partner - Al Maqtari Auditing; Mr Peter Beynon, Regional Director - ICAEW Middle East and Mr Mohammed Zamani, Associate - KPMG. The sessions were moderated by Mr Richard Dean from Dubai Eye.

        The briefing was well attended by delegates from the accountancy and finance industry from across the region.

        Mr Michael Ridgeway, General Counsel, DFSA, and Dean of the Tomorrow's Regulatory Leaders (TRL) Programme said: "The TRL Programme is our UAE National recruitment, training and development programme, which is now in its seventh year. The goal of this programme is to equip and shape the next generation of financial services regulators. Today's event brought together several unique perspectives and creative ideas regarding ways to improve the development and retention of UAE National employees in all organisations, including our own."

        Speaking at the event, Mr Anis Sadek said: "Today's event was very successful in that it shed light on many important issues related to Emiratisation goals in the financial sector. Deloitte Middle East is fully committed to invest in building local market capabilities, as well in attracting, retaining and developing UAE National talent to lead our various service lines and industries."

        Mr Peter Beynon, Regional Director - ICAEW Middle East, said: "Although great progress is being made with Emiratisation, there are challenges. The financial sector is one of the areas where bright, hardworking UAE Nationals can find rewarding careers. The ICAEW was encouraged by the issues raised today in that delegates openly expressed views, offered advice and shared experiences."

      • 23 April 2013 — DFSA Announces Appointment of Board Member

        Dubai, UAE, 23 April 2013: The Chairman of the Dubai Financial Services Authority (DFSA) is pleased to announce that His Highness Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of the Dubai International Financial Centre (DIFC), has appointed Mr Charles Flint QC to the DFSA Board of Directors. This follows the retirement of Mr Michael Blair QC from the DFSA Board. Mr Charles Flint QC succeeds him as a Member of the Board and Chairman of the Legislative Committee, with effect from 10 April 2013.

        Mr Saeb Eigner, Chairman of the DFSA stated: "In line with the vision of His Highness Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of the DIFC to have an internationally recognised regulator of the very highest calibre, I am pleased to welcome Mr Charles Flint QC to the DFSA Board. He is a leading figure in financial services and will solidify the DFSA's reputation as a strong and internationally respected regulator."

        "We are grateful for Mr Blair's most valuable contribution over the last ten years. He was instrumental in contributing to the creation of the excellent regulatory and legal regime that exists in the DIFC today."

      • 1 April 2013 — DFSA Consumer Alerts Having an Impact

        Dubai, UAE, 1 April 2013: The Dubai Financial Services Authority (DFSA) was recently informed of a fraudulent alert that attempts to undermine the credibility of the DFSA's Consumer Alert system.

        The DFSA issues Consumer Alerts whenever it becomes aware of a scam that misuses the identity of the Dubai International Financial Centre (DIFC), the DFSA or any of their staff. The Consumer Alerts warn the public of the scam and advise consumers not to deal with any of the persons or companies associated with the scam. The DFSA applies best global standards to reduce the phenomenon of any fraud affecting the Center or its clients.

        Consumer Alerts have saved a number of people from being scammed. The DFSA's Consumer Alerts are easily accessible through a simple internet search and consumers can easily protect themselves by simply conducting an internet search and informing themselves of the most recent scams. The DFSA also publishes any documents that are used to defraud consumers on its web site. The DFSA has had a lot of success in diminishing the effectiveness of scams by posting the alerts and documents on its web site.

        Recently the DFSA became aware of unusual and fraudulent information being posted on the internet about the DFSA's own Consumer Alert system. It appears the fraudulent information attempts to imitate the DFSA's Consumer Alerts with the intention of undermining the credibility of the DFSA Consumer Alert's system.

        The DFSA's Head of Enforcement, Stephen Glynn said that: "I was surprised to see a fraudulent alert that mimics the DFSA's Consumer Alerts. I am constantly amazed by the ingenuity of scammers to invent fraudulent practices that protect their own interests".

        "It is not precisely clear why the fraudulent alert has been issued. One theory is that it is an attempt by scammers to undermine the credibility of the DFSA's Consumer Alert system, thus improving the prospects of their own illegal activities. Alternatively, it could be part of a broader scam for which we don't yet have full particulars."

        Mr Glynn said: "Consumers need to be vigilant and careful when investing in products or services they do not understand, that offer returns well above the market rate or are too good to be true."

        "Many scams are now reported on the internet or blog sites. Consumers can protect themselves by simply conducting an internet search. If in doubt, consumers should always first call their financial services regulator before parting with their hard earned cash."

        The DFSA has issued a Consumer Alert in relation to the fraudulent alert which can be viewed here.

      • 25 February 2013 — Market Regulators Meet in the DIFC

        Click here to view PDF

        Dubai, UAE, 25 February 2013: In Dubai, last week, the Dubai Financial Services Authority (DFSA) hosted a meeting of the region's securities regulators, the Africa and Middle East Regional Committee (AMERC) of the International Organisation of Securities Commissions (IOSCO).

        AMERC is one of the four regional committees of IOSCO, representing 21 securities regulators across the region. Thirty representatives from twelve of these members attended the 30th Meeting of AMERC, its first in the Dubai International Financial Centre (DIFC). In addition to participants from the DFSA and the federal regulator, the Securities and Commodities Authority (SCA), Ghana, Malawi, Morocco, Nigeria, Oman, Saudi Arabia, South Africa, Tunisia, Uganda and Zambia were also represented. The new Capital Markets Authority of Kuwait also attended as an Observer.

        In his welcome address, DFSA Chief Executive, Ian Johnston, observed, “IOSCO continues to shape the regulatory landscape, leading us to more equable, transparent markets in which investors can have confidence.” Mr Johnston commended IOSCO on leading the way for all standard-setters in establishing its multi-lateral Memorandum of Understanding (MMoU), which has strengthened co-operation and sharing of information among securities regulators. AMERC has further enhanced this process by introducing a regional Memorandum of Understanding (MoU), recognising the need to exchange general and more specific information about matters of regulatory concern, including financial and other supervisory information, technical expertise, surveillance and investor education and the sharing of information related to systemic risks.

        In her opening remarks on the second day of the meeting, the Chair of AMERC, Ms Arunma Oteh, thanked the DFSA for hosting the meeting and joined Mr Johnston in stressing the important role of risk-based supervision, which reflected the theme of the conference, “Risk-based Supervision as a Global Agenda”.

        Members also heard from IOSCO's Secretary General, Mr David Wright, who spoke of the effects of the global financial crisis and prompted a discussion among all members on emerging risks, barriers to development and key regulatory priorities for emerging securities markets. It was agreed that the identification of risks would be a standing agenda item at future AMERC meetings.

      • 10 February 2013 — DFSA Signs Agreement With European Securities and Markets Authority

        Dubai, UAE, 10 February 2013: The Dubai Financial Services Authority (DFSA), last week, entered into an important agreement with Europe's Securities and Markets Authority (ESMA). The signing took place during a meeting between Mr Ian Johnston, Chief Executive of the DFSA, and Dr Steven Maijoor, Chairman of ESMA. ESMA's Executive Director, Ms Verena Ross, was also present.

        ESMA is an independent European Union (EU) Authority, established on 1 January 2011 to enhance the protection of investors and promote stable and well-functioning financial markets in the EU. One of its responsibilities is the supervision of Credit Ratings Agencies (CRAs).

        In 2011, the DFSA extended its regulatory reach to require CRAs in the Dubai International Financial Centre (DIFC) to be licensed and supervised by the DFSA. Three of these CRAs are also supervised by ESMA, which prompted this Memorandum of Understanding (MoU).

        Mr Ian Johnston, Chief Executive of the DFSA said: “I am particularly pleased to have signed this MoU with ESMA, which recognises the importance of on-going supervisory and enforcement-related co-operation in light of the cross-border activities of credit rating agencies and the global nature of ratings generally.”

        “Since 2005, the DFSA has placed a high priority on building its information network, and reflecting the home jurisdiction of financial firms in the Centre, our links with Europe have been significant. The DFSA already has MoUs with many of our counterparts in Europe including France, Germany and the UK. Through these arrangements we demonstrate our commitment to the operation of internationally accepted practices within the DIFC,” Mr Johnston added.

    • 2012

      • 5 December 2012 — UAE Nationals Graduate From DFSA's Leadership Programme

        Dubai, UAE, 5 December 2012: The Dubai Financial Services Authority (DFSA) congratulated, earlier today, the latest group of UAE Nationals who have graduated from the DFSA's Tomorrow's Regulatory Leaders (TRL) Programme and become financial services regulators. The five Nationals, who joined the programme in 2010, have been promoted to Managers in the Supervision Division. Each Manager will now receive a portfolio of financial services firms and act as the lead supervisor, ensuring that their firms will comply with the rules and laws of the Dubai International Financial Centre (DIFC).

        To obtain this promotion and responsibility, the group has undertaken two years of specific regulatory training and on-job coaching under the guidance of their local and international colleagues. The graduates have also completed relevant professional qualifications to assist them in their career development.

        Mr Ian Johnston, Chief Executive of the DFSA said: "It is our belief that the young talent we have on TRL Programme today will become our future leaders in financial services. We believe that is a worthy goal, and we will continue to commit time and resources to the development of financial services regulatory skills in each and every UAE National at the DFSA."

        The Award ceremony today was attended by the DFSA Chairman, Mr Saeb Eigner; members of the DFSA Board of Directors and employees.

      • 26 September 2012 — DFSA Promotes Continuous Professional Development

        Dubai, UAE, 26 September 2012: The Dubai Financial Services Authority (DFSA) celebrated, today, the achievement of sixteen (16) of its employees who recently achieved the Advanced Diploma in Anti-Money Laundering (AML) from the International Compliance Association (UK).

        Over the last year, the group of financial services regulators responsible for the supervision of financial services entities in the Dubai International Financial Centre (DIFC), attended workshops and completed assignments and examinations to achieve this internationally recognised qualification.

        Awarded by the International Compliance Association in conjunction with the University of Manchester, this diploma gives individuals up-to-date knowledge of the practice of anti-money laundering activities and the prevention of money laundering.

        Mr Ian Johnston, Chief Executive of the DFSA offered his congratulations to the sixteen regulators saying: "The DFSA encourages and supports staff members to obtain recognised certificates as AML specialists. This achievement underscores our commitment to quality and continuous learning through building the capability of our people."

      • 19 September 2012 — DFSA Sanctions Credit Europe Bank (Dubai) Limited and its Former Head of Treasury

        Dubai, UAE, 19 September 2012: The Dubai Financial Services Authority (DFSA) announced today that it has accepted Enforceable Undertakings (EU) from Credit Europe Bank (Dubai) Limited (CEBD) and its former Head of Treasury. The EUs result from a DFSA investigation into trading conducted by the former Head of Treasury, on behalf of CEBD. CEBD is a firm authorised to conduct financial services in the Dubai International Financial Centre (DIFC).

        In May 2011, CEBD's former Head of Treasury, Mr Ozkan Demirkaya (Mr Demirkaya), executed a loss-making foreign exchange transaction on behalf of CEBD. To hide the unrealised loss resulting from that transaction, Mr Demirkaya created a fake forward transaction and caused it to be entered into the accounts of CEBD. The effect of the fake forward transaction was that it concealed the full extent of the unrealised loss arising from the earlier transaction in the accounts of CEBD.

        In October 2011, after determining that his earlier position was unlikely to recover, Mr Demirkaya disclosed his misconduct and the loss to CEBD. The matter was later reported to the DFSA by CEBD.

        The DFSA's investigation found that the fake forward transaction was not prevented or detected by CEBD because CEBD did not have appropriate systems and controls in place to effectively manage its trading functions and activities.

        The DFSA further found that CEBD failed to notify the DFSA of Mr Demirkaya's misconduct within an appropriate time.

        As a consequence of the DFSA's findings, CEBD has undertaken not to conduct proprietary trading activities until all of the internal control weaknesses identified by the DFSA have been addressed to the DFSA's satisfaction, and to pay a financial penalty of AED 183,500 (USD $50,000).

        In accepting the EU, the DFSA acknowledges that CEBD co-operated fully with the DFSA's investigation and has taken steps to improve its systems and controls.

        Mr Demirkaya has undertaken to the DFSA not to perform any functions in or in connection with the provision of Financial Services or Ancillary Services in the DIFC for a period of three (3) years. He has also undertaken to pay a financial penalty of AED 73,400 (USD $20,000); of which AED 55,000 (USD $15,000) has been suspended indefinitely subject to Mr Demirkaya's compliance with the EU. The suspended penalty reflects Mr Demirkaya's acknowledgement of the DFSA's concerns and his full cooperation with the DFSA's investigation.

        Mr Ian Johnston, Chief Executive of the DFSA said: "The action taken by the DFSA today highlights the importance of Firms having robust systems and controls in place to mitigate the risks associated with their activities. Importantly, when Firms detect conduct that contravenes DFSA administered laws and rules then there is an obligation on them to promptly disclose that activity to the DFSA. A failure to notify the DFSA is likely to result in regulatory action."

        Copies of the EUs can be found in the public register of the DFSA website under Regulatory Actions.

      • 17 September 2012 — Arqaam and Ernst & Young Sanctioned Over Accounting and Audit Standards

        Dubai, UAE, 17 September 2012: The Financial Markets Tribunal (FMT), an independent tribunal of the Dubai Financial Services Authority (DFSA), today made orders in respect of Arqaam Capital Limited (Arqaam) and its auditor, Ernst & Young (E&Y). The orders were made with the consent of both Arqaam and E&Y.

        In essence:

        (i) Arqaam failed to comply with International Financial Reporting Standards (IFRS) when it accounted for transactions involving artworks in its financial statements for the year ended 30 June 2009 (the 2009 Accounts);
        (ii) E&Y failed to comply with International Standards of Auditing (ISA) when carrying out the audit of the 2009 Accounts;
        (iii) Arqaam will restate the 2009 Accounts and its 2010 financial statements, and adjust its 2010 and 2011 financial statements for any flow on implications, within 28 days;
        (iv) Arqaam and E&Y will each pay a fine of AED 183,500 (USD $50,000) to the DFSA within 28 days; and
        (v) Arqaam and E&Y will pay the DFSA's costs of the investigation and the FMT proceedings within 28 days.

        The Chief Executive of the DFSA, Mr Ian Johnston said: "Where Authorised Firms and Auditors are in breach of DFSA legislation, in this case by not meeting accounting or audit standards, the DFSA will hold such firms to account.

        It is important that the financial statements of financial services firms are clear and do not have the potential to mislead.

        The action taken by the DFSA and the FMT's orders confirm the DFSA's commitment to maintaining international standards within the Dubai International Financial Centre (DIFC).

        The DFSA will, therefore, take all necessary measures to protect the integrity of the financial markets it regulates".

        Background

        1. E&Y was registered by the DFSA as an auditor in the DIFC on 3 January 2006, and has been Arqaam's auditor since March 2007.
        2. Arqaam was registered as a company in the DIFC on 29 March 2007, and licensed to carry on financial services by the DFSA as a Category 2 Firm on 23 May 2007.
        3. Arqaam is required to lodge audited financial statements with the DFSA at the end of each financial year.
        4. In July 2007, Arqaam commissioned eight (8) pieces of artwork (the Artworks) as an investment and for display at its offices and agreed a purchase price for them (the Original Purchase Price). The Artworks were completed and delivered to Arqaam in October 2008.
        5. In August 2009, Arqaam obtained a valuation of the Artworks (the Valuation) from an art gallery revaluing the Artworks at an increased price to the Original Purchase Price (the Valuation Price). The difference between the Valuation Price and the Original Purchase Price is hereafter referred to as the Valuation Gain.
        6. Arqaam approached E&Y to agree the accounting treatment for the Artworks.
        7. Following discussion with E&Y, in September 2009, Arqaam arranged for and executed sale and buy-back agreements with a company (the Buyer) on the following terms:
        (a) A sale agreement dated 29 June 2009, in which Arqaam sold the Artworks to the Buyer at the Valuation Price; and
        (b) A purchase agreement dated 30 June 2009, in which the Buyer sold the Artworks to Arqaam at the Valuation Price (together, the Artworks Transaction).
        8. The Artworks Transaction was an accounting trade which lacked economic substance as there was no real intention to sell or repurchase the Artworks. The Artworks Transaction was not an arm's length transaction.
        9. The DFSA did not allege dishonesty or intention to deceive or mislead, or that the Valuation was not genuine, or that anyone suffered loss.
        10. On 31 October 2009, Arqaam lodged the 2009 Accounts with the DFSA. The 2009 Accounts were audited by E&Y.

        Accounting Treatment

        11. The 2009 Accounts were prepared on the basis that the Artworks had been sold and repurchased at the Valuation Price in the financial year ending 30 June 2009, when in fact the sale and repurchase transaction was executed in September 2009. Since the sale and repurchase was of no economic substance, the 2009 Accounts should not have reflected it.
        12. On the DFSA's case, the accounting treatment adopted by Arqaam had the following effect on the 2009 Accounts:
        a. It decreased losses in 2009 by 21% in the Statement of Income by the Valuation Gain on the Artworks;
        b. It increased stated assets in the Balance Sheet (namely Plant and Equipment) by the amount of the Valuation Gain. Further, Arqaam failed to make disclosures, as required under IFRS as to the nature of the increase that such a treatment would require; and
        c. It resulted in the Statement of Cash Flow recording that Arqaam made both a gain and a disposal in respect of the Artworks, when in fact there were no cash flows resulting from the transactions.
        13. On E&Y's and Arqaam's case, Arqaam was entitled to account for the Artworks in the manner in which they did, arguing that the balance sheet and income statement numbers should have been as presented in the 2009 Accounts.
        14. E&Y gave an unqualified audit opinion that the 2009 Accounts present fairly, in all material respects, the financial position of Arqaam as of 30 June 2009 and its financial performance and its cash flows for the period then ended in accordance with IFRS.

        DFSA Regulatory Action

        15. The DFSA commenced its investigation into Arqaam and E&Y's failures to comply with IFRS and ISA respectively on 23 June 2010 and issued Notices of Fines to both Arqaam and E&Y on 20 March 2011.
        16. E&Y and Arqaam lodged Notices of Objections to the fines on 16 May 2011 and 29 May 2011 respectively.
        17. The DFSA commenced proceedings in the FMT against Arqaam and E&Y on 3 August 2011. The DFSA sought declarations of contraventions of DFSA administered rules that required Arqaam and E&Y to comply with IFRS and ISA respectively, the imposition of financial penalties and orders for Arqaam to restate the 2009 Accounts.
        18. Arqaam and E&Y filed proceedings in the FMT to hold the proceedings in private and to prevent any publication of the FMT proceedings and its orders. The DFSA objected to the restriction on the publicity. The FMT heard the arguments at an FMT hearing in London on 12 December 2011 and, on 11 January 2012, issued its decision to make public both the proceedings and its decisions. The FMT's decision can be accessed at:

        http://www.dfsa.ae/Documents/FMT/DECISION%20ON%20APPLICATION%20FOR%20DIRECTIONS-%20revised.pdf
        19. Arqaam appealed the FMT's decision to the DIFC Courts. The DFSA opposed the application, and there was a hearing of the appeal on 23 May 2012.
        20. The DIFC Courts delivered its judgment on 4 September 2012 in favour of the DFSA. The judgment can be accessed at:

        https://difccourts.visionhall.eu/?Start=search#:3

        The DFSA's media release in respect of the judgment can be accessed at:

        http://www.dfsa.ae/WhatsNew/DispForm.aspx?Id=226
        21. The hearing of the substantive matters was to commence in the FMT on 17 September 2012. However, the parties settled the proceedings with consent orders as summarised in this media release.

      • 16 September 2012 — DFSA Action in the Financial Markets Tribunal to be Made Public

        Click here to view PDF

        Dubai, UAE, 16 September 2012: The DIFC Courts, on an appeal from the Financial Markets Tribunal (FMT), delivered its decision in the matter of Arqaam Capital Limited (Arqaam) vs the Dubai Financial Services Authority (DFSA).

        The decision allows publication of the FMT's interim decision of 11 January 2012 and allows the proceedings commenced by the DFSA against Arqaam and Ernst and Young (E&Y) in August 2011 to be heard in public.

        The DIFC Courts' decision results from an appeal by Arqaam against a decision of the FMT in January 2012, to, amongst other things, make the proceedings public.

        The hearing of the substantive matters before the FMT is set down for 17 to 20 September 2012.

        The FMT's interim decision and directions orders are published on the FMT page on the link below: http://www.dfsa.ae/Pages/FinancialMarketsTribunal.aspx

        The DFSA will not make any further comments about the proceedings until after the conclusion of the hearing.

      • 20 June 2012 — DFSA Introduces New Markets Law and Amendments to the Regulatory Law

        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.

        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.

      • 23 May 2012 — DFSA Meets Finance Leaders in Hong Kong and Singapore

        Singapore, 23 May 2012: The Dubai Financial Services Authority (DFSA) met, today and last week, senior government officials, financial regulators, industry figures and academics in Hong Kong and Singapore.

        The visit to Hong Kong and Singapore coincided with a visit to Beijing where the DFSA attended the Annual conference of the International Organisation of Securities Commissions and entered into a supplementary agreement on co-operation with the China Banking Regulatory Commission.

        In Hong Kong, the DFSA met with the Financial Secretary, The Hon John Tsang; the Chief Executive of the Hong Kong Monetary Authority, Mr Norman Chan; the Chairman of the Hong Kong Securities and Futures Commission, Mr Eddy Fong; the Commission's Chief Executive, Mr Ashley Alder and senior bankers with operations in the Dubai International Financial Centre (DIFC). The DFSA hosted a dinner which was attended by the Financial Secretary as Guest of Honour and a number of senior government and financial industry figures including the Chairman of Hong Kong Exchanges and Clearing Ltd.

        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 Saeb Eigner, Chairman of the DFSA said: "Ensuring that we have regular dialogue with our counterparts in other jurisdictions enables us to keep up with international market trends, regulatory developments and policy formulation and implementation in financial and monetary matters." Mr Eigner added that he was pleased to have received such favourable comments regarding the speed in which Dubai is realising the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, in making the DIFC the premier financial centre in the Middle East. As well as receiving comments on DFSA's world-class regulatory and legal framework and the infrastructure of the DIFC.

        "Singapore and Hong Kong provide world-class financial centres with excellent reputations. Dubai not only complements theirs but also fills a geographical void between the West and East" Mr Eigner concluded.

        The DFSA delegation also included Board Members Mr Robert Owen and The Hon Apurv Bagri, together with the Chief Executive designate Mr Ian Johnston.

      • 16 May 2012 — DFSA Enters Into Agreement With China's Banking Supervisor

        Beijing, China, 16 May 2012: The Dubai Financial Services Authority (DFSA), this week, entered into a supplementary agreement on co-operation with the China Banking Regulatory Commission (CBRC).

        The CBRC supervises all banks and non-bank financial institutions, including foreign and foreign invested financial institutions and offices, with the aim of safeguarding legitimate and sound functioning of the banking industry in the People's Republic of China.

        The signing took place during a meeting between the Chairman of the CBRC, Mr Shang Fulin and the Chairman of the Board of Directors of the DFSA, Mr Saeb Eigner, and coincided with a visit to Beijing by a DFSA delegation attending the 2012 Annual Conference of the International Organisation of Securities Commissions. The delegation included DFSA Board Member, Mr Robert Owen; the Chief Executive, Mr Paul M Koster; and the Chief Executive designate, Mr Ian Johnston.

        The agreement was signed, on behalf of the DFSA, by Mr Paul M Koster, and on behalf of the CBRC, by Chairman Shang Fulin. Mr Koster said: "This initiative confirms a close and effective relationship between our two authorities. It grew from the response to the global financial crisis by the Basel Committee on Banking Supervision, which issued specific guidelines to enhance cross-border co-operation on crisis management. As active participants in the work of the Basel Committee, the CBRC and DFSA have entered into this agreement conscious of the need to implement international best practice and the commitment to ensure efficient and effective supervision of banks we both supervise."

        Mr Saeb Eigner, Chairman of the DFSA's Board of Directors said: "I am very pleased that the CBRC and the DFSA have, with this supplementary agreement, enhanced the terms of the Memorandum of Understanding we put in place on 24 September 2007. Together with the existing MoU, today's agreement reflects each agency's commitment to co-operation in relation to prudential oversight and inspections in all situations and should ensure continued supervisory confidence as a number of significant banks from the People's Republic of China enter the Dubai International Financial Centre."

      • 2 May 2012 — DFSA Board Announces Appointment of the Next Chief Executive

        Dubai, UAE, 2 May, 2012: The Board of Directors ("Board") of the Dubai Financial Services Authority ("DFSA") today announces the appointment of Ian Johnston as the next Chief Executive of the DFSA. Ian Johnston will succeed Paul M Koster, with effect from 15 June 2012, after Paul Koster completes three and a half years with the DFSA. During his tenure Paul Koster has made an important contribution to the further establishment of the DFSA as a strong and internationally respected regulator, and thus, to the development of the Dubai International Financial Centre ("DIFC") as a successful international financial centre.

        Ian Johnston has been the DFSA's Deputy Chief Executive since 2009 and Managing Director since 2006, when he joined the DFSA. Ian has wide international experience and has been active in supporting the work and objectives of the international standard-setting bodies. He is a member of the Technical Committee of the International Association of Insurance Supervisors, the global standard-setting body for insurance regulation. Of his new appointment Ian said: "I would like to thank the Board for entrusting me with this responsibility. I am very honoured to have been selected as the new Chief Executive and look forward to continuing the DFSA's work in delivering world-class regulation."

        Saeb Eigner, Chairman of the DFSA, commenting on the appointment said; "International interest in the DIFC and in DFSA's role plays an important part in the work that we do. As such, Ian's experience in shaping our international agenda and his experience in working with the global standard-setters continues to be very relevant to the development of the DFSA and to the DIFC. The Board of Directors and I are committed to supporting the Executive as Ian Johnston takes the helm of the DFSA."

        Mr Eigner continued by saying; "On behalf of the Board, I wish to convey our appreciation to Paul whose many achievements at the DFSA include the further development of our co-operation with key regulatory agencies in the UAE and other important jurisdictions."

      • 22 April 2012 — DFSA Wins First Contested Case Before Regulatory Appeals Committee

        Dubai, UAE, 22 April 2012: The Dubai Financial Services Authority (“DFSA”) today announced the outcome of a challenge to its decision to withdraw the Licenses and Authorisations of Capital Investment International [CII-UAE] Ltd (“CII”); and the Authorised Individual Status of Mr Husam Al Ameri (“Mr Al Ameri”) and Mr Odhaid Al Mansouri (“Mr Al Mansouri”) as Licensed Directors of CII. The DFSA had earlier found that CII, Mr Al Ameri and Mr Al Mansouri (“the Directors”) were no longer fit and proper to provide financial services in the Dubai International Financial Centre (“DIFC”), but that decision was subject to appeal.

        The Licenses and Authorisations of CII, and the Directors were originally withdrawn by the DFSA on 26 June 2011 following a hearing before a DFSA Decision Maker. No announcement of that step was taken at the time.

        On 25 August 2011, CII and the Directors each presented an appeal from the DFSA decision to the Regulatory Appeals Committee of the DFSA (the “RAC”). The appeals were jointly heard by the RAC at a hearing on 28 November 2011 which was held in private subject to a confidentiality order.

        On 18 January 2012, the RAC notified the parties in confidence of its decisions in respect of the appeals. The RAC today made a further order requiring those decisions to be placed on the DFSA website.

        The RAC unanimously upheld the DFSA's decisions to withdraw the Licenses and Authorisations of CII, and the Authorised Individual status of the Directors. In essence the decision found that there had been a failure by all three appellants to comply with a number of DFSA requirements including, in the case of CII, the obligation to have systems and controls and effective compliance arrangements; and, in the case of the Directors, the requirement to act with due skill, care and diligence.

        CII has not been permitted to transact any investment business since June 2011 and, as far as the DFSA is aware, no clients of CII have suffered any loss as a result of CII's contraventions.

        The RAC's decisions are published on the RAC section of the DFSA's public register, which can be found at www.dfsa.ae / Public Register / Regulatory Appeals Committee or at http://www.dfsa.ae/Pages/RegulatoryAppealsCommittee.aspx.

      • 20 February 2012 — DFSA Continues to Develop Emirati Regulatory Talent

        Dubai, UAE, 20 February 2012: The Dubai Financial Services Authority (DFSA) held its annual Tomorrow's Regulatory Leaders (TRL) Awards ceremony last week. The purpose of the awards is to congratulate Emirati employees who have completed the DFSA's two-year TRL Programme.

        The programme prepares newly graduated UAE nationals to become financial services regulators. A combination of in-house training, coaching by experts from international financial centres and examinations from the Chartered Institute for Securities and Investment (UK) makes the TRL Programme a unique development programme. Graduates join as TRL Associates and over the two years undergo over 400 hours of classroom training along with on-the-job coaching from their more experienced DFSA colleagues and industry experience in Dubai International Financial Centre (DIFC) Authorised Firms.

        Mr Paul Koster, Chief Executive said, “The DFSA is investing in developing young Emiratis to become leaders in the area of financial services regulation. To date, the TRL Programme has produced eleven managers and currently has nine individuals on the programme. UAE nationals constitute 28% of DFSA's regulatory workforce. We are very proud of the results of this programme and will continue our efforts to deliver sustainable and enduring benefits to the DFSA by equipping Emiratis for long-term careers in regulation.”

        The programme is written and delivered by DFSA regulators with training materials being updated every year to reflect changes in legislation and the market environment. In addition, each graduate is assigned a coach who helps the Associate understand the job they are assigned to do. In so doing, the graduate benefits from their coach's wealth of regulatory experience and their international perspective.

        Mr Michael Ridgeway, General Counsel and Dean of the TRL Programme said, “The awards not only celebrate the success of our young Emirati colleagues, but also recognise the considerable efforts and enthusiasm shown by our TRL trainers and coaches. In line with our core regulatory mission, the TRL Programme is one of our most important strategic initiatives. We place great importance on sustainability, now our TRL Programme 'alumni' are also involved in developing the next generation of regulatory leaders. ”

      • 15 February 2012 — DFSA Receives Delegation of Powers from the DIFC Registrar of Companies

        Dubai, UAE, 15 February 2012: The Dubai Financial Services Authority (DFSA) today accepted a delegation of certain powers from the DIFC Registrar of Companies (Registrar).

        The delegated powers include the power to appoint inspectors to investigate the affairs of companies and partnerships, and to pursue enforcement remedies available to the Registrar under the following Dubai International Financial Centre (DIFC) Laws and their associated Regulations (together, the Registrar of Companies Laws (ROC Laws)):

        •    Companies Law, DIFC Law No 2 of 2009;
        •    Limited Partnership Law, DIFC Law No 4 of 2006;
        •    Limited Liability Partnership Law, DIFC Law No 5 of 2004;
        •    Insolvency Law, DIFC Law No 3 of 2009; and
        •    General Partnership Law, DIFC Law No 11 of 2004.

        The Registrar continues to have the right to exercise the delegated powers in relation to any matter, whether independent of, or concurrently with, the DFSA. However, the Registrar and the DFSA have agreed that the DFSA will investigate contraventions of the ROC Laws for which penalties of AED 36,700 (US $10,000) or more may be imposed. Contraventions, for which lesser penalties may be imposed, will remain the responsibility of the Registrar (though the DFSA may investigate such contraventions if they are ancillary to any DFSA investigation).

        The Registrar will continue to administer the registry functions within the DIFC.

        Mr Khalid Al Zarouni, The Registrar said: "This move comes in line with our on-going commitment to develop the DIFC's legal and regulatory framework while leveraging the expertise and best practices of other DIFC bodies. Both the DIFC Registrar of Companies and the DFSA agree that the delegation will result in a more efficient and effective regulation of the ROC Laws."

        Under the delegation, the DFSA will exercise the delegated powers and functions as it deems necessary or desirable in order to carry out inspections and investigations, make directions, procure court orders, impose penalties or take any other regulatory or enforcement action in relation to the ROC Laws.

        Persons wishing to report a contravention of the ROC Laws, or any legislation administered by the DFSA, may do so by complaining through the DFSA Complaint portal which is located on the DFSA's website at www.dfsa.ae. A copy of the Instrument of Delegation is available on the DFSA and DIFC websites.

      • 09 February 2012 — DFSA Announces its Chief Executive to Step Down Later This Year

        Dubai, UAE, 9 February 2012: The Dubai Financial Services Authority (DFSA) announces, today, that after nearly four years in the Chief Executive's role, Mr Paul M Koster has decided to step down in September 2012.

        The DFSA Board of Directors have commenced the normal nominations process for identifying a new Chief Executive, which is being guided by the DFSA's Governance and Nominations Committee.

        The Board are confident of finding a worthy successor to Mr Paul M Koster to take over the important work which he, and his team, have been doing; to strive to maintain the high international standards of the DFSA as an independent regulatory body and to contribute to the success of the Dubai International Financial Centre (DIFC) as a whole.

      • 08 February 2012 — DFSA Announces Stakeholder Survey Results

        Dubai, UAE, 8 February 2012: The Dubai Financial Services Authority (DFSA) announces, today, the results of a recent stakeholder perception survey of the DFSA.

        In 2011, the DFSA commissioned an independent survey into levels of satisfaction with the DFSA and its performance. The research was carried out by ChantLink, an Australian firm with global experience in conducting market research on behalf of firms and financial services regulators.

        The research involved conducting interviews with individuals representing DFSA stakeholders both in and outside the Dubai International Financial Centre (DIFC). Underlining the independence of the research, the interviews, scores and comments of individual stakeholders are confidential to ChantLink. The DFSA has only seen the scores in aggregate, without any attribution of scores or comments to individual stakeholders.

        The results identified some opportunities for improvement. The DFSA will review these closely as part of a continuous process to improve performance. All summary reports of DFSA stakeholder surveys are posted on the DFSA website: www.dfsa.ae

      • 29 January 2012 — DFSA Enters Into Statement of Protocol With US Audit Regulator

        Washington DC, USA, 29 January 2012: The Dubai Financial Services Authority (DFSA), recently, entered into a Statement of Protocol with the Public Company Accounting Oversight Board (PCAOB).

        The agreement was signed on behalf of the DFSA by the Chief Executive, Mr Paul M Koster, and the Chairman of the PCAOB, Mr James R Doty, during a visit by Mr Koster to Washington DC. DFSA Board Member, Dr J Andrew Spindler, was also present at the signing.

        Mr Paul M Koster, Chief Executive of the DFSA, said: “The DFSA is very pleased to have concluded this statement of protocol with the PCAOB, the United States (US) agency responsible for federal oversight of the audits of public companies. The ability of audit regulators to co-operate and share information is critical in the current environment when the need to protect investors and the public interest has never been more important. There are eight US regulated Firms in the DIFC and the PCAOB already conducts audits jointly with the DFSA, this agreement facilitates the sharing of information. ”

        “This is, in fact, the first bi-lateral agreement the DFSA has established with an audit regulator following the change to the Dubai International Financial Centre's Regulatory law, which allows such co-operation. As fellow members of the International Federation of Independent Audit Regulators, the DFSA and the PCAOB are committed to developing and implementing international standards, among them supporting co-operation between regulators and promoting greater consistency of audit oversight. ”

        Mr Koster added: “This initiative also extends the DFSA's collegiate links with regulators in the US. The DFSA already has a Memorandum of Understanding with the Commodity Futures Trading Commission and with the four federal banking supervisors, as well as other US regulators in the context of our multilateral arrangements.”

        When the PCAOB announced its approval of this agreement in December, Mr Doty said: “For many years the DFSA has been a valued partner as the PCAOB has sought to ensure effective cross-border audit oversight. We are pleased that this agreement will allow us to exchange confidential information, which will enhance the strong co-operative relationship that already exists. ”

      • 15 January 2012 — DFSA Introduces New Regime For Designated Non-Financial Businesses and Professionals

        Dubai, UAE, 15 January 2012: The Dubai Financial Services Authority (“DFSA”) announces today that His Highness Sheikh Mohammed Bin Rashid Al Maktoum, in his capacity as Ruler of Dubai, has enacted amendments to the Dubai International Financial Centre (DIFC) Law No 1 of 2004 (Regulatory Law 2004) under which the regulation of DIFC Anti-Money Laundering (“AML”) and Combating the Financing of Terrorism (“CFT”) requirements for Designated Non-Financial Businesses and Professions (“DNFBP”) in the DIFC is transferred to the DFSA.

        From today, the DFSA assumes responsibility for, and becomes the single AML/CFT regulator of, all AML/CFT supervision and enforcement in the DIFC. Previously DNFBPs were supervised for AML/CFT compliance by the Dubai International Financial Centre Authority (“DIFCA”).

        Mr Abdulla Mohammed Al Awar, Chief Executive Officer of DIFCA said: “This move further portrays the co-operation between DIFC bodies to ensure that the highest standards of compliance are achieved. It also comes in line with our commitment to the continuous development of DIFC's legal and regulatory framework and providing the ideal platform for our clients to grow and prosper.”

        Accompanying these amendments to the Regulatory Law 2004 is the introduction of a new DFSA rulebook “Designated Non-Financial Businesses and Professions Module” (“DNF”), which provides rules and guidance to those Firms now falling under the DFSA's supervision.

        Mr Paul M Koster, Chief Executive of the DFSA said: “The transfer of these supervision and enforcement powers to the DFSA creates a single regulator of AML/CFT obligations in the DIFC and will ensure greater consistency in the regulation of all DIFC-incorporated entities. The DFSA will continue to work closely with the Central Bank's AML Suspicious Cases Unit to combat the risk of money laundering and terrorist financing.”

        The DFSA has produced a quick guide to highlight the changes and implications for firms operating inside the DIFC of the new AML/CFT rules. This Guide is available in both English and Arabic and can be viewed on the DFSA website: http://www.dfsa.ae/Documents/Leaflets%202011/DNFBP%202011.pdf

        Additionally, the DFSA will shortly be contacting all DNFBPs within the DIFC to provide training and guidance on the changes. Any queries regarding the AML/CFT for DNFBPs can be directed via email to Mr Matt Gamble, Head of AML at “STRunit@dfsa.ae

    • 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

    • 2010

      • 1 December 2010 — DFSA Congratulates New UAE National Regulators

        Dubai, UAE, 1 December 2010: The Dubai Financial Services Authority (DFSA) holds its annual Tomorrow's Regulatory Leaders (TRL) Awards later today. The purpose of the awards is to congratulate Emirati employees who have completed the DFSA's two-year TRL Programme.

        The programme prepares newly graduated UAE Nationals to become financial services regulators. A combination of in-house training and coaching by experts from international financial centres and examinations from the Chartered Institute of Securities and Investments (UK) makes the TRL Programme a unique development programme. Graduates join as TRL Associates and over the two years undergo over 400 hours of class room training along with on-job coaching from their more experienced DFSA colleagues. They also benefit from regular mentoring and industry placements within Dubai International Financial Centre (DIFC) Firms.

        Mr Paul Koster, Chief Executive of the DFSA said, "We take our obligations to the financial services community very seriously. To be a good regulator is to understand the challenges and market conditions your regulated community is facing. This is difficult at any stage of a regulator's career but more so when you are first starting out. DFSA is working closely with many DIFC-based Firms to provide our trainees with the opportunity to work in financial services institutions as part of the TRL Programme, so they can better understand our regulated community.

        Almost 95% of the TRL Programme is delivered by our regulatory colleagues who write and deliver training material or coach our trainees on a daily basis, where they benefit from a wealth of regulatory experience and gain an international perspective. In our awards today we not only celebrate the success of our young Emirati colleagues, but also recognise the considerable efforts and enthusiasm our trainers and coaches have shown over the last year.

        In line with our core regulatory mission, the TRL Programme is one of our most important strategic initiatives. We place great importance on developing the next generation of regulatory leaders."

        Mr Abdullah Saleh, Chairman of the DFSA said, "We are proud to say that 26% of our regulators are UAE Nationals. Since inception we have graduated nine managers with another ten trainees currently going through the Programme. The success of this programme is very important to the DFSA and we will continue our efforts to deliver sustainable and enduring benefits to the UAE, by developing young Emiratis for long-term careers in financial services regulation."

      • 3 November 2010 — DFSA Signatory to IAIS Multi-lateral Memorandum of Understanding: A First for the GCC

        Dubai, UAE, 3 November 2010: At the concluding meeting of the Executive Committee of the International Association of Insurance Supervisors (IAIS) held in Dubai last week, the Chairman of that committee, Mr Peter Braumüller, announced that the Dubai Financial Services Authority (DFSA) had been accepted as a signatory to the IAIS Multi-lateral Memorandum of Understanding (MMoU).

        The MMoU is a framework for co-operation and the exchange of information between insurance supervisors to facilitate effective oversight of insurance and reinsurance companies which are active in more than one jurisdiction. It sets minimum standards to which signatories must adhere and these include the purposes for which information provided by another insurance supervisor can be used and the confidentiality of information received. The growing number of internationally active insurance companies, the increasing integration of financial markets and the global financial crisis highlight the importance of a MMoU to further support supervisory liaison and co-operation. It allows a supervisor receiving a request for information to provide that information quickly and effectively.

        The MMoU was signed on behalf of the DFSA by its Chief Executive, Mr Paul Koster. Mr Koster said, "I am particularly delighted to see that the DFSA has satisfied the highest level of co-operation standards that exist between international insurance supervisors. Acceptance as an IAIS multi-lateral MoU signatory is only permitted after rigorous assessment of the authority's legislative and regulatory regime. In the DFSA's case, this was conducted by a specialist team from four countries, confirmed by a group from another eight jurisdictions and finalised with an endorsement from the Chairs of IAIS's three senior committees."

        "The DFSA has established best practice utilising a modern legal framework and a risk-based approach to its supervisory measures. In signing this multi-lateral MoU, the DFSA further affirms its commitment to international co-operation, which is an essential requirement in today's changing business environment. Since 2005, the DFSA has placed a high priority on building its co-operative channels, which also now includes a bi-lateral MoU network with around fifty supervisors and regulators regionally and across the globe."

        The DFSA is the only regulator in the GCC, and the first in the Arab World, to be admitted as a signatory. The DFSA joins existing signatories representing the world's major insurance markets, including France, Germany, Australia and Singapore.

      • 27 October 2010 — DFSA Hosts Global Insurance Summit Today

        Dubai, UAE, 27 October 2010: The Dubai Financial Services Authority (DFSA) hosts, today, the world's policy makers and insurance leaders, in Dubai. The 17th Annual Conference of the International Association of Insurance Supervisors (IAIS) is a two day event commencing today at the Grand Hyatt Conference Centre.

        The Chief Executive of the DFSA, Mr Paul Koster said: "The theme of this year's conference is 'The Gateway to Trust in the Insurance Industry.' The global financial crisis has reminded us all of the critical importance of trust in financial institutions and markets as a pillar to financial and economic stability."

        "Activity in the UAE insurance sector has continued to expand throughout the crisis and has a buoyant outlook. There are significant opportunities in the region's insurance market and the outlook for the Gulf's insurance sector is robust. Over the coming days delegates should gain a deeper understanding of emerging industry trends and regulatory developments."

        The DFSA would like to thank the UAE Insurance Authority, DIFC, PWC, RGA, Deloitte, Metlife, Swiss Re and all the other sponsors for the support it has received.

      • 10 October 2010 — DFSA Signs Accounting Standard-Setters MoU

        Dubai, UAE, 10 October, 2010: The Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) with the Asian-Oceanian Standard-Setters Group (AOSSG), last month.

        In doing so, the DFSA joins standard-setting bodies from Australia, Brunei, Cambodia, China, Hong Kong, Indonesia, India, Iraq, Japan, Kazakhstan, Korea, Macao, Malaysia, Nepal, New Zealand, Oman, Pakistan, Philippines, Saudi Arabia, Singapore, Sri Lanka, Thailand, Turkey and Uzbekistan.

        The MoU sets out the four objectives of the AOSSG:

        •   Promoting the adoption of, and convergence with, International Financial Reporting Standards (IFRSs) by jurisdictions in the region;
        •   Promoting consistent application of IFRSs by jurisdictions in the region;
        •   Co-ordinating input from the region to the technical activities of the International Accounting Standards Board (IASB); and
        •   Co-operating with governments and regulators and other regional and international organisations to improve the quality of financial reporting in the region.

        Mr Paul Koster, Chief Executive of the DFSA said, "As the regulator of the DIFC which sets IFRS as the statutory standard for accountants practicing in the Centre, the DFSA is very pleased to join the Asian-Oceanian Standard-Setters Group. The endorsement and promotion of IFRS, through the MoU and working committees, is a critical initiative for achieving global transparency and consistency and the DFSA is committed to participating in the important work of the AOSSG."

      • 4 October 2010 — DFSA Launches Arabic Website

        Dubai, UAE, 4 October 2010: The Dubai Financial Services Authority (DFSA) announced the launch of an Arabic version of its website, www.dfsa.ae. This is part of the Authority's strategy to realise its communication endeavours in Arabic, and this initiative accompanies the DFSA's various regulatory publications, also written in Arabic.

        The Chief Executive of the DFSA, Mr Paul Koster said: “Ensuring we meet the needs of our stakeholders is paramount to the DFSA. We consider communication in the native tongue an important aspect in establishing dialogue with the broader market and I am pleased that, today, we are able present our services in the language of the region.”

        “This initiative is a reflection of our efforts to more effectively reach a wider audience in the financial services industry.”

        The DFSA will consider the translation of the Laws and Rules, in due course, but for the moment, they will remain in English. The website pages now available in Arabic include: About the DFSA, Doing Business with the DFSA, Tomorrow's Regulatory Leaders, Islamic Finance, Legal Framework and Contact the DFSA.

      • 10 August 2010 — DFSA Signs MoU With Banco de Portugal

        Dubai, UAE, 10 August 2010: The Dubai Financial Services Authority (DFSA) has recently entered into an agreement with the Portuguese banking supervisor, Banco de Portugal. The Memorandum of Understanding (MoU) commits the DFSA and Banco de Portugal to information sharing and co-operation in the supervision of financial institutions.

        The MoU was signed on behalf of the DFSA by Chief Executive, Mr Paul Koster, having been signed earlier in Lisbon by Mr Carlos da Silva Costa, Governor of Banco de Portugal.

        The Chief Executive of the DFSA, Mr Paul Koster said: "I am very pleased to have signed this agreement with Governor da Silva Costa as this initiative reflects each agency's commitment to co-operation in relation to prudential oversight and inspections of authorised institutions in Portugal and the Dubai International Financial Centre (DIFC). It adopts the model for information sharing developed by the Basel Committee on Banking Supervision and acknowledges the call of the G20 and the Financial Stability Board promoting global adherence to international co-operation and information exchange standards."

        "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 more than 50 fellow regulators, including the central banks and banking supervisors in the UAE, UK, US, Canada, France, Germany, the Netherlands, Belgium, South Africa, Jordan, China, Singapore, and Japan."

      • 11 July 2010 — DFSA Enters Into MoU With Danish Counterpart

        Dubai, UAE, 11 July 2010: The Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) with Finanstilsynet, the Danish Financial Supervisory Authority, last week.

        The MoU was signed on behalf of the DFSA by Chief Executive, Mr Paul Koster, and by Mr Ulrik Nodgaard, the Director General of Finanstilsynet. The Danish FSA is responsible for the supervision of financial institutions, such as banks, mortgagecredit institutions, pension and insurance companies. The Finanstilsynet also supervises the securities markets in Denmark.

        The Chief Executive of the DFSA, Mr Paul Koster said: "Both the DFSA and Finanstilsynet are pleased to be signatories to the International Organisation of Securities Commissions multi-lateral MoU, which sets the highest standards for cooperation and assistance among securities regulators. Our bi-lateral MoU with Finanstilsynet reflects the broader responsibilities of each authority and extends this co-operation beyond the field of securities, and beyond the area of enforcement, to embrace licensing, inspection, surveillance and anti-money laundering functions covering banking, insurance and securities activity in Denmark and the Dubai International Finance Centre."

        "This initiative strengthens the Finanstilsynet and the DFSA's relationship as home-host regulators of Danish firms and reflects each authority's commitment to cooperation in relation to supervisory oversight and inspections."

      • 20 June 2010 — DFSA Signs MoU With Canadian Banking Regulator

        Dubai, UAE, 20 June 2010: The Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) with the Office of the Superintendent of Financial Institutions of Canada (OSFI), last week.

        The MoU was signed, first, on behalf of the DFSA by Chief Executive, Mr Paul Koster, and subsequently in Ottawa by Mr Mark White, the Assistant Superintendent, Regulation Sector, of OSFI. OSFI is responsible for regulating and supervising all federally chartered, licensed or registered banks, insurance, trust and loan companies, co-operative credit associations and fraternal benefit societies in Canada.

        The Chief Executive of the DFSA, Mr Paul Koster said: “The attraction of the Dubai International Financial Centre (DIFC) as the domicile of choice for Canadian financial institutions in the Middle East will be further enhanced by this regulatory relationship. This initiative reflects each agency'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 in the UK, Germany, France, the US, Japan, Singapore and China.”

        “The global financial crisis has reinforced the importance of effective dialogue and collaboration between banking supervisors. Agreements of this kind will help that process.”

        “Since 2005 the DFSA has placed a high priority on building its information network. As a result of this signing, we now have a bi-lateral MoU network with fifty regulators regionally and across the globe.”

      • 15 June 2010 — DFSA Signs MoU With Leading US Banking Regulator

        Dubai, UAE, 15 June 2010: The Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) with the New York State Banking Department regarding co-operation and exchange of information, last week.

        The Department is the primary regulator for state-licensed and state-chartered financial entities, including domestic banks, foreign agencies, branches and representative offices, savings institutions and trust companies, credit unions and other financial institutions operating in New York including mortgage bankers and brokers, check cashers, money transmitters, and licensed lenders, among others.

        Total assets of the institutions regulated are nearly AED 8.8 trillion (USD 2.4 trillion). A branch of one of these banks is authorised to carry out financial services in and from the Dubai International Financial Centre (DIFC) and is supervised by the DFSA.

        The MoU was signed by Mr Paul Koster, Chief Executive of the DFSA, and Mr Richard Neiman, New York State's Superintendent of Banks, at the Department's headquarters, in New York.

        The Chief Executive of the DFSA, Mr Paul Koster said: “I am very pleased to have concluded this arrangement with Superintendent Nieman and the DFSA is honoured to have formalised its relationship with the oldest banking regulatory agency in the United States. As co-supervisors of a common institution operating in New York and in the DIFC, the State Banking Department and the DFSA are committed to enhancing co-operation and information sharing in relation to this bank, and any others that may follow in future.

        “This memorandum was drafted in light of the Basel Principles for Effective Banking Supervision and complements another MoU established by the DFSA in October 2007 with the four US Federal banking supervisors - the Federal Reserve, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTC), to ensure a coordinated approach between home and host supervisors of a number of significant US banks.”

      • 21 March 2010 — DFSA Takes Action Over Damas Failures

        Dubai, UAE, 21 March 2010: The Dubai Financial Services Authority ("DFSA") today announced remedial action and enforcement sanctions against Damas International Limited ("Damas") and its Board of Directors ("Board") for their failure to exercise appropriate corporate governance over the company and its subsidiaries.

        The remedial action includes the resignation of the Damas Board, the appointment of a new Board to govern Damas, and measures to enhance the governance, systems and controls of Damas so as to protect the company, its assets and shareholders' interests. Damas has also agreed to the appointment of new auditors for the fiscal year commencing 1 April 2010.

        The sanctions include financial penalties against Damas, Tawhid, Tawfique and Tamjid Abdullah, ("Abdullah Brothers") and voluntary bans, for periods up to 10 years, on the Abdullah Brothers from acting as Directors of Damas or any company in the Dubai International Financial Centre ("DIFC").

        Today's announcement follows an investigation by the DFSA into "unauthorised transactions" that were announced to the market by Damas on 15 October 2009. The Chief Executive of the DFSA, Mr Paul Koster said: "Maintaining international governance standards and internal systems and controls as well as ensuring investor confidence is fundamental to the integrity of the market in the DIFC.

        This action will remind Directors of public companies that they owe a duty to the company and their shareholders, which supersedes any duty they have to their private interests.

        The range of measures, announced today, will assist Damas to conduct its business in accordance with the Laws and Rules of this jurisdiction."

        "In pursuing the objectives of the DIFC, the DIFC Registrar of Companies and the DFSA collaborated and concurred on the foregoing measures in its regulatory efforts to enhance corporate governance within Damas." Koster said.

        Enforceable Undertaking:

        A copy of the Enforceable Undertakings between the DFSA, Damas, the Abdullah Brothers and each non-Executive Director is posted on the DFSA website:

        https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

        Summary of the Findings of the DFSA's Investigation:

        The investigation found that the amount owing by Tawhid, Tawfiq and Tamjid Abdullah ("Abdullah Brothers") to Damas International Limited ("Damas") comprised of approximately AED 365, 000,000 (USD 99,400,000) plus the value of approximately 1,940,250 grams of gold, the price of which is to be fixed on a date agreed by Damas and the Abdullah Brothers.

        These drawings required the prior approval of the Damas International Limited ("Damas") Board of Directors ("Board") and/or shareholders of Damas, which was not obtained.

        The DFSA found that:

        •    The Abdullah Brothers contravened DFSA Laws and Rules in that they:
        •    Engaged in the practice of withdrawing Damas funds for their own personal use and did not disclose the drawings or other transactions to, or seek the approval of, the Board; and
        •   Obtained the drawings as loans from Damas on non-commercial terms.
        •    Tawhid Abdullah contravened DFSA Laws and Rules in that he failed to disclose, immediately, to the Board:
        •    The drawings;
        •    The use to which the drawings would be put; and
        •    His interest in properties sold to Damas.
        •    Tawfique and Tamjid Abdullah contravened DFSA administered Laws and Rules in that they failed to make adequate and reasonable enquiries into the transfer, purpose and use of the drawings of Damas funds.
        •    Tawfique Adbullah, as Chairman, failed to provide to the Board information about the directors drawings, in a timely manner, and in a form and of a quality appropriate to enable the directors to discharge their duties.
        •    Damas and its Board contravened DFSA Laws and Rules in that they failed to establish and maintain appropriate systems and controls to:
        •    Safeguard shareholders' investments and the assets of Damas;
        •    Ensure the Damas Chairman supplied the Board with sufficient information to carry out its functions; and
        •    Ensure the Audit Committee carried out its functions.
        •    Damas also failed to:
        •    Disclose, without delay, the nature, content and details of the drawings; and
        •    Obtain the consent of shareholders to provide financial assistance to the Abdullah Brothers.

        The Undertakings

        Damas, each of the non-Executive Damas Directors and the Abdullah Brothers have entered into Enforceable Undertakings (EUs) with the DFSA. In particular Damas and the Board have accepted the DFSA's position regarding their corporate governance failures and agreed to implement a range of corporate governance measures and controls. These include that Damas:

        •   Obtains the resignation of each non-Executive Board Member of his and her directorship within 30 days of the EU, and that each not seek reappointment to the Board for a period of 2 years;
        •    Calls an extraordinary general meeting of shareholders to appoint a new Board within 30 days of the EU;
        •    Appoints, and appropriately allocates and apportions, Board and senior management responsibilities;
        •    Establishes appropriate measures to ensure the Board receives the information it requires to act on an informed basis;
        •    Establishes appropriate and proper systems and controls;
        •    Appoints a full-time Compliance Officer and Company Secretary;
        •    Establishes appropriate measures to manage and mitigate risk;
        •    Agrees to appoint a new auditor;
        •    Pays a financial penalty in the amount of AED 2,569,000 (USD 700,000), of which AED 367,000 (USD 100,000) is to be paid within 30 days of the EU with the balance suspended but payable upon a failure by Damas to comply with a term or condition of the EU; and
        •    Pays the cost of the DFSA's supervision of compliance with the EU in the amount of AED 92,000 (USD 25,000).

        The Abdullah Brothers have undertaken to:

        •    Repay the amount owing to Damas;
        •    Disclose and particularise to Damas each of their assets over a value of AED 300,000 (USD 82,000);
        •    Grant to Damas a legal mortgage or other enforceable security over their assets;
        •    Resign as Directors of Damas, within 30 days of the EU and its subsidiaries within a timeframe suitable to the DFSA;
        •    Not act as a Director or Officer of Damas and any DIFC company for periods of 5 and 10 years;
        •    Pay the costs of the DFSA investigation; and
        •    Pay a financial penalty in the amount of AED 11,010,000 (USD 3,000,000), of which AED1,101,000 (USD 300,000) is to be paid within 180 days of the EU with the balance suspended but payable upon a failure, by any of the Abdullah Brothers, to comply with a term or condition of the EU.

      • 10 March 2010 — DFSA Launches Electronic Islamic Finance Handbooks

        Dubai, UAE, 10 March 2010: The Dubai Financial Services Authority (DFSA) has launched a series of electronic Islamic finance tailored handbooks, designed to help Firms undertaking Islamic finance activities in the Dubai International Financial Centre (DIFC).

        The Islamic finance handbooks are designed to assist with the identification of the DFSA's Rulebook requirements applicable to financial activities conducted as Islamic or Shari'a compliant.

        The five tailored handbooks relate to five different types of Islamic finance activities. Each handbook contains the parts of the DFSA Rulebooks which apply to that particular area of activity namely:

           • Islamic Banking;
           • Islamic Investment Business, other than Operating Funds;
           • Islamic Insurance;
           • Islamic Insurance Intermediation and Management; and
           • Operation of Islamic Funds.

        The Chief Executive of the DFSA, Mr Paul Koster said: "Islamic finance has witnessed tremendous growth and as such is an important area of focus for the DFSA. We want to provide the industry with improved access to our framework of Laws and regulations which is why we have created the Islamic finance tailored handbooks. By improving our delivery of information to Firms conducting Islamic finance activities, we hope that the handbooks will help Firms access the requirements that apply to their Islamic finance activities more easily."

        The electronic handbooks are available on

        www.dfsa.ae/Pages/LegalFramework/IslamicFinance

      • 7 March 2010 — DFSA Enters Into Memorandum of Understanding With French Markets Authority

        Paris, France, 7 March 2010: The Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) with the Autorité des marchés financiers of France (AMF), the French securities regulator, on Friday.

        The signing took place between Mr Paul Koster, Chief Executive of the DFSA, and M Jean-Pierre Jouyet, Chairman of the AMF.

        The AMF is France's independent public body responsible for safeguarding investments in financial instruments and in all other savings and investment vehicles; for ensuring that investors receive material information; and for maintaining orderly financial markets. The AMF also lends its support to financial market regulation at European and International levels.

        The Chief Executive of the DFSA, Mr Paul Koster said: "The Autorité des marchés financiers has been a valued member of the International Organisation of Securities Commissions (IOSCO) and an active participant in the work of the Committee of European Securities Regulators (CESR), adopting and harmonising international standards in Europe and continuing to establish world-class standards in the regulation of capital markets. As such, this MoU is a significant initiative, recognising the importance of these arrangements for co-operation and information sharing between the two regulators."

        Both the AMF and the DFSA are signatories to the IOSCO multi-lateral MoU, having satisfied the highest standards of co-operation and assistance among IOSCO members. It is enhanced by today's bi-lateral agreement which reflects each agency's responsibilities in the regulation of securities.

        This initiative reflects France's continuing commitment to the UAE, as the AMF already enjoys a significant and warm relationship with our federal counterpart, the Emirates' Securities and Commodities Authority (SCA), having signed a bi-lateral MoU in April 2009. Reflecting its status as an integrated regulator, the DFSA also has an MoU with Commission Bancaire, France's banking supervisor, signed in August 2008.

        "As a result of this signing, the DFSA now has a bi-lateral and multi-lateral MoU network with 90 regulators across the globe, which underlines the importance of effective co-ordination and co-operation", Mr Koster said.

      • 23 February 2010 — DFSA Strengthens Ties With The QFC Regulatory Authority

        Doha, Qatar, 23 February 2010: The Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) with the Qatar Financial Centre (QFC) Regulatory Authority, yesterday.

        The MoU was signed on behalf of the DFSA by Chief Executive, Mr Paul Koster, and Mr Phillip Thorpe, Chairman and Chief Executive Officer of the QFC Regulatory Authority, during the 4th GCC Regulators' Summit, held in Doha.

        The QFC Regulatory Authority was established in 2005 as the independent regulatory body of the Qatar Financial Centre. It has been established to regulate firms that conduct financial services in or from the QFC.

        Paul Koster, Chief Executive of the DFSA said, "The DFSA is keen to engage with its counterparts in the GCC and I am particularly pleased to be signing this MoU with Phillip Thorpe, a distinguished and experienced figure in the world of financial regulation. I am also pleased that we now have a formal arrangement with the QFC Regulatory Authority, with whom we have much in common. Both authorities are integrated regulators of international centres striving to embrace best practice and seeking to reflect the resolutions of the international standard-setters. This initiative should be seen as a mutual willingness to co-operate and share information to those standards."

        "In the past year, the importance of effective co-ordination and co-operation between regulators cannot be overstated. We are looking for better ways of working together to resolve problems and prevent their repetition. Agreements such as this will make a difference", Mr Koster said.

        Phillip Thorpe, Chairman and Chief Executive Officer of QFC Regulatory Authority welcomed the signing of the MoU saying, "As markets and regulatory jurisdictions are brought closer together in today's evermore complex financial environment, it is increasingly important that regulators share information and working practices as a means of bolstering their effectiveness. This is especially important in neighbouring jurisdictions where cross-border activities are, therefore, more likely to occur and where regulators are, therefore, more likely to need to communicate.

        "This move marks an important development for both regulators in light of our clear shared interests. I am delighted that we are able to sign this MoU with the DFSA and I anticipate that a closer relationship will significantly benefit both parties".

    • 2009

      • 8 December 2009 — DFSA Issues Censure

        Dubai, UAE, 8 December 2009: The Dubai Financial Services Authority (DFSA) today imposed an administrative censure (Censure) against Mr Samir Madison-Jammal (Madison-Jammal) a former Authorised Individual of a Firm authorised by the DFSA to provide financial services in the Dubai International Financial Centre (DIFC).

        The censure arises as a consequence of Mr Madison-Jammal's failure to notify the DFSA of a material change in the application by the Firm for the granting of its licence to provide financial services in the DIFC. Mr Madison-Jammal is also censured for being knowingly and directly concerned in the failure of the Firm to have mandatory appointments in place from the date of its Licensing in 2009.

        Firms seeking to provide financial services in the DIFC must appoint individuals who are suitably qualified and experienced to carry out the licensed functions of the Firm, such as the function of Senior Executive Officer, Finance Officer and Compliance Officer. The licensed functions can only be carried out by individuals whom are fit and proper, and authorised by the DFSA, to carry out such functions.

        Firms must notify the DFSA and seek approval, in advance, of any proposed change of individuals, where either the individuals have been proposed by an application to the DFSA to carry out a licensed function or are currently carrying out licensed functions.

        Firms that do not have individuals in place to carry out the mandatory licensed functions may be prohibited from carrying on the financial services activities for which they are licensed and may have their licence revoked.

        Mr Paul Koster, Chief Executive of the DFSA said, "The DFSA aims to ensure that firms providing financial services within the DIFC are governed only by individuals who are fit, proper, skilled and experienced to carry out their licensed functions."

        "Consequently the DFSA must be vigilant to ensure that Firms and people in responsible positions within Firms maintain high standards. The DFSA believes that this can only be achieved if Firms appoint individuals who are suitably qualified to carry out the licensed functions of the Firm."

        "Additionally, Firms must at all times be transparent in their dealings with the DFSA and notify it of any changes to individuals whom carry out its licensed functions, including during the licencing process," Mr Koster said.

        The administrative censure (which summarises the facts giving rise to the censure) is published on the DFSA website www.dfsa.ae.

      • 29 October 2009 — DFSA Strengthens Ties With Securities and Exchange Board of India

        Mumbai, India, 29 October 2009: The Dubai Financial Services Authority (DFSA) entered yesterday into a Memorandum of Understanding (MoU) with the Securities and Exchange Board of India (SEBI).

        The MoU was signed on behalf of the DFSA by Chief Executive, Mr Paul Koster, and Mr Shri CB Bhave, Chairman of SEBI, on the eve of a Dubai International Financial Centre (DIFC) seminar entitled, 'The India-UAE Partnership: Investments, Opportunities and Synergies'.

        The seminar was held in Mumbai on Thursday 29 October, led by the Governor of the DIFC and Vice Chairman of the UAE Central Bank HE Dr Omar Bin Sulaiman, and Union Cabinet Ministers, Their Excellencies Vayalar Ravi and Kamal Nath.

        The Securities and Exchange Board of India was established in 1992 to regulate the securities markets in India, to protect the interest of the investors and to promote the development of, and to regulate the securities market.

        Mr Paul Koster, Chief Executive of the DFSA said, "As the supervisor of one of the largest capital markets in the world, SEBI is an active member of the International Organisation of Securities Commissions (IOSCO) and acknowledged as one that is committed to world best practice. SEBI is, like the DFSA, a signatory to IOSCO's multi-lateral MoU and, as such, has already shown its ability and willingness to co-operate and share information to international standards. This bi-lateral MoU is a significant initiative, recognising the importance of these arrangements for cooperation and information sharing between the two regulators."

        "There are already a number of branches of Indian firms operating in the DIFC so this agreement, which reflects the responsibilities of both agencies, will enhance information sharing and co-operation between the DFSA and SEBI as regulators of these firms. As more financial services firms join the DIFC from India, this bi-lateral relationship will assume increasing importance as both regulators rely on the quality of regulatory standards administered in the other's jurisdiction."

        "In the past year, the importance of effective co-ordination and co-operation between regulators cannot be overstated. We are looking for better ways of working together to resolve current problems and prevent their repetition. Agreements such as this will make a difference", Mr Koster said.

        Mr Shri CB Bhave, Chairman of SEBI said, "This arrangement establishes a framework for mutual assistance, strengthening of cross-border co-operation and contributes towards efficient performance of the supervisory functions and effective enforcement of the laws and regulations governing the markets in our respective jurisdictions."

      • 28 October 2009 — DFSA Grants Recognition to NYSE Liffe US LLC

        Dubai, UAE, 28 October 2009: The Dubai Financial Services Authority (DFSA) announced last week that NYSE Liffe US LLC, has been granted the status of Recognised Body within the Dubai International Financial Centre (DIFC).

        Mr Paul Koster, Chief Executive of the DFSA said, "This recognition will enable NYSE Liffe US LLC to provide direct access to its futures markets in the United States by Firms operating within the DIFC that are appropriately licensed for such activities."

        NYSE Liffe US LLC is a designated contract market registered in the United States with the US Commodity Futures Trading Commission and is a wholly owned subsidiary of NYSE Euronext.

      • 19 October 2009 — DFSA Seeks Public Comment on Review of Funds Regime in the DIFC

        Dubai, UAE, 19 October 2009: The Dubai Financial Services Authority (DFSA) released today for public comment the Report of the Market Practitioner Panel (Panel) it appointed in July 2009 to review the DIFC's Collective Investment Funds regime.

        The Panel Report contains recommendations relating to 10 Key Issues. In the Panel's view, these issues need to be addressed in order to support the growth of the funds industry in the Dubai International Financial Centre (DIFC).

        The key recommendations of the Panel to the DFSA include the following:

        •    Allowing DIFC-based fund managers to establish funds in other reputable jurisdictions, and also allowing fund managers established in reputable jurisdictions to establish funds in the DIFC;
        •    Expanding the grounds on which Authorised Firms in the DIFC can distribute Units of Foreign Funds;
        •    Reducing licensing and other associated costs of fund managers;
        •    Allowing the protected cell company structure to be used for Umbrella Funds;
        •    Creating an Exempt Funds regime, in addition to the current Public and Private Funds, which is tailored to provide the right level investor protection to high-net worth professional;
        •    Reducing aspects of the current Independent Oversight;
        •    Tailoring Shari'a compliance requirements to suit the nature of the Islamic finance activities of the fund manager and the nature of the Fund; and
        •    Making the DIFC Funds regime more visible to the international fund community.

        Paul M Koster, Chief Executive of the DFSA added, "We are very grateful that the group of industry experts who formed the Market Practitioner Panel was able to devise a comprehensive set of pragmatic proposals to make that regime more attractive to the funds industry, without impairing investor protection.

        The DFSA looks forward to receiving the views of industry participants on the Panel's recommendations and hope to move quickly to implement changes that are appropriate and necessary to make the DIFC Funds regime more attractive for the international funds industry."

        The report is posted on the DFSA website www.dfsa.ae. The deadline for comment is 5 December 2009.


        Click here to download the report in PDF format.

      • 12 October 2009 — DFSA Consults on Islamic Finance Rules in the DIFC

        Dubai, UAE, 12 October 2009: The Dubai Financial Services Authority (DFSA) issued last week a Consultation Paper setting out proposals to enhance clarity and accessibility of the Islamic finance Rules of the Dubai International Financial Centre (DIFC).

        Consultation Paper No. 66, which is posted on the DFSA website www.dfsa.ae, seeks public comment on the proposed restructuring of the Islamic finance Rules and also on a web-based "virtual handbook". These proposals aim to better promote the visibility and accessibility of the DFSA's regulatory requirements that apply to Islamic financial activities which are currently contained in a number of DFSA Rulebook modules. The proposals do not contain any substantial changes to the existing requirements. The deadline for comment is 10 December 2009.

        Mr Paul Koster, Chief Executive of the DFSA said, "The DIFC aims to be the leading international centre for Islamic finance. The DFSA has put in place a first-class regulatory regime based on international standards. In line with our commitment to transparency and efficiency, we are now making that regime more accessible, and easier for the industry to use, so that Islamic finance can grow and prosper here."

      • 6 October 2009 — DFSA Consults on Representative Office Regime for the DIFC

        Dubai, UAE, 6 October 2009: The Dubai Financial Services Authority (DFSA) issued this week a Consultation Paper setting out proposals to introduce a Representative Office regime in the Dubai International Financial Centre (DIFC).

        Consultation Paper No. 65, which is posted on the DFSA website www.dfsa.ae, seeks public comment on proposed Rules for financial institutions wishing to establish a Representative Office in the DIFC. The deadline for comment is 4 November 2009.

        This new regime will permit financial institutions, based outside the DIFC, to have a presence in the DIFC for the limited purpose of marketing the financial products and services available from the institution outside the DIFC. The Representative Office regime will be available to institutions in all financial services sectors, provided that they are regulated in an acceptable home jurisdiction.

        Mr Paul Koster, Chief Executive of the DFSA said, "These proposals demonstrate our commitment to developing our regime in line with international standards and the needs of the changing marketplace in which we operate."

      • 1 October 2009 — DFSA Congratulates UAE National Graduates

        Dubai, UAE, 1 October 2009: The Dubai Financial Services Authority (DFSA) held its annual Tomorrow's Regulatory Leaders (TRL) Awards ceremony last night. The purpose of the awards is to congratulate Emirati employees who have completed the DFSA's two-year TRL Programme.

        The programme prepares newly graduated UAE Nationals to become financial services regulators. A combination of in-house training and coaching by experts from international financial centres and examinations from the Securities and Investments Institute (UK) makes the TRL Programme a unique development programme. Graduates join as TRL Associates and over the two years undergo over 400 hours of class room training along with on-job coaching from their more experienced DFSA colleagues.

        Mr Abdullah Saleh, Chairman of the DFSA said, "The DFSA is investing in developing young Emiratis to become leaders in the area of financial services regulation. To date, the TRL Programme has produced five managers and currently has eleven individuals on the programme. UAE nationals make up sixteen percent of DFSA's regulatory workforce. We are very proud of the results of this programme and will continue our efforts to deliver sustainable and enduring benefits to Emiratis, by equipping them for long-term career advancement and future leadership."

        Ninety five percent of the programme is written and delivered by DFSA regulators with training material being updated every year to reflect changes in legislation and the market environment. In addition, each graduate is assigned a coach who helps the graduate understand the job they are assigned to do. In so doing, the graduate benefits from their coach's wealth of regulatory experience and their international perspective.

        Mr Paul Koster, Chief Executive of the DFSA said, "The awards not only celebrate the success of our young Emirati colleagues, but also recognise the considerable efforts and enthusiasm shown by our TRL trainers and coaches. In line with our core regulatory mission, the TRL Programme is one of our most important strategic initiatives. We place great importance on developing the next generation of regulatory leaders."

      • 29 September 2009 — DFSA's Statement on SAAD Financial Advisory Services Limited in the DIFC

        Dubai, UAE, 29 September 2009: The Dubai Financial Services Authority (DFSA) advises that LA Investments Limited (LAIL) has been placed into liquidation in the UK. LAIL is the parent company of SAAD Financial Advisory Services Limited (SAAD), which is a DFSA regulated firm.

        LAIL was put into a members' voluntary solvent liquidation on 21st September 2009, with Stephen John Akers and Gareth Rutt Morris of Grant Thornton UK LLP acting as the liquidators.

        The liquidators have advised the DFSA that they intend to withdraw SAAD's DFSA licence.

        SAAD is a prudential category 4 Authorised Firm and cannot hold Client Money. The Firm currently has no Clients other than other SAAD group entities.

        The firm is currently subject to conditions and restrictions under Article 49(1)(a) of the DFSA's administered Regulatory Law 2004 which limits the types of transactions it may enter into.

      • 13 August 2009 — DFSA Enters Into Memoranda of Understanding With South African Reserve Bank

        Dubai, UAE, 13 August 2009: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with the Bank Supervision Department of the South African Reserve Bank.

        The MoU was signed on behalf of the DFSA by Chief Executive, Mr Paul Koster, having been signed earlier in Pretoria by Mr Errol Kruger, the Registrar of Banks and Head of Bank Supervision at the South African Reserve Bank.

        Mr Koster said, "The Reserve Bank regulates banking activity in the Republic of South Africa, which is a leader among the continent's economies and has some of the most significant and well established centres for financial services activity in the region. The Reserve Bank is one of the oldest central banks in the world and it continues to play a respected role as a banking regulator regionally and internationally.

        The attraction of the Dubai International Financial Centre (DIFC) as the domicile of choice for South African financial institutions in the Middle East should be enhanced by this regulatory relationship. This initiative reflects each agency'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 in the UK, Germany, France, the US, Singapore and China. It is also worth noting that the DFSA already enjoys a good working relationship with the Reserve Bank's fellow financial regulator, the Financial Services Board of South Africa (FSB), having signed an MoU with the FSB in May 2008.

        In these recently turbulent times the importance of effective coordination and cooperation between banking supervisors cannot be overstated. We are looking for better ways of working together to resolve current problems and prevent their repetition. Agreements such as this will make a difference.

      • 16 July 2009 — DFSA Withdraws Licence From Libertas Capital

        The Dubai Financial Services Authority (DFSA) withdrew the licence of Libertas Capital (Dubai) Limited (Libertas) to carry on financial services activities in or from the Dubai International Financial Centre (DIFC).

        Libertas has a period of 30 days in which to appeal the decision.

        The licence withdrawal follows Libertas' inability to meet the applicable regulatory capital requirements.

        The DFSA took this action following the issuance of a Notice to Libertas, requesting it to show cause why the DFSA should not withdraw its licence.

        Libertas was a Category 4 firm authorised to arrange credit or deal in investments and to advise on financial products or credit. Category 4 firms are not authorised to accept client money.

      • 13 July 2009 — DFSA Forms Panel to Review its Funds Regime

        The Dubai Financial Services Authority (DFSA) has established a Market Practitioners Panel (Panel) to review the Dubai International Financial Centre's (DIFC) Collective Investment Funds (Funds) regime. The Panel, comprises 10 industry experts, who will review the Funds regime to identify what, if any, changes are needed to make that regime more attractive to the funds industry and potential investors.

        The members of the Panel are:-

        Mr Nick Smith, Partner, Allen & Overy - Chair of the Panel

        Ms Lynette Brown, Partner, Al Tamimi - Deputy Chair of the Panel

        Mr Kevin Birkett, Executive Director, Asset Management Division - Dubai International Financial Centre Authority (DIFCA)

        Ms Farah Foustok, CEO - ING Investment Management (Dubai) Limited

        Dr Ryan Lemand, Advisor to the CEO and Head of Risk Management - Emirates Securities and Commodities Authority

        Mr Craig Roberts, CEO - APEX Fund Services (Dubai) Ltd

        Mr Nick Savastano, Senior Executive Officer - Invesco

        Mr David Smith, Partner - PWC

        Mr Tom Speechley, Executive Director, Abraaj Capital

        Mr Jacques Visser, Managing Director, Legal and Compliance - Algebra Capital Limited.

        Membership of the Panel is honorary and allocated to the individual due to their knowledge and expertise in the Funds industry. The Panel will undertake this review over the summer months with a view to providing to the DFSA a report setting out its findings at the end of September 2009. The DFSA expects to publish that report.

        Mr Paul Koster, Chief Executive of the DFSA said, “The Panel will take this opportunity to shape the Funds regime in a way that best serves the needs of the Funds industry and investors as well as continuing to promote the DIFC as a centre of excellence in Funds management”.

      • 5 July 2009 — Appointment of DFSA's Paul Koster to Key International Accounting Standard Setters

        At its meeting last week the Public Interest Oversight Board approved the appointment of Mr Paul Koster, Chief Executive of the Dubai Financial Services Authority (DFSA) as a member of an influential advisory board of two key international accounting bodies, the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board of Accountants (IESBA).

        While the IAASB is responsible for setting standards for auditing, review, other assurance, quality control and related services, and facilitating the convergence of national and international standards; the IESBA is responsible for setting ethical standards and providing guidance for the accounting profession

        Recognising that the Gulf states were not represented on these boards, the chairmen of the IAASB and the IESBA invited the DFSA and the Emirates Securities and Commodities Authority (SCA) to join the advisory groups as the Gulf States Regulatory Authorities. As a result, Mr Koster and SCA's Director of Research & Awareness, Dr Obaid Saif Hamad Al Zaabi, will represent their respective authorities on the consultative advisory groups for a renewable three year term.

        Mr Paul Koster, Chief Executive of the DFSA said, "The role of the accounting and auditing standard setters is a critical one, and it is important for regulators, especially in the current environment, to be closely involved in the evolving standards for auditing. I welcome the opportunity to participate in and contribute, with my SCA colleague, to the work of these two advisory groups."

      • 23 February 2009 — DFSA Signs MoU With UAE Central Bank

        The Dubai Financial Services Authority (DFSA) entered today into a Memorandum of Understanding (MoU) with the Central Bank of the United Arab Emirates (CBUAE), regarding co-operation and exchange of regulatory information.

        The MoU was signed by Mr Paul Koster, Chief Executive of the DFSA, and Mr Saeed Abdulla Al-Hamiz, Executive Director, Banking Supervision and Examination Department, CBUAE. The signing ceremony took place at the Central Bank in Abu Dhabi in the presence of His Excellency Sultan Bin Nasser Al Suwaidi, Governor of the CBUAE; His Excellency Dr Omar Bin Suleiman Vice Chairman of the CBUAE and Governor of the Dubai International Financial Centre (DIFC) and Mr Abdullah Saleh, Chairman of the DFSA.

        The CBUAE licenses and regulates all banks operating in the United Arab Emirates. 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 Koster said, "The signing of today's MoU has formalised arrangements for cooperation and information sharing that already exists between us. It recognises that both regulators place reliance on the quality of regulatory standards administered in the other's jurisdiction.

        Continuing close co-operation and future joint initiatives will reinforce our mutual commitment to ensuring financial stability and promote sound economic growth in the region".

      • 23 February 2009 — DFSA Signs MoU With AMLSCU of the UAE

        The Dubai Financial Services Authority (DFSA) entered today into a Memorandum of Understanding (MoU) with the Anti-Money Laundering Suspicious Cases Unit (AMLSCU) of the Central Bank of the United Arab Emirates (CBUAE), regarding co-operation and exchange of regulatory information.

        The MoU was signed by Mr Paul Koster, Chief Executive of the DFSA, and Mr Abdulrahim Mohamed Al Awadi, Assistant Executive Director of the CBUAE and Head of the AMLSCU.

        The AMLSCU is a special unit of the CBUAE established for investigating fraud and suspicious transactions in the UAE. The AMLSCU has access to all relevant authorities in the UAE as well as those abroad, under the aegis of the National Anti-Money Laundering Committee. The CBUAE licenses and regulates all banks operating in the United Arab Emirates. 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 Koster said, "The signing of today's MoU has formalised arrangements for cooperation and information sharing that already exists between us. It recognises that both regulators place reliance on the quality of regulatory standards administered in the other's jurisdiction.

        Continuing close co-operation and future joint initiatives will reinforce our mutual commitment to ensuring financial stability and promote sound economic growth in the region".

      • 21 February 2009 — DFSA Signs MoU With Netherlands Central Bank

        The Dubai Financial Services Authority (DFSA) has entered into a Memorandum of Understanding (MoU) with the De Nederlandsche Bank (DNB) regarding cooperation and exchange of regulatory information. The DNB is the Netherland's prudential regulator, responsible for safeguarding financial stability for the country and the supervision of financial institutions and the financial sector.

        The MoU was signed by Mr Paul Koster, Chief Execuitive of the DFSA, and Mr Henk Brouwer, Executive Director of the DNB, following a visit to Sweden where the DFSA entered into another MoU with the Swedish Financial Supervisory Authority.

        During the signing, Mr Koster said: "As a former commissioner at the AFM, the Netherlands' conduct of business regulator, I am delighted to be back in Amsterdam to sign this MoU document with my colleague, Henk Bouwer. Just as the DNB and the AFM have worked together in sharing responsibility for the financial supervision in the Netherlands, the DFSA and the DNB, as co-regulators of some of the same institutions operating there and in the DIFC, are committed to enhancing cooperation and information sharing in relation to these firms."

        The signing of today's MoU has put in place arrangements for cooperation and information sharing between the two regulators. It recognizes that both regulators rely on the quality of regulatory standards administered in the other's jurisdiction. As a result of this signing we now have a bilateral and multilateral MoU network with 71 regulators across the globle.

      • 17 February 2009 — DFSA Signs MoU With Swedish Counterpart

        The Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) yesterday with its Swedish counterpart, the Finansinspektionen (FI), regarding co-operation and exchange of regulatory information.

        The MoU was signed by Mr Paul Koster, Chief Executive of the DFSA, and Mr Martin Andersson, Director General of Finansinspektionen.

        The Finansinspektionen is the sole integrated regulator for Sweden covering banking, securities and insurance. Its role is to promote stability and efficiency in the financial system as well as to ensure effective consumer protection. The FI authorises, supervises and monitors all companies operating in the Swedish financial markets.

        Mr Koster said, "The signing of today's MoU was initiated by the joint venture between the Nordic exchange OMX with NASDAQ and Bourse Dubai, which reflects the increasingly global nature of securities and other financial business thus strengthening the importance of links between regulatory authorities.

        This initiative and our meeting focus on common objectives to improve regulatory standards across all areas of financial services and to increase opportunities for information sharing and co-operation. It also recognises that both regulators place reliance on the quality of regulatory standards administered in the other's jurisdiction."

        As a result of this signing, the DFSA now has a bi-lateral and multi-lateral MoU network with 70 regulators across the globe.

      • 13 January 2009 — DFSA Amends Policy on Licence Notification

        The Dubai Financial Services Authority ("DFSA") today announced that it will no longer issue public announcements regarding licences granted to, or withdrawn from, Authorised Firms, Ancillary Service Providers and Registered Auditors, operating in the Dubai International Financial Centre ("DIFC").

        DFSA's Chief Executive, Paul Koster, said:"The DFSA has amended this policy so as to bring the DFSA more closely in line with the usual means employed by international regulators to provide that sort of information. Accordingly, the DFSAs Public Register on www.dfsa.ae will, from now on, be the single point of reference in this regard."

      • 6 January 2009 — DFSA Sanctions Former GFS Investments Compliance Officer

        Dubai, UAE, 6 January 2008: The Dubai Financial Services Authority ("DFSA") today announced that it has accepted an Enforceable Undertaking given by Roberto Da Silva (DA SILVA), the former Compliance Reporting Officer of GFS Investments (Middle East) Limited ("GFS Investments").

        The written undertaking follows the DFSA's investigation into DA SILVA's conduct between 17 May 2007, the date that GFS Investments was licensed by the DFSA, to 31 October 2007, the date of his resignation from GFS Investments. The DFSA's action follows an earlier investigation into the business operations of GFS Investments which resulted in Enforceable Undertakings with GFS Investments and a number of its Directors and employees, in September 2008.

        In accordance with the Enforceable Undertaking entered into by GFS Investments, compensation has been paid to customers who were adversely affected by the conduct which was the subject of the investigation.

        DA SILVA acknowledged the DFSA's concerns about his conduct as an Authorised Individual of GFS Investments. The DFSA was concerned that DA SILVA contravened the Principles for Authorised Individuals and was involved in contraventions, by GFS Investments, of the Principles for Authorised Firms.

        As the Compliance Officer of GFS Investments, DA SILVA was required to observe high standards of integrity and fair dealing, act with skill, care and diligence and have in place adequate systems and controls to ensure the business of GFS Investments was organised so that it could be controlled and managed effectively and complied with legislation applicable in the Dubai International Financial Centre (DIFC). The DFSA was concerned that DA SILVA failed to carry out his duties as a Compliance Officer adequately.

        As a consequence of its investigation, the DFSA today entered into an Enforceable Undertaking with DA SILVA who agreed to pay a penalty to the DFSA in the amount of USD 70,000 (AED 257,250).

        DFSA's Chief Executive, Mr. Paul Koster, said: "The DFSA has an important role to maintain business standards within the DIFC and relies upon Compliance Officers to maintain high standards of conduct in Authorised Firms.

        Compliance Officers are the first line of regulatory defence against those who choose not to adhere to proper standards of governance and conduct in financial services.

        The vast majority of our Compliance Officers take their governance and compliance responsibilities very seriously and this has helped the DIFC to quickly establish a reputation for excellence. We are, therefore, disappointed with any conduct that harms the reputation of the DIFC and our response should send a clear message that we will deal firmly with any person that fails to maintain the high standards required within this Centre."

    • 2008

      • 29 December 2008 — DFSA Chairman Announces Appointment to DFSA Board of Directors

        The Chairman of the Dubai Financial Services Authority is pleased to announce today that the President of the Dubai International Financial Centre (DIFC), His Highness Sheikh Mohammed Bin Rashid Al Maktoum, has made the following appointments to the DFSA Board of Directors:

        Abdullah Saleh as Chairman of the Board and of the DFSA;

        Honourable Apurv Bagri;

        Michael Blair QC;

        Robert L Clarke;

        Lord David Currie;

        Saeb Eigner;

        Lord David Douglas-Home;

        Robert Owen;

        J Andrew Spindler;

        Georg Wittich;

        Fadel Abdulbaqi Al Ali; and

        Abdul Wahid Al Ulama.

        Each of the appointments is for a three (3) year fixed term commencing 1 January 2009.

        DFSA Chairman, Mr. Abdullah Saleh stated: “I am particularly delighted to welcome our new members Fadel Abdulbaqi Al Ali and Abdul Wahid Al Ulama to the DFSA Board. Both are leading figures in their fields and will provide valuable regional input and insight to the DFSA.”

        Former Chief Executive, David Knott, has decided to retire from the DFSA and not seek appointment to the Board. Paul M Koster was appointed DFSA’s new Chief Executive on 1 December 2008.

      • 24 December 2008 — DFSA approves withdrawal of licenses to conduct Financial Services in or from the DIFC

        The Dubai Financial Services Authority(DFSA) has approved requests for voluntarily withdrawal of licenses from three (3) Authorised Firms, effective on the indicated dates: Jefferies International Limited (17 December 2008), Wedge Alternatives Limited (21 December 2008), and Alternative Investment Strategies Management (Dubai) Limited (23 December 2008), to carry on Financial Services in or from the Dubai International Financial Centre (DIFC).

      • 18 December 2008 — Notice of Amendments to the Rulebook

        18 December 2008   Notice of Amendments to the Rulebook

        TAKE NOTICE THAT ON 4 JANUARY 2009:

        The DFSA will amend the:

        •  Authorised Market Institutions (AMI);
        •  Conduct of Business Module (COB);
        •  General Module (GEN);
        •  Glossary Module (GLO);
        •  Offered Securities Module (OSR);
        •  Takeover Rules Module (TKO);

        These amendments are set out in Rulemaking Instrument No. 61 (Miscellaneous Amendments to the DFSA Rulebook), Rule-making Instrument No. 62 (Definitions of Investments) and Rule-making Instrument No. 63 (Consequential Amendments following the DIFX’s Change of Name). Consultation Paper No. 57 and Consultation Paper No. 59 explain the purpose of these amendments.

      • 14 December 2008 — DFSA Licenses GE Capital Middle East & Africa Ltd as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed GE Capital Middle East & Africa Ltd as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 1 December 2008 — DFSA Licenses Hana Bank as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Hana Bank as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 1 December 2008 — DFSA Licenses Dar International Investment Bank Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Dar International Investment Bank Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 27 November 2008 — DFSA Licenses Macquarie Capital Advisers (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Macquarie Capital Advisers (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 26 November 2008 — DFSA Licenses Levant Capital Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Levant Capital Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 25 November 2008 — DFSA Licenses Macquarie Capital Funds (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Macquarie Capital Funds (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 20 November 2008 — DFSA Licenses Deloitte Corporate Finance Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Deloitte Corporate Finance Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 17 November 2008 — DFSA Licenses Pharos Financial Advisors Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Pharos Financial Advisors Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 16 November 2008 — DFSA Licenses 300th Regulated Firm within DIFC

        Dubai, UAE, 16 November, 2008: The Dubai Financial Services Authority (DFSA) licensed its 300th regulated firm in the Dubai International Financial Centre (DIFC) today. The regulated entities comprise 235 Authorised Firms, 49 Ancillary Service Providers and 16 Registered Auditors.

        Authorised Firms are granted a licence to conduct financial services in or from the DIFC; services include for example, Banking and Brokerage, Asset Management, Insurance and Islamic Finance.

        Ancillary Service Providers are granted a registration to carry out ancillary services in or from the DIFC; they provide legal and accountancy services.

        Registered Auditors are granted a registration to carry out audits of DIFC incorporated regulated entities.

        David Knott, DFSA Chief Executive, stated: "Over the past 19 months the number of Firms regulated by the DFSA has doubled, reflecting the momentum that the DIFC has established as the region’s leading financial centre.

        The DFSA’s commitment to international standards of regulation underpins the credibility of regulated Firms as reliable financial counterparties, both regionally and beyond. The DFSA is proud to be contributing to the success of the DIFC, especially in these times, and to its growing reputation as a centre of excellence.” said Mr. Knott.

        The regulated financial services sector within the DIFC works alongside many other registered enterprises which, taken together, constitute the DIFC community.

        There are now more than 750 licensed and registered Firms within the DIFC, including 300 regulated by the DFSA.

      • 13 November 2008 — DFSA Licenses Cayman National (Dubai) Ltd as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Cayman National (Dubai) Ltd as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 5 November 2008 — DFSA Licenses Duet Mena Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Duet Mena Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 5 November 2008 — DFSA Signs MoU With Taiwanese Regulator

        The Dubai Financial Services Authority (DFSA) has today entered into a Memorandum of Understanding (MoU) with the Financial Supervisory Commission of Chinese Taipei (FSC).

        The MoU was signed by Mr. David Knott, Chief Executive of the DFSA and Dr. Gordon Shuh Chen, Chairman of the Financial Supervisory Commission. The signing coincided with a visit by Mr. Knott to speak at the 5th Taipei Corporate Governance Forum.

        The FSC is Taiwan’s single financial supervisor responsible for the supervision of all financial institutions, including banks, securities firms and insurance companies.

        Mr. Knott said, “The signing of today’s MoU has formalised arrangements for cooperation and information sharing between the two regulators. It recognises that both regulators place reliance on the quality of regulatory standards administered in the other’s jurisdiction.”

        “This initiative, together with the FSC’s commitment to promoting good corporate governance, confirms Chinese Taipei’s pragmatic response to dealing with some of the difficulties facing financial services regulators today.”

      • 2 November 2008 — DFSA licenses Rasameel Investment Bank Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Rasameel Investment Bank Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 30 October 2008 — DFSA Signs MoU With Capital Market Authority of Oman

        The Dubai Financial Services Authority (DFSA) has today entered into a Memorandum of Understanding (MoU) with the Capital Market Authority (CMA) of the Sultanate of Oman.

        The MoU was signed by Mr. Abdullah Saleh, Chairman of the DFSA and H.E. Yahya Bin Said Al Jabri, Executive President of the CMA, and coincided with His Excellency’s first visit to the Dubai International Financial Centre (DIFC).

        The CMA was established on 9th November 1998 with a mission to create a fair, efficient, and transparent Capital Market in the Sultanate of Oman. The role of the CMA is to achieve fair and sound trading, to protect investors as well as enhancing confidence in the market and attract investments through developing and improving systems and regulations, and surveillance over entities and institutions operating in that market.

        The CMA and the DFSA are active members of the Africa and Middle East Regional Committee of the International Organisation of Securities Commissions (IOSCO) and both authorities acknowledge the importance of developing and applying common international standards to address current global difficulties.

        In welcoming His Excellency, Mr. Saleh said, “The signing of today’s MoU confirms a growing relationship between the DIFC and the Sultanate of Oman and reflects the importance of links between regulatory authorities in the region. This initiative and our meeting focus on common objectives to improve regulatory standards across all areas of financial services and to increase opportunities for information sharing and co-operation. It also recognises that both regulators place reliance on the quality of regulatory standards administered in the other’s jurisdiction.”

      • 28 October 2008 — DFSA licenses Sarasin-Alpen & Partners Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Sarasin-Alpen & Partners Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 23 October 2008 — DFSA Licenses Epic Investments Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Epic Investments Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 26 October 2008 — DFSA Licenses Swiss Life Private Placement (Middle East) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Swiss Life Private Placement (Middle East) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 21 October 2008 — DFSA Licenses Vanbreda International (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Vanbreda International (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 16 October 2008 — DFSA Licenses Mazaya Investments (DIFC) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Mazaya Investments (DIFC) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 15 October 2008 — DFSA licenses BBY Dubai Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed BBY Dubai Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 12 October 2008 — DFSA Licenses Ryland Gray Investor Services (DIFC) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Ryland Gray Investor Services (DIFC) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 8 October 2008 — DFSA Signs MoUs With Leading Asian Regulators

        Dubai, UAE, 8 October, 2008: The Dubai Financial Services Authority (DFSA) has in the last week entered into agreements with two of Asia’s leading regulators, the China Securities Regulatory Commission (CSRC) and the Monetary Authority of Singapore (MAS). These Memoranda of Understanding commit the DFSA and the CSRC to information sharing and co-operation in the supervision of their securities markets and, in the case of MAS, which, like the DFSA is an integrated regulator, the commitment to information sharing and co-operation is to supervision of all financial services.

        In both cases the MoUs were signed on behalf of the DFSA by Chief Executive, Mr. David Knott. The Chinese MoU was signed in Beijing by Mr. Shang Fulin, Chair of the CSRC; while the Singapore MoU was signed by Ms. Teo Swee Lian, Deputy Managing Director of MAS. The DFSA had already (in September 2007) signed an MoU with China’s banking regulator, the CBRC.

        Mr. Knott said; "Dubai’s strong trading relationship with China is quickly extending to the financial services sector. The establishment of Chinese banks and securities firms within the DIFC will be further accelerated now that the DFSA has MoU arrangements with both national regulators in China. Singapore, like Dubai, is a great international financial centre with a well established and credible regulatory system. By forming this new relationship with MAS we will facilitate capital flows between our two financial hubs."

        - Ends -

        For further information please contact:

        Ms. Angharad Irving-Jones
        Manager, Communications and Strategic Planning
        Dubai Financial Services Authority
        Level 13, The Gate
        Dubai, U.A.E.
        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 sole independent regulator of all financial and ancillary services conducted through the Dubai International Financial Centre (DIFC), a purpose-built 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.

        David Knott was appointed Chief Executive of the DFSA on 1 June, 2005. He is a former Chairman of the Australian Securities and Investments Commission (ASIC) and was Chairman of the Technical Committee of the International Organisation of Securities Commissions (IOSCO). Other positions previously held by him include COO of the Australian Prudential Regulation Authority; CEO of Commonwealth Funds Management; CEO of the Australian Financial Institutions Commission; and Director of the Australian Crime Commission.

        China Securities Regulatory Commission (CSRC) was established in 1992 and assumed principal regulatory authority for the securities and futures industry in 1998. The CSRC is responsible for the supervision and regulation of the securities and futures industry, stock and futures exchanges, the listing of companies and the funds managements industry in China. It approves and supervises the operations of foreign and foreign-invested securities, futures and fund managements institutions and offices.

        Shang Fulin was appointed Chairman of the CSRC on 27 December 2002, having spent most of his career in the finance industry. In 1996 Mr. Shang was vice-president of the People’s Bank of China and the following year became a member of its monetary policy committee. In February 2002 he was appointed president of the Agricultural Bank of China. Mr. Shang is Vice Chairman of the Executive Committee of IOSCO and is a member of the 17th CPC Central Committee.

        The Monetary Authority of Singapore (MAS) was established in January 1971 to regulate all aspects on monetary, banking and financial activity in Singapore. In 1977 MAS became responsible for insurance regulation and in 1984 for the securities industry. Consequently, in addition to its role as the central bank of Singapore, MAS is responsible for the integrated supervision of financial services and financial stability surveillance. It is also responsible for developing strategies, in partnership with the private sector, to promote Singapore as an international financial centre.

      • 8 October 2008 — DFSA licenses Lime Rock Dubai LLP as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Lime Rock Dubai LLP as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 28 September 2008 — DFSA licenses Renaissance Investment Management (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Renaissance Investment Management (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 25 September 2008 — DFSA licenses Credit Europe Bank (Dubai) Ltd as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Credit Europe Bank (Dubai) Ltd as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 24 September 2008 — DFSA Sanctions Shuaa Capital for Market Abuse

        Dubai, UAE, 24 September, 2008: The Dubai Financial Services Authority ("DFSA") today announced enforcement sanctions against Shuaa Capital relating to alleged market manipulation earlier this year.

        The sanctions include financial penalties totaling USD 950,000 (AED 3,486,350) together with other remedial actions agreed to by Shuaa Capital pursuant to an Enforceable Undertaking made with the DFSA.

        Background:

        The announcement follows an extensive and complex investigation by the DFSA into suspicious trading in the shares of DP World Limited on the Dubai International Financial Exchange (DIFX) at the end of March 2008. The trading was carried out by Shuaa Capital International Limited (a firm licensed by the DFSA) at the direction of its parent firm Shuaa Capital P.S.C. (collectively called Shuaa Capital). The trading was referred to the DFSA by the DIFX in April 2008.

        The DFSA has determined that Shuaa Capital intentionally set about to raise the closing price of DP World shares on 31 March 2008 so that it could mark up the book value of its proprietary portfolio in those shares for accounting purposes. It did so by standing in the market during the closing minutes of trading with bid prices well above those at which DP World shares had been trading in the ordinary course of business. The DFSA has also determined that Shuaa Capital obstructed its investigation.

        DFSA's Chief Executive Mr. David Knott, said:

        "The manipulation of markets for ulterior motives is a classic form of market abuse that is outlawed in all well regulated exchange traded markets. Such practices run contrary to the maintenance of orderly markets and efficient price discovery in traded securities. In this case Shuaa Capital artificially inflated the price of DP World shares and generated a false market in those shares.

        Both the DFSA and the DIFX are totally committed to ensuring that investors on the DIFX can have confidence in the integrity of the market.

        The seriousness of this offence was exacerbated by Shuaa Capital's obstruction of the DFSA's investigation. This conduct has prolonged resolution of the investigation and is inconsistent with the standards of behaviour that DFSA expects from regulated firms within the DIFC.

        The DFSA emphasises that DP World is entirely blameless in this matter and is not implicated in any part of the misconduct."

        The Sanctions:

        Shuaa Capital has entered into an Enforceable Undertaking with the DFSA under which it has accepted that it failed to maintain proper risk management controls in relation to the misconduct. It is required by the terms of the Enforceable Undertaking to:

        •   Appoint a new Chief Compliance Officer reporting directly to the Chief Executive of Shuaa Capital;
        •   Commission and implement the recommendations of an independent compliance and risk review;
        •   Undertake training of its relevant staff in the requirements of the laws and regulations applying within the Dubai International Financial Centre (DIFC);
        •   Pay to the DFSA a penalty of USD 850,000 (AED 3,119,500) in relation to the alleged market manipulation; and
        •   Pay to the DFSA a penalty of USD 100,000 (AED 367,000) in relation to the alleged obstruction of the DFSA's investigation.

        Trading Details:

        Further details of the transactions investigated by the DFSA follow:

        1. At 16:42:40 hours, on 31 March 2008, 2 minutes and 20 seconds before the close of continuous trading on the DIFX, the last traded price of DP World shares on DIFX was USD 0.87 ("the last traded price").
        2. During the last 2 minutes and 20 seconds of continuous trading on DIFX, Shuaa Capital entered twelve (12) separate bids to purchase 1,000,000 shares each at prices between USD 0.89 and USD 0.98 per share.
        3. By the time continuous trading on the DIFX had closed 2 minutes and 20 seconds later, Shuaa Capital had bought, for its proprietary portfolio, 12,000,000 DP World shares, at prices between USD 0.88 and USD 0.97.
        4. In the closing auction period on 31 March 2008 Shuaa Capital purchased for its proprietary portfolio, an additional 3 million DP World shares. The final price of DP World shares at the close of the market on 31 March 2008 was USD 0.95.
        5. The price of USD 0.95 per DP World share represented an increase of 9.2% on the last traded price.

        Enforceable Undertaking:

        A copy of the Enforceable Undertaking between the DFSA and Shuaa Capital is posted on the DFSA website: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions.

        - Ends -

        For further information please contact:

        Ms. Angharad Irving-Jones
        Manager, Communications and Strategic Planning
        Dubai Financial Services Authority
        Level 13, The Gate
        Dubai, U.A.E.
        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 sole independent regulator of all financial and ancillary services conducted through the Dubai International Financial Centre (DIFC), a purpose-built 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.

        David Knott was appointed Chief Executive of the DFSA on 1 June, 2005. He is a former Chairman of the Australian Securities and Investments Commission (ASIC) and was Chairman of the Technical Committee of the International Organisation of Securities Commissions (IOSCO). Other positions previously held by him include COO of the Australian Prudential Regulation Authority; CEO of Commonwealth Funds Management; CEO of the Australian Financial Institutions Commission; and Director of the Australian Crime Commission.

      • 17 September 2008 — DFSA Board Announces Appointment of the Next CEO

        Dubai, UAE, 17 September, 2008: The Board of the Dubai Financial Services Authority ("DFSA") today announces the appointment of Paul Koster as the next Chief Executive Officer ("CEO") of the DFSA. Paul succeeds David Knott, who retires from full time employment in December of this year, after nearly four years with the DFSA. David is widely credited as having established the DFSA as a highly regarded regulator operating to world-class standards.

        Paul Koster, 55, was previously Commissioner and Member of the Executive Board, Autoriteit Financiële Markten ("AFM"), the Netherlands Authority for Financial markets. Of his new role he said: "I am honoured and delighted to be joining such a world-class regulatory organisation. I very much look forward to becoming part of the DFSA and spending the next few years in this dynamic and stimulating environment."

        Abdullah Saleh, Chairman of the DFSA, commenting on the appointment said; "Paul's experience in shaping and developing the Dutch AFM is very relevant to the next phase of the DFSA's growth, as the Dubai International Financial Centre ("DIFC") continues to expand so successfully and is in full business mode. After an extensive and thorough search, we are delighted that we have attracted a person of his calibre and standing to the organisation, in itself a testament to the organisation's Board, executive and staff."

        - Ends -

        For further information please contact:

        Ms. Angharad Irving-Jones
        Manager, Communications and Strategic Planning
        Dubai Financial Services Authority
        Level 13, The Gate
        Dubai, U.A.E.
        Tel: +971 (0)4 362 1661
        Fax: +971 (0)4 362 0801
        Email: airvingjones@dfsa.ae
        www.dfsa.ae

        Editor's notes:

        Paul Koster, 55, joined the Autoriteit Financiële Markten, the Netherlands, Authority for the Financial Markets, in 2001 as Commissioner and Member of the Executive Board, until this year (2008). He was formerly Executive Vice President (World Wide Auditing) at Royal Phillips Electronics 1998–2001, he was the Managing Partner Corporate Finance, Coopers & Lybrand 1988–1998, Chief Compliance Officer and acting Commissioner of Quotations, Amsterdam Stock Exchange 1986–1988 and carried out a number of senior finance functions in his earlier career, having trained as an accountant with Arthur Andersen. He was previously Chair, SISE (subcommittee on international standards endorsement) within CESR (the Committee of European Securities Regulators) until May 2006 and then Chair CESR-FIN. He was also a member of the International Organisation of Securities Commissions (IOSCO) chairs committee. He is a Dutch national, married with 2 grown up children.

        The Dubai Financial Services Authority (DFSA) is the sole independent regulator of all financial and ancillary services conducted through the Dubai International Financial Centre (DIFC), a purpose-built 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.

      • 16 September 2008 — DFSA’s Statement on Lehman Brothers in the DIFC

        In response to media enquiries, the Dubai Financial Services Authority (“DFSA”) is issuing this statement to clarify the current status of Lehman Brothers operations in the DIFC.

        Lehman Brothers International (Europe) (“Lehman”) is an investment bank domiciled in the United Kingdom and supervised by the UK Financial Services Authority (“FSA”). On 28 August 2006 Lehman established a branch operation in the DIFC under license from the DFSA.

        On 15 September 2008 Lehman was placed under administration in the United Kingdom. The effect of that action was to place control of Lehman and all its operations, including its Dubai International Financial Centre (“DIFC”) branch operation, under control of the Administrators, Price Waterhouse Coopers. Until and unless the Administrators determine otherwise, Lehman (including the DIFC branch) is precluded from conducting business.

        The events leading up to the appointment of Administrators were not connected with Lehman DIFC branch operations. Lehman has not been in breach of DFSA’s requirements. The difficulties encountered by Lehman relates to its operations elsewhere. The closure of Lehman does not result from any action of the DFSA. It is the legal consequence of administration proceedings instituted in the United Kingdom by Lehman itself.

        No client money is held by the DIFC branch of Lehman, and any money invested in the Lehman UK funds, are regulated by the UK Financial Services Authority and are required by it to be segregated from assets of Lehman.

        As lead regulator of Lehman, the UK FSA is in active dialogue with the Administrators regarding its future. The DFSA is maintaining close contact with the UK FSA, but does not expect any early change to the current situation.

      • 14 September 2008 — DFSA Licenses Itaú Middle East Securities Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Itaú Middle East Securities Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 9 September 2008 — DFSA licenses Woori Bank as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Woori Bank as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 7 September 2008 — DFSA Enforces Sanctions Against GFS Investments

        Dubai, UAE, 7 September, 2008: The Dubai Financial Services Authority ("DFSA") today announced the imposition of enforcement sanctions against GFS Investments (Middle East) Limited ("GFS Investments").

        The DFSA's action follows a detailed investigation into the business operations of GFS Investments which determined:

        •  that GFS Investments has traded outside the permitted limits of its DFSA license;
        •  that the trading included repeated instances of mis-selling, including transactions that were unfair, unsuitable and not made in the best interests of customers;
        •  that, in some cases, the mis-selling was accompanied by deliberate and dishonest conduct; and
        •  that the Licensed Directors of GFS Investments failed to exercise the required level of governance and supervision of their relevant executives and employees.

        As a consequence of these findings, the DFSA has imposed a range of sanctions including:

        •  the banning from the Dubai International Financial Centre ("DIFC") of relevant individuals for 5 years;
        •  the imposition of fines; and
        •  the compensation of relevant clients for financial losses suffered as a result of the misconduct.

        The DFSA's Chief Executive, Mr. David Knott, said:

        "The DFSA has an important role to maintain business standards within the DIFC. The vast majority of our licensed firms take their governance and compliance responsibilities very seriously and this has helped the DIFC to quickly establish a reputation for excellence. We are, therefore, disappointed by the unacceptable conduct of GFS Investments and our response should send a clear message that we will deal firmly with any firm that fails to maintain the standards required within this Centre."

        "The DFSA's intervention will also ensure that all investors who suffered financial loss as a result of the misconduct will be fully compensated at a cost to GFS Investments of approximately USD 502,000 (AED 1,842,340). This is an excellent outcome for the investors" said Mr. Knott.

        Details of the enforcement sanctions are as follows:

        Fined USD 5,000 (AED 18,350)

        1. Authorised Individual
        Licensed Director and Finance Officer

        The DFSA acknowledges that the Authorised Individual has confirmed he will resign as Licensed Director and Finance Officer of GFS Investments and has confirmed his intention not to perform any function in connection with the provision of Financial Services or Ancillary Services in or from the DIFC or to re-apply for Authorised Individual Status in the DIFC in the future.

        Banned* for 5 years and fined USD 5,000 (AED 18,350):

        2. Authorised Individual
        Senior Executive Officer
        3.  Authorised Individual
        Compliance and Anti-Money Laundering Officer
        4.  Stephen Cheung Ga Kin
        Non-executive Licensed Director
        5.  Issa Mohammed Saif Al Rawahi
        Non-executive Licensed Director

        Banned* for 5 years and fined between USD 3,000 and USD 4,000 (AED 11,010 to AED 14,680):

        6.  Asad Abu Samra
        Employee
        7.  Alaaeddin Farhan
        Employee
        8.  Vimal Viresh Gomes
        Employee
        9.  Moutaz Saab
        Employee

        * All bans prevent the individuals from performing any function in or in connection with the provision of financial services or ancillary services in or from the DIFC during the designated period.

        Compensation Payments

        Compensation payments by GFS Investments to customers who suffered losses resulting from the misconduct are to be finalised to the satisfaction of the DFSA by no later than 30 November 2008. The former Finance Officer of GFS Investments, an Authorised Individual has undertaken to ensure that the amount of approximately USD 502,000 (AED 1,842,340) is made available for the payment of compensation by GFS Investments.

        GFS Investments

        GFS Investments has been fined USD 25,000 (AED 91,750). The business operations of GFS Investments have been suspended and may only be resumed upon DFSA's satisfaction that new management has installed proper governance and risk management systems.

        Enforceable Undertakings

        All of the above sanctions have been recorded in enforceable undertakings made with the DFSA by GFS Investments and its relevant officers and employees. Copies are available on the DFSA's website.

        Information Regarding GFS Investments and the DFSA Investigation

        GFS Investments is licensed to provide an on-line foreign exchange and commodities trading facility to clients who meet DFSA's required eligibility standards (professional investors). The trading platform is operated by the US parent company of GFS Investments. Eligible professional investors gain direct access to that platform via unique login and password so that they may trade on their own account. Under its license, GFS Investments is not itself permitted to conduct the trades, but receives commissions for each trade carried out by its customers. The business is therefore, suitable for professional investors who have relevant market experience, but unsuitable for retail investors who may have little or no experience of foreign exchange and commodities markets.

        The DFSA commenced its investigation some months ago as a result of customer complaints. Those investigations determined that GFS Investments had operated outside its authorisation by conducting business with non-eligible retail clients and by itself carrying out trading in the names of clients. The DFSA took immediate steps to ensure that no further unlawful trading took place.

        Subsequent investigation disclosed that the relevant employees of GFS Investments engaged in conduct designed to misrepresent the eligibility of clients, including the falsification of client particulars.

        The unauthorised trading carried out by the relevant employees was frequently unfair and unsuitable to the interests of the clients, motivated more by a desire to maximize commissions than to profit the clients. Most clients suffered financial losses as a result of this misconduct.

        –Ends–

        For further information please contact:

        Ms. Angharad Irving-Jones
        Manager, Communications and Strategic Planning
        Dubai Financial Services Authority
        Level 13, The Gate
        Dubai, U.A.E.
        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 sole independent regulator of all financial and ancillary services conducted through the Dubai International Financial Centre (DIFC), a purpose-built 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.

        David Knott was appointed Chief Executive of the DFSA on 1 June, 2005. He is a former Chairman of the Australian Securities and Investments Commission (ASIC) and was Chairman of the Technical Committee of the International Organisation of Securities Commissions (IOSCO). Other positions previously held by him include COO of the Australian Prudential Regulation Authority; CEO of Commonwealth Funds Management; CEO of the Australian Financial Institutions Commission; and Director of the Australian Crime Commission.

      • 3 September 2008 — Notice of Amendments to the Rulebook

        Following the ending of the consultation period on a number of proposed legislative changes, set out in Consultation Papers 55 and 56, the Board, after due consideration of consultees comments, approved the final version of amendments to the Rulebook as described below.

        TAKE NOTICE THAT:

        The Board made the following rule-making instruments on 22nd July 2008:

        •  ENHANCEMENT OF PROVISIONS RELATING TO AML AND UN RESOLUTIONS AND SANCTIONS RULES INSTRUMENT (No. 59) 2008, to come into effect on 1 September 2008 (See CP No. 55)
        •  REGULATION OF SINGLE FAMILY OFFICES RULES INSTRUMENT (No. 60) 2008, to come into effect on 2 September 2008 (See CP No. 56)

        The relevant Rulebook modules have been updated and can be accessed on the DFSA Website under the Legal Framework section or from the links below:

        Issued September 2008

      • 25 August 2008 — DFSA registers Vinson & Elkins as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Vinson & Elkins as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 20 August 2008 — DFSA licenses Sovereign Risk Insurance (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Sovereign Risk Insurance (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 20 August 2008 — DFSA Signs MoU With Banque de France

        The Dubai Financial Services Authority (DFSA) this week, entered into an agreement with the French Banking Supervisor, the Commission Bancaire, the supervisory arm of the Banque de France. The Memorandum of Understanding (MoU) binds the DFSA and Commission Bancaire to information sharing and co-operation in the supervision of financial institutions.

        The MoU was signed on behalf of the DFSA by its Chief Executive, Mr. David Knott, and Mr. Jean-Paul Redouin, Deputy Governor of the Banque de France and Chair of the Commission Bancaire.

        Mr. Knott said: “The attraction of the DIFC as the domicile of choice for French financial institutions in the Middle East will be further enhanced by these regulatory relationships. This initiative reflects each agency’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 in the UK, Germany, the United States and China”.

      • 19 August 2008 — DFSA Licenses International General Insurance Company (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed International General Insurance Company (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 17 August 2008 — DFSA registers Kilpatrick Stockton LLP as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Kilpatrick Stockton LLP as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 5 August 2008 — DFSA Licenses Trimark Capital Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Trimark Capital Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 30 July 2008 — DFSA Grants an Amended License to DIFX to Operate a Derivatives Exchange

        The Dubai Financial Services Authority (DFSA) announced today that the Dubai International Financial Exchange Ltd. (DIFX) has been granted an amended Authorised Market Institution license to DIFX to now operate a derivative exchange in the Dubai International Financial Centre (DIFC).

        DIFX had received its license to operate an exchange with respect of securities by the DFSA in September 2005.

      • 27 July 2008 — DFSA Grants Recognition to the Chicago Board of Trade

        The Dubai Financial Services Authority (DFSA) announced today that the Board of Trade of the City of Chicago, Inc. (CBOT), has been granted the status of Recognised Body within the Dubai International Financial Centre (DIFC).

        David Knott, Chief Executive of the DFSA, said: “This recognition will enable the Chicago Board of Trade to provide direct access to its commodities future markets in the United States by authorised customers operating within the DIFC.”

        Both CBOT and the Chicago Mercantile Exchange Inc. (CME) are wholly owned subsidiaries of CME Group Inc. CME was granted Recognised Body status by the DFSA in December 2007.

      • 24 July 2008 — DFSA registers Zaid Ibrahim & Co as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Zaid Ibrahim & Co as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 24 July 2008 — DFSA licenses Agilis Global Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Agilis Global Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 22 July 2008 — DFSA licenses Jasper Corporate Finance

        The Dubai Financial Services Authority (DFSA) has licensed Jasper Corporate Finance Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 17 July 2008 — DFSA licenses Lionhart (Middle East) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Lionhart (Middle East) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 9 July 2008 — DFSA Expands International Network

        The Dubai Financial Services Authority (DFSA) is this week entering into three important agreements with international regulators in Ireland, Belgium and Malta. In each case the relevant Memorandum of Understanding (MoU) binds the DFSA and its counterpart regulator to information sharing and co-operation in the supervision of financial institutions and the conduct of enforcement investigations.

        The MoU's have been signed on behalf of the DFSA by its Chief Executive, Mr. David Knott, with:-

        •  The Irish Financial Services Regulatory Authority (Mr. Con Horan, Prudential Director);
        •  The Banking, Finance and Insurance Commission of Belgium (Professor Jean-Paul Servais, Chairman); and
        •  The Malta Financial Services Authority (Professor Joe Bannister, Chairman).

        Speaking from Brussels today, Mr. Knott said:

        "The financial turmoil of the past 12 months has reinforced the importance of close dialogue and collaboration between financial services regulators. We must find better ways to work together to resolve current problems and prevent their repetition. Agreements of this kind will help that process."

        "Since 2005 the DFSA has placed a high priority on building its information network. By doing so we demonstrate the UAE's commitment to the operation of internationally accepted practices within the DIFC."

        "As a result of this week's signings we now have a bilateral and multilateral MoU network with 63 regulators across the globe. This is a powerful recognition of the DIFC's growing status as the leading international financial centre in the Middle East."

      • 8 July 2008 — DFSA licenses Eastgate Capital Group Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Eastgate Capital Group Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 6 July 2008 — DFSA Licenses Evolvence Capital International Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Evolvence Capital International Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 30 June 2008 — Reminder of Rule Changes

        TAKE NOTICE THAT:

        The Rule amendments as detailed in:

        •  rule-making instrument 56—Key Policy Review
        •  rule-making instrument 57—Prudential Rules For Islamic Finance
        •  rule-making instrument 58—Implementation of DFSA's Key Policy Review

        come into effect on 1st July 2008

      • 26 June 2008 — David Knott, DFSA Chief Executive, Speech at the Risk Korea 2008 Conference

        Address by David Knott, Chief Executive,
        Dubai Financial Services Authority (DFSA)
        at the Risk Korea 2008 Conference
        Dubai
        26th June 2008


        Introduction

        I am delighted to be taking part in this Korea Risk 2008 Conference. Given the volatility of global financial markets over the past twelve months, this seems to be an ideal time to consider some of the regulatory and risk issues associated with Korea's policy direction.

        At a more personal level this has been a wonderful opportunity to again visit friends and colleagues in Seoul, including your regulators with whom I have enjoyed a cordial relationship over many years, going back to my regulatory days in Australia. Since moving to Dubai in 2005 I have valued the new relationship that has evolved between the Dubai FSA and the Korean regulators, reflected by our entry into a Memorandum of Understanding with the Financial Supervisory Commission in 2006.

        More broadly, the economic links between Dubai and Korea are going from strength to strength, particularly in tourism, trade and construction. In May of 2007, the Dubai Chamber of Commerce and Industry and the Seoul Chamber of Commerce signed their own Memorandum of Understanding. 119 Korean firms are presently registered with the Dubai Chamber and in February of this year the Government of Dubai announced a plan to invest up to US $20 billion in Korea. All of these connections add to my pleasure in joining you this morning as we think about the future pathway for financial markets, with special emphasis on derivative markets.

        It is natural that regulators and risk managers should focus on vulnerabilities when thinking about the liberalization of financial markets. Indeed, it would be remarkable if even the most ardent advocate of globalization did not pause to reflect upon the events of the past year, including the role played by derivative and structured products, some of which have gone so badly wrong. But it is equally important for us to avoid discrediting entire product segments; or abandoning proven distribution mechanisms like securitization; or blaming all our woes on market speculators. Instead we need to carefully identify the particular means by which otherwise credible products and market mechanisms have been exploited or abused - together with any areas of public policy or industry practice that have proved defective - and to provide responses to mitigate against repetition.

        Above all, we need to ensure that our recent experiences do not undermine the continued liberalization of financial markets that has added greatly to the world's prosperity over the past decade and for which Asia, and not least Korea, can take a share of the credit.

        I will therefore begin with a brief review of Korea's extraordinary journey over the past 10 years which, I believe, should assist to signpost our direction for the decade ahead.

        Korean Financial Crisis and Reform Program

        We are all aware that the Korean financial and corporate sectors have undergone tremendous restructuring since the Asian financial crisis. In today's context it is useful to remind ourselves that although aggressive speculation against the won in late 1997 contributed to Korea's woes, the real mischief lay in deeply embedded structural inefficiencies that had undermined the strength of the economy and left it exposed to crisis.

        In retrospect it is easy to understand how those inefficiencies had been disguised by the relatively benign and stable economic environment enjoyed during the earlier part of the decade. However, we now know that the real economy had been in decline since 1995; that the domestic banking system was fundamentally flawed; that the corporate conglomerates – chaebols – were excessively geared; that there was no effective domestic capital market to counter-balance the excesses of the banking system; and that foreign sourced funding was, by 1997, comprised primarily by short term portfolio investment.

        This combination of domestic institutional weakness and over-reliance on international "hot" money quickly consumed Korea's international reserves in the second half of 1997, reducing available reserves to around US$ 5 billion. It is understandable that there was resentment against the currency speculators whose actions undoubtedly exacerbated the extent of the crisis. But Korea was quick to acknowledge that the basic problems lay at home and could only be addressed through a major program of reform.

        No-one who witnessed the traumas of that period could be unsympathetic to the Korean people who suffered so much. Nor could anyone fail to be moved by the depth of national spirit that saw families volunteering household gold ornaments – (including their precious dol-ban-ji) – to be melted down in order to shore up national reserves. But the most impressive story of all is the realism and commitment with which Korea set about to restore its economic fortunes; and the determination with which that commitment has been maintained over the past decade.

        I will not dwell at length on the details of Korea's post-crisis reform program. Obviously, the first priorities were to stabilize and then rebuild foreign exchange reserves and to recapitalize the banking system. But the long term success of the reform program necessitated major structural changes to increase transparency in the financial and corporate sectors; to overhaul the regulatory system; to raise standards of governance; and to promote greater competition and diversity in the economy, including through the building of broader based capital markets.

        The creation of an integrated supervisory system to oversee all financial institutions was central to that strategy. In 1998 legislation was passed to establish the Financial Supervisory Commission and the Financial Supervisory Service, integrating the supervisory functions of the previous four banking, insurance, securities and non-banking supervisory authorities . That new regulatory model has been critical to the achievements of the passed decade and has been further modified by creation of the Financial Services Commission in March of this year and a clearer demarcation between its role and that of the FSS. I am sure we will hear more about this from subsequent speakers, but I view this latest change as a renewal of the reform commitments first undertaken in 1997 and a highly positive signal of Korea's determination to further develop its services sectors and to engage in the global financial marketplace. The policy priorities announced by the new Financial Services Commission are clearly targeted towards those objectives.

        In a sense, this is recognition that the work commenced in 1997 is not yet finished. But these are challenging times for Korea, with significant political obstacles confronting the next generation of reform. It is still possible that in 10 years time 2008 will be viewed as the second major milestone in Korea's post crisis journey, which is an exciting possibility for those of you who will be participants. On the other hand, we may look back on 2008 as a lost opportunity, a time at which reform fatigue took its toll on the public's will to take the next steps. These are questions for the Korean people to decide. But in making that decision it does seem relevant to reflect on the enormous gains that have been made through reforms already undertaken.

        Of course, it was not possible to achieve these gains without embracing foreign participation in the domestic market. This was recognized as part of the 1997 program which included "increased competition" as a central plank of the reform agenda . Foreign banks were permitted to establish subsidiaries and brokerage houses by mid 1998 and since that time there has been a gradual opening of Korean markets – including the derivatives market - to foreigners.

        There has also been substantial success in building Korea's domestic capital markets capacity. The launch of the Stock Index Options Market in 1997; the formation of the Korea Futures Exchange in 1999; and the consolidation of the three domestic markets into the Korea Exchange in 2005 have all been important steps to building that capacity. To put these achievements into perspective let me give you three quick examples:

        KOSPI 200 Options

        First, the outstanding growth of Korea's options market. In 2005, KOSPI 200 options traded on the Korea Exchange accounted for 79% of global trading in indexed options; with total derivatives trading on the Korea Exchange accounting for 27% of the global exchange traded derivatives.

        In 2006, despite substantial global market growth in indexed options trading outside Korea, KOSPI 200 options were still the most active traded index options in the world, with institutional investors accounting for 34% of trading, retail investors 39%, and foreign investors 26%. The success of the Korean options market has been highlighted by the recent agreement with the Chicago Board Options Exchange to share development opportunities.

        Asian Financial Institution & Corporate Bond Markets

        Korea's performance in developing a bond market (both financial institution and corporate bonds) has been a second notable success, with issuance just over 60% of GDP at the end of 2007 . While this is not large by some international comparisons, it far exceeds growth over the comparable period in most other emerging markets. If government bonds are added to the total, Korea's leadership position (measured as a percentage of GDP) is again apparent.

        KRX Rankings

        Thirdly, by the end of 2007, Korea Exchange was ranked the 12th largest of the World Federation of Exchanges by total value of share trading; the 6th largest exchange by total value of bonds traded; was in the top 5 exchanges by value of securitized derivatives traded; was ranked number 6 for number of stock index futures traded; and was ranked number one for number of stock index options contracts traded, measured both by volume and by notional value.

        So let's be clear about one thing. Hard decisions have been taken by Korea over the past decade and those decisions have paid off. In my opinion, the country is well prepared to take the next steps, notwithstanding events that have emerged in recent months to test the resolve of public opinion.

        One of the most important of these next steps will be the commencement of the Capital Market Consolidation Act (CMC Act) next February, which I'm sure will be discussed later this morning. A key feature of this reform is the central licensing regime that will permit financial investment companies to offer a range of financial services in a number of financial investment products, including exchange traded derivatives and OTC derivatives, thereby removing the current institutionally driven regulation. Having overseen the introduction of a similar program in Australia in 2002/03, I have a good understanding of the CMC's potential to launch a new platform for Korea's development as an internationally competitive and innovative financial marketplace.

        Of course, with opportunity there usually also comes risk, and it is quite proper that the risks of further opening up the Korean economy to international competition and, in particular, to expanded derivatives markets should be discussed. Let me set the scene for commenting on those risks by first providing a snapshot of the international derivatives market, in particular the OTC derivatives market which is central to some of these concerns about risk.

        Global Derivatives Market

        The derivatives market landscape is presently divided into two markets; those traded on exchanges and those traded over the counter (OTC). Measuring the size of these markets is complicated by reporting discrepancies between volumes (the norm for exchange traded) and notional amounts outstanding (the norm for OTC). Nevertheless, it is clear that the OTC markets by value are the dominant markets after including all forms of derivatives trading. However, there are some interesting differences between the markets.

        With respect to exchange traded derivatives North America is the largest market with the Americas accounting for 47% of volume (some 7.2 billion contracts in 2007). Asia Pacific follows with 28% of volume (4.3 billion), with the rest of the world accounting for the balance.

        Activity volumes on these exchanges is dominated by equity derivatives and indexes (aggregating approximately 65% of volume) with interest rate and commodities together accounting for a further 33% . Again, the caution needs to be noted that measurement by value would produce different outcomes. In particular, the relative importance of interest rate products would rise substantially.

        In relation to the OTC markets, statistics available to date confirm that for the last 3 years London has been the single largest financial centre for derivatives trading (accounting for approximately 41% of total global turnover by value in 2007). The United States is the next largest market accounting for approximately 19% of total global turnover (Korea came in at number 20 out of 54 countries with an average daily turnover of US$ 23 billion in 2007).

        In product terms the OTC markets are dominated by interest rate, credit default swaps, and FOREX transactions (in aggregate approximately 85% of value) with equities and commodities playing a relatively small part in the markets.

        Finally, the growth rate in the OTC markets in recent years has been dramatic and has gained additional impetus from the recent turmoil in global financial markets as investors seek to manage their exposures through derivative contracts. .Notional amounts of all categories of OTC contracts rose by 15 % to US$ 596 trillion during the second half of 2007, following a 24% increase in the first half . Growth remained particularly strong in the credit segment, where the notional amounts of outstanding credit default swaps increased by 36% to US$ 58 trillion.

        Key Regulatory Issues

        So, against that background, I want to talk about some of the policy risks and regulatory challenges for more openly engaging with such an important but complex market.

        These questions have become increasingly relevant and are being expressed more vocally than ever before. Some of the issues, such as the efficiency of post-market infrastructure, are familiar territory for regulators and risk managers . For example, in 2005, the UK FSA and Federal Reserve Bank of New York commenced initiatives to reduce back office backlogs. That regulatory action - together with a number of other developments including migration to electronic platforms and increased resources dedicated to back office operations – has significantly improved the efficiency of transaction confirmations.

        More recently, earlier this month, the Federal Reserve Bank of New York outlined comprehensive measures to enhance OTC credit derivatives market infrastructure. While such measures have been under discussion for some time, the fall-out from the subprime crisis, and in particular the near failure of Bear Stearns, has provided additional stimulus for action. The initiatives are aimed at mitigating systemic risk by improving efficiencies in clearing and default management of OTC products. Key regulators and firms participating in credit derivative markets have agreed to establish a central clearing house for credit default swaps and to incorporate a protocol for managing contract defaults.

        But the two issues that have created the greatest noise over recent months are, first whether OTC markets have become so similar to exchange traded markets that they should be regulated along similar lines and, secondly, whether the derivative markets (both OTC and exchange traded) are enabling speculators to distort the international pricing of key commodities, principally oil and food.

        On the first question of OTC regulation, I believe that the standardization of many OTC derivative products and the "anonymous" manner of their clearing and settlement makes it increasingly difficult to justify a materially different regulatory approach from exchange traded derivatives. Those who support the continuation of the current differentiation usually invoke competition reasons for doing so, and that consideration cannot be dismissed lightly. On the other hand, these markets are very different to the specialized and tailored private treaty transactions that were contemplated when the OTC market was exempted from regulation. There is now a certain degree of regulatory arbitrage in place, and that is seldom a positive thing for market integrity. This debate is particularly active in the United States and, hopefully, a rational policy outcome will emerge. For reasons that I will now explain, it is likely that this debate will to some extent intersect with the second set of issues relating to speculation (and market manipulation).

        Moving then to deal with those issues, I find it quite difficult to separate the notions of derivatives trading and speculation. Apart from a vanilla hedging transaction one might expect to find an element of market or pricing speculation in almost all derivative transactions. All financially settled derivatives (which by volume dominate the market) can be regarded as speculative. On the other hand, the notion that market participants might engage in a pattern of behaviour deliberately designed to distort market pricing has long been proscribed as a form of market manipulation. In reality, the distinction between legitimate "speculative" trading and market manipulation can be a very difficult question for regulators to resolve, particularly in commodity derivative markets where it is common for trading strategies to be played out across a combination of physical, exchange based and OTC markets. This is the intersection of issues that I have referred to and forms part of my reasoning for supporting greater convergence in the regulation of the markets.

        Dramatic Commodity Price Rises

        Sudden and dramatic price increases in commodities as basic as food and oil will naturally cause alarm to Governments. We have already seen some interesting recent reactions:

        For example, in 2007 rice futures were delisted by the Indian Forward Markets Commission; followed last month by a four month ban on futures trading in other key agricultural commodities . 20% of the National Commodity & Derivatives Exchange's turnover comes from these suspended commodities, or 80% of total agricultural futures trading.

        These measures were taken in response to widespread concern that derivatives speculation was causing artificial price inflation in basic foodstuffs. This was done despite the findings of an expert committee which was unable to determine any causal relationship between trading on the futures market and the wholesale or retail prices of agricultural commodities.

        Interestingly, that committee found that as the Wholesale Price Index of rice declined throughout the period when futures trading in rice was allowed, and increased only after de-listing from the exchange, speculation in futures markets could not be said to have exerted any strong upward pressure on spot prices for rice.

        In the United States, there has also been intense scrutiny to determine whether abuse of the derivative markets has been a major contributor to rising food and oil prices.

        However, in recent testimony provided to the Senate Committee on Homeland Security and Government Affairs, the chief economist of the US regulator (the CFTC), Mr Jeffrey Harris, stated that there is little economic evidence to demonstrate that prices were being systematically driven by speculators in these markets . He further stated that the economic data shows that overall commodity price levels were being driven by powerful fundamental economic forces and the laws of supply and demand.

        I am not arguing that speculators are irrelevant to recent price bubbles and I am not sure that Mr. Harris would give exactly the same answer if he were giving evidence to the Senate today (circumstances in the energy markets are changing at an unprecedented pace as I write this paper). But, as a recent report has noted, much of the motivation behind the increased investment in these markets from hedge funds, pension funds, sovereign wealth funds and others has been an expectation that commodities would outperform equities and bonds . In this respect the derivatives markets are no different from other asset classes which from time to time become over-invested, resulting in pricing bubbles that eventually burst as the underlying fundamentals assert themselves. We see this all the time in equity markets and we may well shake our heads at the folly of investors and their capacity to repeat the mistakes of history. But it is another thing altogether to ascribe improper motives to such investors or to liken them to those dishonest few who deliberately set out to distort markets for their own advantage. So we need to take care with words like "speculators" and to be clear about precisely what allegation or assertion is being made.

        Notwithstanding the probable over-exuberance of current energy markets, spurred by migration of investment from alternative under-performing asset classes, I agree with Mr Harris of the CFTC that you cannot ignore the influence of key fundamental forces at work, some of which stem from policies (or lack of policies) adopted by national Governments over many years in the energy and food sectors. I draw an analogy to Korea's difficulties in 1997 which were not helped by currency speculators but which were basically attributable to the underlying inefficiencies that I have discussed this morning. It has always been politically tempting to blame the speculators (Lenin purportedly said they should all be shot) but there is a real danger that politically inspired solutions may do long term damage to the legitimate and important operation of these markets.

        This does not mean that regulators are powerless to intervene to assist the correction of pricing bubbles. I have already given a few examples of recent regulatory interventions that seem entirely sensible and rational. Moreover, you will all be aware of the great debate arising from the sub prime crisis about what additional forms of intervention might be available to banking regulators to slow down credit-driven pricing bubbles.

        In the equities and derivatives markets, it has been much rarer to expect regulators to intervene to curb market exuberance and there are some very serious issues to consider before mandating such intervention through, for example, increased margining requirements or the imposition of trading limits. But that is not to say that such additional forms of intervention should be ruled out. The idea that regulators should do more to "lean against the wind" in order to constrain pricing bubbles deserves careful consideration and an open mind.

        In the meantime, as I said earlier, we need to carefully review and redress any specific circumstances that have led to distortion of otherwise credible products or to manipulation of markets. If there are technical deficiencies in the design of some contracts, for example, that lead to such distortion then by all means the regulator should intervene. That appears to have been the case with some of the US agricultural futures products to which the CFTC responded earlier this month.

        I also stress the need for the regulators of commodity and futures markets to have the necessary surveillance and enforcement skills to monitor trading and to aggressively pursue suspected cases of manipulation. As the regulator of a newly created commodities futures exchange in Dubai - the Dubai Mercantile Exchange - I know that this involves highly specialized skills that differ from those required elsewhere in our business.

        Finally, any gaps in the regulatory system that need to be closed in order to ensure effective regulation should receive international support, including urgent resolution of the future direction for OTC markets regulation.

        So, there are several issues for us to consider and some interesting possibilities for the development of new forms of regulatory intervention. We must ensure that this work is inspired by intellect rather than emotion.

        International Regulatory Cooperation

        Let me conclude with a brief comment on the policy tension that may arise from seeking to facilitate the efficient international operation of markets, on the one hand, and ensuring their effective oversight, on the other. Regulators are constantly under pressure to harmonize their requirements, and to place greater reliance on home country supervision, in order to reduce the costs of conducting international business. This is an entirely legitimate concern and the regulatory community has moved quite sympathetically in that direction over the past decade, particularly in Europe but, more recently, across the Atlantic as well. The concept of "mutual recognition" between regulators has fairly widespread support and has led to a regulatory passport for the marketing of financial products between relevant jurisdictions. The Dubai FSA is a strong supporter of this model.

        Special needs and considerations apply in the case of international exchanges that manage the mobility of the world's capital markets. It has become customary for regulators of domestic exchanges to recognize reputably supervised foreign exchanges and to facilitate intermediary access between them. By and large this has served us well, but it can lead to concerns about the capacity of the home regulator to maintain effective oversight of market manipulation, particularly if key trading information lies outside its grasp. This has been an on-going issue for some of the US legislators who believe that arrangements to facilitate trading on the UK ICE exchange by American intermediaries has diminished the oversight capacity of the CFTC.

        In January 2006, the CFTC permitted the trading of oil futures on the ICE Futures market in London from trading terminals in the US. ICE then began to trade a new WTI futures contract on its London exchange. Like OTC markets, ICE has exempt status.

        A Senate subcommittee, enquiring into the role of market speculation, concluded that the CFTC's ability to detect and deter market manipulation was suffering from critical information gaps because traders on OTC electronic exchanges, and the London ICE Futures, were exempt from CFTC reporting requirements.

        The subcommittee also recommended legislation to provide that persons trading energy futures "look-alike" contracts on OTC electronic exchanges and ICE should become subject to the CFTC's large trader reporting requirements; and that the CFTC should examine the price discovery function of ICE and the need for ICE to publish daily trading data as required by the Commodity Exchange Act. Draft legislation to implement these recommendations and to close the so-called "London loophole" was introduced into the US Senate last month; and only a few weeks ago we saw additional measures announced to increase CFTC power to direct US brokers to reduce their positions on the London exchange.

        I should add that, to my knowledge, there is no evidence to support the claim that the so-called "London loophole" has given rise to market manipulation or carries any special causal responsibility for the blow out in energy or food prices. Moreover, given that the CFTC and the UK FSA moved quickly to finalize new information sharing arrangements to address the apparent oversights gaps, it is not clear why legislation is considered necessary. Nevertheless, I support greater transparency from electronic OTC markets and any additional powers that will assist regulators to effectively protect against their manipulation. These are legitimate issues for all jurisdictions to consider and can, I think, be accommodated without impeding the welcome trend of cooperation and mutual reliance between well regulated jurisdictions and markets. But policy makers need to remember - mutual recognition cannot work if both sides insist that their rules must be adopted 100% by the other side.

        Conclusion

        Ladies and Gentlemen, this is a really interesting time to be a financial services regulator and I wish there was time for me to expand this discussion to cover some of the broader regulatory ramifications arising from the events of the past 12 months. But I realize that you have a packed agenda today and that you have already been a generous and patient audience. I have attempted this morning to substantiate the case that Korea is indeed well prepared to further open its markets to global participation. Whether this can be achieved under the timetable that existed 3 months ago remains to be seen. But in my view, Korea's historical track record as a determined and resolute people, coupled with its own evidence that reform delivers dividends, will inevitably lead to this path. As risk managers your part in shaping the outcome will be vital because good public policy is ever at the mercy of those who implement it. Thank you and good morning.

      • 24 June 2008 — DFSA Licenses AL-PER Solutions Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed AL-PER Solutions Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 23 June 2008 — DFSA licenses Neerav Investment Advisory Services (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Neerav Investment Advisory Services (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 16 June 2008 — DFSA licenses VR Advisory Services (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed VR Advisory Services (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 16 June 2008 — DFSA licenses Quilvest (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Quilvest (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 04 June 2008 — DFSA Licenses The Emirates Capital Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed The Emirates Capital Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 04 June 2008 — DFSA registers BDO Patel & Al Saleh as a Registered Auditor

        The Dubai Financial Services Authority (DFSA) has registered BDO Patel & Al Saleh as a Registered Auditor in the Dubai International Financial Centre (DIFC).

      • 28 May 2008 — DFSA enters into Memorandum of Understanding with South African counterpart

        Paris, France, 28 May, 2008: The Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) with the Financial Services Board of South Africa (FSB) yesterday.

        The signing took place between Mr. David Knott, Chief Executive of the DFSA and Mr. Rob Barrow, the Executive Officer of the FSB during the Annual Conference of the International Organisation of Securities Commissions (IOSCO) being held in Paris.

        The FSB supervises the activities of non-bank financial institutions and other financial services in South Africa, including its licensed exchanges, clearing houses, collective investment schemes and all types of insurance and retirement fund activities.

        The Chief Executive of the DFSA, Mr. David Knott said: “The Financial Services Board of South Africa is a valued member of IOSCO and a leading participant in the African and Middle East Region, of which the DFSA is also a member. Both the FSB and the DFSA are signatories to the IOSCO Multilateral MoU, having satisfied the highest standards of co-operation and assistance among IOSCO members. It is enhanced by today’s bi-lateral agreement which reflects each agency’s responsibilities in the regulation of securities and insurance."

        As more South African financial services firms join the Dubai International Financial Centre (DIFC), this relationship will assume increasing importance as regulators rely on the quality of regulatory standards administered in the other’s jurisdiction.

      • 28 May 2008 — DFSA registers Gide Loyrette Nouel as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Gide Loyrette Nouel as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 28 May 2008 — DFSA Licenses HC Investment Banking (DIFC) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed HC Investment Banking (DIFC) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 28 May 2008 — DFSA Licenses Maples Finance (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Maples Finance (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 28 May 2008 — DFSA Licenses Gulf Reinsurance Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Gulf Reinsurance Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 20 May 2008 — DFSA enters into Memorandum of Understanding with Cyprus SEC

        Nicosia, Cyprus, May 20, 2008: The Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) yesterday, with the securities regulator of Cyprus.

        The MoU signing took place between Mr.Georgios Charalambous, Chairman of the Securities and Exchange Commission of Cyprus (CYSEC), and Mr.David Knott, Chief Executive of the DFSA during a visit to Nicosia.

        The CYSEC is responsible for the supervision of the Capital Market in Cyprus. It licenses, monitors and regulates investment firms, regulated markets, collective investments schemes and their management companies. It also monitors and supervises the issuers of securities listed on the regulated markets and monitors the securities transactions in the country. It approves company prospectuses and takeover bids.

        Chief Executive of the DFSA, Mr.David Knott said: “As a member of the European Union, Cyprus is an active participant in the work of the Committee of European Securities Regulators (CESR), adopting and harmonising international standards in Europe and continuing to establish world class standards in the regulation of capital markets. As such this Memorandum of Understanding is a significant initiative, recognising the importance of these arrangements for co-operation and information sharing between the two regulators.”

        “There are already a number of branches and subsidiaries of Cypriot firms operating in the DIFC so this bi-lateral agreement, which reflects the responsibilities of both agencies, will enhance information sharing and co-operation between the DFSA and the CYSEC as regulators of these firms.”

        As more financial services firms join the Dubai International Financial Centre (DIFC) from Cyprus this bi-lateral relationship will assume increasing importance as both regulators rely on the quality of regulatory standards administered in the other’s jurisdiction.

      • 19 May 2008 — DFSA Licenses Paradigm Investment Banking Company Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Paradigm Investment Banking Company Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 19 May 2008 — DFSA Licenses Saffar Capital Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Saffar Capital Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 15 May 2008 — DFSA Licenses KBC Financial Products UK Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed KBC Financial Products UK Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 12 May 2008 — DFSA issues consumer alert : DIFC Investment Scam

        Alert: DIFC Investment Scam

        The Dubai Financial Services Authority (DFSA) alerts the financial services community of a fraudulent internet investment scam, claiming to represent Dr Omar Bin Sulaiman, the Governor of the Dubai International Financial Centre (DIFC), inviting individuals to participate as a broker/agent in a DIFC individualised equity investment portfolio management program; a program that does not exist in reality. The invitation represents that the DIFC is privately looking for fiduciary agents and management experts who will be willing to act as investment portfolio holders and administrators. The fraudulent scheme offers financial rewards to those who participate. This e-mail is linked to organised fraud and the DFSA strongly advises that you do not respond to the invitation.

      • 12 May 2008 — Compliance with Federal Law provisions on dealing in Dirham and deposit taking

        To view the Compliance with Federal Law provisions on dealing in Dirham and deposit taking Letter, please visit publications/media / SEO letters.

      • 29 April 2008 — Key Policy Review — the outcome

        Key Policy Review—the outcome. External Presentation given to Firms on 28 and 29 April 2008

      • 12 May 2008 — Results of Capital Adequacy Planning and Monitoring Process Theme Review

        To view the Capital Adequacy Planning and Monitoring Process Theme Review Letter, please visit publications/media / SEO letters.

      • 27 April 2008 — DFSA Hosts Inaugural Legal Think Tank

        Dubai, UAE, 27 April, 2008: The Dubai Financial Services Authority (DFSA) today hosted some of Dubai’s leading legal practitioners and judges in a discussion of inter-jurisdictional issues affecting counter-parties and the users of Courts in Dubai and the Dubai International Financial Centre (DIFC). Members of the DFSA’s Financial Markets Tribunal (FMT) also participated to highlight the FMT’s operation and jurisdiction.

        DIFC Court Chief Justice, Sir Anthony Evans; Dubai Court Judge, Mohammad Al Suboosi; the Director of Strategy and Organisational Performance for Dubai Court, Dr. Yousuf Ali Humaid Al Suwaidi; and DFSA’s FMT President Stewart Boyd QC joined a panel of distinguished practitioners who examined the jurisdiction of the DIFC and Dubai Courts, the FMT and the enforceability and execution of Court orders in multiple jurisdictions.

        The workshop was the first of its kind in the UAE and comprised financial firms, regulators, legal practitioners and the Courts. Discussions revolved around the importance of enhancing understanding of the application of laws and the challenges of administering justice in Dubai and the DIFC.

        DFSA’s Head of Enforcement, Stephen Glynn, said: “Today’s workshop is a unique opportunity for market counter-parties to interact with the legal profession, judiciary and regulatory community to discuss issues affecting commercial activities in Dubai and the DIFC.

        One of the outcomes of the workshop was to provide greater legal certainty to counter-parties who enter into contracts and seek to enforce Court orders in Dubai and the DIFC.

        If legal practitioners, regulators and the Courts are of a similar mind in respect of issues affecting the administration of justice, then this can only result in legal and regulatory efficiencies and cost savings to the users of legal and judicial services.”

      • 20 April 2008 — DFSA Board Announces Chief Executives’ Retirement

        The Board of the Dubai Financial Services Authority (DFSA) today announced the decision of Chief Executive, Mr. David Knott, to retire from full time employment at the end of 2008, coinciding with his 60th birthday.

        DFSA Chairman, Mr. Abdullah Saleh, said: “David Knott has been an outstanding Chief Executive who has brought widespread leadership and regulatory experience to the DFSA since his appointment in early 2005.

        We have been fortunate in having David lead the DFSA during a period of dynamic growth and development for the Dubai International Financial Centre (DIFC). Although we are sorry to be losing him at the end of the year, we understand his desire to retire after a long and distinguished career in the private and public sectors. The international recognition and high reputation gained by the DFSA during David’s term of almost four years reflect the success of his achievements.

        The Board is delighted to note the announcement by His Excellency Dr. Omar Bin Sulaiman, Governor of the DIFC, that David has accepted an invitation to continue as a DFSA Board Member after he steps down as Chief Executive.

        The Board is committed to selecting a successor to David who will continue to command respect and confidence as Chief Executive of the DFSA. A selection process will be undertaken by the Board to ensure a smooth handover of responsibilities at the end of the year.”

      • 17 April 2008 — DFSA Licenses Orion Capital Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Orion Capital Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 16 April 2008 — DFSA publishes new Rulemaking Instruments

        RM 56/2008 Key Policy Review Rules Instrument (No.56) 2008

        RM 57/2008 Islamic Finance Rules Instrument (No.57) 2008

        RM 58/2008 Implementation of DFSA’s Key Policy Review Rules Instrument (No.58) 2008

      • 16 April 2008 — DFSA Licenses Gulf Investments Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Gulf Investments Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 03 April 2008 — DFSA Launches Islamic Finance Initiative with Hong Kong

        The Dubai Financial Services Authority (“DFSA”) today announced a joint regulatory initiative with the Securities and Futures Commission of Hong Kong (“SFC”) to enhance access to Islamic financial products in Hong Kong and the Dubai International Financial Centre (“DIFC”). This initiative was announced in the context of a Memorandum of Understanding (“MoU”) between the two regulators in Hong Kong.

        The MoU outlines a commitment to enhance mutual co-operation towards promoting and developing their respective Islamic capital market segments, in particular to working together on facilitating the distribution of Islamic funds in the DIFC and Hong Kong.

        The SFC has also agreed to play a part in the DFSA’s graduate training program (its Tomorrow’s Regulatory Leaders (“TRL”) program) by offering short-term placements to UAE nationals employed by the DFSA.

        The MoU was signed by the Chief Executive of the DFSA, Mr.David Knott, and the Chief Executive of the SFC, Mr. Martin Wheatley, in the presence of the Financial Secretary of Hong Kong, the Honourable John Tsang Chun-Wah, the Chairman of the DFSA, Mr. Abdullah Saleh and the Chairman of the SFC, Mr. Eddy Fong. The signing coincided with a number of meetings and engagements of the DFSA Board with senior members of government, regulatory agencies and the financial services industry in Beijing and Hong Kong.

        Commenting on this initiative, Mr.David Knott, Chief Executive of the DFSA said:

        “The DFSA admires the part played by the SFC in supporting Hong Kong as one of the world’s leading financial centres and appreciates the SFC’s commitment to sharing its experience with the DFSA’s Emirati graduates. For its part, the DIFC enjoys a reputation as a centre for excellence for Islamic Finance in the Middle East and, with its tailor made regulatory system for Islamic Finance, the DFSA looks forward to working closely with the SFC to promote and develop this sector.”

        “Both agencies will undertake detailed work to reconcile as far as possible the regulatory approach that each jurisdiction takes to Islamic Finance so that cross- border transactions can be implemented with optimum efficiency and minimum replicated cost. Hong Kong is already a ‘recognised jurisdiction’ for conventional funds under the DIFC’s funds management laws but this project intends to make it easier for funds managers and issuers to offer Islamic financial products between Hong Kong and the DIFC.”

        Mr.Knott added, “This new MoU with the SFC of Hong Kong will prove to be among the most important entered into by the DFSA. It cements the close ties that already exist between us and paves the way for future initiatives that will benefit both Hong Kong and Dubai. The support expressed for this relationship this afternoon by Hong Kong’s Financial Secretary, the Honourable John Tsang Chun-Wah, reflects the importance that he places on this special regulatory relationship, and is much appreciated by the DFSA.”

      • 30 March 2008 — DFSA Licenses Crédit Agricole Cheuvreux as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Crédit Agricole Cheuvreux as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 17 March 2008 — DFSA Licenses Al Habib Financial Services Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Al Habib Financial Services Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 12 March 2008 — DFSA Registers Latham & Watkins LLP as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has Registered Latham & Watkins LLP as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 11 March 2008 — DFSA Licenses Bemo Oddo Investment Firm Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Bemo Oddo Investment Firm Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 06 March 2008 — DFSA Licenses SEI Investments (Europe) Ltd as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed SEI Investments (Europe) Ltd as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 04 March 2008 — DFSA Licenses GFI Securities Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed GFI Securities Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 03 March 2008 — DFSA registers Farahat & Co Limited Liability Partnership as a Registered Auditor and Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Farahat & Co Limited Liability Partnership as a Registered Auditor and Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 03 March 2008 — DFSA registers Sajjad Haider Chartered Accountants Limited Liability Partnership as a Registered Auditor and Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Sajjad Haider Chartered Accountants Limited Liability Partnership as a Registered Auditor and Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 27 February 2008 — DFSA Licenses Omniyat Investment Management Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Omniyat Investment Management Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 26 February 2008 — DFSA Licenses Renaissance Group (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Renaissance Group (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 21 February 2008 — DFSA Licenses Lion Capital Management Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Lion Capital Management Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 17 February 2008 — DFSA registers DLA Piper Middle East LLP as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered DLA Piper Middle East LLP as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 14 February 2008 — Proposed Amendments to the Rulebook and the Sourcebook

        A REMINDER THAT:

        The DFSA has published two consultation papers

        The deadline for providing comments in regard to the proposals set out in:

        •  CP53 is the 9th March 2008
        •  CP54 is the 15th March 2008

        The DFSA is particularly interested to hear from Authorised Firms in regard to whether any additional transitional relief (to that proposed in CP54) should be given to Authorised Firms from any of the changes proposed in CP52 “Key Policy Review”.

        Issued on 14th February 2008

      • 12 February 2008 — DFSA registers Mazars Middle East LLP as a Registered Auditor and Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Mazars Middle East LLP as a Registered Auditor and Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 10 February 2008 — DFSA Licenses NBD Sana Capital Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed NBD Sana Capital as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 10 February 2008 — DFSA Licenses A/T Capital Management Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed A/T Capital Management Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 04 February 2008 — DFSA Licenses Silverdale Services (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Silverdale Services (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 04 February 2008 — DFSA Licenses Barclays Global Investors Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Barclays Global Investors Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 24 January 2008 — DFSA Licenses Fairfax Middle East Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Fairfax Middle East Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 23 January 2008 — DFSA registers Dewey & LeBoeuf LLP as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Dewey & LeBoeuf LLP as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 17 January 2008 — DFSA Licenses Thames River Capital LLP as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Thames River Capital LLP as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 15 January 2008 — DFSA Licenses Triago MEA Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Triago MEA Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 15 January 2008 — DFSA Licenses Landesbank Baden-Württemberg as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Landesbank Baden-Württemberg as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 07 January 2008 — DFSA registers Morison Menon Chartered Accountants as an Auditor

        The Dubai Financial Services Authority (DFSA) has registered Morison Menon Chartered Accountants as an Auditor in the Dubai International Financial Centre (DIFC).

      • 03 January 2008 — DFSA Registers Loyens & Loeff Emirates B.V. as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Loyens & Loeff Emirates B.V. as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 03 January 2008 — DFSA Licenses City of London Investment Management Company Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed City of London Investment Management Company Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 2007

      • 17 December 2007 — DFSA Licenses Assicurazioni Generali S.p.A as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has Licensed Assicurazioni Generali S.p.A as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 16 December 2007 — DFSA Licenses Toscafund Global Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has Licensed Toscafund Global Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 16 December 2007 — DFSA Licenses Wedge Alternatives Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has Licensed Wedge Alternatives Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 13 December 2007 — EPRS Notification

        TAKE NOTICE THAT:

        Pursuant to PIB Rule 1.6.2,

        Authorised Firms which are subject to the Rules in PIB are required to:

        (a) submit their solo prudential returns as per table 3 in PIB, for any reporting period ending on or after December 31, 2007, using the electronic prudential reporting system; and
        (b) continue to submit their consolidated prudential returns, as per table 3 in PIB, when applicable, using the paper-based forms specified in the PRU module of the DFSA Sourcebook.

        Pursuant to PIN Rules 6.5.2 and 6.5.8,

        Authorised Firms which are subject to the Rules in PIN and authorised to operate as Insurers in the DIFC are required to continue to submit their Annual and Quarterly Regulatory Returns, as defined in Appendix 10 of PIN, for any reporting period ending on or after December 31, 2007, using the electronic prudential reporting system.

        TAKE FURTHER NOTICE THAT:

        Authorised Firms Licensed from 15 November 2007 to 31 December 2007 inclusive will be permitted additional time to get acquainted with the EPRS and, accordingly, such firms are required to submit the relevant prudential returns, in accordance with the first part of this notice, for any reporting period ending on or after 1 February 2008. Firms will be contacted by their relationship manager who will provide them with the required information and passwords.

        David Knott
        Chief Executive

        Issued on 13 December 2007

      • 13 December 2007 — DFSA Licenses SinoGulf (DIFC) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has Licensed SinoGulf (DIFC) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 11 December 2007 — DFSA Issues its Hedge Fund Code of Practice

        The Dubai Financial Services Authority (DFSA) today issued its Hedge Fund Code of Practice (Code), the first of its kind to be issued by a regulator and a landmark code in the regulation of the international Hedge Fund industry.

        The Code sets out best practice standards for Operators of Hedge Funds in the Dubai International Financial Centre (DIFC).

        The DFSA’s initiative to issue a Code of Practice comes in the wake of enhanced industry and regulatory focus on Hedge Funds. The Code addresses some specific risks that are associated with Hedge Funds and reflects the DFSA’s commitment to risk-based regulation.

        The issuance of the Code follows several months of consultation with industry professionals and international regulators who were invited to comment on the proposed rules and offer their opinions on the Code of Practice.

        There are nine high-level principles in the Code, which cover areas of key operational, management and market-related risks, particularly in the areas such as valuation of assets, back office functions and exposure to market risks.

        David Knott, Chief Executive of the DFSA said: “While there are a number of industry-based Hedge Fund Codes, the DFSA’s Code is the first of its kind to be issued by a regulator. Having received highly positive feedback throughout the consultation period, we are confident that the Code will provide investors and Hedge Fund Managers with a backdrop for the successful development of Hedge Funds in the DIFC by ensuring the industry has the necessary regulations in place to prosper. This initiative reflects our commitment to the continued development of the DIFC as an attractive and well-regulated environment for Hedge Fund Operators and prospective investors.”

        For the full DFSA Hedge Fund Code of Practice, refer to the website at www.dfsa.ae.

      • 11 December 2007 — Notice of Amendments to the Rulebook and the Sourcebook

        TAKE NOTICE THAT:

        As foreshadowed in the previous notice issued on 29 November 2007, the DFSA has issued its Hedge Funds Code of Practice to come into effect on 20 January 2008.

        This code can be found under “Legislation” in the new section entitled “DFSA codes of Practice” on the DFSA’s website.

        The CIR module of the Rulebook will be updated accordingly.The consequential amendments are set out in the Hedge Funds Guidance Instrument (No.6) 2007. These amendments come into force on 20 January 2007.

        The CIR module will be updated on the date mentioned above and the instrument may be viewed under the “Guidance Making Instruments“section of the DFSA’s website prior to the coming into effect of the amendments.

        FURTHER TAKE NOTICE THAT:

        The Prudential Returns Module (PRU) of the Sourcebook will be replaced by a new EPRS version pursuant to the Electronic Prudential Reporting System Guidance Instrument (No.5) 2007. This EPRS version of PRU incorporates consequential amendments necessary to facilitate the implementation of the system.

        These amendments are to come into effect on 16 December 2007.

        The new EPRS version of PRU may be viewed under the “Guidance Making Instruments“, section of the DFSA’s Website prior to the coming into force of this module.

        There will be a separate notice issued in relation to PIB Rule 1.6.2 and PIN Rule 6.5.2 which will provide information in respect of the EPRS going live.

        Issued on 11 December 2007

      • 09 December 2007 — DFSA Licenses ING Investment Management (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has Licensed ING Investment Management (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 06 December 2007 — DFSA Licenses Waqf Trust Services Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Waqf Trust Services Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 05 December 2007 — DFSA Licenses Société Générale Bank & Trust as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Société Générale Bank & Trust as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 05 December 2007 — DFSA Licenses Societe Generale as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Societe Generale as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 04 December 2007 — DFSA Releases Key Policy Review Consultation Paper

        The Dubai Financial Services Authority (DFSA) issued today a Consultation Paper setting out proposals to further develop its regulatory regime, in light of international regulatory developments and the increasing maturity of the Dubai International Financial Centre (DIFC).

        Consultation Paper No. 52, which is posted on the DFSA website www.dfsa.ae, seeks public comment on significant changes to the DFSA’s Rulebook. The deadline for comments is 7 February 2008.

      • 29 November 2007 — Notice of Amendments to the Rulebook

        TAKE NOTICE THAT ON THE 1 DECEMBER 2007:

        The new Fees Rules Module (FER) will come into force on (see previous notice and Rulemaking Instrument No. 52).

        The Board made the following Rulemaking Instruments on 25 November 2007:

        •   Miscellaneous Amendments (Malaysian Islamic Funds) Rules Instrument (No.53) 2007, (no consultation paper was issued in respect of these amendments because they were technical in nature)
        •   Electronic Prudential Reporting System Amendment Rules Instrument (No.54) 2007, (no consultation paper was issued in respect of these amendments because they were technical in nature)
        •   RAC Fees Amendment Rules Instrument (No.55) 2007. This instrument introduces a fee in relation to filing a notice of appeal with the Regulatory Appeals Committee (no consultation paper was issued in respect of this Rule as it was considered to be prejudicial to the interests of the DIFC to delay the introduction of this Rule).

        The relevant Rulebook modules will be updated on 1 December 2007. The instruments containing the specific amendments may be viewed under the "Rulemaking Instruments" section.

        Further Take Notice That:

        The DFSA will issue a further notice on or about 12 December 2007 in respect of the DFSA's Hedge Fund Code of Practice.

        Issued on 29 November 2007.

      • 29 November 2007 — DFSA Hosts International Regulators

        The Dubai Financial Services Authority (DFSA) will, for the first time, host a major meeting of international securities regulators in Dubai next week.

        DFSA will be hosting the Emerging Markets Committee (EMC) of the International Organisation of Securities Commissions (IOSCO), which represents more than 90% of the world's securities regulators. The EMC is the largest of the IOSCO's three main committees, with members representing more than 80 jurisdictions.

        Over 120 regulators from Africa and the Middle East, Asia, South America and Eastern Europe are expected to participate in meetings to discuss the status of IOSCO's work programme in promoting international standards. These discussions will be held in private, but a public session on Thursday, 6 December will discuss challenges for enforcement and key issues for securities market development in emerging markets.

        The meeting will be hosted by Mr. David Knott, Chief Executive of the DFSA. Attending will be IOSCO's international leadership group, which comprises of the Chairman of the Executive Committee, Ms. Jane Diplock of New Zealand; the Chairman of the Technical Committee, Mr. Michel Prada of France; and the Chairman of the Emerging Markets Committee, Mr. Meleveetil Damodaran of India. Representatives of the United State's Securities and Exchange Commission (SEC) and the UK's Financial Services Authority (FSA) will also be in attendance.

        While in Dubai, regulators will visit the Dubai International Financial Centre (DIFC) to gain first hand knowledge of its business, regulatory and legal environment.

        Mr. David Knott, Chief Executive of the DFSA said: "The Emerging Markets Committee is an important forum for the adoption and implementation of international standards for capital market regulators in developing economies and the DFSA is pleased to be hosting in Dubai the Annual Meeting of IOSCO's EMC."

      • 27 November 2007 — DFSA Licenses MAC Capital Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed MAC Capital Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 27 November 2007 — DFSA Licenses ES Bankers (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed ES Bankers (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 27 November 2007 — DFSA Licenses Menafactors Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Menafactors Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 21 November 2007 — DFSA bans private bankers for mis-selling investments

        The Dubai Financial Services Authority (DFSA) has banned two private bankers from carrying out financial services in or from the Dubai International Financial Centre (DIFC).

        The DFSA accepted Enforceable Undertakings from Ms. Vanita Chatterbhoj and Ms. Sweta Nayar, former Barclays Bank PLC (Barclays) private bankers, for knowingly misrepresenting the terms of financial products sold to their clients.

        Under the terms of the Enforceable Undertakings, Ms. Chatterbhoj is banned from carrying out any financial services in or from the DIFC for a period of three years. Ms. Nayar is banned from carrying out any financial services in or from the DIFC for a period of six years.

        As part of their mis-selling, Mses. Chatterbhoj and Nayar provided their clients with materially altered Barclays banking documents which falsely listed the products as enjoying full capital protection when, in fact, they were only conditionally capital protected.

        On the basis of the misrepresentations, 10 Barclays clients were induced to invest in products unlawfully marketed by Mses. Chatterbhoj and Nayar. Upon discovery of the mis-selling, Barclays promptly referred the matter to the DFSA and provided compensation to clients who were adversely affected. Mses. Chatterbhoj and Nayar were also terminated from Barclays for gross misconduct.

        In addition to mis-selling products to clients, Ms. Nayar also provided clients with altered portfolio statements with inflated redemption values for products she had sold them.

        During the course of the DFSA investigation Ms. Nayar attempted to minimise her involvement in the misconduct and obstructed the DFSA’s investigation by knowingly making false and misleading statements to the DFSA.

        In addition to the Enforceable Undertakings, the DFSA imposed an administrative censure against Ms. Nayar for knowingly obstructing the DFSA during the course of an investigation. The censure is made under provisions of the Regulatory Law and is filed as part of DFSA’s public record.

        David Knott, DFSA Chief Executive, stated: “One of the primary objectives of the DFSA is to protect investors who deal with DIFC financial firms. These two individuals betrayed the trust of Barclays and the clients who were misled. This type of conduct is unacceptable within the DIFC.

        The DFSA is also sending a strong message that attempts to obstruct or mislead the regulator will be regarded as a serious offence and result in additional sanctions.”

      • 18 November 2007 — DFSA’s Securities Regulation Receives Highly Positive IMF-World Bank Assessment

        Dubai, U.A.E, 18 November, 2007: The Dubai Financial Services Authority (DFSA) has received a highly positive assessment from an expert team from the International Monetary Fund (IMF) and the World Bank under their Financial Sector Assessment Program (FSAP).

        The FSAP involved a detailed assessment of the DFSA’s observance of the objectives and principles of securities regulation developed by the International Organisation of Securities Commissions (IOSCO).

        The report includes an overall finding that: “The DFSA has established a very impressive set of laws, regulations and rules and policies and procedures for regulation. Its staff are well qualified and work to international best practice standards.”

        The DFSA was fully assessed against conformity with 29 separate IOSCO principles. In 27 cases the DFSA was rated “fully implemented” which is the top possible rating. The remaining 2 cases were rated “broadly implemented” (the second highest rating) because the relevant Rules are more recent and insufficient time has been available to fully demonstrate a track record of performance. However, the assessment was positive across all areas examined.

        David Knott, Chief Executive of the DFSA said: “The DFSA made an early commitment to subject itself to the IMF/World Bank assessment and to publish the results. This is consistent within the transparency that we encourage and promote as the DIFC’s financial services regulator.

        The ratings received from the IMF/World Bank team compare favourably, and in some cases exceed, those of other regulators in established capital markets” he said.

        To view the assessment: http://www.imf.org/external/pubs/ft/scr/2007/cr07365.pdf

      • 18 November 2007 — DFSA Licenses Gulf National Securities Centre International Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Gulf National Securities Centre International Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 15 November 2007 — DFSA Licenses 200th Regulated Firm within DIFC

        The Dubai Financial Services Authority (DFSA) licensed its 200th regulated firm in the Dubai International Financial Centre (DIFC) this week. The regulated entities comprise 158 Authorised Firms, 37 Ancillary Service Providers and 5 Registered Auditors.

        Authorised Firms are granted a license to conduct financial services in or from the DIFC; services include Banking and Brokerage, Asset Management, Insurance and Islamic Finance.

        Ancillary Service Providers are granted a registration to carry out ancillary services in or from the DIFC; they provide legal and accountancy services.

        Registered Auditors are granted a registration to carry out audits of DIFC incorporated regulated entities.

        David Knott, DFSA Chief Executive, stated: "Over the past 13 months the number of Firms regulated by the DFSA has doubled, reflecting the momentum that the DIFC has established as the region's leading financial centre.

        The DFSA's commitment to international standards of regulation underpins the credibility of regulated Firms as reliable financial counterparties, both regionally and beyond. The DFSA is proud to be contributing to the success of the DIFC and to its growing reputation as a centre of excellence." said Mr. Knott.

        The regulated financial services sector within the DIFC works alongside many other registered enterprises which, taken together, constitute the DIFC community.

        There are now more than 496 licensed and registered Firms within the DIFC, including 200 regulated by the DFSA.

      • 14 November 2007 — DFSA Wins Best Regulator Award

        The Dubai Financial Services Authority (DFSA) receives the "Best Regulator for Islamic Funds" award during the 5th Annual Islamic Funds World Conference.

        The award was co-presented to the DFSA and the Malaysian Securities Commission (SC), at the Master of Islamic Funds Awards luncheon in Dubai, which took place on 13th November 2007. This prestigious award was co-sponsored by Dow Jones and Standard & Poor's, and recognises the DFSA's efforts to facilitate cross-border marketing of Islamic investment funds.

        This is the second award the DFSA has received this year. In April, the DFSA received the Failaka Islamic Fund award for "Best Contribution to Growth and Development," which recognised the DFSA's contributions to transparency and innovation in Islamic Finance.

        In March 2007, the DFSA and the Malaysian SC entered into a mutual recognition agreement allowing Islamic funds that have been approved by the SC to be marketed and distributed in the Dubai International Financial Centre (DIFC) with minimal regulatory intervention, following the entry of Malaysia onto the DFSA's list of Recognised Jurisdictions. Similarly, Islamic funds which have been registered or notified with the DFSA have access to Malaysian investors.

        David Knott, Chief Executive of the DFSA said: "We are delighted to be recognised again for innovations that facilitate the growth of Islamic Finance. This award further exemplifies the DFSA's strong commitment towards taking a leadership regulatory role and establishing the DIFC as a Centre promoting innovation and growth of Islamic capital markets in the Middle East.

        I congratulate our DFSA team members who play a pivotal role in shaping our high quality funds regime."

      • 12 November 2007 — DFSA Licenses Antarctica Asset Management (Middle East) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Antarctica Asset Management (Middle East) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 12 November 2007 — DFSA and Financial Services Agency of Japan agree terms of co-operation

        The Dubai Financial Services Authority (DFSA) today finalised an Exchange of Letters with the Financial Services Agency (FSA) setting out terms for information sharing and co-operation.

        The signing took place between Mr. David Knott, Chief Executive of the DFSA and Dr. Takafumi Sato, the FSA Commissioner, in Tokyo following a meeting last week of leading securities regulators from around the world at the IOSCO Technical Committee Conference successfully hosted by the FSA.

        The FSA has broad regulatory authority in Japan over the banking, insurance and securities industries and has integrated responsibility for financial system planning, the inspection and supervision of financial institutions.

        The Chief Executive of the DFSA, Mr. David Knott said: "I am honoured to have concluded these arrangements with Commissioner Sato, who represents one of the world’s most important regulatory agencies. The Japanese banking system is examining offshore business opportunities with increased confidence and the DIFC has much to offer. Two significant banks have already branched into the DIFC from Tokyo and I am sure others will follow. A close co-operative relationship between our jurisdictions is therefore most welcome."

      • 11 November 2007 — DFSA registers Lawrence Graham LLP as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Lawrence Graham LLP as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 08 November 2007 — DFSA Licenses HSBC Middle East Leasing Partnership as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed HSBC Middle East Leasing Partnership as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 06 November 2007 — DFSA Licenses Tokio Marine Middle East Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Tokio Marine Middle East Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 05 November 2007 — DFSA registers Patton Boggs LLP as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Patton Boggs LLP as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 04 November 2007 — DFSA registers Brandford-Griffith & Associés as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Brandford-Griffith & Associés as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 04 November 2007 — DFSA registers Gibson, Dunn & Crutcher LLP as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Gibson, Dunn & Crutcher LLP as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 28 October 2007 — DFSA Licenses GAM (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed GAM (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 23 October 2007 — DFSA enters into Memorandum of Understanding with United States Banking Supervisors

        Washington,D.C., 23 October 2007: The Dubai Financial Services Authority (DFSA) today entered into an historic Memorandum of Understanding with the United States Banking Supervisors.

        The signing at the Board of Governors of the Federal Reserve coincided with a visit of Mr. David Knott, Chief Executive of the DFSA, to Washington where the International Monetary Fund (IMF) held its annual meeting over the weekend. The four federal U.S. agencies principally responsible for banking supervision in the United States—the Federal Reserve, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Office of Thrift Supervision (OTS) have all joined as parties to a comprehensive statement of co-operation with the DFSA.

        The Chief Executive of the DFSA, Mr. David Knott said: “This is an historic event in the development of the DFSA. Never before has a regulator from the Middle East entered into such a comprehensive co-operative arrangement with the U.S. regulators. The attraction of the Dubai International Financial Centre (DIFC) as the domicile of choice for U.S. financial institutions in the Middle East will be further enhanced by these regulatory relationships.”

        This initiative reflects each agency’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 (FSA) and Germany’s Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin).

      • 18 October 2007 — DFSA Licenses Daman Quattro Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Daman Quattro Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 10 October 2007 — DFSA Licenses HDG Mansur (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed HDG Mansur (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 27 September 2007 — DFSA registers Allied Gulf Lawyers Limited Liability Partnership as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Allied Gulf Lawyers Limited Liability Partnership as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 27 September 2007 — DFSA Licenses Kaupthing Bank hf. as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Kaupthing Bank hf. as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 27 September 2007 — DFSA Licenses Makaseb Islamic Capital Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Makaseb Islamic Capital Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 25 September 2007 — DFSA Licenses Fimat International Banque SA (Dubai Branch) as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Fimat International Banque SA (Dubai Branch) as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 25 September 2007 — DFSA Licenses Flagstone Underwriters Middle East Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Flagstone Underwriters Middle East Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 25 September 2007 — DFSA registers Dixon & Co. Limited Liability Partnership as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Dixon & Co. Limited Liability Partnership as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 24 September 2007 — DFSA enters into Memorandum of Understanding with China’s Banking Regulator

        Beijing, China, 24 September, 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with the China Banking Regulatory Commission (CBRC).

        The signing took place between Mr. David Knott, Chief Executive of the DFSA, and Mr. Liu Mingkang, Chairman of the CBRC, at the offices of the Commission in Beijing.

        The CBRC supervises all banking institutions including banks, non-bank financial institutions and foreign banks with the aim of promoting the safety and soundness of the banking industry. This is to maintain public confidence in the banking industry, encourage fair competition in the banking industry and to improve its competitiveness in the People’s Republic of China.

        The Chief Executive of the DFSA, Mr. David Knott said: “I am honoured to be meeting Chairman Liu Mingkang and am pleased that the China Banking Regulatory Commission and the Dubai Financial Services Authority have now put in place these arrangements for co-operation and information sharing between banking supervisors.”

        The visit to Dalian earlier this month of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and His Highness’s meeting with Prime Minister Wen Jiabao, underscore the importance that Dubai and the UAE place on our relationship with the People’s Republic of China. Today’s initiative between two of their regulators reflects, in a practical sense, the development of this relationship.”

        This MoU follows the model for information sharing developed by the Basel Committee on Banking Supervision. It reflects each agency’s commitment to co-operation in relation to prudential oversight and inspections and thereby, facilitates the expansion of a number of significant banks from the People’s Republic of China into the DIFC.

      • 18 September 2007 — Results of AML/CTF theme review

        Click here to view the SEO letter.

      • 15 September 2007 — DFSA enters into Memorandum of Understanding with Capital Market Commission of Greece

        Athens, Greece, 15 September, 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with the Hellenic Capital Market Commission (HCMC).

        The signing took place between Mr. David Knott, Chief Executive of the DFSA, and Dr. Alexios Pilavios, Chairman of the HCMC, at the offices of the Commission in Athens.

        The HCMC is Greece’s self-funded independent authority responsible for setting the general conditions of capital market organisation and operation. The HCMC issues the appropriate regulations, enforces the law and ensures the proper functioning of the market.

        The Chief Executive of the DFSA, Mr. David Knott said: “The Hellenic Capital Market Commission has been a valued member of the International Organisation of Securities Commissions (IOSCO) and an active participant in the work of the Committee of European Securities Regulators (CESR), adopting and harmonising international standards in Europe and continuing to establish world class standards in the regulation of capital markets. As such this Memorandum of Understanding is a significant initiative, recognising the importance of these arrangements for co-operation and information sharing between the two regulators.”

        Both the HCMC and the DFSA are signatories to the IOSCO Multilateral MoU, having satisfied the highest standards of co-operation and assistance among IOSCO members. It is enhanced by today’s bi-lateral agreement which reflects each agency’s responsibilities in the regulation of securities.

        As Greek financial services firms join the Dubai International Financial Centre (DIFC), this bi-lateral relationship will assume increasing importance as both regulators rely on the quality of regulatory standards administered in the other’s jurisdiction.

      • 13 September 2007 — DFSA Licenses Leebrook Global Investments Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Leebrook Global Investments Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 11 September 2007 — Notice of Amendments to the Sourcebook and Rulebook

        Following the ending of the consultation period on a number of proposed legislative changes, that were set out in Consultation Papers 46, 47, 48, 49 and 51, the Board, after due consideration of consultees comments, approved the final version of amendments to the Rulebook as described below.

        TAKE NOTICE THAT ON THE 13 SEPTEMBER 2007:

        The Offered Securities Rules (OSR) will be updated to include the Rule amendments set out in Rulemaking Instrument No. 47 (Consultation Paper 51 explains the purpose of the amendments). The Rulemaking Instrument was made by the Board on 3 September 2007

        The Prudential Returns Module (PRU) will be updated to include the Guidance set out in Guidance Making Instrument No. 4. The Guidance Making Instrument was made by the Chief Executive on 3 September 2007.

        FURTHER TAKE NOTICE THAT:

        The Board also made the following Rulemaking Instruments on 3 September 2007:

        •   INSURANCE SECURITISATION RULES INSTRUMENT (No. 48) 2007, to come into force on 1 October 2007. (See CP No. 47).
        •   GENERIC ADVICE AND REFERRAL RULES INSTRUMENT (No. 49) 2007, to come into force on 1 October 2007. (See CP No. 48).
        •   MISCELLANEOUS AMENDMENTS RULES INSTRUMENT (No. 50) 2007, to come into force on 1 October 2007. (No CP was issued in respect of these amendments because they merely corrected anomalies in the Rulebook).
        •   ELECTRONIC PRUDENTIAL REPORTING SYSTEM RULES INSTRUMENT (No. 51) 2007, to come into force on 1 November 2007. (See CP No. 46)
        •   FEES RULES INSTRUMENT (No. 52) 2007, to come into force on 1 December 2007. (See CP No. 49)

        The relevant modules will be updated on the dates mentioned above and the instruments may be viewed under the "Rulemaking Instruments" section prior to the coming into force of the relevant Rules.

        Issued on 5 September 2007

      • 06 September 2007 — DFSA Licenses T & F Tax and Finance (DIFC) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed T & F Tax and Finance (DIFC) Limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 03 September 2007 — DFSA Licenses Commerzbank AG as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Commerzbank AG as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 02 September 2007 — DFSA Licenses The Bank of Tokyo Mitsubishi UFJ, Ltd. as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed The Bank of Tokyo Mitsubishi UFJ, Ltd. as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 30 August 2007 — DFSA Licenses Gilford Securities Incorporated as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Gilford Securities Incorporated as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 27 August 2007 — DFSA withdraws License from Forsyth Companies

        Dubai, U.A.E., August 27, 2007: The Dubai Financial Services Authority (DFSA) today withdrew the license of Forsyth Partners Global Distributors Limited ("Forsyth") to carry on financial services activities in or from the Dubai International Financial Centre (DIFC) after it failed to meet the applicable regulatory capital requirements and was unable to demonstrate a capacity to remedy that breach. Forsyth consented to the DFSA’s withdrawal of its license.

        The DFSA took this action following the issuance of a Notice to Forsyth on 22 August, 2007 requesting it to show cause why the DFSA should not withdraw its license.

        The DFSA also withdrew the license of Forsyth’s subsidiary Forsyth Partners (Middle East) Limited ("Forsyth Middle East") at the request of Forsyth Middle East, which was also licensed by the DFSA to carry on financial services activities in or from the DIFC.

        Both firms were Category 4 firms authorised to arrange credit or deal in investments and to advise on financial products or credit. Category 4 firms are not authorised to accept client money and therefore, withdrawal of the license does not place DIFC client funds at risk.

      • 22 August 2007 — DFSA enters into new co-operative arrangements with banking regulators in Jordan and Turkey

        Amman, August 22 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with the Central Bank of Jordan.

        The discussions are part of a growing relationship between the DFSA and senior regulatory authorities within the region. “Our discussions in Jordan and Turkey are focused on common objectives to improve regulatory standards across all areas of financial services and to increase opportunities for information sharing and co-operation” said DFSA Chief Executive, Mr. David Knott.

        As part of these discussions, the DFSA is completing Memoranda of Understanding with the banking regulators in both countries.

        Jordan Today an MoU signing took place in Amman between H.E. Dr. Umayya Salah Toukan, Governor of the Central Bank of Jordan, and Mr. Knott.

        As the independent and autonomous supervisor of banks in the Hashemite Kingdom of Jordan, the Central Bank’s role is to ensure the soundness of their financial positions and the protection of depositors’ and shareholders’ rights. The DFSA is the independent regulator of all financial services, including banking, within the Dubai International Financial Centre (DIFC).

        The MOU is designed to enhance information sharing and cooperation between the two authorities, particularly in their common roles as banking supervisors. The DFSA already has an MoU with Jordan’s insurance supervisor, the Insurance Commission of Jordan.

        After meeting with the Central Bank, Mr. Knott met with H.E. Dr Bassel Al Hindawi, Director General of the Insurance Commission. Dr Al Hindawi is the Regional Coordinator for the MENA region of the International Association of Insurance Supervisors (IAIS), of which the DFSA is also a member. Regional and international issues of mutual concern were discussed.

        While in Amman, Mr. Knott also called upon the Chairman of the Securities Commission of Jordan (JSC), H.E. Dr Bassem Al Saket, and discussed the possibility of a bilateral MoU covering securities and capital markets issues. Dr Al Saket and Mr. Knott also discussed the recently established Federation of Arab Securities Authorities, of which both the JSC and the DFSA are members and which His Excellency is Chair.

        Turkey Later this week on 23 August, Mr. Knott will sign a similar MoU in Istanbul with Mr. Tevfik Bilgin, Chairman of the Banking Regulation and Supervision Agency of Turkey (BRSA). The BRSA has responsibility for regulating principles and procedures for ensuring confidence and stability in financial markets, the efficient functioning of the credit system and the protection of the rights and interests of depositors.

        Turkey is, like Jordan, an important and well-established jurisdiction for Islamic finance and the BRSA, like the Central Bank of Jordan, plays a key role in maintaining a sound regulatory environment for the development of Islamic financial products.

        The DFSA already has a memorandum of understanding with the Capital Markets Board (CMB) of Turkey. This was one of the DFSA’s first international MoUs with a securities regulator. The CMB has played a leading role in the Emerging Markets Committee of the International Organisation of Securities Commissions (IOSCO), of which the DFSA is also a member. The DFSA will host the next annual meeting of the Emerging Markets Committee in Dubai in December this year.

      • 22 August 2007 — DFSA Issues 'Show Cause' Notice to Forsyth Partners Global Distributors Limited

        Dubai, U.A.E., August 22, 2007: Following concerns arising out of the DFSA's supervisory activities, the DFSA has directed Forsyth Partners Global Distributors Limited (the firm) to cease the carrying on of any financial service or other activity that would prejudice the clients or creditors of the firm, until further notice. The firm has been given until Sunday 26th August to show cause why the firm's license to provide financial services in the Dubai International Financial Centre should not be withdrawn. If the firm cannot demonstrate by that date that it meets the DFSA's regulatory requirements, including the adequacy of its capital, it is the DFSA's intention to withdraw the firm's license.

      • 12 August 2007 — Alert — Bill Parker Agency

        Take notice that the Bill Parker Agency, also known as BP Agency Investment Company, of 4528 Millrace Road Sacramento CA, Oakland KY USA and purportedly of The Gate, Level 18 DIFC, is not Authorised by the DFSA to carry on any financial services business in the DIFC.

        A Person is prohibited from conducting a financial service in the DIFC unless Authorised by the DFSA or otherwise exempt.

        Any person having contact with the Bill Parker Agency or BP Agency Investment Company in respect of financial services activities conducted in or from the DIFC should immediately contact the Enforcement Department of the DFSA at +971 4 362 1500.

      • 09 August 2007 — DFSA Licenses Guggenheim Capital Markets, LLC as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Guggenheim Capital Markets, LLC as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 06 August 2007 — DFSA enters into Memoranda of Understanding with counterpart in Iceland

        Dubai, U.A.E., August 6, 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with the integrated banking, insurance and securities regulator of Iceland.

        The MoU signing took place consecutively in Reykjavík and Dubai between Mr. Jónas Fr. Jónsson, Director General of the Financial Supervisory Authority (FME) and Mr. David Knott of the DFSA.

        As Iceland’s single financial services supervisory authority the FME is entrusted with the supervision of credit institutions, financial services providers, insurance companies and re-insurance companies as well as the securities market in Iceland.

        Chief Executive of the DFSA, Mr. David Knott said: "As one of the thirty members of the European Economic Area, Iceland is part of one of the world’s leading financial groupings. As a member of the Committee of European Securities Regulators (CESR), the Committee of European Insurance and Occupational Pension Supervisors (CEIOPS), and the Committee of European Banking Supervisors (CEBS), the FME is among regulators who are at the forefront in establishing and implementing world best practice in financial services regulation."

        "This bilateral agreement reflects the responsibilities of both agencies in the area of banking, insurance and securities. The MoU was established to facilitate the expansion of Icelandic financial institutions into the DIFC by providing for comprehensive and equivalent standards for information sharing and cooperation between the DFSA and the FME."

      • 02 August 2007 — DFSA Licenses Rasmala CBD Asset Management Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Rasmala CBD Asset Management Limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 02 August 2007 — DFSA Licenses Louvre Fund Advisors (Middle East) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Louvre Fund Advisors (Middle East) Limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 31 July 2007 — DFSA Accepts Enforceable Undertaking

        Dubai, U.A.E., July 31, 2007: The Dubai Financial Services Authority (DFSA) has accepted an Enforceable Undertaking from Rupert Neil Bumfrey in relation to his activities in the Dubai International Financial Centre (DIFC).

        The Undertaking was accepted following a DFSA investigation into Bumfrey’s conduct concerning the financial promotion of the First Persian Equity Fund Limited in the DIFC.

        The DFSA took action after receiving complaints that an offer of securities had been made by Bumfrey in the DIFC.

        A Person may not make an offer of securities in the DIFC, other than an exempt offer, unless a Prospectus has been filed with the DFSA and published. A Prospectus for the First Persian Equity Fund Limited, has not been filed with the DFSA and the offer of securities in the First Persian Equity Fund Limited is not an exempt offer pursuant to the DIFC Markets Law.

        A Person undertaking an activity in the DIFC that constitutes a financial service must first be Authorised or Recognised to carry out such an activity unless otherwise exempt. Rupert Neil Bumfrey did not have the requisite authorities or exemptions.

        Bumfrey has agreed to Terms and Conditions which are set out in the DFSA Enforceable Undertaking, dated 28 July 2007, pursuant to Article 89, Regulatory Law No. 1 of 2004. Bumfrey undertakes to refrain from making an offer of securities or carrying out any financial services in or from the DIFC for a period of twelve months from the date of the signing of the Undertaking. Further, Bumfrey will not be able to carry out any financial services in the DIFC unless appropriately Authorised by the DFSA. The Undertaking is legally enforceable under the Laws of the DIFC.

        David Knott, DFSA Chief Executive, stated: "Maintaining the integrity of the DIFC is one of the primary objectives of the DFSA. The DFSA does this by ensuring that Persons who provide financial services in the DIFC are appropriately licensed and have in place measures that protect the interests of investors. Likewise, Persons making offers of securities in the DIFC must make appropriate disclosures to potential investors about the risks associated with investing in financial products. Appropriate disclosures enable investors to make choices about the risk profile and type of products in which they wish to invest.

        This Enforceable Undertaking is a clear reminder that the DFSA will take action against persons who fail to comply with the DIFC Law."

      • 25 July 2007 — DFSA Licenses Tabarak Partners LLP as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Tabarak Partners LLP as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 23 July 2007 — Notice of new forms for existing Authorised Firms

        Existing Authorised Firms are hereby notified that the following new Supervision forms are now available:

        SUP 4 Application to change the scope of a License
        CIR Form F2 Notification of a Private Fund

        These forms, together with all forms in use by the DFSA for existing Authorised Firms and registered ASPs, can now be accessed directly from the DFSA's website in Protected Word format (previously only PDF format was freely available).

        It is hoped that this will make it simpler for Firms to obtain the editable forms they require, as well as enable access to the latest versions at all times.

        The forms are located in the AFN (Application Forms and Notices) Module of the DFSA's Rulebook.

        If you have any questions, please contact your Relationship Manager in Supervision or Shared Services.

      • 12 July 2007 — DFSA Licenses Pioneer Investcorp International Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Pioneer Investcorp International Limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 11 July 2007 — DFSA Licenses Alliance Specialty Underwriters Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Alliance Specialty Underwriters Limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 09 July 2007 — Notice of Consultation Paper

        TAKE NOTICE THAT:

        The DFSA will release the following for Consultation on the 9th of July 2007:

        •  Consultation Paper 51 — Proposals relating to Offers of Securities from the DIFC

      • 04 July 2007 — DFSA releases draft Hedge Fund Code

        Dubai, U.A.E., July 4, 2007: The Dubai Financial Services Authority (DFSA) issues today, a draft Hedge Fund Code (“Code”) for public comment

        Consultation Paper No. 50 and the Code, which are posted on the DFSA website www.dfsa.ae, seek comment on the DFSA’s proposals to introduce best practice standards for the Hedge Fund industry in the DIFC under 9 high level principles. This delivers on a promise made by the DFSA to develop such a Code in consultation with the industry after the first year of operation of the Collective Investment Funds regime.

        Ian Johnston, Managing Director, Policy and Legal Services at the DFSA, said: “We thought it appropriate to develop best practice standards under high level principles, rather than detailed rules. We selected 9 areas of risk which are more specific to Hedge Fund operations than to other types of Collective Investment Funds. This approach is consistent with the DFSA’s risk-based approach to regulation and gives the industry the flexibility to develop their own practices within the framework set by the principles.”

        The Code builds upon the legal requirements applicable to all Collective Investment Funds in the DIFC.

        By developing these proposals in line with international best practice, the DFSA is furthering its regulatory objective of ensuring that the DIFC is a well regulated and internationally competitive financial market.

        Comments on the Code close on 4 October 2007. Subject to any changes resulting from public consultation, the DFSA hopes to introduce the Code in the first quarter of 2008.

      • 04 July 2007 — DFSA releases draft Hedge Fund Code

        Dubai, U.A.E., July 4, 2007: The Dubai Financial Services Authority (DFSA) issues today, a draft Hedge Fund Code ("Code") for public comment.

        Consultation Paper No. 50 and the Code, which are posted on the DFSA website www.dfsa.ae, seek comment on the DFSA’s proposals to introduce best practice standards for the Hedge Fund industry in the DIFC under 9 high level principles. This delivers on a promise made by the DFSA to develop such a Code in consultation with the industry after the first year of operation of the Collective Investment Funds regime.

        Ian Johnston, Managing Director, Policy and Legal Services at the DFSA, said: "We thought it appropriate to develop best practice standards under high level principles, rather than detailed rules. We selected 9 areas of risk which are more specific to Hedge Fund operations than to other types of Collective Investment Funds. This approach is consistent with the DFSA’s risk-based approach to regulation and gives the industry the flexibility to develop their own practices within the framework set by the principles."

        The Code builds upon the legal requirements applicable to all Collective Investment Funds in the DIFC.

        By developing these proposals in line with international best practice, the DFSA is furthering its regulatory objective of ensuring that the DIFC is a well regulated and internationally competitive financial market.

        Comments on the Code close on 4 October 2007. Subject to any changes resulting from public consultation, the DFSA hopes to introduce the Code in the first quarter of 2008.

        -Ends-

        For further information, please contact:

        Ms. Angharad Irving - Jones
        Manager, Communications and Strategic Planning
        Dubai Financial Services Authority
        Level 13, the Gate Building, Dubai
        Tel: +971 (0) 4 362 1660
        Fax: +971 (0) 4 362 080
        E-mail: airvingjones@dfsa.ae
        http://www.dfsa.ae
        Mr. Edward D’Mello
        Group Account Director
        Polaris Public Relations
        Dubai
        Tel: + 971 (0) 4 3348520
        Fax: + 971 (0) 4 3341326
        Email: e.dmello@polaris-me.com
        http://www.dfsa.ae

        Editor’s notes:

        The Dubai Financial Services Authority (DFSA) is an independent, integrated regulatory authority responsible for the regulation of all financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), including asset management, banking, securities trading, Islamic finance, re-insurance, and an international financial exchange. The DFSA has been created using principle-based primary legislation modelled closely on that used in London and New York, and the DFSA regulatory regime operates to standards that meet or exceed those applying in the world's major financial centres.

        The DFSA is a central component of the DIFC, a financial centre established to position Dubai as a recognised hub for institutional finance, and the regional gateway for capital and investment to the Middle East.

        Mr. David Knott was appointed Chief Executive of the DFSA on June 1, 2005. He is a former Chairman of the Australian Securities and Investment Commission (ASIC) and was Chairman of the Technical Committee of the International Organisation of Securities Commissions (IOSCO).

      • 03 July 2007 — Notice of Consultation Papers

        TAKE NOTICE THAT:

        The DFSA will release the following for Consultation on the 3rd of July 2007:

        • Consultation Paper 48—Proposals to Facilitate Certain Types of Advising and Arranging

      • 28 June 2007 — DFSA Enforcement Alert — Fraudulent Documents

        Dubai, U.A.E., June 28, 2007: The Dubai Financial Services Authority (DFSA) has recently investigated the attempted use of fraudulent documents within the Dubai International Financial Centre (DIFC).

        Various individuals have recently approached Authorised Firms within the Centre and attempted to pass off forged documents, including Letters of Commitment and pledges from international financial institutions.

        The individuals involved in this fraudulent activity have represented themselves as being agents or employees of fictitious organisations, including Heritage Private Banking Limited (United Kingdom) and the Genesis Foundation Alliance (Hong Kong).

        Whilst no financial loss was suffered within the Centre, the DFSA wishes to remind members of the public to be alert to fraudulent activity and that the authenticity of financial documents or instruments should always be confirmed with the issuing institution.

      • 28 June 2007 — Notice of Rule and Guidance Amendments

        TAKE NOTICE THAT:

        (1) The DFSA will issue on 1st July 2007 a second Recognised Jurisdiction Notice which accords recognised status to Malaysia and designates certain Malaysian Islamic Funds.
        (2) The DFSA has amended the:
        The amendments are set out in Rulemaking Instrument No. 45 which comes into force on the 1st of July 2007. These amendments are associated with the Mutual Recognition Agreement (Malaysia) and the Recognised Jurisdiction Notice (No2).
        (3) The DFSA has amended the:
        The amendments are set out in Rulemaking Instrument No. 46 (Insurance Prudential Regime) and Guidance Instrument No. 2 (Insurance Prudential Regime). Both of which come into force on the 5th of July 2007. Consultation Paper 44 (Proposals Relating To Direct Long-Term Insurance, Credit Insurance And Group Supervision) explains the purpose of these amendments.
        (4) The DFSA has amended the:
        The amendments are set out in Guidance Instrument No. 3 (Principal Commodity Futures Trading Participants) which comes into force on the 5th July 2007.

        Issued on 28 June 2007

      • 28 June 2007 — Notice of Consultation Paper

        TAKE NOTICE THAT:

        The DFSA will release the following for Consultation on the 1st of July 2007:

        •  Consultation Paper 49—Proposals Relating To Fees

      • 24 June 2007 — DFSA Licenses Mizuho Corporate Bank, Ltd. as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Mizuho Corporate Bank, Ltd. as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 18 June 2007 — DFSA Licenses Gulf Fund Management Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Gulf Fund Management Limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 13 June 2007 — DFSA Registers Denton Wilde Sapte & Co as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) registers Denton Wilde Sapte & Co as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC)

      • 13 June 2007 — DFSA Registers Simmons & Simmons as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) registers Simmons & Simmons as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC)

      • 10 June 2007 — Senior Appointments at the DFSA

        Dubai, UAE, June 10, 2007: The Dubai Financial Services Authority (DFSA) today announced the following senior promotions:

        Mr. Marc Hambach — Head of Anti-Money Laundering (Supervision)

        Mr. Michael Golden — Head of Insurance

        Mr. Stephen Glynn — Head of Enforcement

        Mr. Sameer Sheth — Head of Finance

        Mr. David Haswell — Head of Internal Audit

        "These promotions follow a review of DFSA’s leadership expectations and needs into the next decade" said DFSA Chief Executive, Mr. David Knott.

      • 30 May 2007 — Notice of Rule Amendments

        TAKE NOTICE THAT:

        The DFSA has amended the:

        •   Prudential Returns Module (PRU);
        •   Prudential — Insurance Business Module (PIN);
        •   Glossary Module (GLO).

        The amendments are set out in Rulemaking Instrument No. 44 which comes into force on the 1st of June 2007.

        These amendments were made in order to de-couple PRU from the Rulebook and thereby convert it into a Sourcebook (like AFN). In general the Rules that were in Chapter 3 of PRU (version1) have been either relocated to the new Appendix 10 in PIN or alternatively they have been converted into instructional guidelines and will remain in Chapter 3 of PRU (version 2). Other than that a few consequential amendments have been carried out mainly relating to cross referencing.

        Issued on 30 May 2007

      • 27 May 2007 — DFSA Licenses CALYON as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed CALYON as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 24 May 2007 — DFSA licenses ARQAAM CAPITAL LIMITED as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed ARQAAM CAPITAL LIMITED as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 22 May 2007 — DFSA Licenses elseco limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed elseco limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 18 May 2007 — DFSA Licenses GFS Investments (Middle East) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed GFS Investments (Middle East) Limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

      • 16 May 2007 — David Knott, DFSA Chief Executive, Speech at the IFSB Submit

        Address by David Knott, Chief Executive,
        Dubai Financial Services Authority (DFSA)
        at the IFSB Summit
        Dubai
        16th May 2007

        Introduction

        Having listened already to four excellent sessions on various aspects of cross-sectoral supervision, it is difficult to think that there is much left to say. But I congratulate the organizers for highlighting this issue and for posing the questions they have. I believe that the answers adopted will impact fundamentally on the future success of markets in this region, both conventional and Islamic.

        Regulatory Models

        The question of cross-sectoral supervision is confronting, implying as it does a need to critically examine existing regulatory mechanisms and structures. Having come from a country where this was done in the late 1990s I can confidently say that this is no academic debate. It’s strategic; it’s political; and it can get personal.

        By cross-sectoral supervision, I am referring to the supervision of those financial institutions who offer any combination of banking, securities or insurance products.

        In the more advanced capital markets, a new approach to the regulation of such financial conglomerates became a hot topic of debate in the 1990s. Many countries accepted that the traditional approach of regulating the financial sector along institutional lines required review. Separate regulators for banking, securities and insurance had become difficult to sustain when the financial institutions themselves were operating across most, if not all, of those business lines. I’ll return to this international experience shortly, but we should perhaps start by asking whether there is a problem that needs fixing in this region, especially in the context of Islamic Finance.

        I think we would all agree that financial conglomeration is not yet a burning issue for most emerging markets. But it is equally clear that as our regional financial markets acquire greater sophistication and are opened up to increased competition through public policy reforms, issues of cross-sectoral regulation and supervision will become more acute.

        We already have some cross-sectoral activity in this region, including in the areas of banking and funds management; in the distribution by banks of insurance and investment products; and the provision of financial advice. From those activities alone we can easily identify a range of regulatory issues that might include capital adequacy; operational risk; conduct of business rules; disclosure standards; governance and investor protection. In some cases the cross-sectoral issues may be imbedded in the financial products themselves. For example, in the insurance sector (whether conventional or Takaful) a product may be viewed for one purpose as an insurance policy but for another purpose as an investment product. Another example may be a PSIA which may raise issues of capital adequacy but also important issues of investor protection and conduct of business.

        It is generally accepted that regulatory fragmentation and markets fragmentation are already issues of significance in the Middle East. The question is whether the growth of Islamic Finance (and, for that matter, conventional finance also), will be constrained unless this is addressed? Some may argue that this is not yet a sufficiently serious issue to justify correction. Others may reply: "Why wait until the problem becomes even harder to resolve?" A recent industry survey by McKinsey suggests that this is a legitimate question to ask.

        If one looks at the London market over the past decade it is clear that policy and strategy have driven growth and competitive success. Part of that policy and strategy has been legislative and part regulatory. In my view, one of the key planks of this policy was the creation of the Financial Services Authority, an integrated cross-sectoral financial services regulator. That policy was driven by a recognition that having separate regulators according to whether the institution called itself a bank a securities firm or an insurer was no longer consistent with the way business was conducted in the market. The inefficiencies of having overlapping regulators applying different solutions for the same or similar problems not only constrained business but resulted in increased transaction costs and compliance costs. The creation of the FSA was one of the first actions of the Blair Government and it was controversial. But you would be hard pressed to find anyone in the UK financial services sector today who would want to return to the past. By contrast, you would quickly find large numbers of industry participants in the United States who would readily trade their diversified and complex regulatory structure in return for integrated cross-sectoral regulation.

        It is no surprise to me to see the UK aspiring to prominence as an Islamic Finance market, and I believe that their cross-sectoral regulatory structure gives them a competitive advantage over the fragmented models that generally prevail in this region. However, I should point out that the Dubai Financial Services Authority has adopted the UK regulatory model.

        I am not saying that this is the only way to address cross-sectoral supervision. The Australian model, for example, is somewhat different, dividing regulatory responsibility on functional grounds between prudential risks and market conduct risks. The key point, however, is that over the past 10 years at least 19 jurisdictions have moved from institutional-based regulation to a fully integrated model.

        Several other jurisdictions are actively moving in that direction (e.g. Switzerland). The new-found emphasis of banking regulators on governance (traditionally a province of securities regulators) and introduction of MiFID in Europe will add further impetus to this trend.

        Our Approach

        Let me now say something about the DFSA’s own experience and approach to cross-sectoral issues in Islamic Finance.

        I’ll start with the obvious point that while being an integrated cross-sectoral regulator is an advantage, it by no means solves all of the practical problems confronting cross-sectoral supervision. The advantage is having a framework that makes it easier to address those problems with relative consistency and efficiency.

        But we still have major international standard setters which essentially approach their role from a single sectoral perspective, which in some respects has not kept up with market changes. The good news is that there has been greater alignment of approach between IOSCO, IAIS and Basel in recent years and that the work of the Joint Forum, which they established to consider cross-sectoral issues, has become more focused and relevant. I believe that an opportunity exists for the Joint Forum to engage more actively with IFSB and the Islamic Finance industry to identify and address some of the specific regulatory issues we have heard about at this summit. I hope this will form part of the Joint Forum’s work program over the next 12 months.

        In March 2000 a Joint Forum report highlighted the degree of commonality in certain standards set by IOSCO, IAIS and Basel, most notably licensing, supervision and intervention. Supervision is clearly an area where a cross-sectoral perspective should be adopted to ensure that the risk which an institution poses is adequately identified, measured and mitigated. Indeed that is the approach adopted by the DFSA where common supervisory tools and risk measurement and management structures are in place for conventional firms and Islamic Firms.

        Central to that approach is our belief that the regulation of Islamic Finance should be aligned with the regulation of conventional finance to the maximum extent consistent with Shari’a requirements. In our view, that is the surest and quickest way for Islamic communities to participate to their full advantage in mainstream international finance and capital markets. In the regulatory context, that means applying internationally accepted standards and principles, with variations only as required to reflect Shari’a compliance.

        Against that background, I want to add my voice to others who have warmly welcomed IFSB’s Exposure drafts on Supervisory Review Process and Market Discipline. The IFSB has recognized that the same levels of customer protection, transparency and disclosure should be provided to customers of both Islamic and conventional Firms; and that a different position is detrimental to the financial stability and reputation of the industry.

        At the DFSA we had the advantage of being able to design our regulatory structure on this construct from day one. That has made the task of creating a cohesive and balanced regulatory framework easier than in those jurisdictions where Islamic Finance has had to be bolted on to an existing conventional regulatory regime.

        Our framework of regulation will be readily recognizable to the major capital markets, based as it is on principles of IOSCO, Basel, IAIS and FATF. Our general approach to risk, disclosure and conduct applies consistently across both Islamic and conventional finance. Where variations are called for, they are implemented within the context of these generally prevailing principles.

        So, for example, although we have specific provisions to deal with PSIAs, (including a Displaced Commercial Risk capital requirement of 35%); and although specific concentration limits and risk weightings may apply to certain Islamic products or businesses — nevertheless, our Risk Assessment Model remains standard across all licensed firms, providing a level playing field and avoiding artificial distinctions or distortions in regulatory outcomes.

        The other critical part of our approach to regulating Islamic Finance has been to step back from the direct regulation of Shari’a . We decided that as a risk based regulator our focus should be on the adequacy of the systems and controls that Firms maintain for all their compliance obligations, be they conventional or Shari’a.

        In short, we are not there to regulate religious features of Islamic products but rather to ensure that those features are addressed by others under adequate systems and controls.

        We do not have our own Shari’a Board as part of the regulatory structure. Instead, we require Islamic Firms (and also conventional firms operating an Islamic window) to appoint a Shari’a Supervisory Board, which must comprise suitably qualified scholars and operate under approved policies and procedures. Some see this as a weakness in our regime compared, for example, to the Malaysian model. I think many in industry would prefer a centralised Shari’a approval structure and I can understand that. However, we believe that our approach responds in a practical way to the circumstances that currently prevail in our region.

        In summary, I would say that our experience to date has validated our approach to cross-sectoral issues as well as the advantages of our regulatory model. We have an active dialogue with the industry and contribute to the work of the DIFC Islamic Financial Advisory Council, a group of practitioners and experts established within our financial Centre to promote the further development of the industry. We have also been working on the promotion of cross-border Islamic Finance transactions and recently concluded a mutual recognition agreement with the Malaysian Securities Commission to facilitate the marketing of Islamic Funds between our respective jurisdictions.

        Conclusion

        In conclusion I leave you with the following key thoughts:

        First the development of the Islamic Finance sector deserves a more co-ordinated and cohesive regulatory framework than it is getting;
        Secondly consumers of Islamic Finance products deserve more transparent product regulation than they are getting; and
        Thirdly that both of these concerns will require an increased cross-sectoral approach to the content of regulation and the way it is administered.

      • 10 May 2007 — Notice of Rule Amendments

        TAKE NOTICE THAT:

        The DFSA has amended the:

        •   General (GEN);
        •   Conduct of Business (COB);
        •   Ancillary Service Providers (ASP);
        •   Prudential—Insurance Business (PIN);
        •   Prudential—Investment, Insurance Intermediation and Banking Business (PIB);
        •   Offered Securities Rules (OSR);
        •   Glossary (GLO);
        •   Collective Investment (CIR);
        •   Supervision (SUP);
        •   Anti Money Laundering (AML);
        •   Authorisations (AUT); and
        •   Authorised Market Institutions (AMI).

        The amendments are set out in Rulemaking Instrument No. 43 which comes into force on the 1st of June 2007. Consultation Papers 42 and 45 explain the purpose of these amendments.

        Issued on 10 May 2007

      • 10 May 2007 — Victorian Treasurer Visits DIFC

        Dubai, UAE, May 10, 2007: The Treasurer of Victoria, the Honourable John Brumby today visited the Dubai International Financial Centre (DIFC) as part of a visit to the region and was met by Mr. David Knott, Chief Executive of the DFSA together with Mr. Nasser Al Shaali, Chief Executive of Dubai International Financial Centre Authority (DIFCA) and Dr. Nasser Saidi, Chief Economist of the DIFC. His Excellency the Australian Ambassador to the UAE, Mr. Jeremy Bruer, also attended the meeting.

        The visit follows an invitation extended to Mr. Brumby by His Excellency Dr. Omar Bin Sulaiman, the Governor of the Centre, when, as part of a DIFC delegation to Australia, His Excellency and Mr. Knott met with the Treasurer in Melbourne in September 2006.

        Mr. Brumby has the distinction of currently being the longest serving of Australia’s State Treasurers. He is also Minister for Regional and Rural Development and Minister for Innovation. In this context Mr. Brumby expressed considerable interest in the emergence of the DIFC as the world’s fastest growing financial centre and as the international investment hub for the time zone between Europe and Asia. A discussion took place on other matters of mutual interest, including the role of regulation and supervision. The Treasurer also noted with interest that active discussions are taking place between DIFCA executives and a number of Australian entities about participation in the DIFC.

      • 09 May 2007 — DFSA Registers Lovells (Middle East) LLP as an Ancillary Service Provider

        The Dubai Financial Services Authority (DFSA) has registered Lovells (Middle East) LLP as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

      • 09 May 2007 — Consultation Paper No.46 issued for public comment

        09 May 2007—Consultation Paper 46 issued for public comment

      • 07 May 2007 — Mr. Abdulla Saleh succeeds Dr. Habib Al Mulla as DFSA Chairman

        Dubai, Monday, 7 May 2007: The Dubai Financial Services Authority (DFSA) today announced that its Chairman, Dr. Habib Al Mulla will not renew his term which expires next month.

        Dr. Al Mulla has decided that the workload of his legal practice and other commitments require more of his time. He is therefore not seeking reappointment to the Board for a further term.

        Mr. Abdulla Saleh, the Deputy Chairman of the DFSA will succeed Dr. Al Mulla as Chairman.

        His Excellency, Governor of the Dubai International Financial Centre, Dr. Omar bin Sulaiman said:

        “Dr. Al Mulla has served as Chairman of the DFSA since its formation and prior to that was a Board Member of its predecessor, the DIFC Regulatory Council. He was instrumental in advising on the laws establishing the DIFC and has played a prominent role in its successful development over the intervening period.

        Under Dr. Al Mulla’s Chairmanship the DFSA has established an international reputation for excellence in financial services regulation.

        On behalf of all of us at the DIFC, I extend my thanks and congratulations to Dr. Al Mulla and my best wishes to Mr. Abdullah Saleh in his new role.”

      • 06 May 2007 — DFSA Licenses Alternative Investment Strategies Management (Dubai) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Alternative Investment Strategies Management (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 03 May 2007 — DFSA Obtains Final Orders in Dubai Options Exchange Matter

        Dubai, May 3, 2007 — The DFSA has obtained final orders from the DIFC Court against several of the defendants involved in the operation of fictitious websites called the Dubai Options Exchange, the United Arab Emirates Commodity Futures Board and Cambridge Capital Trading. The Chief Justice of the DIFC Court, the Honourable Sir Anthony Evans had previously issued temporary injunctions closing down the fictitious websites, which targeted investors by falsely claiming to offer currency options trading within the DIFC. Close cooperation between the Dubai Police, ESCA and the DFSA’s regulatory counterparts in Malaysia, Australia and the USA resulted in the speedy shut down of the websites and the freezing of over US $600,000 in investor funds.

        On 1 May 2007, Sir Anthony Evans issued permanent restraining orders against defendants Ameerdeen Abdul Majid Thanikkodi, Syed Mohamed A/L Kabdul Rahman, AI Global Resources, Everyone’s Internet and Select Solutions LLC. Based on the consent of the DFSA and Husam Abu-Amara and Globalstar Telecom & Technology, Sir Anthony Evans also issued a final order staying the DFSA’s civil claim against Abu-Amara and Globalstar with no order for costs against any party.

        All of the final orders will be posted on the DIFC Court website www.difccourts.ae under Judgements and Orders.

      • 03 May 2007 — DFSA Obtains Final Orders in Dubai Options Exchange Matter

        Dubai, May 3, 2007 — The DFSA has obtained final orders from the DIFC Court against several of the defendants involved in the operation of fictitious websites called the Dubai Options Exchange, the United Arab Emirates Commodity Futures Board and Cambridge Capital Trading. The Chief Justice of the DIFC Court, the Honourable Sir Anthony Evans had previously issued temporary injunctions closing down the fictitious websites, which targeted investors by falsely claiming to offer currency options trading within the DIFC. Close cooperation between the Dubai Police, ESCA and the DFSA’s regulatory counterparts in Malaysia, Australia and the USA resulted in the speedy shut down of the websites and the freezing of over US $600,000 in investor funds.

        On 1 May 2007, Sir Anthony Evans issued permanent restraining orders against defendants Ameerdeen Abdul Majid Thanikkodi, Syed Mohamed A/L Kabdul Rahman, AI Global Resources, Everyone’s Internet and Select Solutions LLC. Based on the consent of the DFSA and Husam Abu-Amara and Globalstar Telecom & Technology, Sir Anthony Evans also issued a final order staying the DFSA’s civil claim against Abu-Amara and Globalstar with no order for costs against any party.

        All of the final orders will be posted on the DIFC Court website www.difccourts.ae under Judgements and Orders.

      • 02 May 2007 — DFSA enters into Memoranda of Understanding with Counterparts in Switzerland and Luxembourg

        Dubai, UAE, May 2, 2007: The Dubai Financial Services Authority (DFSA) entered into Memoranda of Understanding this 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, Mr. Knott met with Mr. Daniel Zuberbuhler, Director of the Swiss Federal Banking Commission (the SFBC). Today in Luxembourg Mr. Knott met with Mr. Jean-Nicolas Schaus, Directeur General of Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF).

        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 said: “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 said.

        “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,” Knott pointed out.

      • 30 April 2007 — UN Security Council Resolutions and sanctions: Al-Qaida and Taliban

        The Dubai Financial Services Authority advises all Authorised Firms, Ancillary Service Providers, Authorised Market Institutions and Registered Auditors of the financial sanctions imposed by UN Security Council Resolution 1267 (1999) against individuals and entities belonging to or associated with the Taliban. Please note that the sanctions regime has been modified and strengthened by subsequent resolutions, including resolutions 1333 (2000), 1390 (2002), 1455 (2003), 1526 (2004), 1617 (2005) and 1735 (2006) so that the sanctions now cover individuals and entities associated with Al-Qaida, Usama bin Laden and/or the Taliban wherever located. Additional resolutions are to be expected in future.

        Please refer to the Al-Qaida and Taliban UN Sanctions Committee website for further information on these sanctions including the current Consolidated List of the named individuals and entities.

        Authorised Firms, Ancillary Service Providers, Authorised Market Institutions and Registered Auditors are required to check and to monitor whether they maintain any accounts or otherwise hold any funds, other financial assets, economic benefits and economic resources for the individuals named in the Consolidated List. If this is the case, firms are required to provide details of these to the Anti Money Laundering and Suspicious Cases Unit of the UAE (AMLSCU) and DFSA without delay.

        Further inquiries on this matter should be directed to the firm's Relationship Manager or info@dfsa.ae

      • 26 April 2007 — DFSA Licenses DME and Recognises NYMEX as Clearing House

        Dubai, UAE, Date: Thursday, 26 April, 2007: The Dubai Financial Services Authority (DFSA) has today licensed the Dubai Mercantile Exchange Limited (DME) as an Authorised Market Institution (AMI) in the Dubai International Financial Centre (DIFC).

        The DFSA has also today granted the status of Recognised Body to New York Mercantile Exchange Inc. (NYMEX) to carry on the Financial Service of Operating a Clearing House in the DIFC. On the 17th of April 2006, NYMEX and Commodity Exchange Inc. (COMEX) were each granted the status of Recognised Bodies within the DIFC to carry out the Financial Service of Operating an Exchange.

        DFSA’s Chief Executive Mr. David Knott said, “Today’s licensing approvals are an important last stage towards the launching of DME’s operations within the DIFC.

        The DFSA has worked closely with DME over many months to ensure that the new exchange will operate an orderly, fair and efficient market meeting both domestic and international expectations. The DME model contains a number of innovative and sophisticated features that have required careful consideration from both commercial and regulatory perspectives.

        We believe that the DME is well placed to develop a world class market; to contribute to the efficiency of commodities trading and pricing throughout our region; and to further enhance the DIFC’s standing as a progressive, reputable and well regulated financial centre.

        We will continue our co-operation with USA regulators with a view to expediting regulatory approvals in that country, ahead of DME’s proposed 1 June 2007 launch.”

      • 20 April 2007 — DFSA Licenses Wallich & Matthes (Dubai) Limited as an Authorised firm

        The Dubai Financial Services Authority (DFSA) has licensed Wallich & Matthes (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 18 April 2007 — DFSA Again Warns Investors Against Unlicensed Investment Website Operations

        Dubai, UAE, April 18, 2007: The Dubai Financial Services Authority (DFSA) has been successful in closing down a Dubai-hosted website, www.smiequity.com, used to front an unlicensed investment company, SMI Equity, using the UAE as a base address on the website.

        The DFSA was alerted to the unlicensed operation of SMI Equity, having received information from an investor in the Czech Republic. The investor had already deposited USD 45,000 into the bank account of SMI Equity and received no response from SMI Equity after the investment was made. The investor contacted the DFSA having seen DFSA’s website warnings, which lists information and past media releases on internet scams and frauds.

        While unlicensed, SMI Equity claimed to offer investment opportunities and provide investment advice to prospective customers in Eastern Europe, using a UAE address and P.O. Box. The website was used to encourage investors to invest mainly in pre-IPO securities in the United States.

        The DFSA immediately contacted the website host provider in Dubai and arranged to close the website down with immediate effect.

        David Knott, Chief Executive of the DFSA said: “The internet has added a fantastic new dimension to our daily lives but has also opened up prospects for criminals to prey on the public.

        Cold calling schemes will increasingly occur in the Middle East, as Dubai and other regional centres expand their capital markets. The DFSA regards awareness of these risks being a matter for constant reminder and public education and we are fortunate that some of the investors in this scam had the good sense to contact the DFSA.

        All investors are advised not to respond to unsolicited telephone calls or emails that ask for money or recommend investments without first checking with a trusted and experienced advisor. Whenever there is any suspicion of foul play, the public should contact the relevant regulators or law enforcement authorities,” Mr. Knott concluded.

      • 16 April 2007 — Dr. Habib Al Mulla Chairman Calls for Effective Trade and Professional Bodies to Develop Standards for Professionals and Firms

        Dubai, UAE, April, 16 2007: Today, at the Corporate Governance Forum, Dr Habib Al Mulla called for more commitment to corporate governance, stating ‘we need effective trade and professional bodies to develop standards for professionals and firms, better, and more critical, business reporting and we need stronger disclosure requirements’.

        Dr Al Mulla was addressing the subject of corporate governance and the role of regulation in effectively dealing with the multiplicity of rules.

        Dr. Al Mulla said, ‘according to the World Economic Forum report, the UAE is the most competitive economy and is number one in the Transparency International Report in the Arab world but we must establish a continuous improvement programme and further progress our position.’

        In concluding Dr Al Mulla, stressed that, ‘we need effective trade and professional bodies to develop standards for professionals and firms; we need better, and more critical, business reporting and we need stronger disclosure requirements; this to ensure the UAE continues to close the gap with the leading economies and financial centres’.

        In providing an insight into the OECD Principles on corporate governance, Dr. Al Mulla explained that while corporate governance is primarily about the protection of shareholders, there are other important stakeholders to be protected, ‘employees are often thought of, but creditors are also important,’ he said before adding ‘the basics of company law are so familiar that we sometimes forget that they involve a bargain in which shareholders gain limited liability but at the price of basic governance measures to protect creditors’. Dr Al Mulla expanded on this point explaining, there are the basics of company law designed to protect creditors commenting that, ‘those basics also deal with divergences of interest between shareholders, covering voting, oppression of minorities, and so on’.

        Dr Al Mulla pointed out that supervisors put great weight on governance in their standards, explaining they do this because good governance is the only way of consistently delivering the outcomes that regulators want – to protect depositors, policyholders and investors.

        Dr Al Mulla addressed the challenges facing shareholders, commenting, ‘as companies grow, it becomes increasingly difficult for shareholders to play an active part in their governance day by day, and their interests can easily diverge from those of management’.

        In turning his attention to the DFSA he explained that the DFSA has a strong independent Board and its functions are clearly set out in law. He went on to explain, ‘we have adopted a strong Code of Values and Ethics for employees’. The DFSA is transparent in publishing rules for consultation, provides reasons for decisions, and there are rights of appeal to independent bodies, he added.

      • 12 April 2007 — DFSA Licenses Daiwa Securities SMBC Europe Limited as an Authorised firm

        The Dubai Financial Services Authority (DFSA) has licensed Daiwa Securities SMBC Europe Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 11 April 2007 — DFSA Licenses VP Wealth Management (Middle East) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed VP Wealth Management (Middle East) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 10 April 2007 — DFSA Obtains Interim Injunctions to Stop Internet Fraud

        Dubai, UAE, April 10, 2007: The Dubai Financial Services Authority (DFSA) obtained injunctions in the Dubai International Financial Centre (DIFC) Court today against the operators of the Euro-America Index.

        The DFSA was alerted to the operations of Euro-America Index who purported to offer returns of between 100% to 230% on 100 day index investment products. On their website, Euro-America Index claimed to have three global trading centres, including Chicago and Zurich, as well as one based in Dubai and referred to the DIFC. The DFSA investigation has revealed that Euro-America Index was never authorised to trade in any of these financial centres, including the DIFC.

        The DFSA was assisted in this investigation by the US Securities and Exchange Commission (SEC) and the Swiss Federal Banking Commission (SFBC).

        The orders, which prohibited the operation of the website and stopped the conduct of Euro-America Index, were made by the Deputy Chief Justice of the DIFC Court, the Honourable Michael Hwang after a court appearance in Dubai via a video link with the judge in Singapore. Cooperation was received by the website domain owner, Domains by Proxy Inc. and GoDaddy.com based in Arizona, USA.

        David Knott DFSA Chief Executive stated: "Once again the DFSA acted swiftly to protect the reputation of the DIFC and prevent potential loss to investors. Investors must exercise extreme caution when they view sites on the internet, be sure to obtain confirmation that the organisation is licensed and obtain independent financial advice before parting with their money. We are starting to see an increased trend in these types of e-frauds in the Middle East. Where they occur in our jurisdiction, the DFSA will take appropriate action".

      • 10 April 2007 — DFSA Obtains Interim Injunctions to Stop Internet Fraud

        Dubai, UAE, April 10, 2007: The Dubai Financial Services Authority (DFSA) obtained injunctions in the Dubai International Financial Centre (DIFC) Court today against the operators of the Euro-America Index.

        The DFSA was alerted to the operations of Euro-America Index who purported to offer returns of between 100% to 230% on 100 day index investment products. On their website, Euro-America Index claimed to have three global trading centres, including Chicago and Zurich, as well as one based in Dubai and referred to the DIFC. The DFSA investigation has revealed that Euro-America Index was never authorised to trade in any of these financial centres, including the DIFC.

        The DFSA was assisted in this investigation by the US Securities and Exchange Commission (SEC) and the Swiss Federal Banking Commission (SFBC).

        The orders, which prohibited the operation of the website and stopped the conduct of Euro-America Index, were made by the Deputy Chief Justice of the DIFC Court, the Honourable Michael Hwang after a court appearance in Dubai via a video link with the judge in Singapore. Cooperation was received by the website domain owner, Domains by Proxy Inc. and GoDaddy.com based in Arizona, USA.

        David Knott DFSA Chief Executive stated: "Once again the DFSA acted swiftly to protect the reputation of the DIFC and prevent potential loss to investors. Investors must exercise extreme caution when they view sites on the internet, be sure to obtain confirmation that the organisation is licensed and obtain independent financial advice before parting with their money. We are starting to see an increased trend in these types of e-frauds in the Middle East. Where they occur in our jurisdiction, the DFSA will take appropriate action".

      • 05 April 2007 — DFSA Licenses AIG Global Investment Corp (Middle East) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed AIG Global Investment Corp (Middle East) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 03 April 2007 — DFSA Receives Award for Innovations in Islamic Finance

        Dubai, UAE, April 3, 2007: The Dubai Financial Services Authority (DFSA) is pleased to announce that it has received the Failaka Islamic Fund award for "Best Contribution to Growth and Development." The award was presented to the DFSA by Failaka International at the 2nd Annual Failaka Islamic Funds awards dinner in Dubai, which took place on 2nd April 2007.

        This prestigious award recognises the DFSA’s contributions to transparency and innovation in Islamic Finance.

        Failaka International specialises in market research and publication of data for Islamic funds, based the award on DFSA’s substantial contributions in enacting a high quality collective investment funds regime during 2006, which selectively incorporates international best practice. The innovative DFSA regime brings a higher degree of transparency to the field of Islamic funds.

        Mr. David Knott, Chief Executive of the DFSA, said: "We are pleased to be recognised for innovations that facilitate the growth of Islamic Finance. We will continue to take a leadership role in promoting effective risk-based supervision of the evolving market for Islamic Finance, as well as financial services activities more generally. I congratulate our DFSA team members who helped to construct our high quality funds regime."

      • 02 April 2007 — DFSA Licenses Killik & Co as an Authorised firm

        The Dubai Financial Services Authority (DFSA) has licensed Killik & Co as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 02 April 2007 — DFSA Licenses UTI Bank Limited as an Authorised firm

        The Dubai Financial Services Authority (DFSA) has licensed UTI Bank Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 30 March 2007 — DFSA Licenses Daman Securities International Limited as an Authorised firm

        The Dubai Financial Services Authority (DFSA) has licensed Daman Securities International Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 28 March 2007 — DFSA Consults on Insurance Rules

        Dubai, UAE, March 28, 2007: The Dubai Financial Services Authority (DFSA) has issued on its website Consultation Paper No 44.

        The Consultation Paper seeks public comment on a number of proposals relating to insurance, specifically direct long-term insurance, credit insurance and group supervision.

        The proposals relating to direct long-term insurance provide a capital adequacy framework for DIFC incorporated insurers conducting direct-long term insurance business from a branch located outside the DIFC.

        Credit insurance related proposals provide for a capital adequacy regime for insurers who wish to write credit insurance. These proposals draw a distinction between credit enhancement insurance (for example covering bonds against default) and more conventional credit insurance business. The proposals only cater to insurers writing credit enhancement business as a small part of their more general credit insurance business and not for specialist monoline insurers, for whom special provisions would be necessary.

        The proposals relating to group supervision are designed to provide for consolidated supervision of groups containing insurers, and are broadly similar to those for consolidated supervision in other areas (to which small adjustments are made).

        In addition, the proposals would reduce the underpinning minimum capital for a non-captive insurer established in the DIFC from USD 100 million to USD 10 million.

        David Knott, Chief Executive of the DFSA said, “These proposals demonstrate our commitment to continue to develop our regime in line with international standards and the needs of the changing marketplace in which we operate.”

      • 27 March 2007 — DFSA enters into Memorandum of Understanding with Bank Negara Malaysia

        Kuala Lumpur, Malaysia, 27 March, 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with Bank Negara Malaysia (BNM), the country’s Central Bank, committing both parties to the further development of international Islamic Finance markets.

        The MoU was signed by the Chief Executive of the DFSA, David Knott, and the Deputy Governor of Bank Negara, Datuk Zamani Abdul Ghani. The signing coincided with a visit to Kuala Lumpur by Mr. Knott and his participation in the Global Islamic Finance Forum.

        Mr. Knott said: “The DFSA has today announced two highly significant joint initiatives with Malaysian authorities that will contribute to the future growth of international Islamic Finance markets.

        “The first initiative with the Securities Commission, Malaysia has cut regulatory red tape for the distribution of Islamic funds in the Dubai International Financial Centre (DIFC) and Malaysia. This will make it easier for investors to access products from both jurisdictions.

        “The second initiative to work constructively with Bank Negara in developing international Islamic finance markets will exploit the experience and skills that both Dubai and Malaysia have established as leaders in their respective regions. The DFSA is confident that these new relationships will enhance the DIFC’s reputation as a centre of excellence for Islamic Finance in the Middle East”, added Mr. Knott.

      • 27 March 2007 — DFSA enters into mutual recognition agreement with Malaysian Securities Commission to facilitate cross-border flows of Islamic Investment Funds

        Putrajaya, Malaysia, 27 March 2007: The Dubai Financial Services Authority (DFSA) has entered into a mutual recognition agreement to facilitate cross border distribution of Islamic investment products with the Securities Commission of Malaysia (SC). The agreement was signed today by Dato’ Zarinah Anwar, Chairman of the SC, and Mr. David Knott, Chief Executive of the DFSA at a ceremony in Kuala Lumpur, witnessed by the Second Finance Minister of Malaysia, Yang Berhormat Tan Sri Nor Mohamed Yakcop.

        David Knott said: "The DFSA is delighted that, as a result of this joint initiative, DIFC domestic Funds will be the first foreign funds permitted to be sold into Malaysia. This arrangement is a positive step for both jurisdictions, and is intended to facilitate the cross border flow of Islamic capital market products, as envisaged when this initiative was first announced in August 2006.”

        “The DFSA is committed to assisting both the Dubai International Financial Centre (DIFC) and the Dubai International Financial Exchange (DIFX) in their objective to promote innovation and growth of Islamic capital markets in the Middle East,” he added.

        This is the first mutual recognition agreement entered into by both regulators, and is a significant milestone for both the SC and the DFSA in the area of cross-border regulation of Islamic investment funds and the development of deeper and broader investment markets. Under the mutual recognition framework, Islamic funds that have been approved by the SC may be marketed and distributed in the DIFC with minimal regulatory intervention, following the entry of Malaysia onto the DFSA’s list of Recognised Jurisdictions. Similarly, Islamic funds which have been registered or notified with the DFSA will be able to have access to Malaysian investors. Supported by a bilateral memorandum of understanding, both regulators will work closely in the areas of supervision and enforcement of securities laws to ensure adequate protection for investors.

        This follows an earlier announcement, on 15 August 2006, of a joint initiative on regulatory alignment to facilitate Islamic finance transactions between the DIFC and Malaysia, which is now complete. The agreement today marks a significant liberalisation effort on the part of the SC and DFSA to encourage the bilateral flow of Islamic funds between the two jurisdictions.

        Dato’ Zarinah said, “By entering into a mutual recognition arrangement with the DFSA, it demonstrates our mutual intention to accelerate the growth of our respective investment management industries through the trading in each other’s markets of mutually recognised investment products that are acceptable to both authorities. The mutual recognition framework will provide many benefits to market participants including lower regulatory cost as well as an enlarged investor base. It will also provide investors in each jurisdiction with greater choice of Islamic investment products. This arrangement with the DFSA is also in line with the Malaysia’s aspiration to evolve its role as an international Islamic financial centre”.

      • 26 March 2007 — DFSA Chairman Calls On All Markets To Draw On Success Of Major Financial Centres To Boost Shareholder Confidence

        Dubai, UAE, March 26, 2007: Today, at the 2nd Middle East IPO Summit in Dubai, Dr. Habib Al Mulla, Chairman of the DFSA, called for all markets to draw on the success of the major financial centres which he explained had achieved high Investor Protection Indices in the World Bank Doing Business Survey.

        In explaining the DFSA’s regulatory approach with regard to the Offer of Securities and companies listed on the Dubai International Financial Exchange (DIFX), Dr. Al Mulla described the DFSA as a strong regulator which was focused on ‘confidence and protection’. Dr. Al Mulla said, ‘shareholder confidence is an essential component of a sound capital market and with that comes a need to ensure that investors are protected,’ before adding, ‘too many markets are playing lip-service to the cause of investor protection and the gap is growing when compared to the best practice found in the major financial centres.’

        Dr. Al Mulla made reference to the DFSA’s busting of an internet fraud and the closing down the operation of fictitious websites called the Dubai Options Exchange, the United Arab Emirates Commodity Futures Board and Cambridge Capital Trading that were claiming to offer financial services within the DIFC, stating ‘while a number of investors have been caught out by this fraud, many will have been saved’. He added, ‘this brings another dimension to international best practice - international cooperation. Dr. Al Mulla stated ‘the DFSA had cooperated both locally and internationally using its Memoranda of Understanding arrangements with the Emirates Securities and Commodities Authority, the Dubai Police and the Malaysian, US, UK and Australian Regulators’.

        Dr. Al Mulla called on all markets, governments, and practitioner associations to cooperate to increase investor confidence in the region stating, ‘they need to embrace regulatory measures and exceed them wherever there is an opportunity to improve transparency, enhance disclosure and good governance’.

        In concluding, Dr. Al Mulla explained that "the DFSA’s regulatory approach provides a unique insight and response to globalizing markets and we are keen to share and exchange our knowledge and experience with other regulatory bodies, governments and practitioner associations; we can all learn from each other to boost shareholder confidence throughout the Middle East".

      • 22 March 2007 — DFSA grants recognition to Eurex Frankfurt AG

        Dubai, UAE, March 22, 2007: The Dubai Financial Services Authority (DFSA) has announced that Eurex Frankfurt AG (EFAG) has been granted the status of a Recognised Body within the Dubai International Financial Centre (DIFC).

        The recognition allows EFAG to offer access to its products to authorised members in the DIFC. EFAG operates a derivatives exchange, Eurex Deutschland which is the largest such exchange in the world.

        David Knott, Chief Executive of the DFSA, said:

        "This recognition is another step in connecting Dubai with international markets within the framework of world class regulation. In doing so, the DFSA has noted the high standards of German regulation applicable to EFAG. "

      • 21 March 2007 — DFSA Licenses Al Arabi Capital Limited as an Authorised firm

        The Dubai Financial Services Authority (DFSA) has licensed Al Arabi Capital Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 21 March 2007 — Consultation Paper 44 issued for public comment

        21 March 2007 — Consultation Paper 44 issued for public comment.

      • 19 March 2007 — DFSA Licenses Lancashire Marketing Services (Middle East) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Lancashire Marketing Services (Middle East) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 16 March 2007 — DFSA enters into Memorandum of Understanding with Guernsey Financial Services Commission

        St. Peter Port, Guernsey, March 16, 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding with the Guernsey Financial Services Commission (GFSC).

        The MoU was signed by Mr. David Knott, Chief Executive of the DFSA, and Mr. Peter Neville, Director General of the GFSC.

        The GFSC is responsible for regulation and supervision of banking, collective investment funds, insurance, reinsurance and investment business in Guernsey.

        Mr. Knott said, "The business links between financial firms in Guernsey and the Dubai International Financial Centre will become increasingly significant, especially with the introduction last year of trust and collective investment fund regimes in the DIFC, making the GFSC an important relationship for the DFSA."

        The signing of this MoU has formalised arrangements for co-operation and information sharing between the two regulators.

        Mr. Knott added, "Today’s bilateral agreement reflects each agency’s responsibilities, not just for securities, but as an integrated regulator of its banking and insurance sectors. It recognises that both regulators place reliance on the quality of regulatory standards administered in the other’s jurisdiction."

      • 07 March 2007 — Consultation Paper No.45 Issued for Public Comment

        7 March 2007 — Consultation Paper 45 issued for public comment.

      • 07 March 2007 — DFSA Enters into Memorandum of Understanding with Netherlands Financial Markets Authority

        Dubai, UAE, March 7 2007: Today the Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) with the Netherlands Financial Markets Authority (AFM).

        The MoU signing coincided with a visit to the DIFC by Mr. Arthur Docters van Leeuwen, chairman of the AFM and inaugural chairman of the Committee of European Securities Regulators (CESR).

        Established on 1 March 2002, the AFM is responsible for supervising the conduct of the entire financial market sector: savings, investment, insurance and loans. By supervising the conduct of the financial markets, AFM aims to make a contribution to the efficient operation of these markets.

        Chief Executive of the DFSA, Mr. David Knott, said: "I am particularly pleased that my friend Arthur Docters van Leeuwen has come to Dubai to sign this MoU. As the founding Chairman of CESR, Mr. Docters van Leeuwen has led European regulators in adopting and harmonising international standards. The AFM, which he also chairs, is one of Europe’s pre-eminent financial services authorities. As such this memorandum of understanding is a most significant initiative, recognising the importance of these arrangements for cooperation and information sharing between the two regulators."

        Today’s bilateral agreement reflects each agency’s responsibilities, not just for securities, but as a conduct of business regulator of its banking and insurance sectors.

        As Dutch financial services firms join the DIFC this bilateral relationship will assume increasing importance as both regulators rely on the quality of regulatory standards administered in the other’s jurisdiction."

      • 01 March 2007 — DFSA Licenses Unicontrol Commodity Finance Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Unicontrol Commodity Finance Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 26 February 2007 — DFSA Licenses MIF (Middle East) Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed MIF (Middle East) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 26 February 2007 — DFSA signs MoU with New Zealand Securities Commission

        Dubai, UAE, 26 February 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding with the New Zealand Securities Commission (NZSC).

        The MoU was signed by Mr. David Knott, Chief Executive of the DFSA, and Ms. Jane Diplock, Chair of the NZSC. The signing coincided with a visit to the region by Diplock in her capacity as Chair of the Executive Committee of the International Organisation of Securities Commissions (IOSCO).

        Mr. Knott said, “Under Jane Diplock’s leadership, the New Zealand Securities Commission is recognized as being at the forefront of IOSCO’s efforts to foster international cooperation among securities regulators. The DFSA is similarly committed and both the DFSA and the NZSC are signatories to the IOSCO Memorandum of Understanding, an initiative that has set the benchmark for cross-border investigative assistance.

        “There is potential for business links between financial firms in New Zealand and the Dubai International Financial Centre and, with the growth of the DIFC and growing participation from Asia Pacific, these links will become increasingly significant making the NZSC an important relationship for the DFSA.”

        The signing of today’s broader bilateral MoU has put in place arrangements for cooperation and information sharing between the two regulators. It recognizes that both regulators rely on the quality of regulatory standards administered in the other’s jurisdiction.

      • 25 February 2007 — Enforcement alert — Internet Fraud Warning

        The DFSA has issued several media releases to warn the public of an Internet Fraud and has obtained orders to close down the operation of fictitious websites called the Dubai Options Exchange, the United Arab Emirates Commodity Futures Board and Cambridge Capital Trading that were claiming to offer financial services within the DIFC. The orders also relate to internet service providers. The websites falsely represented that the Dubai Options Exchange and the United Arab Emirates Commodity Futures Board existed in the DIFC and that DFSA Authorised Firms were Members of the Dubai Options Exchange and could trade currency options on behalf of investors. The fraudulent scheme targeted Australian and Singaporean investors who were cold called by representatives of Cambridge Capital Trading who directed investors to these false websites and asked for funds to a transferred into a bank account in Malaysia.

        The DFSA welcomes any information relating to these fictitious websites and any related matters. Please send any information to:

        info@dfsa.ae

      • 19 February 2007 — DFSA Licenses Commander Asset Management Limited as an Authorised Firm

        The Dubai Financial Services Authority (DFSA) has licensed Commander Asset Management Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

      • 18 February 2007 — Malaysian Arrests Follow DFSA Internet Investigation

        Dubai, UAE, February 18, 2007: Following the DFSA investigation into an Internet fraud in Dubai, the Malaysian Securities Commission in Kuala Lumpur yesterday made three arrests and froze USD 350,000 after finding a secondary account linked to the fraudsters. Two were released and one person is currently being questioned by Malaysian authorities. These actions were taken by the Malaysian authorities directly to assist the ongoing DFSA investigation.

        The actions relate to the fraudulent investment scheme targeting Australian and Singaporean investors who were cold called by representatives of Cambridge Capital Trading, a fictitious London firm. Investors were directed to websites called the Dubai Options Exchange and a fictitious regulator, the UAE Commodity Futures Board. Cambridge Capital Trading asked investors to transfer funds to a bank account in Malaysia, upon becoming a client of the fictional exchange. The perpetrators took great care to construct realistic web sites, electronic answering services and a bogus facsimile in the UK to fool investors and to conceal their identities. The DFSA has confirmed that the billing address for the web sites is also false.

        Civil court orders obtained in the Dubai International Financial Centre Court before the Chief Justice Sir Anthony Evans have now been served on the Internet service providers in the USA and Malaysia. It is expected that the websites will be closed down shortly with the cooperation of the internet service providers.

        The DFSA is continuing its investigation, working jointly with ESCA and Dubai Police and our counterparts in the United Kingdom, USA, Australia and Malaysia.

      • 15 February 2007 — Dubai Financial Services Authority (DFSA) busts internet fraud

        Dubai, UAE, February 15, 2007: The DFSA yesterday, obtained injunctions in the Dubai International Financial Centre (DIFC) Court against Husam A. Abu-Amara and Globalstar Telecom & Technology and others, for their involvement in a fraudulent internet investment scheme. The orders o