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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
2008
15 October 2008 — DFSA licenses BBY Dubai Limited as an Authorised Firm
Notices
Financial Markets Tribunal
Archive

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  • 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.  Authorised Individual
      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:

      •  Ancillary Service Providers Module (ASP)
      •  Anti Money Laundering Module (AML)
      •  Authorised Market Institutions (AMI)
      •  General Module (GEN)
      •  Glossary Module (GLO)

      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

      •  CP53—“Prudential Rules for Islamic Finance”
      •  CP54—“Implementation of DFSA’s Key Policy Review”

      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).