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Dubai Financial Services Authority (DFSA): Contents

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  • Chapter 1 — The Structure of the DFSA

    • 7. The DFSA

      (1) The DFSA is a body established under Dubai Law.
      (2) The DFSA shall have its own constitutional provisions, which shall incorporate the provisions of Schedule 2, and which shall not be inconsistent with those provisions.
      (3) In exercising its powers and performing its functions the DFSA shall act in an independent manner, notwithstanding that it is an agency of the government of the Emirate of Dubai.

    • 8. The Powers, Functions and Objectives of the DFSA

      (1) The DFSA has such functions and powers as are conferred, or expressed to be conferred, on it:
      (a) by or under the Law; and
      (b) by or under any other law made by the Ruler.
      (2) The DFSA has power to do whatever it deems necessary for or in connection with, or reasonably incidental to, performing its functions and exercising its powers conferred in accordance with (1).
      (3) In performing its functions and exercising its powers, the DFSA shall pursue the following objectives:
      (a) to foster and maintain fairness, transparency and efficiency in the financial services industry (namely, the financial services and related activities carried on) in the DIFC;
      (b) to foster and maintain confidence in the financial services industry in the DIFC;
      (c) to foster and maintain the financial stability of the financial services industry in the DIFC, including the reduction of systemic risk;
      (d) to prevent, detect and restrain conduct that causes or may cause damage to the reputation of the DIFC or the financial services industry in the DIFC, through appropriate means including the imposition of sanctions;
      (e) to protect direct and indirect users and prospective users of the financial services industry in the DIFC;
      (f) to promote public understanding of the regulation of the financial services industry in the DIFC;
      (g) to foster and maintain the objectives of the DIFC under Dubai Law in relation to the exercise or performance of any powers or functions conferred upon the DFSA by Dubai Law or DIFC Law; and
      (h) to pursue any other objectives as the Ruler may from time to time set under DIFC Law.
      (3A) In pursuing the objective referred to in (3)(d) in the context of money laundering, the DFSA shall:
      (a) monitor and enforce, or assist other appropriate authorities to monitor and enforce, compliance with Federal Anti-Money Laundering Legislation, as well as legislation administered by the DFSA;
      (b) prevent, detect and restrain conduct in so far as it relates to Relevant Persons; and
      (c) comply with the provisions of Chapter 2 of Part 4.
      (4) In exercising its powers and performing its functions, the DFSA shall take into consideration the following guiding principles, being the desirability of:
      (a) pursuing the objectives of the DIFC as set out under Dubai Law in so far as it is appropriate and proper for the DFSA to do so;
      (b) fostering the development of the DIFC as an internationally respected financial centre;
      (c) co-operating with and providing assistance to regulatory authorities in the State and other jurisdictions;
      (d) minimising the adverse effects of the activities of the DFSA on competition in the financial services industry;
      (e) using its resources in the most efficient way;
      (f) ensuring the cost of regulation is proportionate to its benefit;
      (g) exercising its powers and performing its functions in a transparent manner; and
      (h) complying with relevant generally accepted principles of good governance.

    • 9. Structure of the DFSA

      The DFSA shall be made up of:

      (a) the Chairman of the DFSA;
      (b) the DFSA Board of Directors;
      (c) the Financial Markets Tribunal appointed by the DFSA Board of Directors;
      (d) the Chief Executive and members of his staff; and
      (e) any DFSA committees as may be duly appointed from time to time.

    • 10. Independent Review of the DFSA

      (1) The President may appoint an independent person to review and report to the President on any aspect of the efficiency and effectiveness of the DFSA in the use of its resources.
      (2) The President shall meet the reasonable expenses incurred by such person in preparing the report.
      (3) A person appointed under Article 10(1) has a right of access at all reasonable times to all information which is reasonably required by him for the purposes of preparing the report and which is held or controlled by any officer, employee or agent of the DFSA.
      (4) Such person shall be entitled reasonably to require from the officers, employees and agents of the DFSA such information and explanations as he considers necessary for the purpose of preparing the report.
      (5) A person shall not, without reasonable excuse, intentionally engage in conduct that results in the obstruction of a person appointed under Article 10(1) in the exercise of his powers under Article 10.

    • 11. Reporting by the DFSA to the President

      (1) The DFSA shall provide the President with a written report on the exercise of its powers, performance of its functions and financial activities.
      (2) Such report shall be prepared and provided as soon as reasonably practicable in each financial year of the DFSA and shall relate to its previous financial year.
      (3) Such report shall be published by the DFSA without undue delay, or within such time period as the President otherwise directs.

    • 12. Liability

      (1) Subject to Article 12(2), the DFSA may be sued in its own name.
      (2) Neither the DFSA nor any officer, director, DFSA tribunal or committee member, employee, delegate or agent of the DFSA can be held liable for anything done or omitted to be done in the performance or purported performance of the functions or in the exercise or purported exercise of any power of the DFSA or any power or function delegated to the DFSA.
      (3) Article 12(2) does not apply if the act or omission is shown to have been in bad faith.

    • 13. Financial Year

      (1) The financial year of the DFSA commences on 1 January in each calendar year or such other date as the President may specify.
      (2) The first financial year of the DFSA commences on commencement of this Article and ends at the date arrived at under Article 13(1) for the next financial year.

    • 14. Taxation

      The income of the DFSA shall not be subject to taxation.

    • 15. Record Keeping

      The DFSA shall make suitable arrangements for keeping appropriate records in relation to the exercise of its powers and the performance of its functions.

    • 16. Funding and Fees

      (1) The DFSA may make Rules prescribing the fees payable to the DFSA, including those for applications for licensing, recognition, registration and authorisation, in connection with the performance of its functions and exercise of its powers.
      (2) In respect of each financial year of the DFSA, the President shall provide financial resources to the DFSA to the extent necessary to ensure that it is able adequately to perform its functions and exercise its powers.
      (3) The DFSA may invest its financial resources which are not immediately required in accordance with an investment policy approved in advance by the President.

    • 17. The Annual Budget of the DFSA

      (1) The DFSA shall submit to the President for his approval estimates of the annual income and expenditure of the DFSA for the next financial year.
      (2) Such estimates shall include figures relating to levels of remuneration and entitlement to expenses of the officers, employees and agents of the DFSA.
      (3) The DFSA shall submit such estimates to the President for his approval not later than the end of the financial year.
      (4) The President may on reasonable grounds reject such estimates within 30 days of receiving them, such rejection to be addressed in writing with reasons to the DFSA.
      (5) Unless the estimates have been approved by the President under Article 17(3) or rejected under Article 17(4), they shall be deemed to have been approved on expiry of the 30 days.

    • 18. Accounts

      (1) The DFSA shall keep proper accounts of its financial activities.
      (2) The DFSA shall, before the end of the first quarter of the financial year, prepare financial statements for the preceding financial year in accordance with the accounting standards specified by the DFSA in its Rules.
      (3) Such financial statements shall in any event give a true and fair view of the financial activities of the DFSA as at the end of the previous financial year and of the results of its operations and cash flows in the financial year.
      (4) Such statements shall be submitted to the DFSA Board of Directors and, where appropriate to do so, approved by the DFSA Board of Directors.
      (5) In this Article 'preceding year' does not include any financial year ending before the end of 2003.

    • 19. Audit

      (1) The DFSA Board of Directors shall appoint auditors to conduct an audit in relation to each financial year of the DFSA.
      (2) The DFSA shall, as soon as reasonably practicable after the preparation of its financial statements, provide such statements to the relevant auditors for audit.
      (3) The auditors shall prepare a report on the financial statements and send the report to the DFSA Board of Directors.
      (4) Such report shall, where appropriate, include a statement by the auditors as to whether or not, in their opinion, the financial statements to which the report relates give a true and fair view of the state of the financial activities of the DFSA as at the end of the financial year to which the financial statements relate and of the results of its operations and cash flows in the financial year.
      (5) The auditors shall have a right of access at all reasonable times to all information which is reasonably required by them for the purposes of preparing the report and which is held or controlled by any officer, employee or agent of the DFSA.
      (6) The auditors shall be entitled reasonably to require from the officers, employees and agents of the DFSA such information and explanations they consider necessary for the performance of their duties as auditors.
      (7) A person shall not without reasonable excuse intentionally engage in conduct that results in the obstruction of a person appointed under Article 19(1) in the exercise of his powers under Article 19.