One of the principal factors behind the success of DIFC is its independent risk-based regulator, the Dubai Financial Services Authority (DFSA), which grants licenses and regulates the activities of financial services conducted through DIFC.
The DFSA’s regulatory regime was developed using principle-based primary legislation modeled closely on internationally accepted standards. The regulator’s 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.
The DFSA supervises regulated companies in DIFC and monitors their compliance with applicable laws, regulations and rules. The DFSA’s powers as a regulator are conferred to it under the provisions of the Regulatory Law, DIFC Law No. 1 of 2004. The regulator is empowered to make rules as well as develop policy on relevant market issues and, in turn, enforce the legislation that it administers. This rule-making power enables the DFSA to respond quickly and effectively to market developments and business needs.
Enhancing inter-agency relationships and supporting the work of regulatory standard setters plays an important part in enhancing awareness of the DFSA’s commitment to high regulatory standards. Particular emphasis has been given over the past five years to establishing over 50 multilateral and bilateral agreements.
The presence of an efficient, modern and independent regulator has given companies the confidence that they have in DIFC a secure, growth-oriented platform for their business.