Strong Regulation Critical to Success, says DIFC GovernorPress Release 12 Jul 2006 11:29 am
- Highlights crucial role played by DFSA in creating regional financial centre
- Praises DFSA’s recent enforcement against “Boiler Room” operator
A strong independent regulator operating to international standards is the key to the success of the DIFC, said His Excellency Dr Omar Bin Sulaiman, Governor of Dubai International Financial Centre.
Citing the recent case where the Dubai Financial Services Authority helped to close down a Japan-based “boiler room” operation, Dr Omar said:
“The recent efforts of the DFSA in closing down a company running a boiler room scam were highly commendable. The DFSA acted on complaints filed by investors in Dubai and worked with the Financial Services Authority of Japan to ensure the closure of the company. This sends out a strong message to all concerned – we mean business. Our regulatory framework is strong and matches the best in the world. I would like to thank the DFSA for its role in building the reputation of the UAE and the DIFC. It has set a new precedent in the region in terms of financial regulations.”
Dr Omar continued: “The international standard legal framework in place at the DIFC is one of the most important elements in attracting investors and financial institutions to the region. It is critical to show to the world that we not only have strong legal framework which is familiar to the world’s top financial institutions, but we are vigilant and co-operate with international authorities in fighting fraud.”
Last year, the DFSA also shut down another rogue company in co-operation with the Law Enforcement authorities of the UAE and other international Securities agencies.
Earlier this year the DFSA signed an MoU with the Financial Services Authority, the United Kingdom’s financial services and markets regulator. The MoU sets out a framework 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.
The DFSA is also an Associate Member of the International Organisation of Securities Commissions (IOSCO), the world’s leading body of Securities Regulators. In June 2006 the DFSA became a signatory to a multilateral memorandum of understanding (multilateral MoU) with IOSCO. This initiative, covering consultation and cooperation and the exchange of information, began in response to increasing international activity in the securities and derivatives markets, and the corresponding need for mutual cooperation among securities regulators to ensure compliance with, and enforcement of, their laws and regulations. As a signatory, the DFSA joined existing signatories representing the world's major capital markets, including the United Kingdom, France, Germany, the United States, Hong Kong, and Singapore.