The Regulatory Authority of the Dubai International Financial Centre (DIFC) has published four further consultation papers. The papers, two modules from the regulatory rulebook, one describing the risk-based approach to regulation and finally one outlining the licensing boundaries, demonstrate that the DIFC’s ambition to create a regulatory framework, matching the quality of the world’s leading financial center, is well on course.
The papers being published are the Principles for Authorized Firms and the Principles for Authorized Individuals – this specifies the fundamental principles to which Authorized Firms and Individuals within the DIFC regulatory regime must adhere. The Prudential Rules for Insurers, which describes the capital adequacy regime for insurers, the systems and controls requirements, as well as certain restrictions on the way insurance business can be conducted.
Risk-Based Regulation provides a broad overview of what will constitute risk-based regulation for the Regulatory Authority. It explains that the Authority will decide how to deploy its resources according to the risks to its statutory objectives as laid out in the draft Regulatory Law.
The Boundaries of Regulation provides an overview of the proposed regulatory regime for the DIFC and describes what financial services and ancillary activities will be permitted in the DIFC, the kind of regime that will be applied to each and some limitations on the types of activities that can be conducted.
DIFC is being established to position Dubai as a recognized hub for institutional finance and as the regional gateway for capital and investment to the Middle East. The Authority is an independent unitary regulatory authority responsible for the oversight of asset management, banking, securities trading, Islamic finance, re-insurance, and a regional financial exchange. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
