Key financial regulators in the Middle East have made a commitment to boost each other’s capabilities, with the aim of ensuring they will continue to safeguard the interests of investors and comply with major pieces of international regulation.
In a Memorandum of Understanding (MoU) signed on 23 August, Abu Dhabi’s Financial Services Regulatory Authority (FSRA) agreed to strengthen its cooperation with the Dubai Financial Services Authority (DFSA).
By exchanging information and building a programme of mutual assistance, the agencies plan to enhance their alignment with best-practice recommendations set down by the International Organization of Securities Commissions (IOSCO) and the International Association of Insurance Supervisors.
They are also eager to more closely honour the Core Principles for Effective Banking Supervision established by the Basel Committee, and recommendations on anti-money laundering established by the Financial Action Task Force.
FRSA chief executive Richard Teng said: “The MoU… underscores FSRA’s commitment to foster greater investor protection and support the development and innovation of regulations and supervision in the United Arab Emirates and wider region.
“ADGM will continue to work closely with our fellow Gulf Cooperation Council (GCC) counterparts and global like-minded regulators to foster high regulatory standards, advance financial development and safeguard financial market integrity in our jurisdictions.”
He added: “As a member of IOSCO, the FSRA will play its part to cooperate and maintain fair, efficient and responsible markets in Abu Dhabi and beyond.”
DFSA leader Ian Johnston commented: “The DFSA is pleased to engage with its counterparts in the GCC and especially with a fellow regulator in the UAE… Signing this MoU demonstrates a mutual willingness to cooperate and share information to those standards.”
Johnston stressed: “The importance of effective coordination and cooperation between regulators cannot be overstated, and to that end the DFSA has concluded some 97 MoUs with its counterparts since our establishment in 2004.”
He added: “This agreement also builds on the agreements [we have] already signed with other UAE regulators, including the Central Bank, the Securities and Commodities Authority and the Insurance Authority.”