How we regulate

The DFSA’s stated approach is: “To be a risk-based regulator and to avoid unnecessary regulatory burden”. We believe regulation should be directed to the mitigation of risks that would otherwise be unacceptable. We also believe that compliance obligations should be proportionate to the mitigation of those risks within a framework that enables regulated entities to effectively and efficiently meet their compliance obligations.

Under this model, we set priorities for the use of our resources and have adopted a continuous risk management cycle which identifies, assesses, prioritises and mitigates unacceptable risks to our regulatory objectives or a particular sector of our financial services industry. We recognise that these risks may arise from within or outside the DIFC so we regularly monitor regional and international financial markets and trends. This systematic assessment of risk allows us to identify common issues across our regulated community and to undertake necessary thematic work in response.

Our risk-based philosophy applies to all divisions of the DFSA and all our dealings with regulated entities. We believe that focusing more on outcomes rather than the way they should be achieved, results in more effective and efficient risk-based regulation.

The DFSA believes that it is appropriate to clearly and regularly state our approach to regulation to ensure it is clearly understood by all external and internal stakeholders. Our Approach to Regulation together with the DFSA Vision, Mission and Values form the foundation upon which we do our work.

Policy and Rulemaking

The Regulatory Law 2004 gives the DFSA Board of Directors the general power to make rules regarding all matters that are related to our objectives, powers and functions. The rulemaking process normally includes a period of public consultation which gives interested persons the opportunity to comment on the proposed rules. We consider these comments to be a valuable input. Our rulemaking power also allows us to respond quickly and efficiently to matters, trends and events affecting the DIFC

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International Co-operation

To achieve our objectives, the DFSA fosters and maintains relationships with other regulatory agencies within Dubai and the UAE, as well as with international bodies, regulators and organisations. For ease of access, a number of links to local registers, the DIFC's two exchanges, DIFC Court decisions, local and English language news sources and telephone directories are provided here.

In the context of non-public information, the DFSA actively pursues alliances and the creation of Memoranda of Understanding with local, national and international bodies, authorities and organisations. These Memoranda facilitate the realisation of the DFSA’s objectives and guiding principles, which include co-operating with and providing assistance to authorities, bodies and organisations in the State and other jurisdictions. In particular, these Memoranda facilitate the way in which regulators can assist each other in the pursuit of individual and common objectives, including through the exchange of information and the use of enforcement powers.

MoUs signed by the DFSA

The traditional mechanism for formalising co-operation between regulatory authorities in different jurisdictions is a bi-lateral Memorandum of Understanding (MoU).

An MoU provides a formal basis for co-operation between regulatory authorities, bodies and organisations, including for the exchange of information and investigative assistance, based on existing laws. This means it cannot make lawful a release of information that would otherwise be unlawful, nor can it compel assistance that can only be voluntary.

It should be noted that the lack of an MoU is no impediment to sharing information and providing assistance to a fellow regulator as the DFSA's authority to share information and assist is based on specific provisions in the Regulatory Law. Chapter 8 of the DFSA Regulatory Policy and Process (RPP Sourcebook) elucidates further on the DFSA exercising powers on behalf of other authorities and sharing information with domestic and foreign regulators, bodies and organisations.

Multi-lateral MoUs

• The International Organisation of Securities Commissions (IOSCO)
• The Boca Declaration
• International Association of Insurance Supervisors (IAIS)
• IOSCO Africa and Middle East Regional Committee (AMERC)
• The International Forum of Independent Audit Regulators (IFIAR)

Bi-lateral MoUs:

1	Abu Dhabi	Financial Services Regulatory Authority of
2	Australia	Australian Prudential Regulation Authority
3	Australia	Australian Securities and Investments Commission
4	Bangladesh	Securities and Exchange Commission
5	Bahrain	Central Bank of Bahrain
6	Belgium	Banking, Finance & Insurance Commission of Belgium [+AIFMD]
7	Canada	Office of the Superintendent of Financial Institutions
8	Cayman Islands	Cayman Islands Monetary Authority
9	China	China Banking & Insurance Regulatory Commission
10	China	China Securities Regulatory Commission
11	Cyprus	Central Bank of Cyprus
12	Cyprus	Securities and Exchange Commission
13	Denmark	Financial Supervisory Authority (Finanstilsynet)
14	Dubai	Dubai Police General Head Quarters
15	Dubai	Dubai’s Public Prosecution
16	Dubai	Smart Dubai
17	Egypt	Central Bank of Egypt
18	Egypt	Egyptian Financial Supervisory Authority
19	Europe	European Securities and Markets Authority (re Credit Rating Agencies)
20	Europe	European Securities and Markets Authority (re Central Counterparts)
21	France	Banque de France
22	France	L’Autorite des Marches Financiers
23	Germany	Federal Financial Supervisory Authority of Germany (BAFIN)
24	Greece	Hellenic Capital Market Commission
25	Guernsey	Financial Services Commission
26	Hong Kong	Securities and Futures Commission
27	Iceland	The Financial Supervisory Authority (Fjarmalaeftirlitid)
28	India	Reserve Bank of India
29	India	Securities and Exchange Board of India
30	India	International Financial Services Centre Authority
31	Indonesia	Financial Services Authority (Otoritas Jasa Keuangan)
32	Ireland	The Irish Financial Services Regulatory Authority
33	Isle of Man	Financial Supervision Commission
34	Israel	Israel Capital Markets Insurance and Savings Authority & the Israel Securities Authority
35	Italy	Bank of Italy (Banca d’Italia)
36	Italy	Italian Securities & Exchange Commission (Commissione Nazionale per le Società e la Borsa)
37	Japan	Financial Services Authority
38	Japan	Ministry of Agriculture, Forestry and Fisheries
39	Japan	Ministry of Economy, Trade and Industry
40	Jersey	Financial Services Commission
41	Jordan	Central Bank of Jordan
42	Jordan	Insurance Commission of Jordan
43	Jordan	Jordan Securities Commission
44	Kazakhstan	Astana Financial Services Authority
45	Kuwait	Capital Markets Authority
46	Lebanon	Banque du Liban
47	Lebanon	Capital Markets Authority
48	Luxembourg	Commission de Surveillance du Secteur Financier
49	Malaysia	Bank Negara – Islamic Finance
50	Malaysia	Securities Commission of Malaysia (re Cooperation and Exchange of Information)
51	Malaysia	Securities Commission of Malaysia (re Marketing and Distribution of Islamic Funds)
52	Malta	Financial Services Authority
53	Mauritius	Financial Services Commission
54	Morocco	Bank Al Maghrib
55	Netherlands	De Nederlandsche Bank
56	Netherlands	Authority for Financial Markets
57	New Zealand	New Zealand Securities Commission
58	Oman	Central Bank of Oman
59	Oman	Capital Markets Authority
60	Portugal	Banco de Portugal
61	Qatar	Financial Centre Regulatory Authority
62	Russia	Central Bank of the Russian Federation
63	Saudi Arabia	Saudi Arabian Monetary Authority
64	Singapore	Monetary Authority of Singapore
65	South Africa	Financial Services Board of South Africa
66	South Africa	The Bank Supervision Department of the South African Reserve Bank
67	South Korea	Financial Supervisory Commission
68	Sweden	Financial Supervisory Authority
69	Switzerland	Federal Banking Commission
70	Switzerland	Financial Market Supervisory Authority (FINMA)
71	Taiwan	Financial Supervisory Commission
72	Thailand	Securities and Exchange Commission
73	Turkey	Capital Markets Board
74	Turkey	Banking Regulation and Supervision Agency
75	UAE	Central Bank of the UAE
76	UAE	Insurance Authority
77	UAE	Securities and Commodities Authority
78	UAE	Telecommunication Regulatory Authority - Computer Energy Response Team
79	United Kingdom	Financial Conduct Authority
80	United Kingdom	Financial Conduct Authority (post Brexit)
81	United Kingdom	Prudential Regulation Authority
82	United States	New York State Banking Department
83	United States	Commodity and Futures Trading Commission
84	United States	The Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Cooperation
85	United States	The Public Company Accounting Oversight Board

Alternative Investment Fund Managers Directive (AIFMD) MoUs:
 

1	Austria	Austrian Financial Market Authority (AIFMD)
2	Belgium	Financial Services & Markets Authority
3	Bulgaria	Financial Supervision Commission Bulgaria
4	Cyprus	Cyprus Securities & Exchange Commission
5	Czech Republic	Czech National Bank
6	Denmark	Financial Supervisory Authority (Finanstilsynet)
7	Estonia	Estonian Financial Supervision Authority
8	Finland	Finanssivalvonta Finland
9	France	L’Autorite des Marches Financiers
10	Greece	Hellenic Capital Market Commission
11	Hungary	Pénzügyi Szervezetek Allami Felügyelete
12	Iceland	The Financial Supervisory Authority (Fjarmalaeftirlitid)
13	Ireland	Central Bank of Ireland
14	Italy	Italian Securities & Exchange Commission (Commissione Nazionale per le Società e la Borsa)
15	Latvia	Financial & Capital Market Commission
16	Liechtenstein	Financial Market Authority
17	Lithuania	Bank of Lithuania
18	Luxembourg	Commission de Surveillance du Secteur Financier
19	Malta	Financial Services Authority
20	Netherlands	Authority for Financial Markets
21	Norway	Financial Supervisory Authority (Finanstilsynet)
22	Poland	Financial Supervision Authority
23	Portugal	Securities Market Commission
24	Romania	Financial Supervisory Authority
25	Spain	The National Securities Market Commission (Comision Nacional del Mercado de Valores)
26	Sweden	Financial Supervisory Authority
27	United Kingdom	Financial Conduct Authority

 

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REGULATORY DUE DILIGENCE LINKS

To assist our fellow regulators, particularly in fulfilling their licensing and registration responsibilities, the DFSA has joined other members of IOSCO in an initiative to provide enhanced access to publicly available information. The following links to local registers, the DIFC's two exchanges, DIFC Court decisions, local and national English language news sources and telephone directories are provided here to answer preliminary enquiries and to facilitate the due diligence process.

Requests from regulators and other agencies for non-pubic information should be directed to the DFSA’s Director of International Relations (via Requests: [email protected]), and will be dealth with under existing bi-lateral or multi-lateral protocols (as applicable), the Regulatory Law and the RPP Sourcebook.

Local Register	NASDAQ Dubai Market Notices
DIFC Registries	Dubai Mercantile Exchange (DME)
DIFC Courts	DME Members’ List
NASDAQ Dubai (Stock Exchange)	DME Market News
NASDAQ Dubai Members’ List	DME Market Notices
NASDAQ Dubai Market News	Yellow Pages (UAE Directory)
DFSA Media Releases	Khaleej Times
DIFC Press Centre	The Gulf Today
Gulf News	The National