The Dubai Financial Services Authority (DFSA), last week, entered into an important agreement with Europe’s Securities and Markets Authority (ESMA). The signing took place during a meeting between Mr Ian Johnston, Chief Executive of the DFSA, and Dr Steven Maijoor, Chairman of ESMA. ESMA’s Executive Director, Ms Verena Ross, was also present.

ESMA is an independent European Union (EU) Authority, established on 1 January 2011 to enhance the protection of investors and promote stable and well-functioning financial markets in the EU. One of its responsibilities is the supervision of Credit Ratings Agencies (CRAs). 

In 2011, the DFSA extended its regulatory reach to require CRAs in the Dubai International Financial Centre (DIFC) to be licensed and supervised by the DFSA. Three of these CRAs are also supervised by ESMA, which prompted this Memorandum of Understanding (MoU).

Mr Ian Johnston, Chief Executive of the DFSA said:  “I am particularly pleased to have signed this MoU with ESMA, which recognises the importance of on-going supervisory and enforcement-related co-operation in light of the cross-border activities of credit rating agencies and the global nature of ratings generally.”

“Since 2005, the DFSA has placed a high priority on building its information network, and reflecting the home jurisdiction of financial firms in the Centre, our links with Europe have been significant. The DFSA already has MoUs with many of our counterparts in Europe including France, Germany and the UK. Through these arrangements we demonstrate our commitment to the operation of internationally accepted practices within the DIFC,” Mr Johnston added.