In the first formal agreement between the financial free-zones of Dubai and Abu Dhabi, the regulators of the two hubs have signed a memorandum of understanding (MoU) aimed at increasing cooperation and a greater exchange of information.
The MoU was signed by Ian Johnston, the chief executive of the Dubai Financial Services Authority, the financial watchdog of the Dubai International Financial Centre, and Richard Teng, the chief executive of the Abu Dhabi Global Market’s Financial Services Regulatory Authority.
Although it is believed informal talks have been held between the two markets and their regulators since ADGM was set up by decree three years ago, the MoU is the first official link between them.
ADGM declared itself “open for business” in October last year and has been licensing financial and non-financial member companies since then.
Mr Johnston said: “The DFSA is pleased to engage with its counterparts in the GCC and especially with a fellow regulator in the UAE. As regulators of financial centres, founded on common law principles, we embrace best practice and apply regulation which meets the requirements of the international standard-setters: the Basel Committee on Banking Supervision; the International Organisation of Securities Commissions (IOSCO); the International Association of Insurance Supervisors; and the Financial Action Task Force. Signing this MoU demonstrates a mutual willingness to cooperate and share information to those standards.”
He added: “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. This agreement also builds on the agreements already signed with other UAE regulators, including the Central Bank, the Securities and Commodities Authority and the Insurance Authority.”
Mr Teng said: “The MoU with the DFSA underscores FSRA’s commitment to foster greater investor protection and support the development and innovation of regulations and supervision in the UAE and wider region. ADGM will continue to work closely with our fellow GCC counterparts and global like-minded regulators to foster high regulatory standards, advance financial development and safeguard financial market integrity in our jurisdictions. As a member of the IOSCO, the FSRA will play its part to cooperate and maintain fair, efficient and responsible markets in Abu Dhabi and beyond.”
fkane@thenational.ae
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