The Dubai Financial Services Authority (DFSA) has announced that Sheikh Mohammed Bin Rashid Al Maktoum, in his capacity as Ruler of Dubai, has enacted amendments to the Regulatory Law 2004 which further enhance the requirements and prohibitions relating to financial services marketing.
These amendments, and the rules made under the law, provide greater clarity as to who can make a financial promotion in the Dubai International Financial Centre (DIFC) and under what circumstances.
The DIFC’s strategy is to build a business ecosystem that supports the growth of its clients and this is evidenced by the number of clients who increased their physical presence and deployed more resources in the region. This includes major international firms taking up significant additional space within the Centre, such as S&P, State Bank of India, and Deloitte.
Other firms have expanded their operations dedicated to the region, including Credit Suisse, which has strengthened its integrated banking operations in the Middle East. Meanwhile, several major international financial institutions expanded their existing regional businesses managed from the DIFC to include their interests in Africa, and so using the DIFC as a platform to expand their regional footprint.
Throughout 2010, both the DFSA and the DIFC Authority introduced multiple regulatory changes in order to expand the DIFC's offering, and improve the ease of doing business and investing in the Centre.
The new provisions build upon the current financial promotion restrictions and prohibitions contained in the Collective Investment Law 2010 and the Markets Law 2004, which will continue to apply.
This new legislation provides the DFSA with a greater degree of regulatory oversight and control over who may conduct financial promotions in or from the DIFC, and in particular oversight of the standards which such promotions must meet with respect to retail investors.
The DFSA will also have greater scope to bring enforcement action in a financial promotion case when it deems it necessary in light of its statutory objectives.
Paul M Koster, Chief Executive of the DFSA, said that: “Our new and enhanced legislation provides greater protection for investors and potential investors against misleading promotions, especially those coming into the DIFC from outside”.
LAWANDTAX-NEWS.COM
