UAE- DFSA inks 26 MoUs with EU regulators

(MENAFN- Khaleej Times) In a bid to further enhance Dubai's position as a prominent financial centre, the Dubai Financial Services Authority (DFSA) on Sunday announced the signing of 26 agreements with European Union regulators. Continuous collaboration with international regulators has been at the forefront of the DFSA's engagement objective this year, and as such, the DFSA has entered into 26 supervisory co-operation agreements with European Union (EU) and European Economic Area (EEA) securities regulators, the DFSA said in a statement. The Authority is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC) - a purpose-built financial free-zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange. Under these agreements, each regulator agrees to help each other supervise fund managers operating across borders, between the DIFC and Europe. The agreements under the Memoranda of Understanding (MoUs) allow fund managers in the DIFC to manage and market Alternative Investment Funds (AIFs) to professional investors in the EEA under the rules of the Alternative Investment Fund Managers Directive (AIFMD). AIFs include hedge funds, private equity funds and real estate funds. Managing and marketing such funds into Europe will allow the DIFC-based fund managers to access a greater pool of investors. It is hoped that with a strong distribution network and a sustainable distribution model, the MoUs will prove beneficial for the industry in the DIFC. Ian Johnston, chief executive of the DFSA said: "The DFSA's efforts to improve cross-border opportunities will further facilitate investment flows and will benefit investors and the funds industry. In addition, it reflects the DFSA's commitment to enhance the economy of the UAE and Dubai, furthering Dubai's position as a prominent financial centre." The DFSA negotiated the agreements with the European Securities and Markets Authority (ESMA). Johnston signed the MoUs with 26 EU regulators last month. The EU signatories to these agreements are: France, UK, Netherlands, Ireland, Portugal, Spain, Italy, Luxembourg, Cyprus, Sweden, Finland, Denmark, Norway, Iceland, Liechtenstein, Hungary, Malta, Lithuania, Greece, Belgium, Bulgaria, Poland, Estonia, Latvia, Czech Republic and Romania. The DFSA already has in place bi-lateral agreements with 13 of its European counterparts and enjoys strong and close relationships with them ensuring that fund managers are well supervised in the DIFC and in Europe.