Entire Section

  • 2007

    • 17 December 2007 — DFSA Licenses Assicurazioni Generali S.p.A as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has Licensed Assicurazioni Generali S.p.A as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 16 December 2007 — DFSA Licenses Toscafund Global Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has Licensed Toscafund Global Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 16 December 2007 — DFSA Licenses Wedge Alternatives Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has Licensed Wedge Alternatives Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 13 December 2007 — EPRS Notification

      TAKE NOTICE THAT:

      Pursuant to PIB Rule 1.6.2,

      Authorised Firms which are subject to the Rules in PIB are required to:

      (a) submit their solo prudential returns as per table 3 in PIB, for any reporting period ending on or after December 31, 2007, using the electronic prudential reporting system; and
      (b) continue to submit their consolidated prudential returns, as per table 3 in PIB, when applicable, using the paper-based forms specified in the PRU module of the DFSA Sourcebook.

      Pursuant to PIN Rules 6.5.2 and 6.5.8,

      Authorised Firms which are subject to the Rules in PIN and authorised to operate as Insurers in the DIFC are required to continue to submit their Annual and Quarterly Regulatory Returns, as defined in Appendix 10 of PIN, for any reporting period ending on or after December 31, 2007, using the electronic prudential reporting system.

      TAKE FURTHER NOTICE THAT:

      Authorised Firms Licensed from 15 November 2007 to 31 December 2007 inclusive will be permitted additional time to get acquainted with the EPRS and, accordingly, such firms are required to submit the relevant prudential returns, in accordance with the first part of this notice, for any reporting period ending on or after 1 February 2008. Firms will be contacted by their relationship manager who will provide them with the required information and passwords.

      David Knott
      Chief Executive

      Issued on 13 December 2007

    • 13 December 2007 — DFSA Licenses SinoGulf (DIFC) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has Licensed SinoGulf (DIFC) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 11 December 2007 — DFSA Issues its Hedge Fund Code of Practice

      The Dubai Financial Services Authority (DFSA) today issued its Hedge Fund Code of Practice (Code), the first of its kind to be issued by a regulator and a landmark code in the regulation of the international Hedge Fund industry.

      The Code sets out best practice standards for Operators of Hedge Funds in the Dubai International Financial Centre (DIFC).

      The DFSA’s initiative to issue a Code of Practice comes in the wake of enhanced industry and regulatory focus on Hedge Funds. The Code addresses some specific risks that are associated with Hedge Funds and reflects the DFSA’s commitment to risk-based regulation.

      The issuance of the Code follows several months of consultation with industry professionals and international regulators who were invited to comment on the proposed rules and offer their opinions on the Code of Practice.

      There are nine high-level principles in the Code, which cover areas of key operational, management and market-related risks, particularly in the areas such as valuation of assets, back office functions and exposure to market risks.

      David Knott, Chief Executive of the DFSA said: “While there are a number of industry-based Hedge Fund Codes, the DFSA’s Code is the first of its kind to be issued by a regulator. Having received highly positive feedback throughout the consultation period, we are confident that the Code will provide investors and Hedge Fund Managers with a backdrop for the successful development of Hedge Funds in the DIFC by ensuring the industry has the necessary regulations in place to prosper. This initiative reflects our commitment to the continued development of the DIFC as an attractive and well-regulated environment for Hedge Fund Operators and prospective investors.”

      For the full DFSA Hedge Fund Code of Practice, refer to the website at www.dfsa.ae.

    • 11 December 2007 — Notice of Amendments to the Rulebook and the Sourcebook

      TAKE NOTICE THAT:

      As foreshadowed in the previous notice issued on 29 November 2007, the DFSA has issued its Hedge Funds Code of Practice to come into effect on 20 January 2008.

      This code can be found under “Legislation” in the new section entitled “DFSA codes of Practice” on the DFSA’s website.

      The CIR module of the Rulebook will be updated accordingly.The consequential amendments are set out in the Hedge Funds Guidance Instrument (No.6) 2007. These amendments come into force on 20 January 2007.

      The CIR module will be updated on the date mentioned above and the instrument may be viewed under the “Guidance Making Instruments“section of the DFSA’s website prior to the coming into effect of the amendments.

      FURTHER TAKE NOTICE THAT:

      The Prudential Returns Module (PRU) of the Sourcebook will be replaced by a new EPRS version pursuant to the Electronic Prudential Reporting System Guidance Instrument (No.5) 2007. This EPRS version of PRU incorporates consequential amendments necessary to facilitate the implementation of the system.

      These amendments are to come into effect on 16 December 2007.

      The new EPRS version of PRU may be viewed under the “Guidance Making Instruments“, section of the DFSA’s Website prior to the coming into force of this module.

      There will be a separate notice issued in relation to PIB Rule 1.6.2 and PIN Rule 6.5.2 which will provide information in respect of the EPRS going live.

      Issued on 11 December 2007

    • 09 December 2007 — DFSA Licenses ING Investment Management (Dubai) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has Licensed ING Investment Management (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 06 December 2007 — DFSA Licenses Waqf Trust Services Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Waqf Trust Services Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 05 December 2007 — DFSA Licenses Société Générale Bank & Trust as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Société Générale Bank & Trust as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 05 December 2007 — DFSA Licenses Societe Generale as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Societe Generale as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 04 December 2007 — DFSA Releases Key Policy Review Consultation Paper

      The Dubai Financial Services Authority (DFSA) issued today a Consultation Paper setting out proposals to further develop its regulatory regime, in light of international regulatory developments and the increasing maturity of the Dubai International Financial Centre (DIFC).

      Consultation Paper No. 52, which is posted on the DFSA website www.dfsa.ae, seeks public comment on significant changes to the DFSA’s Rulebook. The deadline for comments is 7 February 2008.

    • 29 November 2007 — Notice of Amendments to the Rulebook

      TAKE NOTICE THAT ON THE 1 DECEMBER 2007:

      The new Fees Rules Module (FER) will come into force on (see previous notice and Rulemaking Instrument No. 52).

      The Board made the following Rulemaking Instruments on 25 November 2007:

      •   Miscellaneous Amendments (Malaysian Islamic Funds) Rules Instrument (No.53) 2007, (no consultation paper was issued in respect of these amendments because they were technical in nature)
      •   Electronic Prudential Reporting System Amendment Rules Instrument (No.54) 2007, (no consultation paper was issued in respect of these amendments because they were technical in nature)
      •   RAC Fees Amendment Rules Instrument (No.55) 2007. This instrument introduces a fee in relation to filing a notice of appeal with the Regulatory Appeals Committee (no consultation paper was issued in respect of this Rule as it was considered to be prejudicial to the interests of the DIFC to delay the introduction of this Rule).

      The relevant Rulebook modules will be updated on 1 December 2007. The instruments containing the specific amendments may be viewed under the "Rulemaking Instruments" section.

      Further Take Notice That:

      The DFSA will issue a further notice on or about 12 December 2007 in respect of the DFSA's Hedge Fund Code of Practice.

      Issued on 29 November 2007.

    • 29 November 2007 — DFSA Hosts International Regulators

      The Dubai Financial Services Authority (DFSA) will, for the first time, host a major meeting of international securities regulators in Dubai next week.

      DFSA will be hosting the Emerging Markets Committee (EMC) of the International Organisation of Securities Commissions (IOSCO), which represents more than 90% of the world's securities regulators. The EMC is the largest of the IOSCO's three main committees, with members representing more than 80 jurisdictions.

      Over 120 regulators from Africa and the Middle East, Asia, South America and Eastern Europe are expected to participate in meetings to discuss the status of IOSCO's work programme in promoting international standards. These discussions will be held in private, but a public session on Thursday, 6 December will discuss challenges for enforcement and key issues for securities market development in emerging markets.

      The meeting will be hosted by Mr. David Knott, Chief Executive of the DFSA. Attending will be IOSCO's international leadership group, which comprises of the Chairman of the Executive Committee, Ms. Jane Diplock of New Zealand; the Chairman of the Technical Committee, Mr. Michel Prada of France; and the Chairman of the Emerging Markets Committee, Mr. Meleveetil Damodaran of India. Representatives of the United State's Securities and Exchange Commission (SEC) and the UK's Financial Services Authority (FSA) will also be in attendance.

      While in Dubai, regulators will visit the Dubai International Financial Centre (DIFC) to gain first hand knowledge of its business, regulatory and legal environment.

      Mr. David Knott, Chief Executive of the DFSA said: "The Emerging Markets Committee is an important forum for the adoption and implementation of international standards for capital market regulators in developing economies and the DFSA is pleased to be hosting in Dubai the Annual Meeting of IOSCO's EMC."

    • 27 November 2007 — DFSA Licenses MAC Capital Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed MAC Capital Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 27 November 2007 — DFSA Licenses ES Bankers (Dubai) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed ES Bankers (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 27 November 2007 — DFSA Licenses Menafactors Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Menafactors Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 21 November 2007 — DFSA bans private bankers for mis-selling investments

      The Dubai Financial Services Authority (DFSA) has banned two private bankers from carrying out financial services in or from the Dubai International Financial Centre (DIFC).

      The DFSA accepted Enforceable Undertakings from Ms. Vanita ChatterbhojMs. Vanita Chatterbhoj and Ms. Sweta NayarMs. Sweta Nayar, former Barclays Bank PLC (Barclays) private bankers, for knowingly misrepresenting the terms of financial products sold to their clients.

      Under the terms of the Enforceable Undertakings, Ms. Chatterbhoj is banned from carrying out any financial services in or from the DIFC for a period of three years. Ms. Nayar is banned from carrying out any financial services in or from the DIFC for a period of six years.

      As part of their mis-selling, Mses. Chatterbhoj and Nayar provided their clients with materially altered Barclays banking documents which falsely listed the products as enjoying full capital protection when, in fact, they were only conditionally capital protected.

      On the basis of the misrepresentations, 10 Barclays clients were induced to invest in products unlawfully marketed by Mses. Chatterbhoj and Nayar. Upon discovery of the mis-selling, Barclays promptly referred the matter to the DFSA and provided compensation to clients who were adversely affected. Mses. Chatterbhoj and Nayar were also terminated from Barclays for gross misconduct.

      In addition to mis-selling products to clients, Ms. Nayar also provided clients with altered portfolio statements with inflated redemption values for products she had sold them.

      During the course of the DFSA investigation Ms. Nayar attempted to minimise her involvement in the misconduct and obstructed the DFSA’s investigation by knowingly making false and misleading statements to the DFSA.

      In addition to the Enforceable Undertakings, the DFSA imposed an administrative censureadministrative censure against Ms. Nayar for knowingly obstructing the DFSA during the course of an investigation. The censure is made under provisions of the Regulatory Law and is filed as part of DFSA’s public record.

      David Knott, DFSA Chief Executive, stated: “One of the primary objectives of the DFSA is to protect investors who deal with DIFC financial firms. These two individuals betrayed the trust of Barclays and the clients who were misled. This type of conduct is unacceptable within the DIFC.

      The DFSA is also sending a strong message that attempts to obstruct or mislead the regulator will be regarded as a serious offence and result in additional sanctions.”

    • 18 November 2007 — DFSA’s Securities Regulation Receives Highly Positive IMF-World Bank Assessment

      Dubai, U.A.E, 18 November, 2007: The Dubai Financial Services Authority (DFSA) has received a highly positive assessment from an expert team from the International Monetary Fund (IMF) and the World Bank under their Financial Sector Assessment Program (FSAP).

      The FSAP involved a detailed assessment of the DFSA’s observance of the objectives and principles of securities regulation developed by the International Organisation of Securities Commissions (IOSCO).

      The report includes an overall finding that: “The DFSA has established a very impressive set of laws, regulations and rules and policies and procedures for regulation. Its staff are well qualified and work to international best practice standards.”

      The DFSA was fully assessed against conformity with 29 separate IOSCO principles. In 27 cases the DFSA was rated “fully implemented” which is the top possible rating. The remaining 2 cases were rated “broadly implemented” (the second highest rating) because the relevant Rules are more recent and insufficient time has been available to fully demonstrate a track record of performance. However, the assessment was positive across all areas examined.

      David Knott, Chief Executive of the DFSA said: “The DFSA made an early commitment to subject itself to the IMF/World Bank assessment and to publish the results. This is consistent within the transparency that we encourage and promote as the DIFC’s financial services regulator.

      The ratings received from the IMF/World Bank team compare favourably, and in some cases exceed, those of other regulators in established capital markets” he said.

      To view the assessment: http://www.imf.org/external/pubs/ft/scr/2007/cr07365.pdf

    • 18 November 2007 — DFSA Licenses Gulf National Securities Centre International Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Gulf National Securities Centre International Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 15 November 2007 — DFSA Licenses 200th Regulated Firm within DIFC

      The Dubai Financial Services Authority (DFSA) licensed its 200th regulated firm in the Dubai International Financial Centre (DIFC) this week. The regulated entities comprise 158 Authorised Firms, 37 Ancillary Service Providers and 5 Registered Auditors.

      Authorised Firms are granted a license to conduct financial services in or from the DIFC; services include Banking and Brokerage, Asset Management, Insurance and Islamic Finance.

      Ancillary Service Providers are granted a registration to carry out ancillary services in or from the DIFC; they provide legal and accountancy services.

      Registered Auditors are granted a registration to carry out audits of DIFC incorporated regulated entities.

      David Knott, DFSA Chief Executive, stated: "Over the past 13 months the number of Firms regulated by the DFSA has doubled, reflecting the momentum that the DIFC has established as the region's leading financial centre.

      The DFSA's commitment to international standards of regulation underpins the credibility of regulated Firms as reliable financial counterparties, both regionally and beyond. The DFSA is proud to be contributing to the success of the DIFC and to its growing reputation as a centre of excellence." said Mr. Knott.

      The regulated financial services sector within the DIFC works alongside many other registered enterprises which, taken together, constitute the DIFC community.

      There are now more than 496 licensed and registered Firms within the DIFC, including 200 regulated by the DFSA.

    • 14 November 2007 — DFSA Wins Best Regulator Award

      The Dubai Financial Services Authority (DFSA) receives the "Best Regulator for Islamic Funds" award during the 5th Annual Islamic Funds World Conference.

      The award was co-presented to the DFSA and the Malaysian Securities Commission (SC), at the Master of Islamic Funds Awards luncheon in Dubai, which took place on 13th November 2007. This prestigious award was co-sponsored by Dow Jones and Standard & Poor's, and recognises the DFSA's efforts to facilitate cross-border marketing of Islamic investment funds.

      This is the second award the DFSA has received this year. In April, the DFSA received the Failaka Islamic Fund award for "Best Contribution to Growth and Development," which recognised the DFSA's contributions to transparency and innovation in Islamic Finance.

      In March 2007, the DFSA and the Malaysian SC entered into a mutual recognition agreement allowing Islamic funds that have been approved by the SC to be marketed and distributed in the Dubai International Financial Centre (DIFC) with minimal regulatory intervention, following the entry of Malaysia onto the DFSA's list of Recognised Jurisdictions. Similarly, Islamic funds which have been registered or notified with the DFSA have access to Malaysian investors.

      David Knott, Chief Executive of the DFSA said: "We are delighted to be recognised again for innovations that facilitate the growth of Islamic Finance. This award further exemplifies the DFSA's strong commitment towards taking a leadership regulatory role and establishing the DIFC as a Centre promoting innovation and growth of Islamic capital markets in the Middle East.

      I congratulate our DFSA team members who play a pivotal role in shaping our high quality funds regime."

    • 12 November 2007 — DFSA Licenses Antarctica Asset Management (Middle East) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Antarctica Asset Management (Middle East) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 12 November 2007 — DFSA and Financial Services Agency of Japan agree terms of co-operation

      The Dubai Financial Services Authority (DFSA) today finalised an Exchange of Letters with the Financial Services Agency (FSA) setting out terms for information sharing and co-operation.

      The signing took place between Mr. David Knott, Chief Executive of the DFSA and Dr. Takafumi Sato, the FSA Commissioner, in Tokyo following a meeting last week of leading securities regulators from around the world at the IOSCO Technical Committee Conference successfully hosted by the FSA.

      The FSA has broad regulatory authority in Japan over the banking, insurance and securities industries and has integrated responsibility for financial system planning, the inspection and supervision of financial institutions.

      The Chief Executive of the DFSA, Mr. David Knott said: "I am honoured to have concluded these arrangements with Commissioner Sato, who represents one of the world’s most important regulatory agencies. The Japanese banking system is examining offshore business opportunities with increased confidence and the DIFC has much to offer. Two significant banks have already branched into the DIFC from Tokyo and I am sure others will follow. A close co-operative relationship between our jurisdictions is therefore most welcome."

    • 11 November 2007 — DFSA registers Lawrence Graham LLP as an Ancillary Service Provider

      The Dubai Financial Services Authority (DFSA) has registered Lawrence Graham LLP as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

    • 08 November 2007 — DFSA Licenses HSBC Middle East Leasing Partnership as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed HSBC Middle East Leasing Partnership as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 06 November 2007 — DFSA Licenses Tokio Marine Middle East Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Tokio Marine Middle East Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 05 November 2007 — DFSA registers Patton Boggs LLP as an Ancillary Service Provider

      The Dubai Financial Services Authority (DFSA) has registered Patton Boggs LLP as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

    • 04 November 2007 — DFSA registers Brandford-Griffith & Associés as an Ancillary Service Provider

      The Dubai Financial Services Authority (DFSA) has registered Brandford-Griffith & Associés as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

    • 04 November 2007 — DFSA registers Gibson, Dunn & Crutcher LLP as an Ancillary Service Provider

      The Dubai Financial Services Authority (DFSA) has registered Gibson, Dunn & Crutcher LLP as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

    • 01 November 2007 — Changes in the Frequency and Scope of On-site Risk Assessments for Low-Risk Firms

      To the Senior Executive Officers of DFSA Authorised Firms,

      As you are aware, the DFSA’s supervisory approach is risk-based, allowing it to identify and focus its attention on the areas where there are perceived to be the greatest risks to its objectives and avoid unnecessary regulatory burden. As part of this approach, all Authorised Firms are subject to an on-going risk assessment process. This process allows the Authority to risk rate Firms based on criteria such as size, rapid growth and/or complexity.

      To that end, we have taken the decision that Category 4 Firms, as defined in the Prudential Investment, Insurance, Intermediation and Bank Business Module (PIB) Chapter 1, who are deemed to have an overall risk rating of LOW will not be subject to a fixed routine cycle on-site risk assessment visit. We will continue to carry out desk-based reviews including an on-going review of these Firms’ financial reports and any other reports which the DFSA requires these Firms to submit. In addition, the DFSA may from time to time have periodic meetings with the Senior Management of these Firms to discuss any issues that it may feel appropriate. These Firms may also be included in thematic reviews which the DFSA periodically carries out.

      In the event that the DFSA considers that the overall risk profile of any of these Firms has increased e.g. due to change in business model or services offered, the DFSA may re-establish the on-site risk assessment process as part of its continual risk assessment process.

      Finally it should also be emphasised that under Core Principle 10 (Relations with Regulators), as defined in Chapter 4 of the General Module, Authorised Firms must deal with the DFSA in an open and co-operative manner and keep the DFSA promptly informed of significant events or anything else relating to the Authorised Firm of which the DFSA would reasonably expect notification.

      If you wish to discuss this matter or require any further information please do not hesitate to contact your Relationship Manager.

    • 28 October 2007 — DFSA Licenses GAM (Dubai) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed GAM (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 23 October 2007 — DFSA enters into Memorandum of Understanding with United States Banking Supervisors

      Washington,D.C., 23 October 2007: The Dubai Financial Services Authority (DFSA) today entered into an historic Memorandum of Understanding with the United States Banking Supervisors.

      The signing at the Board of Governors of the Federal Reserve coincided with a visit of Mr. David Knott, Chief Executive of the DFSA, to Washington where the International Monetary Fund (IMF) held its annual meeting over the weekend. The four federal U.S. agencies principally responsible for banking supervision in the United States—the Federal Reserve, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Office of Thrift Supervision (OTS) have all joined as parties to a comprehensive statement of co-operation with the DFSA.

      The Chief Executive of the DFSA, Mr. David Knott said: “This is an historic event in the development of the DFSA. Never before has a regulator from the Middle East entered into such a comprehensive co-operative arrangement with the U.S. regulators. The attraction of the Dubai International Financial Centre (DIFC) as the domicile of choice for U.S. financial institutions in the Middle East will be further enhanced by these regulatory relationships.”

      This initiative reflects each agency’s commitment to co-operation in relation to prudential oversight and inspections. It adopts the model for information sharing developed by the Basel Committee on Banking Supervision and follows similar arrangements the DFSA has with other significant Banking Supervisors such as the UK Financial Services Authority (FSA) and Germany’s Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin).

    • 18 October 2007 — DFSA Licenses Daman Quattro Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Daman Quattro Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 10 October 2007 — DFSA Licenses HDG Mansur (Dubai) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed HDG Mansur (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 27 September 2007 — DFSA registers Allied Gulf Lawyers Limited Liability Partnership as an Ancillary Service Provider

      The Dubai Financial Services Authority (DFSA) has registered Allied Gulf Lawyers Limited Liability Partnership as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

    • 27 September 2007 — DFSA Licenses Kaupthing Bank hf. as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Kaupthing Bank hf. as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 27 September 2007 — DFSA Licenses Makaseb Islamic Capital Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Makaseb Islamic Capital Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 25 September 2007 — DFSA Licenses Fimat International Banque SA (Dubai Branch) as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Fimat International Banque SA (Dubai Branch) as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 25 September 2007 — DFSA Licenses Flagstone Underwriters Middle East Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Flagstone Underwriters Middle East Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 25 September 2007 — DFSA registers Dixon & Co. Limited Liability Partnership as an Ancillary Service Provider

      The Dubai Financial Services Authority (DFSA) has registered Dixon & Co. Limited Liability Partnership as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

    • 24 September 2007 — DFSA enters into Memorandum of Understanding with China’s Banking Regulator

      Beijing, China, 24 September, 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with the China Banking Regulatory Commission (CBRC).

      The signing took place between Mr. David Knott, Chief Executive of the DFSA, and Mr. Liu Mingkang, Chairman of the CBRC, at the offices of the Commission in Beijing.

      The CBRC supervises all banking institutions including banks, non-bank financial institutions and foreign banks with the aim of promoting the safety and soundness of the banking industry. This is to maintain public confidence in the banking industry, encourage fair competition in the banking industry and to improve its competitiveness in the People’s Republic of China.

      The Chief Executive of the DFSA, Mr. David Knott said: “I am honoured to be meeting Chairman Liu Mingkang and am pleased that the China Banking Regulatory Commission and the Dubai Financial Services Authority have now put in place these arrangements for co-operation and information sharing between banking supervisors.”

      The visit to Dalian earlier this month of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and His Highness’s meeting with Prime Minister Wen Jiabao, underscore the importance that Dubai and the UAE place on our relationship with the People’s Republic of China. Today’s initiative between two of their regulators reflects, in a practical sense, the development of this relationship.”

      This MoU follows the model for information sharing developed by the Basel Committee on Banking Supervision. It reflects each agency’s commitment to co-operation in relation to prudential oversight and inspections and thereby, facilitates the expansion of a number of significant banks from the People’s Republic of China into the DIFC.

    • 18 September 2007 — Results of AML/CTF theme review

      Click herehere to view the SEO letter.

    • 15 September 2007 — DFSA enters into Memorandum of Understanding with Capital Market Commission of Greece

      Athens, Greece, 15 September, 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with the Hellenic Capital Market Commission (HCMC).

      The signing took place between Mr. David Knott, Chief Executive of the DFSA, and Dr. Alexios Pilavios, Chairman of the HCMC, at the offices of the Commission in Athens.

      The HCMC is Greece’s self-funded independent authority responsible for setting the general conditions of capital market organisation and operation. The HCMC issues the appropriate regulations, enforces the law and ensures the proper functioning of the market.

      The Chief Executive of the DFSA, Mr. David Knott said: “The Hellenic Capital Market Commission has been a valued member of the International Organisation of Securities Commissions (IOSCO) and an active participant in the work of the Committee of European Securities Regulators (CESR), adopting and harmonising international standards in Europe and continuing to establish world class standards in the regulation of capital markets. As such this Memorandum of Understanding is a significant initiative, recognising the importance of these arrangements for co-operation and information sharing between the two regulators.”

      Both the HCMC and the DFSA are signatories to the IOSCO Multilateral MoU, having satisfied the highest standards of co-operation and assistance among IOSCO members. It is enhanced by today’s bi-lateral agreement which reflects each agency’s responsibilities in the regulation of securities.

      As Greek financial services firms join the Dubai International Financial Centre (DIFC), this bi-lateral relationship will assume increasing importance as both regulators rely on the quality of regulatory standards administered in the other’s jurisdiction.

    • 13 September 2007 — DFSA Licenses Leebrook Global Investments Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Leebrook Global Investments Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 06 September 2007 — DFSA Licenses T & F Tax and Finance (DIFC) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed T & F Tax and Finance (DIFC) Limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 03 September 2007 — DFSA Licenses Commerzbank AG as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Commerzbank AG as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 02 September 2007 — DFSA Licenses The Bank of Tokyo Mitsubishi UFJ, Ltd. as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed The Bank of Tokyo Mitsubishi UFJ, Ltd. as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 30 August 2007 — DFSA Licenses Gilford Securities Incorporated as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Gilford Securities Incorporated as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 27 August 2007 — DFSA withdraws License from Forsyth Companies

      Dubai, U.A.E., August 27, 2007: The Dubai Financial Services Authority (DFSA) today withdrew the license of Forsyth Partners Global Distributors Limited ("Forsyth") to carry on financial services activities in or from the Dubai International Financial Centre (DIFC) after it failed to meet the applicable regulatory capital requirements and was unable to demonstrate a capacity to remedy that breach. Forsyth consented to the DFSA’s withdrawal of its license.

      The DFSA took this action following the issuance of a Notice to Forsyth on 22 August, 2007 requesting it to show cause why the DFSA should not withdraw its license.

      The DFSA also withdrew the license of Forsyth’s subsidiary Forsyth Partners (Middle East) Limited ("Forsyth Middle East") at the request of Forsyth Middle East, which was also licensed by the DFSA to carry on financial services activities in or from the DIFC.

      Both firms were Category 4 firms authorised to arrange credit or deal in investments and to advise on financial products or credit. Category 4 firms are not authorised to accept client money and therefore, withdrawal of the license does not place DIFC client funds at risk.

    • 22 August 2007 — DFSA enters into new co-operative arrangements with banking regulators in Jordan and Turkey

      Amman, August 22 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with the Central Bank of Jordan.

      The discussions are part of a growing relationship between the DFSA and senior regulatory authorities within the region. “Our discussions in Jordan and Turkey are focused on common objectives to improve regulatory standards across all areas of financial services and to increase opportunities for information sharing and co-operation” said DFSA Chief Executive, Mr. David Knott.

      As part of these discussions, the DFSA is completing Memoranda of Understanding with the banking regulators in both countries.

      Jordan Today an MoU signing took place in Amman between H.E. Dr. Umayya Salah Toukan, Governor of the Central Bank of Jordan, and Mr. Knott.

      As the independent and autonomous supervisor of banks in the Hashemite Kingdom of Jordan, the Central Bank’s role is to ensure the soundness of their financial positions and the protection of depositors’ and shareholders’ rights. The DFSA is the independent regulator of all financial services, including banking, within the Dubai International Financial Centre (DIFC).

      The MOU is designed to enhance information sharing and cooperation between the two authorities, particularly in their common roles as banking supervisors. The DFSA already has an MoU with Jordan’s insurance supervisor, the Insurance Commission of Jordan.

      After meeting with the Central Bank, Mr. Knott met with H.E. Dr Bassel Al Hindawi, Director General of the Insurance Commission. Dr Al Hindawi is the Regional Coordinator for the MENA region of the International Association of Insurance Supervisors (IAIS), of which the DFSA is also a member. Regional and international issues of mutual concern were discussed.

      While in Amman, Mr. Knott also called upon the Chairman of the Securities Commission of Jordan (JSC), H.E. Dr Bassem Al Saket, and discussed the possibility of a bilateral MoU covering securities and capital markets issues. Dr Al Saket and Mr. Knott also discussed the recently established Federation of Arab Securities Authorities, of which both the JSC and the DFSA are members and which His Excellency is Chair.

      Turkey Later this week on 23 August, Mr. Knott will sign a similar MoU in Istanbul with Mr. Tevfik Bilgin, Chairman of the Banking Regulation and Supervision Agency of Turkey (BRSA). The BRSA has responsibility for regulating principles and procedures for ensuring confidence and stability in financial markets, the efficient functioning of the credit system and the protection of the rights and interests of depositors.

      Turkey is, like Jordan, an important and well-established jurisdiction for Islamic finance and the BRSA, like the Central Bank of Jordan, plays a key role in maintaining a sound regulatory environment for the development of Islamic financial products.

      The DFSA already has a memorandum of understanding with the Capital Markets Board (CMB) of Turkey. This was one of the DFSA’s first international MoUs with a securities regulator. The CMB has played a leading role in the Emerging Markets Committee of the International Organisation of Securities Commissions (IOSCO), of which the DFSA is also a member. The DFSA will host the next annual meeting of the Emerging Markets Committee in Dubai in December this year.

    • 22 August 2007 — DFSA Issues 'Show Cause' Notice to Forsyth Partners Global Distributors Limited

      Dubai, U.A.E., August 22, 2007: Following concerns arising out of the DFSA's supervisory activities, the DFSA has directed Forsyth Partners Global Distributors Limited (the firm) to cease the carrying on of any financial service or other activity that would prejudice the clients or creditors of the firm, until further notice. The firm has been given until Sunday 26th August to show cause why the firm's license to provide financial services in the Dubai International Financial Centre should not be withdrawn. If the firm cannot demonstrate by that date that it meets the DFSA's regulatory requirements, including the adequacy of its capital, it is the DFSA's intention to withdraw the firm's license.

    • 12 August 2007 — Alert — Bill Parker Agency

      Take notice that the Bill Parker Agency, also known as BP Agency Investment Company, of 4528 Millrace Road Sacramento CA, Oakland KY USA and purportedly of The Gate, Level 18 DIFC, is not Authorised by the DFSA to carry on any financial services business in the DIFC.

      A Person is prohibited from conducting a financial service in the DIFC unless Authorised by the DFSA or otherwise exempt.

      Any person having contact with the Bill Parker Agency or BP Agency Investment Company in respect of financial services activities conducted in or from the DIFC should immediately contact the Enforcement Department of the DFSA at +971 4 362 1500.

    • 09 August 2007 — DFSA Licenses Guggenheim Capital Markets, LLC as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Guggenheim Capital Markets, LLC as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 06 August 2007 — DFSA enters into Memoranda of Understanding with counterpart in Iceland

      Dubai, U.A.E., August 6, 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with the integrated banking, insurance and securities regulator of Iceland.

      The MoU signing took place consecutively in Reykjavík and Dubai between Mr. Jónas Fr. Jónsson, Director General of the Financial Supervisory Authority (FME) and Mr. David Knott of the DFSA.

      As Iceland’s single financial services supervisory authority the FME is entrusted with the supervision of credit institutions, financial services providers, insurance companies and re-insurance companies as well as the securities market in Iceland.

      Chief Executive of the DFSA, Mr. David Knott said: "As one of the thirty members of the European Economic Area, Iceland is part of one of the world’s leading financial groupings. As a member of the Committee of European Securities Regulators (CESR), the Committee of European Insurance and Occupational Pension Supervisors (CEIOPS), and the Committee of European Banking Supervisors (CEBS), the FME is among regulators who are at the forefront in establishing and implementing world best practice in financial services regulation."

      "This bilateral agreement reflects the responsibilities of both agencies in the area of banking, insurance and securities. The MoU was established to facilitate the expansion of Icelandic financial institutions into the DIFC by providing for comprehensive and equivalent standards for information sharing and cooperation between the DFSA and the FME."

    • 02 August 2007 — DFSA Licenses Rasmala CBD Asset Management Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Rasmala CBD Asset Management Limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 02 August 2007 — DFSA Licenses Louvre Fund Advisors (Middle East) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Louvre Fund Advisors (Middle East) Limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 31 July 2007 — DFSA Accepts Enforceable Undertaking

      Dubai, U.A.E., July 31, 2007: The Dubai Financial Services Authority (DFSA) has accepted an Enforceable Undertaking from Rupert Neil Bumfrey in relation to his activities in the Dubai International Financial Centre (DIFC).

      The Undertaking was accepted following a DFSA investigation into Bumfrey’s conduct concerning the financial promotion of the First Persian Equity Fund Limited in the DIFC.

      The DFSA took action after receiving complaints that an offer of securities had been made by Bumfrey in the DIFC.

      A Person may not make an offer of securities in the DIFC, other than an exempt offer, unless a Prospectus has been filed with the DFSA and published. A Prospectus for the First Persian Equity Fund Limited, has not been filed with the DFSA and the offer of securities in the First Persian Equity Fund Limited is not an exempt offer pursuant to the DIFC Markets Law.

      A Person undertaking an activity in the DIFC that constitutes a financial service must first be Authorised or Recognised to carry out such an activity unless otherwise exempt. Rupert Neil Bumfrey did not have the requisite authorities or exemptions.

      Bumfrey has agreed to Terms and Conditions which are set out in the DFSA Enforceable UndertakingDFSA Enforceable Undertaking, dated 28 July 2007, pursuant to Article 89, Regulatory Law No. 1 of 2004. Bumfrey undertakes to refrain from making an offer of securities or carrying out any financial services in or from the DIFC for a period of twelve months from the date of the signing of the Undertaking. Further, Bumfrey will not be able to carry out any financial services in the DIFC unless appropriately Authorised by the DFSA. The Undertaking is legally enforceable under the Laws of the DIFC.

      David Knott, DFSA Chief Executive, stated: "Maintaining the integrity of the DIFC is one of the primary objectives of the DFSA. The DFSA does this by ensuring that Persons who provide financial services in the DIFC are appropriately licensed and have in place measures that protect the interests of investors. Likewise, Persons making offers of securities in the DIFC must make appropriate disclosures to potential investors about the risks associated with investing in financial products. Appropriate disclosures enable investors to make choices about the risk profile and type of products in which they wish to invest.

      This Enforceable Undertaking is a clear reminder that the DFSA will take action against persons who fail to comply with the DIFC Law."

    • 25 July 2007 — DFSA Licenses Tabarak Partners LLP as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Tabarak Partners LLP as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 23 July 2007 — Notice of new forms for existing Authorised Firms

      Existing Authorised Firms are hereby notified that the following new Supervision forms are now available:

      SUP 4 Application to change the scope of a License
      CIR Form F2 Notification of a Private Fund

      These forms, together with all forms in use by the DFSA for existing Authorised Firms and registered ASPs, can now be accessed directly from the DFSA's website in Protected Word format (previously only PDF format was freely available).

      It is hoped that this will make it simpler for Firms to obtain the editable forms they require, as well as enable access to the latest versions at all times.

      The forms are located in the AFN (Application Forms and Notices) Module of the DFSA's Rulebook.

      If you have any questions, please contact your Relationship Manager in Supervision or Shared Services.

    • 12 July 2007 — DFSA Licenses Pioneer Investcorp International Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Pioneer Investcorp International Limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 11 July 2007 — DFSA Licenses Alliance Specialty Underwriters Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Alliance Specialty Underwriters Limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 09 July 2007 — Notice of Consultation Paper

      TAKE NOTICE THAT:

      The DFSA will release the following for Consultation on the 9th of July 2007:

      •  Consultation Paper 51 — Proposals relating to Offers of Securities from the DIFC

    • 04 July 2007 — DFSA releases draft Hedge Fund Code

      Dubai, U.A.E., July 4, 2007: The Dubai Financial Services Authority (DFSA) issues today, a draft Hedge Fund Code (“Code”) for public comment

      Consultation Paper No. 50 and the Code, which are posted on the DFSA website www.dfsa.ae, seek comment on the DFSA’s proposals to introduce best practice standards for the Hedge Fund industry in the DIFC under 9 high level principles. This delivers on a promise made by the DFSA to develop such a Code in consultation with the industry after the first year of operation of the Collective Investment Funds regime.

      Ian Johnston, Managing Director, Policy and Legal Services at the DFSA, said: “We thought it appropriate to develop best practice standards under high level principles, rather than detailed rules. We selected 9 areas of risk which are more specific to Hedge Fund operations than to other types of Collective Investment Funds. This approach is consistent with the DFSA’s risk-based approach to regulation and gives the industry the flexibility to develop their own practices within the framework set by the principles.”

      The Code builds upon the legal requirements applicable to all Collective Investment Funds in the DIFC.

      By developing these proposals in line with international best practice, the DFSA is furthering its regulatory objective of ensuring that the DIFC is a well regulated and internationally competitive financial market.

      Comments on the Code close on 4 October 2007. Subject to any changes resulting from public consultation, the DFSA hopes to introduce the Code in the first quarter of 2008.

    • 04 July 2007 — DFSA releases draft Hedge Fund Code

      Dubai, U.A.E., July 4, 2007: The Dubai Financial Services Authority (DFSA) issues today, a draft Hedge Fund Code ("Code") for public comment.

      Consultation Paper No. 50 and the Code, which are posted on the DFSA website www.dfsa.ae, seek comment on the DFSA’s proposals to introduce best practice standards for the Hedge Fund industry in the DIFC under 9 high level principles. This delivers on a promise made by the DFSA to develop such a Code in consultation with the industry after the first year of operation of the Collective Investment Funds regime.

      Ian Johnston, Managing Director, Policy and Legal Services at the DFSA, said: "We thought it appropriate to develop best practice standards under high level principles, rather than detailed rules. We selected 9 areas of risk which are more specific to Hedge Fund operations than to other types of Collective Investment Funds. This approach is consistent with the DFSA’s risk-based approach to regulation and gives the industry the flexibility to develop their own practices within the framework set by the principles."

      The Code builds upon the legal requirements applicable to all Collective Investment Funds in the DIFC.

      By developing these proposals in line with international best practice, the DFSA is furthering its regulatory objective of ensuring that the DIFC is a well regulated and internationally competitive financial market.

      Comments on the Code close on 4 October 2007. Subject to any changes resulting from public consultation, the DFSA hopes to introduce the Code in the first quarter of 2008.

      -Ends-

      For further information, please contact:

      Ms. Angharad Irving - Jones
      Manager, Communications and Strategic Planning
      Dubai Financial Services Authority
      Level 13, the Gate Building, Dubai
      Tel: +971 (0) 4 362 1660
      Fax: +971 (0) 4 362 080
      E-mail: airvingjones@dfsa.ae
      http://www.dfsa.ae
      Mr. Edward D’Mello
      Group Account Director
      Polaris Public Relations
      Dubai
      Tel: + 971 (0) 4 3348520
      Fax: + 971 (0) 4 3341326
      Email: e.dmello@polaris-me.com
      http://www.dfsa.ae

      Editor’s notes:

      The Dubai Financial Services Authority (DFSA) is an independent, integrated regulatory authority responsible for the regulation of all financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), including asset management, banking, securities trading, Islamic finance, re-insurance, and an international financial exchange. The DFSA has been created using principle-based primary legislation modelled closely on that used in London and New York, and the DFSA regulatory regime operates to standards that meet or exceed those applying in the world's major financial centres.

      The DFSA is a central component of the DIFC, a financial centre established to position Dubai as a recognised hub for institutional finance, and the regional gateway for capital and investment to the Middle East.

      Mr. David Knott was appointed Chief Executive of the DFSA on June 1, 2005. He is a former Chairman of the Australian Securities and Investment Commission (ASIC) and was Chairman of the Technical Committee of the International Organisation of Securities Commissions (IOSCO).

    • 03 July 2007 — Notice of Consultation Papers

      TAKE NOTICE THAT:

      The DFSA will release the following for Consultation on the 3rd of July 2007:

      • Consultation Paper 48—Proposals to Facilitate Certain Types of Advising and Arranging

    • 28 June 2007 — DFSA Enforcement Alert — Fraudulent Documents

      Dubai, U.A.E., June 28, 2007: The Dubai Financial Services Authority (DFSA) has recently investigated the attempted use of fraudulent documents within the Dubai International Financial Centre (DIFC).

      Various individuals have recently approached Authorised Firms within the Centre and attempted to pass off forged documents, including Letters of Commitment and pledges from international financial institutions.

      The individuals involved in this fraudulent activity have represented themselves as being agents or employees of fictitious organisations, including Heritage Private Banking Limited (United Kingdom) and the Genesis Foundation Alliance (Hong Kong).

      Whilst no financial loss was suffered within the Centre, the DFSA wishes to remind members of the public to be alert to fraudulent activity and that the authenticity of financial documents or instruments should always be confirmed with the issuing institution.

    • 28 June 2007 — Notice of Consultation Paper

      TAKE NOTICE THAT:

      The DFSA will release the following for Consultation on the 1st of July 2007:

      •  Consultation Paper 49—Proposals Relating To Fees

    • 24 June 2007 — DFSA Licenses Mizuho Corporate Bank, Ltd. as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Mizuho Corporate Bank, Ltd. as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 18 June 2007 — DFSA Licenses Gulf Fund Management Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Gulf Fund Management Limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 13 June 2007 — DFSA Registers Denton Wilde Sapte & Co as an Ancillary Service Provider

      The Dubai Financial Services Authority (DFSA) registers Denton Wilde Sapte & Co as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC)

    • 13 June 2007 — DFSA Registers Simmons & Simmons as an Ancillary Service Provider

      The Dubai Financial Services Authority (DFSA) registers Simmons & Simmons as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC)

    • 10 June 2007 — Senior Appointments at the DFSA

      Dubai, UAE, June 10, 2007: The Dubai Financial Services Authority (DFSA) today announced the following senior promotions:

      Mr. Marc Hambach — Head of Anti-Money Laundering (Supervision)

      Mr. Michael Golden — Head of Insurance

      Mr. Stephen Glynn — Head of Enforcement

      Mr. Sameer Sheth — Head of Finance

      Mr. David Haswell — Head of Internal Audit

      "These promotions follow a review of DFSA’s leadership expectations and needs into the next decade" said DFSA Chief Executive, Mr. David Knott.

    • 30 May 2007 — Notice of Rule Amendments

      TAKE NOTICE THAT:

      The DFSA has amended the:

      •   Prudential Returns Module (PRU);
      •   Prudential — Insurance Business Module (PIN);
      •   Glossary Module (GLO).

      The amendments are set out in Rulemaking Instrument No. 44 which comes into force on the 1st of June 2007.

      These amendments were made in order to de-couple PRU from the Rulebook and thereby convert it into a Sourcebook (like AFN). In general the Rules that were in Chapter 3 of PRU (version1) have been either relocated to the new Appendix 10 in PIN or alternatively they have been converted into instructional guidelines and will remain in Chapter 3 of PRU (version 2). Other than that a few consequential amendments have been carried out mainly relating to cross referencing.

      Issued on 30 May 2007

    • 27 May 2007 — DFSA Licenses CALYON as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed CALYON as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 24 May 2007 — DFSA licenses ARQAAM CAPITAL LIMITED as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed ARQAAM CAPITAL LIMITED as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 22 May 2007 — DFSA Licenses elseco limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed elseco limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 18 May 2007 — DFSA Licenses GFS Investments (Middle East) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed GFS Investments (Middle East) Limited as an Authorised Firm in the Dubai International Finance Centre (DIFC).

    • 16 May 2007 — David Knott, DFSA Chief Executive, Speech at the IFSB Submit

      Address by David Knott, Chief Executive,
      Dubai Financial Services Authority (DFSA)
      at the IFSB Summit
      Dubai
      16th May 2007

      Introduction

      Having listened already to four excellent sessions on various aspects of cross-sectoral supervision, it is difficult to think that there is much left to say. But I congratulate the organizers for highlighting this issue and for posing the questions they have. I believe that the answers adopted will impact fundamentally on the future success of markets in this region, both conventional and Islamic.

      Regulatory Models

      The question of cross-sectoral supervision is confronting, implying as it does a need to critically examine existing regulatory mechanisms and structures. Having come from a country where this was done in the late 1990s I can confidently say that this is no academic debate. It’s strategic; it’s political; and it can get personal.

      By cross-sectoral supervision, I am referring to the supervision of those financial institutions who offer any combination of banking, securities or insurance products.

      In the more advanced capital markets, a new approach to the regulation of such financial conglomerates became a hot topic of debate in the 1990s. Many countries accepted that the traditional approach of regulating the financial sector along institutional lines required review. Separate regulators for banking, securities and insurance had become difficult to sustain when the financial institutions themselves were operating across most, if not all, of those business lines. I’ll return to this international experience shortly, but we should perhaps start by asking whether there is a problem that needs fixing in this region, especially in the context of Islamic Finance.

      I think we would all agree that financial conglomeration is not yet a burning issue for most emerging markets. But it is equally clear that as our regional financial markets acquire greater sophistication and are opened up to increased competition through public policy reforms, issues of cross-sectoral regulation and supervision will become more acute.

      We already have some cross-sectoral activity in this region, including in the areas of banking and funds management; in the distribution by banks of insurance and investment products; and the provision of financial advice. From those activities alone we can easily identify a range of regulatory issues that might include capital adequacy; operational risk; conduct of business rules; disclosure standards; governance and investor protection. In some cases the cross-sectoral issues may be imbedded in the financial products themselves. For example, in the insurance sector (whether conventional or Takaful) a product may be viewed for one purpose as an insurance policy but for another purpose as an investment product. Another example may be a PSIA which may raise issues of capital adequacy but also important issues of investor protection and conduct of business.

      It is generally accepted that regulatory fragmentation and markets fragmentation are already issues of significance in the Middle East. The question is whether the growth of Islamic Finance (and, for that matter, conventional finance also), will be constrained unless this is addressed? Some may argue that this is not yet a sufficiently serious issue to justify correction. Others may reply: "Why wait until the problem becomes even harder to resolve?" A recent industry survey by McKinsey suggests that this is a legitimate question to ask.

      If one looks at the London market over the past decade it is clear that policy and strategy have driven growth and competitive success. Part of that policy and strategy has been legislative and part regulatory. In my view, one of the key planks of this policy was the creation of the Financial Services Authority, an integrated cross-sectoral financial services regulator. That policy was driven by a recognition that having separate regulators according to whether the institution called itself a bank a securities firm or an insurer was no longer consistent with the way business was conducted in the market. The inefficiencies of having overlapping regulators applying different solutions for the same or similar problems not only constrained business but resulted in increased transaction costs and compliance costs. The creation of the FSA was one of the first actions of the Blair Government and it was controversial. But you would be hard pressed to find anyone in the UK financial services sector today who would want to return to the past. By contrast, you would quickly find large numbers of industry participants in the United States who would readily trade their diversified and complex regulatory structure in return for integrated cross-sectoral regulation.

      It is no surprise to me to see the UK aspiring to prominence as an Islamic Finance market, and I believe that their cross-sectoral regulatory structure gives them a competitive advantage over the fragmented models that generally prevail in this region. However, I should point out that the Dubai Financial Services Authority has adopted the UK regulatory model.

      I am not saying that this is the only way to address cross-sectoral supervision. The Australian model, for example, is somewhat different, dividing regulatory responsibility on functional grounds between prudential risks and market conduct risks. The key point, however, is that over the past 10 years at least 19 jurisdictions have moved from institutional-based regulation to a fully integrated model.

      Several other jurisdictions are actively moving in that direction (e.g. Switzerland). The new-found emphasis of banking regulators on governance (traditionally a province of securities regulators) and introduction of MiFID in Europe will add further impetus to this trend.

      Our Approach

      Let me now say something about the DFSA’s own experience and approach to cross-sectoral issues in Islamic Finance.

      I’ll start with the obvious point that while being an integrated cross-sectoral regulator is an advantage, it by no means solves all of the practical problems confronting cross-sectoral supervision. The advantage is having a framework that makes it easier to address those problems with relative consistency and efficiency.

      But we still have major international standard setters which essentially approach their role from a single sectoral perspective, which in some respects has not kept up with market changes. The good news is that there has been greater alignment of approach between IOSCO, IAIS and Basel in recent years and that the work of the Joint Forum, which they established to consider cross-sectoral issues, has become more focused and relevant. I believe that an opportunity exists for the Joint Forum to engage more actively with IFSB and the Islamic Finance industry to identify and address some of the specific regulatory issues we have heard about at this summit. I hope this will form part of the Joint Forum’s work program over the next 12 months.

      In March 2000 a Joint Forum report highlighted the degree of commonality in certain standards set by IOSCO, IAIS and Basel, most notably licensing, supervision and intervention. Supervision is clearly an area where a cross-sectoral perspective should be adopted to ensure that the risk which an institution poses is adequately identified, measured and mitigated. Indeed that is the approach adopted by the DFSA where common supervisory tools and risk measurement and management structures are in place for conventional firms and Islamic Firms.

      Central to that approach is our belief that the regulation of Islamic Finance should be aligned with the regulation of conventional finance to the maximum extent consistent with Shari’a requirements. In our view, that is the surest and quickest way for Islamic communities to participate to their full advantage in mainstream international finance and capital markets. In the regulatory context, that means applying internationally accepted standards and principles, with variations only as required to reflect Shari’a compliance.

      Against that background, I want to add my voice to others who have warmly welcomed IFSB’s Exposure drafts on Supervisory Review Process and Market Discipline. The IFSB has recognized that the same levels of customer protection, transparency and disclosure should be provided to customers of both Islamic and conventional Firms; and that a different position is detrimental to the financial stability and reputation of the industry.

      At the DFSA we had the advantage of being able to design our regulatory structure on this construct from day one. That has made the task of creating a cohesive and balanced regulatory framework easier than in those jurisdictions where Islamic Finance has had to be bolted on to an existing conventional regulatory regime.

      Our framework of regulation will be readily recognizable to the major capital markets, based as it is on principles of IOSCO, Basel, IAIS and FATF. Our general approach to risk, disclosure and conduct applies consistently across both Islamic and conventional finance. Where variations are called for, they are implemented within the context of these generally prevailing principles.

      So, for example, although we have specific provisions to deal with PSIAs, (including a Displaced Commercial Risk capital requirement of 35%); and although specific concentration limits and risk weightings may apply to certain Islamic products or businesses — nevertheless, our Risk Assessment Model remains standard across all licensed firms, providing a level playing field and avoiding artificial distinctions or distortions in regulatory outcomes.

      The other critical part of our approach to regulating Islamic Finance has been to step back from the direct regulation of Shari’a . We decided that as a risk based regulator our focus should be on the adequacy of the systems and controls that Firms maintain for all their compliance obligations, be they conventional or Shari’a.

      In short, we are not there to regulate religious features of Islamic products but rather to ensure that those features are addressed by others under adequate systems and controls.

      We do not have our own Shari’a Board as part of the regulatory structure. Instead, we require Islamic Firms (and also conventional firms operating an Islamic window) to appoint a Shari’a Supervisory Board, which must comprise suitably qualified scholars and operate under approved policies and procedures. Some see this as a weakness in our regime compared, for example, to the Malaysian model. I think many in industry would prefer a centralised Shari’a approval structure and I can understand that. However, we believe that our approach responds in a practical way to the circumstances that currently prevail in our region.

      In summary, I would say that our experience to date has validated our approach to cross-sectoral issues as well as the advantages of our regulatory model. We have an active dialogue with the industry and contribute to the work of the DIFC Islamic Financial Advisory Council, a group of practitioners and experts established within our financial Centre to promote the further development of the industry. We have also been working on the promotion of cross-border Islamic Finance transactions and recently concluded a mutual recognition agreement with the Malaysian Securities Commission to facilitate the marketing of Islamic Funds between our respective jurisdictions.

      Conclusion

      In conclusion I leave you with the following key thoughts:

      First the development of the Islamic Finance sector deserves a more co-ordinated and cohesive regulatory framework than it is getting;
      Secondly consumers of Islamic Finance products deserve more transparent product regulation than they are getting; and
      Thirdly that both of these concerns will require an increased cross-sectoral approach to the content of regulation and the way it is administered.

    • 10 May 2007 — Notice of Rule Amendments

      TAKE NOTICE THAT:

      The DFSA has amended the:

      •   General (GEN);
      •   Conduct of Business (COB);
      •   Ancillary Service Providers (ASP);
      •   Prudential—Insurance Business (PIN);
      •   Prudential—Investment, Insurance Intermediation and Banking Business (PIB);
      •   Offered Securities Rules (OSR);
      •   Glossary (GLO);
      •   Collective Investment (CIR);
      •   Supervision (SUP);
      •   Anti Money Laundering (AML);
      •   Authorisations (AUT); and
      •   Authorised Market Institutions (AMI).

      The amendments are set out in Rulemaking Instrument No. 43 which comes into force on the 1st of June 2007. Consultation Papers 42 and 45 explain the purpose of these amendments.

      Issued on 10 May 2007

    • 10 May 2007 — Victorian Treasurer Visits DIFC

      Dubai, UAE, May 10, 2007: The Treasurer of Victoria, the Honourable John Brumby today visited the Dubai International Financial Centre (DIFC) as part of a visit to the region and was met by Mr. David Knott, Chief Executive of the DFSA together with Mr. Nasser Al Shaali, Chief Executive of Dubai International Financial Centre Authority (DIFCA) and Dr. Nasser Saidi, Chief Economist of the DIFC. His Excellency the Australian Ambassador to the UAE, Mr. Jeremy Bruer, also attended the meeting.

      The visit follows an invitation extended to Mr. Brumby by His Excellency Dr. Omar Bin Sulaiman, the Governor of the Centre, when, as part of a DIFC delegation to Australia, His Excellency and Mr. Knott met with the Treasurer in Melbourne in September 2006.

      Mr. Brumby has the distinction of currently being the longest serving of Australia’s State Treasurers. He is also Minister for Regional and Rural Development and Minister for Innovation. In this context Mr. Brumby expressed considerable interest in the emergence of the DIFC as the world’s fastest growing financial centre and as the international investment hub for the time zone between Europe and Asia. A discussion took place on other matters of mutual interest, including the role of regulation and supervision. The Treasurer also noted with interest that active discussions are taking place between DIFCA executives and a number of Australian entities about participation in the DIFC.

    • 09 May 2007 — DFSA Registers Lovells (Middle East) LLP as an Ancillary Service Provider

      The Dubai Financial Services Authority (DFSA) has registered Lovells (Middle East) LLP as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

    • 09 May 2007 — Consultation Paper No.46 issued for public comment

      09 May 2007—Consultation Paper 46 issued for public comment

    • 07 May 2007 — Mr. Abdulla Saleh succeeds Dr. Habib Al Mulla as DFSA Chairman

      Dubai, Monday, 7 May 2007: The Dubai Financial Services Authority (DFSA) today announced that its Chairman, Dr. Habib Al Mulla will not renew his term which expires next month.

      Dr. Al Mulla has decided that the workload of his legal practice and other commitments require more of his time. He is therefore not seeking reappointment to the Board for a further term.

      Mr. Abdulla Saleh, the Deputy Chairman of the DFSA will succeed Dr. Al Mulla as Chairman.

      His Excellency, Governor of the Dubai International Financial Centre, Dr. Omar bin Sulaiman said:

      “Dr. Al Mulla has served as Chairman of the DFSA since its formation and prior to that was a Board Member of its predecessor, the DIFC Regulatory Council. He was instrumental in advising on the laws establishing the DIFC and has played a prominent role in its successful development over the intervening period.

      Under Dr. Al Mulla’s Chairmanship the DFSA has established an international reputation for excellence in financial services regulation.

      On behalf of all of us at the DIFC, I extend my thanks and congratulations to Dr. Al Mulla and my best wishes to Mr. Abdullah Saleh in his new role.”

    • 06 May 2007 — DFSA Licenses Alternative Investment Strategies Management (Dubai) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Alternative Investment Strategies Management (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 03 May 2007 — DFSA Obtains Final Orders in Dubai Options Exchange Matter

      Dubai, May 3, 2007 — The DFSA has obtained final orders from the DIFC Court against several of the defendants involved in the operation of fictitious websites called the Dubai Options Exchange, the United Arab Emirates Commodity Futures Board and Cambridge Capital Trading. The Chief Justice of the DIFC Court, the Honourable Sir Anthony Evans had previously issued temporary injunctions closing down the fictitious websites, which targeted investors by falsely claiming to offer currency options trading within the DIFC. Close cooperation between the Dubai Police, ESCA and the DFSA’s regulatory counterparts in Malaysia, Australia and the USA resulted in the speedy shut down of the websites and the freezing of over US $600,000 in investor funds.

      On 1 May 2007, Sir Anthony Evans issued permanent restraining orders against defendants Ameerdeen Abdul Majid Thanikkodi, Syed Mohamed A/L Kabdul Rahman, AI Global Resources, Everyone’s Internet and Select Solutions LLC. Based on the consent of the DFSA and Husam Abu-Amara and Globalstar Telecom & Technology, Sir Anthony Evans also issued a final order staying the DFSA’s civil claim against Abu-Amara and Globalstar with no order for costs against any party.

      All of the final orders will be posted on the DIFC Court website www.difccourts.ae under Judgements and Orders.

    • 03 May 2007 — DFSA Obtains Final Orders in Dubai Options Exchange Matter

      Dubai, May 3, 2007 — The DFSA has obtained final orders from the DIFC Court against several of the defendants involved in the operation of fictitious websites called the Dubai Options Exchange, the United Arab Emirates Commodity Futures Board and Cambridge Capital Trading. The Chief Justice of the DIFC Court, the Honourable Sir Anthony Evans had previously issued temporary injunctions closing down the fictitious websites, which targeted investors by falsely claiming to offer currency options trading within the DIFC. Close cooperation between the Dubai Police, ESCA and the DFSA’s regulatory counterparts in Malaysia, Australia and the USA resulted in the speedy shut down of the websites and the freezing of over US $600,000 in investor funds.

      On 1 May 2007, Sir Anthony Evans issued permanent restraining orders against defendants Ameerdeen Abdul Majid Thanikkodi, Syed Mohamed A/L Kabdul Rahman, AI Global Resources, Everyone’s Internet and Select Solutions LLC. Based on the consent of the DFSA and Husam Abu-Amara and Globalstar Telecom & Technology, Sir Anthony Evans also issued a final order staying the DFSA’s civil claim against Abu-Amara and Globalstar with no order for costs against any party.

      All of the final orders will be posted on the DIFC Court website www.difccourts.ae under Judgements and Orders.

    • 02 May 2007 — DFSA enters into Memoranda of Understanding with Counterparts in Switzerland and Luxembourg

      Dubai, UAE, May 2, 2007: The Dubai Financial Services Authority (DFSA) entered into Memoranda of Understanding this week with the national banking and securities regulators in Switzerland and Luxembourg.

      The MoU signings coincided with a visit to Berne and Luxembourg by David Knott, Chief Executive of the DFSA. On April 30 in Berne, Mr. Knott met with Mr. Daniel Zuberbuhler, Director of the Swiss Federal Banking Commission (the SFBC). Today in Luxembourg Mr. Knott met with Mr. Jean-Nicolas Schaus, Directeur General of Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF).

      The SFBC was established in 1934 and is Switzerland’s independent federal agency responsible for the supervision of banks, investment funds, securities and derivatives exchanges, securities and derivatives dealers as well as the disclosure of qualified shareholdings in listed companies. It is also responsible for the regulation of public takeover bids.

      Established in 1998, the CSSF is responsible for the prudential supervision of the entire financial sector in Luxembourg, except for the insurance sector. Its responsibilities also extend to the regulation and supervision of the securities markets.

      Knott said: “Switzerland and Luxembourg have long been regarded as among Europe’s leading international financial centres and the SFBC and CSSF have played an important role as the regulators of these centres.

      “As such, each of these memoranda of understanding is a most significant initiative, recognising the importance of these arrangements for cooperation and information sharing between the two regulators,” he added.

      “This week’s bilateral agreements reflect each agency’s responsibilities, in the area of banking and securities,” Knott said.

      “There are already a number of significant Swiss financial institutions operating from the DIFC and there is a level of interest from financial entities in Luxembourg. In addition, there is a possibility of the development of additional business between traded markets in the DIFC and Luxembourg. These two bilateral relationships will assume increasing importance as each regulator relies on the quality of regulatory standards administered in the other’s jurisdiction,” Knott pointed out.

    • 30 April 2007 — UN Security Council Resolutions and sanctions: Al-Qaida and Taliban

      The Dubai Financial Services Authority advises all Authorised Firms, Ancillary Service Providers, Authorised Market Institutions and Registered Auditors of the financial sanctions imposed by UN Security Council Resolution 1267 (1999) against individuals and entities belonging to or associated with the Taliban. Please note that the sanctions regime has been modified and strengthened by subsequent resolutions, including resolutions 1333 (2000), 1390 (2002), 1455 (2003), 1526 (2004), 1617 (2005) and 1735 (2006) so that the sanctions now cover individuals and entities associated with Al-Qaida, Usama bin Laden and/or the Taliban wherever located. Additional resolutions are to be expected in future.

      Please refer to the Al-Qaida and Taliban UN Sanctions Committee website for further information on these sanctions including the current Consolidated List of the named individuals and entities.

      Authorised Firms, Ancillary Service Providers, Authorised Market Institutions and Registered Auditors are required to check and to monitor whether they maintain any accounts or otherwise hold any funds, other financial assets, economic benefits and economic resources for the individuals named in the Consolidated List. If this is the case, firms are required to provide details of these to the Anti Money Laundering and Suspicious Cases Unit of the UAE (AMLSCU) and DFSA without delay.

      Further inquiries on this matter should be directed to the firm's Relationship Manager or info@dfsa.ae

    • 26 April 2007 — DFSA Licenses DME and Recognises NYMEX as Clearing House

      Dubai, UAE, Date: Thursday, 26 April, 2007: The Dubai Financial Services Authority (DFSA) has today licensed the Dubai Mercantile Exchange Limited (DME) as an Authorised Market Institution (AMI) in the Dubai International Financial Centre (DIFC).

      The DFSA has also today granted the status of Recognised Body to New York Mercantile Exchange Inc. (NYMEX) to carry on the Financial Service of Operating a Clearing House in the DIFC. On the 17th of April 2006, NYMEX and Commodity Exchange Inc. (COMEX) were each granted the status of Recognised Bodies within the DIFC to carry out the Financial Service of Operating an Exchange.

      DFSA’s Chief Executive Mr. David Knott said, “Today’s licensing approvals are an important last stage towards the launching of DME’s operations within the DIFC.

      The DFSA has worked closely with DME over many months to ensure that the new exchange will operate an orderly, fair and efficient market meeting both domestic and international expectations. The DME model contains a number of innovative and sophisticated features that have required careful consideration from both commercial and regulatory perspectives.

      We believe that the DME is well placed to develop a world class market; to contribute to the efficiency of commodities trading and pricing throughout our region; and to further enhance the DIFC’s standing as a progressive, reputable and well regulated financial centre.

      We will continue our co-operation with USA regulators with a view to expediting regulatory approvals in that country, ahead of DME’s proposed 1 June 2007 launch.”

    • 20 April 2007 — DFSA Licenses Wallich & Matthes (Dubai) Limited as an Authorised firm

      The Dubai Financial Services Authority (DFSA) has licensed Wallich & Matthes (Dubai) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 18 April 2007 — DFSA Again Warns Investors Against Unlicensed Investment Website Operations

      Dubai, UAE, April 18, 2007: The Dubai Financial Services Authority (DFSA) has been successful in closing down a Dubai-hosted website, www.smiequity.com, used to front an unlicensed investment company, SMI Equity, using the UAE as a base address on the website.

      The DFSA was alerted to the unlicensed operation of SMI Equity, having received information from an investor in the Czech Republic. The investor had already deposited USD 45,000 into the bank account of SMI Equity and received no response from SMI Equity after the investment was made. The investor contacted the DFSA having seen DFSA’s website warnings, which lists information and past media releases on internet scams and frauds.

      While unlicensed, SMI Equity claimed to offer investment opportunities and provide investment advice to prospective customers in Eastern Europe, using a UAE address and P.O. Box. The website was used to encourage investors to invest mainly in pre-IPO securities in the United States.

      The DFSA immediately contacted the website host provider in Dubai and arranged to close the website down with immediate effect.

      David Knott, Chief Executive of the DFSA said: “The internet has added a fantastic new dimension to our daily lives but has also opened up prospects for criminals to prey on the public.

      Cold calling schemes will increasingly occur in the Middle East, as Dubai and other regional centres expand their capital markets. The DFSA regards awareness of these risks being a matter for constant reminder and public education and we are fortunate that some of the investors in this scam had the good sense to contact the DFSA.

      All investors are advised not to respond to unsolicited telephone calls or emails that ask for money or recommend investments without first checking with a trusted and experienced advisor. Whenever there is any suspicion of foul play, the public should contact the relevant regulators or law enforcement authorities,” Mr. Knott concluded.

    • 16 April 2007 — Dr. Habib Al Mulla Chairman Calls for Effective Trade and Professional Bodies to Develop Standards for Professionals and Firms

      Dubai, UAE, April, 16 2007: Today, at the Corporate Governance Forum, Dr Habib Al Mulla called for more commitment to corporate governance, stating ‘we need effective trade and professional bodies to develop standards for professionals and firms, better, and more critical, business reporting and we need stronger disclosure requirements’.

      Dr Al Mulla was addressing the subject of corporate governance and the role of regulation in effectively dealing with the multiplicity of rules.

      Dr. Al Mulla said, ‘according to the World Economic Forum report, the UAE is the most competitive economy and is number one in the Transparency International Report in the Arab world but we must establish a continuous improvement programme and further progress our position.’

      In concluding Dr Al Mulla, stressed that, ‘we need effective trade and professional bodies to develop standards for professionals and firms; we need better, and more critical, business reporting and we need stronger disclosure requirements; this to ensure the UAE continues to close the gap with the leading economies and financial centres’.

      In providing an insight into the OECD Principles on corporate governance, Dr. Al Mulla explained that while corporate governance is primarily about the protection of shareholders, there are other important stakeholders to be protected, ‘employees are often thought of, but creditors are also important,’ he said before adding ‘the basics of company law are so familiar that we sometimes forget that they involve a bargain in which shareholders gain limited liability but at the price of basic governance measures to protect creditors’. Dr Al Mulla expanded on this point explaining, there are the basics of company law designed to protect creditors commenting that, ‘those basics also deal with divergences of interest between shareholders, covering voting, oppression of minorities, and so on’.

      Dr Al Mulla pointed out that supervisors put great weight on governance in their standards, explaining they do this because good governance is the only way of consistently delivering the outcomes that regulators want – to protect depositors, policyholders and investors.

      Dr Al Mulla addressed the challenges facing shareholders, commenting, ‘as companies grow, it becomes increasingly difficult for shareholders to play an active part in their governance day by day, and their interests can easily diverge from those of management’.

      In turning his attention to the DFSA he explained that the DFSA has a strong independent Board and its functions are clearly set out in law. He went on to explain, ‘we have adopted a strong Code of Values and Ethics for employees’. The DFSA is transparent in publishing rules for consultation, provides reasons for decisions, and there are rights of appeal to independent bodies, he added.

    • 12 April 2007 — DFSA Licenses Daiwa Securities SMBC Europe Limited as an Authorised firm

      The Dubai Financial Services Authority (DFSA) has licensed Daiwa Securities SMBC Europe Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 11 April 2007 — DFSA Licenses VP Wealth Management (Middle East) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed VP Wealth Management (Middle East) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 10 April 2007 — DFSA Obtains Interim Injunctions to Stop Internet Fraud

      Dubai, UAE, April 10, 2007: The Dubai Financial Services Authority (DFSA) obtained injunctions in the Dubai International Financial Centre (DIFC) Court today against the operators of the Euro-America Index.

      The DFSA was alerted to the operations of Euro-America Index who purported to offer returns of between 100% to 230% on 100 day index investment products. On their website, Euro-America Index claimed to have three global trading centres, including Chicago and Zurich, as well as one based in Dubai and referred to the DIFC. The DFSA investigation has revealed that Euro-America Index was never authorised to trade in any of these financial centres, including the DIFC.

      The DFSA was assisted in this investigation by the US Securities and Exchange Commission (SEC) and the Swiss Federal Banking Commission (SFBC).

      The orders, which prohibited the operation of the website and stopped the conduct of Euro-America Index, were made by the Deputy Chief Justice of the DIFC Court, the Honourable Michael Hwang after a court appearance in Dubai via a video link with the judge in Singapore. Cooperation was received by the website domain owner, Domains by Proxy Inc. and GoDaddy.com based in Arizona, USA.

      David Knott DFSA Chief Executive stated: "Once again the DFSA acted swiftly to protect the reputation of the DIFC and prevent potential loss to investors. Investors must exercise extreme caution when they view sites on the internet, be sure to obtain confirmation that the organisation is licensed and obtain independent financial advice before parting with their money. We are starting to see an increased trend in these types of e-frauds in the Middle East. Where they occur in our jurisdiction, the DFSA will take appropriate action".

    • 10 April 2007 — DFSA Obtains Interim Injunctions to Stop Internet Fraud

      Dubai, UAE, April 10, 2007: The Dubai Financial Services Authority (DFSA) obtained injunctions in the Dubai International Financial Centre (DIFC) Court today against the operators of the Euro-America Index.

      The DFSA was alerted to the operations of Euro-America Index who purported to offer returns of between 100% to 230% on 100 day index investment products. On their website, Euro-America Index claimed to have three global trading centres, including Chicago and Zurich, as well as one based in Dubai and referred to the DIFC. The DFSA investigation has revealed that Euro-America Index was never authorised to trade in any of these financial centres, including the DIFC.

      The DFSA was assisted in this investigation by the US Securities and Exchange Commission (SEC) and the Swiss Federal Banking Commission (SFBC).

      The orders, which prohibited the operation of the website and stopped the conduct of Euro-America Index, were made by the Deputy Chief Justice of the DIFC Court, the Honourable Michael Hwang after a court appearance in Dubai via a video link with the judge in Singapore. Cooperation was received by the website domain owner, Domains by Proxy Inc. and GoDaddy.com based in Arizona, USA.

      David Knott DFSA Chief Executive stated: "Once again the DFSA acted swiftly to protect the reputation of the DIFC and prevent potential loss to investors. Investors must exercise extreme caution when they view sites on the internet, be sure to obtain confirmation that the organisation is licensed and obtain independent financial advice before parting with their money. We are starting to see an increased trend in these types of e-frauds in the Middle East. Where they occur in our jurisdiction, the DFSA will take appropriate action".

    • 05 April 2007 — DFSA Licenses AIG Global Investment Corp (Middle East) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed AIG Global Investment Corp (Middle East) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 03 April 2007 — DFSA Receives Award for Innovations in Islamic Finance

      Dubai, UAE, April 3, 2007: The Dubai Financial Services Authority (DFSA) is pleased to announce that it has received the Failaka Islamic Fund award for "Best Contribution to Growth and Development." The award was presented to the DFSA by Failaka International at the 2nd Annual Failaka Islamic Funds awards dinner in Dubai, which took place on 2nd April 2007.

      This prestigious award recognises the DFSA’s contributions to transparency and innovation in Islamic Finance.

      Failaka International specialises in market research and publication of data for Islamic funds, based the award on DFSA’s substantial contributions in enacting a high quality collective investment funds regime during 2006, which selectively incorporates international best practice. The innovative DFSA regime brings a higher degree of transparency to the field of Islamic funds.

      Mr. David Knott, Chief Executive of the DFSA, said: "We are pleased to be recognised for innovations that facilitate the growth of Islamic Finance. We will continue to take a leadership role in promoting effective risk-based supervision of the evolving market for Islamic Finance, as well as financial services activities more generally. I congratulate our DFSA team members who helped to construct our high quality funds regime."

    • 02 April 2007 — DFSA Licenses Killik & Co as an Authorised firm

      The Dubai Financial Services Authority (DFSA) has licensed Killik & Co as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 02 April 2007 — DFSA Licenses UTI Bank Limited as an Authorised firm

      The Dubai Financial Services Authority (DFSA) has licensed UTI Bank Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 30 March 2007 — DFSA Licenses Daman Securities International Limited as an Authorised firm

      The Dubai Financial Services Authority (DFSA) has licensed Daman Securities International Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 28 March 2007 — DFSA Consults on Insurance Rules

      Dubai, UAE, March 28, 2007: The Dubai Financial Services Authority (DFSA) has issued on its website Consultation Paper No 44.

      The Consultation Paper seeks public comment on a number of proposals relating to insurance, specifically direct long-term insurance, credit insurance and group supervision.

      The proposals relating to direct long-term insurance provide a capital adequacy framework for DIFC incorporated insurers conducting direct-long term insurance business from a branch located outside the DIFC.

      Credit insurance related proposals provide for a capital adequacy regime for insurers who wish to write credit insurance. These proposals draw a distinction between credit enhancement insurance (for example covering bonds against default) and more conventional credit insurance business. The proposals only cater to insurers writing credit enhancement business as a small part of their more general credit insurance business and not for specialist monoline insurers, for whom special provisions would be necessary.

      The proposals relating to group supervision are designed to provide for consolidated supervision of groups containing insurers, and are broadly similar to those for consolidated supervision in other areas (to which small adjustments are made).

      In addition, the proposals would reduce the underpinning minimum capital for a non-captive insurer established in the DIFC from USD 100 million to USD 10 million.

      David Knott, Chief Executive of the DFSA said, “These proposals demonstrate our commitment to continue to develop our regime in line with international standards and the needs of the changing marketplace in which we operate.”

    • 27 March 2007 — DFSA enters into Memorandum of Understanding with Bank Negara Malaysia

      Kuala Lumpur, Malaysia, 27 March, 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with Bank Negara Malaysia (BNM), the country’s Central Bank, committing both parties to the further development of international Islamic Finance markets.

      The MoU was signed by the Chief Executive of the DFSA, David Knott, and the Deputy Governor of Bank Negara, Datuk Zamani Abdul Ghani. The signing coincided with a visit to Kuala Lumpur by Mr. Knott and his participation in the Global Islamic Finance Forum.

      Mr. Knott said: “The DFSA has today announced two highly significant joint initiatives with Malaysian authorities that will contribute to the future growth of international Islamic Finance markets.

      “The first initiative with the Securities Commission, Malaysia has cut regulatory red tape for the distribution of Islamic funds in the Dubai International Financial Centre (DIFC) and Malaysia. This will make it easier for investors to access products from both jurisdictions.

      “The second initiative to work constructively with Bank Negara in developing international Islamic finance markets will exploit the experience and skills that both Dubai and Malaysia have established as leaders in their respective regions. The DFSA is confident that these new relationships will enhance the DIFC’s reputation as a centre of excellence for Islamic Finance in the Middle East”, added Mr. Knott.

    • 27 March 2007 — DFSA enters into mutual recognition agreement with Malaysian Securities Commission to facilitate cross-border flows of Islamic Investment Funds

      Putrajaya, Malaysia, 27 March 2007: The Dubai Financial Services Authority (DFSA) has entered into a mutual recognition agreement to facilitate cross border distribution of Islamic investment products with the Securities Commission of Malaysia (SC). The agreement was signed today by Dato’ Zarinah Anwar, Chairman of the SC, and Mr. David Knott, Chief Executive of the DFSA at a ceremony in Kuala Lumpur, witnessed by the Second Finance Minister of Malaysia, Yang Berhormat Tan Sri Nor Mohamed Yakcop.

      David Knott said: "The DFSA is delighted that, as a result of this joint initiative, DIFC domestic Funds will be the first foreign funds permitted to be sold into Malaysia. This arrangement is a positive step for both jurisdictions, and is intended to facilitate the cross border flow of Islamic capital market products, as envisaged when this initiative was first announced in August 2006.”

      “The DFSA is committed to assisting both the Dubai International Financial Centre (DIFC) and the Dubai International Financial Exchange (DIFX) in their objective to promote innovation and growth of Islamic capital markets in the Middle East,” he added.

      This is the first mutual recognition agreement entered into by both regulators, and is a significant milestone for both the SC and the DFSA in the area of cross-border regulation of Islamic investment funds and the development of deeper and broader investment markets. Under the mutual recognition framework, Islamic funds that have been approved by the SC may be marketed and distributed in the DIFC with minimal regulatory intervention, following the entry of Malaysia onto the DFSA’s list of Recognised Jurisdictions. Similarly, Islamic funds which have been registered or notified with the DFSA will be able to have access to Malaysian investors. Supported by a bilateral memorandum of understanding, both regulators will work closely in the areas of supervision and enforcement of securities laws to ensure adequate protection for investors.

      This follows an earlier announcement, on 15 August 2006, of a joint initiative on regulatory alignment to facilitate Islamic finance transactions between the DIFC and Malaysia, which is now complete. The agreement today marks a significant liberalisation effort on the part of the SC and DFSA to encourage the bilateral flow of Islamic funds between the two jurisdictions.

      Dato’ Zarinah said, “By entering into a mutual recognition arrangement with the DFSA, it demonstrates our mutual intention to accelerate the growth of our respective investment management industries through the trading in each other’s markets of mutually recognised investment products that are acceptable to both authorities. The mutual recognition framework will provide many benefits to market participants including lower regulatory cost as well as an enlarged investor base. It will also provide investors in each jurisdiction with greater choice of Islamic investment products. This arrangement with the DFSA is also in line with the Malaysia’s aspiration to evolve its role as an international Islamic financial centre”.

    • 26 March 2007 — DFSA Chairman Calls On All Markets To Draw On Success Of Major Financial Centres To Boost Shareholder Confidence

      Dubai, UAE, March 26, 2007: Today, at the 2nd Middle East IPO Summit in Dubai, Dr. Habib Al Mulla, Chairman of the DFSA, called for all markets to draw on the success of the major financial centres which he explained had achieved high Investor Protection Indices in the World Bank Doing Business Survey.

      In explaining the DFSA’s regulatory approach with regard to the Offer of Securities and companies listed on the Dubai International Financial Exchange (DIFX), Dr. Al Mulla described the DFSA as a strong regulator which was focused on ‘confidence and protection’. Dr. Al Mulla said, ‘shareholder confidence is an essential component of a sound capital market and with that comes a need to ensure that investors are protected,’ before adding, ‘too many markets are playing lip-service to the cause of investor protection and the gap is growing when compared to the best practice found in the major financial centres.’

      Dr. Al Mulla made reference to the DFSA’s busting of an internet fraud and the closing down the operation of fictitious websites called the Dubai Options Exchange, the United Arab Emirates Commodity Futures Board and Cambridge Capital Trading that were claiming to offer financial services within the DIFC, stating ‘while a number of investors have been caught out by this fraud, many will have been saved’. He added, ‘this brings another dimension to international best practice - international cooperation. Dr. Al Mulla stated ‘the DFSA had cooperated both locally and internationally using its Memoranda of Understanding arrangements with the Emirates Securities and Commodities Authority, the Dubai Police and the Malaysian, US, UK and Australian Regulators’.

      Dr. Al Mulla called on all markets, governments, and practitioner associations to cooperate to increase investor confidence in the region stating, ‘they need to embrace regulatory measures and exceed them wherever there is an opportunity to improve transparency, enhance disclosure and good governance’.

      In concluding, Dr. Al Mulla explained that "the DFSA’s regulatory approach provides a unique insight and response to globalizing markets and we are keen to share and exchange our knowledge and experience with other regulatory bodies, governments and practitioner associations; we can all learn from each other to boost shareholder confidence throughout the Middle East".

    • 22 March 2007 — DFSA grants recognition to Eurex Frankfurt AG

      Dubai, UAE, March 22, 2007: The Dubai Financial Services Authority (DFSA) has announced that Eurex Frankfurt AG (EFAG) has been granted the status of a Recognised Body within the Dubai International Financial Centre (DIFC).

      The recognition allows EFAG to offer access to its products to authorised members in the DIFC. EFAG operates a derivatives exchange, Eurex Deutschland which is the largest such exchange in the world.

      David Knott, Chief Executive of the DFSA, said:

      "This recognition is another step in connecting Dubai with international markets within the framework of world class regulation. In doing so, the DFSA has noted the high standards of German regulation applicable to EFAG. "

    • 21 March 2007 — DFSA Licenses Al Arabi Capital Limited as an Authorised firm

      The Dubai Financial Services Authority (DFSA) has licensed Al Arabi Capital Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 21 March 2007 — Consultation Paper 44 issued for public comment

      21 March 2007 — Consultation Paper 44 issued for public comment.

    • 19 March 2007 — DFSA Licenses Lancashire Marketing Services (Middle East) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Lancashire Marketing Services (Middle East) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 16 March 2007 — DFSA enters into Memorandum of Understanding with Guernsey Financial Services Commission

      St. Peter Port, Guernsey, March 16, 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding with the Guernsey Financial Services Commission (GFSC).

      The MoU was signed by Mr. David Knott, Chief Executive of the DFSA, and Mr. Peter Neville, Director General of the GFSC.

      The GFSC is responsible for regulation and supervision of banking, collective investment funds, insurance, reinsurance and investment business in Guernsey.

      Mr. Knott said, "The business links between financial firms in Guernsey and the Dubai International Financial Centre will become increasingly significant, especially with the introduction last year of trust and collective investment fund regimes in the DIFC, making the GFSC an important relationship for the DFSA."

      The signing of this MoU has formalised arrangements for co-operation and information sharing between the two regulators.

      Mr. Knott added, "Today’s bilateral agreement reflects each agency’s responsibilities, not just for securities, but as an integrated regulator of its banking and insurance sectors. It recognises that both regulators place reliance on the quality of regulatory standards administered in the other’s jurisdiction."

    • 07 March 2007 — Consultation Paper No.45 Issued for Public Comment

      7 March 2007 — Consultation Paper 45 issued for public comment.

    • 07 March 2007 — DFSA Enters into Memorandum of Understanding with Netherlands Financial Markets Authority

      Dubai, UAE, March 7 2007: Today the Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) with the Netherlands Financial Markets Authority (AFM).

      The MoU signing coincided with a visit to the DIFC by Mr. Arthur Docters van Leeuwen, chairman of the AFM and inaugural chairman of the Committee of European Securities Regulators (CESR).

      Established on 1 March 2002, the AFM is responsible for supervising the conduct of the entire financial market sector: savings, investment, insurance and loans. By supervising the conduct of the financial markets, AFM aims to make a contribution to the efficient operation of these markets.

      Chief Executive of the DFSA, Mr. David Knott, said: "I am particularly pleased that my friend Arthur Docters van Leeuwen has come to Dubai to sign this MoU. As the founding Chairman of CESR, Mr. Docters van Leeuwen has led European regulators in adopting and harmonising international standards. The AFM, which he also chairs, is one of Europe’s pre-eminent financial services authorities. As such this memorandum of understanding is a most significant initiative, recognising the importance of these arrangements for cooperation and information sharing between the two regulators."

      Today’s bilateral agreement reflects each agency’s responsibilities, not just for securities, but as a conduct of business regulator of its banking and insurance sectors.

      As Dutch financial services firms join the DIFC this bilateral relationship will assume increasing importance as both regulators rely on the quality of regulatory standards administered in the other’s jurisdiction."

    • 01 March 2007 — DFSA Licenses Unicontrol Commodity Finance Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Unicontrol Commodity Finance Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 26 February 2007 — DFSA Licenses MIF (Middle East) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed MIF (Middle East) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 26 February 2007 — DFSA signs MoU with New Zealand Securities Commission

      Dubai, UAE, 26 February 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding with the New Zealand Securities Commission (NZSC).

      The MoU was signed by Mr. David Knott, Chief Executive of the DFSA, and Ms. Jane Diplock, Chair of the NZSC. The signing coincided with a visit to the region by Diplock in her capacity as Chair of the Executive Committee of the International Organisation of Securities Commissions (IOSCO).

      Mr. Knott said, “Under Jane Diplock’s leadership, the New Zealand Securities Commission is recognized as being at the forefront of IOSCO’s efforts to foster international cooperation among securities regulators. The DFSA is similarly committed and both the DFSA and the NZSC are signatories to the IOSCO Memorandum of Understanding, an initiative that has set the benchmark for cross-border investigative assistance.

      “There is potential for business links between financial firms in New Zealand and the Dubai International Financial Centre and, with the growth of the DIFC and growing participation from Asia Pacific, these links will become increasingly significant making the NZSC an important relationship for the DFSA.”

      The signing of today’s broader bilateral MoU has put in place arrangements for cooperation and information sharing between the two regulators. It recognizes that both regulators rely on the quality of regulatory standards administered in the other’s jurisdiction.

    • 25 February 2007 — Enforcement alert — Internet Fraud Warning

      The DFSA has issued several media releases to warn the public of an Internet Fraud and has obtained orders to close down the operation of fictitious websites called the Dubai Options Exchange, the United Arab Emirates Commodity Futures Board and Cambridge Capital Trading that were claiming to offer financial services within the DIFC. The orders also relate to internet service providers. The websites falsely represented that the Dubai Options Exchange and the United Arab Emirates Commodity Futures Board existed in the DIFC and that DFSA Authorised Firms were Members of the Dubai Options Exchange and could trade currency options on behalf of investors. The fraudulent scheme targeted Australian and Singaporean investors who were cold called by representatives of Cambridge Capital Trading who directed investors to these false websites and asked for funds to a transferred into a bank account in Malaysia.

      The DFSA welcomes any information relating to these fictitious websites and any related matters. Please send any information to:

      info@dfsa.ae

    • 19 February 2007 — DFSA Licenses Commander Asset Management Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Commander Asset Management Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 18 February 2007 — Malaysian Arrests Follow DFSA Internet Investigation

      Dubai, UAE, February 18, 2007: Following the DFSA investigation into an Internet fraud in Dubai, the Malaysian Securities Commission in Kuala Lumpur yesterday made three arrests and froze USD 350,000 after finding a secondary account linked to the fraudsters. Two were released and one person is currently being questioned by Malaysian authorities. These actions were taken by the Malaysian authorities directly to assist the ongoing DFSA investigation.

      The actions relate to the fraudulent investment scheme targeting Australian and Singaporean investors who were cold called by representatives of Cambridge Capital Trading, a fictitious London firm. Investors were directed to websites called the Dubai Options Exchange and a fictitious regulator, the UAE Commodity Futures Board. Cambridge Capital Trading asked investors to transfer funds to a bank account in Malaysia, upon becoming a client of the fictional exchange. The perpetrators took great care to construct realistic web sites, electronic answering services and a bogus facsimile in the UK to fool investors and to conceal their identities. The DFSA has confirmed that the billing address for the web sites is also false.

      Civil court orders obtained in the Dubai International Financial Centre Court before the Chief Justice Sir Anthony Evans have now been served on the Internet service providers in the USA and Malaysia. It is expected that the websites will be closed down shortly with the cooperation of the internet service providers.

      The DFSA is continuing its investigation, working jointly with ESCA and Dubai Police and our counterparts in the United Kingdom, USA, Australia and Malaysia.

    • 15 February 2007 — Dubai Financial Services Authority (DFSA) busts internet fraud

      Dubai, UAE, February 15, 2007: The DFSA yesterday, obtained injunctions in the Dubai International Financial Centre (DIFC) Court against Husam A. Abu-Amara and Globalstar Telecom & Technology and others, for their involvement in a fraudulent internet investment scheme. The orders obtained relate to closing down the operation of fictitious websites called the Dubai Options Exchange, the United Arab Emirates Commodity Futures Board and Cambridge Capital Trading that were claiming to offer financial services within the DIFC. The orders also relate to internet service providers. The orders were made by the Chief Justice of the DIFC Court, the Honourable, Sir. Anthony Evans.

      The DFSA’s application stated that the defendants had falsely represented that the Dubai Options Exchange and the United Arab Emirates Commodity Futures Board existed in the DIFC and that DFSA Authorised Firms were Members of the Dubai Options Exchange and could trade currency options on behalf of investors. The fraudulent scheme targeted Australian and Singaporean investors who were cold called by representatives of Cambridge Capital Trading who directed investors to these false websites and asked for funds to a transferred into a bank account in Malaysia.

      The DFSA conducted a joint investigation with the Emirates Securities and Commodities Authority (ESCA) and the Dubai Police, and worked closely with other international regulators such as the UK Financial Services Authority, US Securities and Exchange Commission to Australian and Securities Investments Commission and the Malaysian Securities Commission. In addition to the injunctions, the Dubai Police have arrested an individual in connection with the fraud. His passport has been confiscated and his case referred to Dubai Prosecutions. The investigation is continuing.

      The Chief Executive of the DFSA, Mr. David Knott said

      “This was a carefully planned scam using advanced technology to convince investors that the fictitious Dubai Options Exchange was a legitimate entity within the DIFC. The perpetrators took great care to construct realistic documents to fool investors and to conceal their identities. They even invented a fictitious regulator called the UAE Commodity Futures Board to give comfort to investors.”

      “The investigation of internet fraud requires sophisticated electronic surveillance techniques and close co-operation between international regulators. I am pleased that by working jointly with ESCA and Dubai Police, the DFSA has closed down a fraud that was truly international in nature. Our counterparts in the United Kingdom, USA, Australia and Malaysia have all contributed to this successful outcome.”

      “At this stage we cannot be certain about the size of the scam or investor losses, but we know that approximately US$600,000 has passed through a bank account set up by these fraudsters in Malaysia. We hope that our actions have prevented any further substantial losses to the public. Our investigations are continuing.”

    • 14 February 2007 — DFSA Licenses Goodhealth Worldwide Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Goodhealth Worldwide Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 13 February 2007 — Notice of Rule Amendments — Definition of Day

      TAKE NOTICE THAT:

      The DFSA has amended the:

      •   General (GEN);
      •   Enforcement (ENF);
      •   Conduct of Business (COB);
      •   Ancillary Service Providers (ASP);
      •   Prudential—Insurance Business (PIN);
      •   Prudential—Investment, Insurance Intermediation and Banking Business (PIB);
      •   Offered Securities Rules (OSR);
      •   Glossary (GLO);
      •   Price Stabilisation (PRS);
      •   Takeover Rules (TKO); and
      •   Collective Investment Rules (CIR)

      Modules of the DFSA Rulebook to implement the amendments to the definition of “day”. The amendments are set out in Rulemaking Instrument No. 42 which comes into force on the 15th of February 2007 (the 7th day after the day on which the DIFC Laws Amendment Law 2007 came into force). Consultation Paper 41 explains the purpose of these amendments.

      Issued on 13 February 2007

    • 13 February 2007 — DFSA Welcomes Leading Insurance Regulators to Dubai

      Mr David Knott, Chief Executive of the DFSA today met with leading figures from the International Association of Insurance Supervisors (IAIS) to discuss industry developments and progress.

      In his meeting with Yoshihiro Kawai, IAIS Secretary General and Michel Flamée, IAIS Acting Chair Executive Committee, Mr Knott extended his welcome to the 200 international insurance regulators and supervisors from over 50 countries around the World who have arrived in Dubai as part of the IAIS’ Tri-annual meetings.

      The meetings are being hosted by the DFSA and will discuss regulatory issues of importance to the insurance sector, including micro-insurance and insurance fraud.

      At the meetings a Corporate Governance Task Force will be convened to establish a broad corporate governance framework for insurers to allow work on solvency assessment, reinsurance and other matters.

      The adoption of a multilateral memorandum of understanding for the sharing of information between insurance supervisors will also be presented and discussed.

      While the meetings are working sessions, during which business issues and standards are discussed, the participants will enjoy evening events which will allow them to experience Dubai and its culture.

      Mr Knott commented: "We are delighted to host the IAIS Tri-annual meetings and to welcome regulators and observers from over 50 countries.

      Our engagements with international standards bodies such as the IAIS are a clear demonstration of our commitment to the development, administration and enforcement of world class regulation while allowing the DFSA to showcase Dubai.”

    • 07 February 2007 — DFSA Licenses Tufton Oceanic (Middle East) Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Tufton Oceanic (Middle East) Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 07 February 2007 — DFSA Registers Moore Stephens Chartered Accountants as an Auditor

      The Dubai Financial Services Authority (DFSA) has registered Moore Stephens Chartered Accountant as an Auditor in the Dubai International Financial Centre (DIFC).

    • 06 February 2007 — DFSA Registers Russell Bedford (Dubai) Limited as an Auditor

      The Dubai Financial Services Authority (DFSA) has registered Russell Bedford (Dubai) Limited as an Auditor to audit Domestic Authorised Firms, Authorised Market Institutions and Funds.

    • 05 February 2007 — DFSA Licenses Convergence Capital Limited as an Authorised firm

      The Dubai Financial Services Authority (DFSA) has licensed Convergence Capital Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 01 February 2007 — DFSA Registers Herbert Smith LLP as an Ancillary Service Provider

      The Dubai Financial Services Authority (DFSA) has registered Herbert Smith LLP as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

    • 01 February 2007 — DFSA Registers King & Spalding LLP as an Ancillary Service Provider

      The Dubai Financial Services Authority (DFSA) has registered King & Spalding LLP as an Ancillary Service Provider in the Dubai International Financial Centre (DIFC).

    • 29 January 2007 — DFSA Registers Ashok Kapur & Associates Limited as an Auditor

      The Dubai Financial Services Authority (DFSA) has registered Ashok Kapur & Associates Limited as an Auditor to audit Domestic Authorised Firms, Authorised Market Institutions and Funds.

    • 24 January 2007 — Amended — DFSA Rulebook

      Notice of Rule Amendments

      DFSA Rulebook—REC Module

      And

      DFSA Rulebook—GLO Module

      TAKE NOTICE THAT:

      The DFSA has amended the Recognition (REC) and Glossary (GLO) Modules of the DFSA Rulebook to permit a new category of Recognised Members. The amendments, which are set out in Rulemaking Instrument No. 39 come into effect on 25 January 2007. Consultation Paper 39 explains the purpose of these amendments.

      Issued on 24 January 2007

    • 17 January 2007 — DFSA Registers Grant Thornton Limited Liability Partnership as an Auditor

      The Dubai Financial Services Authority (DFSA) has registered Grant Thornton Limited Liability Partnership as an Auditor to audit Domestic Authorised Firms, Authorised Market Institutions and Funds.

    • 17 January 2007 — DFSA Registers AGN MAK Limited as an Auditor

      The Dubai Financial Services Authority (DFSA) has registered AGN MAK Limited as an Auditor to audit Domestic Authorised Firms, Authorised Market Institutions and Funds.

    • 15 January 2007 — Senior Appointment at Dubai Financial Services Authority (DFSA)

      Dubai, UAE, January 15, 2007: The DFSA has announced the appointment of Mr. Norman Miller as Managing Director, Enforcement.

      Mr. Miller joins the DFSA from the New Zealand Securities Commission where he headed enforcement and international relations since 1990. Prior to that, Mr. Miller worked in Hong Kong, primarily as a Crown Counsel, and later as a lawyer with the Commission for Securities and Commodities Trading. He will take up his position with the DFSA in March.

      David Knott, DFSA Chief Executive, stated: “Mr. Miller is a highly experienced law enforcement officer who is well respected by regulators of international securities markets. We are fortunate to have attracted a person of his standing and reputation to the DFSA.

      “DFSA is committed to enforcing compliance by financial services firms with the laws and regulations of the DIFC. Mr. Miller’s recruitment adds strength to an already impressive enforcement team that has been active in upholding the high reputation of the Centre.”

    • 14 January 2007 — DFSA Licenses Merrill Lynch International as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Merrill Lynch International as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 14 January 2007 — Dubai Financial Services Authority (DFSA) Obtains Final Court Orders Against Patrick Lochrie and David Carruthers

      Dubai, January 14, 2007: The DFSA obtained a final court order today against Patrick Lochrie and David Carruthers for making false and misleading representations concerning their regulatory status in relation to the Dubai International Financial Centre (DIFC). The defendants had held out that Enduam Asset Management, also known as Enduam Consulting Ltd. (“Enduam”), had obtained or applied for a license with the DIFC when no such application had been made or approved. The DFSA application to the court, also stated that the defendants falsely represented to members of the investing public that Enduam was physically located in the DIFC.

      The defendants consented to the court order, sought by the DFSA, which permanently prohibits them from making any future misrepresentations about the regulatory status of Enduam with the DIFC.

      The Deputy Chief Justice of the DIFC Court, Mr. Michael Hwang made the final orders against the defendants. This concludes the DFSA investigation of this matter.

      David Knott DFSA Chief Executive stated “The court orders obtained send a strong regulatory message that the DFSA will take appropriate and proportionate action against conduct or misrepresentations that negatively affects the reputation of the DFSA or DIFC, in relation to a company’s regulatory status.”

    • 12 January 2007 — DFSA Licenses E*TRADE Securities Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed E*TRADE Securities Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 10 January 2007 — Consultation Paper 42 issued for public comment

      Dubai, 10 January, 2007: The DFSA has issued on 3rd January 2007 Consultation Paper No. 42 for public comment.

      The Paper, which is posted on the DFSA website seeks public comment on the DFSA’s proposals to amend the DFSA Rulebook to meet international best practice standards as reflected in the core principles and recommendations of the:

      (a) International Organization of Securities Commissions (IOSCO), which sets international standards relating to securities regulation;
      (b) Basel Committee on Banking Supervision (BCBS), which sets international standards for banking supervision;
      (c) International Association of Insurance Supervisors (IAIS), which sets international standards for the supervision of insurers; and
      (d) Financial Action Task Force (FATF), which sets international standards to prevent money laundering and funding of terrorism and crime.

      As a risk based regulator, the DFSA, in consultation with industry, strives to foster the principles of integrity, transparency and efficiency in the DIFC financial markets. By developing these proposals in line with international best practice, the DFSA is furthering its regulatory objective of ensuring that the DIFC is a well regulated and internationally competitive financial market.

    • 09 January 2007 — DFSA Licenses Lucros Capital Advisors Limited as an authorised firm

      The Dubai Financial Services Authority (DFSA) has licensed Lucros Capital Advisors Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 09 January 2007 — DFSA Licenses Duke Equity Limited as an Authorised Firm

      The Dubai Financial Services Authority (DFSA) has licensed Duke Equity Limited as an Authorised Firm in the Dubai International Financial Centre (DIFC).

    • 04 January 2007 — DFSA Licenses Allianz SE (Dubai Branch) as an Authorized Firm

      The Dubai Financial Services Authority (DFSA) has licensed Allianz SE (Dubai Branch) as an Authorised Firm in the Dubai International Financial Centre (DIFC).