06 June 2006 — DFSA signatory to IOSCO memorandum of understanding: a first for the GCC
Hong Kong 7th June 2006: The DFSA today announced that it has become a signatory to a multilateral memorandum of understanding (multilateral MoU) with the International Organisation of Securities Commissions (IOSCO). The announcement was made by Mr. David Knott, DFSA Chief Executive who is attending the IOSCO Annual Conference in Hong Kong.
This initiative, covering consultation and cooperation and the exchange of information, began in response to increasing international activity in the securities and derivatives markets, and the corresponding need for mutual cooperation among securities regulators to ensure compliance with, and enforcement of, their laws and regulations.
Mr. Knott, DFSA CEO stated: "As former Chairman of the Technical Committee of IOSCO, I am particularly delighted to see the DFSA has now satisfied the highest level of cooperation standards that exist between international securities regulators.
Acceptance as an IOSCO multilateral MoU signatory is only permitted after rigorous assessment of the applicant's legislative and regulatory regime. In the DFSA's case, this was conducted over the past 5 months by a specialist team from four countries, confirmed by a group from another fourteen jurisdictions and finalised with an endorsement from the chairmen of IOSCO's three governing committees.
DFSA is the only regulator in the GCC, and the first in the Arab World, to be admitted as a signatory. The DFSA joins existing signatories representing the world's major capital markets, including the United Kingdom, France, Germany, the United States, Hong Kong, and Singapore.
The DFSA has established best practice utilising a modern legal framework and a risk-based approach to its regulatory measures. In signing this multilateral MoU, the DFSA heralds in a new era of cooperation with the major world regulatory bodies in combating illegal use of the securities and derivatives markets, including market abuse and fraud."
Dr. Habib Al Mulla, DFSA Chairman, commented: "The DFSA is committed to international cooperation which is an essential requirement in rapidly globalising markets. Becoming a signatory to this multilateral MoU (in addition to a number of existing bilateral MoUs) is an important step in developing international relationships with other well regulated jurisdictions and a significant advance as the DFSA further builds its reputation as a world-class regulator."