20 May 2008 — DFSA enters into Memorandum of Understanding with Cyprus SEC
Nicosia, Cyprus, May 20, 2008: The Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) yesterday, with the securities regulator of Cyprus.
The MoU signing took place between Mr.Georgios Charalambous, Chairman of the Securities and Exchange Commission of Cyprus (CYSEC), and Mr.David Knott, Chief Executive of the DFSA during a visit to Nicosia.
The CYSEC is responsible for the supervision of the Capital Market in Cyprus. It licenses, monitors and regulates investment firms, regulated markets, collective investments schemes and their management companies. It also monitors and supervises the issuers of securities listed on the regulated markets and monitors the securities transactions in the country. It approves company prospectuses and takeover bids.
Chief Executive of the DFSA, Mr.David Knott said: “As a member of the European Union, Cyprus is 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.”
“There are already a number of branches and subsidiaries of Cypriot firms operating in the DIFC so this bi-lateral agreement, which reflects the responsibilities of both agencies, will enhance information sharing and co-operation between the DFSA and the CYSEC as regulators of these firms.”
As more financial services firms join the Dubai International Financial Centre (DIFC) from Cyprus this bi-lateral relationship will assume increasing importance as both regulators rely on the quality of regulatory standards administered in the other’s jurisdiction.