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".