30 November 2006 — DFSA enters into Memorandum of Understanding with German Federal Financial Supervisory Authority
Dubai, UAE, November 30, 2006: Today the Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) with the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), the Federal Financial Supervisory Authority of Germany.
The MoU signing coincided with a visit to the DIFC by Mr. Jochen Sanio, President of the BaFin.
Established on 1 May 2002 as an integrated regulator of banks and financial service providers, insurance undertakings and securities trading, the BaFin is an independent public-law institution subject to the legal and functional oversight of the Federal Ministry of Finance. BaFin’s primary objective is to guarantee the proper functioning, stability and integrity of the German financial system.
Chief Executive of the DFSA, Mr. David Knott said: “The BaFin 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.
“Although both the BaFin and the DFSA are signatories to the International Organisation of Securities Commissions (IOSCO) Multilateral MoU, today’s bilateral agreement reflects each agency’s responsibilities, not just for securities, but as an integrated regulator of its banking and insurance sectors.
As German 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.”
The signing follows a visit last week to the DIFC by Germany’s Finance Minister, Mr. Per Steinbrueck. Mr. Knott added, “I am particularly pleased that my friend Jochen Sanio has come to Dubai to sign this MoU against a background of increasingly warm ties between Germany and the UAE.”
"Our cross-sectoral MoU meets the highest international standards“, said BaFin President Jochen Sanio after signing the agreement. “The MoU is most timely”, he added. "and thanks to it, cross-border supervision between Germany and the DIFC will be enhanced"