DIFC amends markets laws

The Dubai International Financial Centre (DIFC) has issued an amendment to the regulatory law of DIFC No. 4 for year 2004. This new legislation amended the powers granted to the Dubai Authority Financial Services under the Regulatory Law of the DIFC. These amendments include the review on following: 1- The powers of regulation regarding control on a category of persons admitted to work in the field of financial services at the Dubai DIFC so that the validity of The Dubai Financial Services Authority (DFSA) is confined to allow them to carry on their business through offering their services directly to individuals, institutions and companies located in the DIFC, or enable investors outside the centre to trade without requiring a licence from them even without the permanent place of business for them in the centre, since these persons are licensed by a regulatory and other control bodies in the field of financial services, and 2 - to expand the powers of the DFSA to include the control of the auditors of public joint stock companies established in the Dubai International Financial Centre, and subscribe and list their shares in the DIFC markets. Another amendment to the markets law of the Dubai International Financial Centre No. 12 for 2004 has been issued. The legislation includes a set of regulatory requirements that will be applied to the companies that offer their securities for public subscription, or those whose securities are listed for trading in the markets of Dubai International Financial Centre, and in line with international standards in this regard, particularly in the following areas: 1 - identify the disclosure requirements to meet the model requirements adopted by the European Union, and meet the regional specifications of the Dubai International Financial Centre as well, 2 - defining the requirements of listing and trading of securities in the markets of Dubai International Financial Centre, 3 - determine the obligations imposed on the parties subject to the control of the DFSA, including provision of disclosure reports and financial statements on a regular basis and the application of the principles of corporate governance, 4 - develop a series of procedures that would curb the prohibited practices, which may affect the markets of the DIFC, including manipulating of the prices of securities or dealing on secret inside information or providing incorrect or misleading information, and 5 - identification of sanctions and administrative measures for offences.