Dubai’s Ruler Makes Changes to Some Laws for Financial Center
The Dubai Financial Services Authority, the regulator of Dubai’s tax-free financial center, said Dubai’s ruler had enacted two laws that alter some provisions of the center’s markets law and regulatory law.
The Markets Law 2012, which replaces the Markets Law 2004, brings about a number of changes including modifications to prospectus disclosure, DFSA said in an e-mailed statement today. A prospectus now requires formal approval by the DFSA before an offer of securities can be made to the public, it said.
The new law also changes provisions relating to what activities constitute an offer, market misconduct provisions and corporate governance, according to the statement. The Regulatory Law Amendment Law 2012 allows the DFSA to undertake regulatory oversight of auditors within the DIFC, according to the statement.
The Dubai International Financial Center opened in 2004 to attract international banks, asset managers and insurers and is home to the regional offices of Goldman Sachs Group Inc. (GS), Citigroup Inc. (C) and Standard Chartered Plc. (STAN) The center also has a stock exchange and is governed by its own laws that seek to match regulatory standards in developed markets.
The amendment to the regulatory law also alters the recognition powers of the DFSA with respect to cross-border trading, according to the statement. The new laws come into force July 5, it said.
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