03 August 2015, Abu Dhabi, UAE

Securities and Commodities Authority signs MOU with Abu Dhabi Global Market’s Financial Services Regulatory Authority

H.E. Abdulla Al Turifi: The MOU strengthens SCA’s efforts to empower UAE financial markets in compliance with the highest standards of global competitiveness.

The Securities and Commodities Authority (SCA) and the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) have today jointly signed a Memorandum of Understanding (MOU) to exchange information and enhance mutual cooperation on areas including market supervision, investor protection, oversight of financial markets and management of entities such as listed companies and brokerages and others.

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The MOU was signed by HE Abdullah Al Turifi, CEO of SCA, HE Ahmed Ali Al Sayegh, Chairman of ADGM, and Richard Teng, Chief Executive Officer of ADGM Financial Services Regulatory Authority (FSRA).

The MOU establishes a framework for the exchange of information and mutual cooperation between SCA and FSRA. Both authorities will coordinate and cooperate in efforts to provide information that mutually support each other in their regulatory obligations. In addition, to jointly oversee and supervise areas such the stock markets, financial services and clearing and settlement–related transactions, as well as, monitoring markets’ commitment to laws and rules.

The authorities will also work closely together to ensure the qualification and competence of licensed persons and improve their professional capabilities.

SCA and FSRA have agreed to increase collaboration and coordination in all issues related to public offerings and joint promotions of securities and financial products, as well as in legislation related to the securities sector and enforcement of laws and regulations concerning offerings, transactions and consultancy regarding securities and any other investment products.

The authorities will cooperate and coordinate on all matters pertaining to licensing procedures for financial activities and services carried out by institutions supervised by each party. This includes efforts to counter money-laundering.

In order to strengthen their capabilities, the MOU highlighted the need for SCA and FSRA to enhance understanding of and exchange expertise on financial systems, increase exchange of technical support through training, visits and conferences as well host delegations to enhance mutual understanding.

Following the signing, HE Abdullah Al Turifi said that collaborating and coordinating efforts with ADGM’s Financial Services Regulatory Authority would boost SCA’s efforts to empower and develop capital markets in the UAE, activate its control and supervisory role, and contribute to implementing the vision of the wise leadership for the creation of a robust, diverse and highly competitive national economy in line with the highest international standards.

HE Al Turifi added that the memorandum would constitute a framework for joint efforts and cooperation by SCA and ADGM’s Financial Services Regulatory Authority in exchange of information and activating the regulatory and legislative roles that help strengthen the transparency and integrity of transactions in any capital market that might be established in the free financial free zone. The MOU will also boost the cooperation of both parties in providing greater protection to investors, thereby contributing to improve performance as per the highest international standards.

HE Ahmed Ali Al Sayegh, Chairman of ADGM, said: “At ADGM, we believe that greater co-operation amongst authorities and relevant regulators makes a significant contribution towards the economic growth of the UAE and its wider region, particularly in today’s dynamic business environment. The MOU with SCA marks a pivotal milestone and dovetails well with ADGM’s vision in achieving a vibrant international financial centre that caters to global trading and financial needs.”

Richard Teng, Chief Executive of ADGM’s Financial Services Regulatory Authority, highlighted that: “The MOU signifies the commitment of SCA and FSRA in collaborating closely to support the development of Abu Dhabi as an international financial centre. By harnessing our regulatory expertise and strengths through a joint commitment for cooperation, market participants can further expand their regional and global footprints through ADGM’s well-regulated and internationally-recognised platform that is underpinned by global standards and best practices.”

This MOU between SCA and FSRA further strengthens the importance of collaborations and partnerships among relevant authorities, and enhances AGDM’s role and interconnectivity to the economies of Abu Dhabi and the UAE.