The Dubai Financial Services Authority (DFSA) is an independent regulator of financial services carried on in, or from, the Dubai International Financial Centre (DIFC), a purpose-built financial free zone in Dubai, UAE.
The DFSA was established to promote integrity in the capital market and investor protection, and regulates a range of financial services to ensure compliance with local and international standards.
Regulatory Mandate
The DFSA's regulatory mandate covers a wide array of financial services and activities, and includes:
• Asset and Wealth Management – regulating fund managers and collective investment schemes.
• Banking and Credit Services – regulating lending institutions, credit activities, and financial intermediaries.
• Securities and Capital Markets - regulating the trading of securities, market conduct, and investment platforms.
• Custody and Trust Services - ensuring transparent and compliant asset custody and trust services
• Commodities Futures and Derivatives – oversee international commodities exchanges and derivatives trading
• Islamic Finance and Insurance - increase Islamic finance frameworks that can be shaped to Shariah principles while also nudging the conventional insurance market
• Financial Technology and Virtual Assets - regulates fintech solutions, cryptocurrencies, and investment tokens
• Crowdfunding and Digital Platforms - promote new financing solutions while protecting the rights of.
In addition to these roles, the DFSA also has oversight responsibility for supporting functions, including those of auditors, consultants, and other professional firms doing business in the DIFC, to ensure that they also meet global best practices.
Compliance & Enforcement
As a part of DFSA's mission to promote financial integrity in the DIFC, the DFSA assumes a central role in the regulation of Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF), which involves investigating and actioning all regulated firms and individuals to not only stave off the indigenous illicit activities, but also to build a secure environment in finance.
Furthermore, the DFSA accepts further authority from the DIFC Registrar of Companies (RoC), which explicitly empowers the DFSA to enforce the DIFC Companies Law and investigate suspected violators, taking enforcement action where required.The sum of DFSA's activities is stronger corporate governance and greater transparency for DIFC-registered firms.
Innovation
As the financial markets evolve, the DFSA is at the forefront with a regulatory approach to innovation, particularly in addressing issues of digital transformation/change, and developing a regulatory response to address these challenges.
The DFSA develops substantial frameworks (not limited to) for crypto-assets, investment tokens, fintech, and crowdfunding, aiming to foster innovation while maintaining ongoing compliance with international standards.
Corporate Social Responsibility (CSR)
The DFSA has a responsibility to deliver social and animal sustainability.The DFSA established a framework for Corporate Social Responsibility (CSR), which is a responsible process to be 'transparent', maintaining ethical behavior, customary practice of the international obligations, and accountability to stakeholder expectations.
The direct impact of theme areas in CSR programming includes: Bawabaty – "My Gateway": This financial awareness project, which commenced in 2014, provides UAE youth with insights into the financial services industry and develops the best professional ethics, revealing deep concerns for the financial and economic soundness of contemporary workplace environments.
• Summer Training Programme: the DFSA provides a genuine opportunity for UAE national undergraduates to gain experience in four functional areas: Corporate Affairs, Finance and Administration, Human Resources, and Information Technology, and to gain actual experiences which are a part of their education.
• Community Engagement: DFSA staff engage regularly in local initiatives, e.g., donation of blood or packing essentials for laborers.
Development of Dubai's Financial Ecosystem
The DFSA's contribution to the development of Dubai and DIFC as a NABERS top tier global financial center and the maintenance of the alignment of the economic ecosystem with regulators, socially responsible development of technology, social accountability and the establishment of a financial ecosystem which will attract investors, innovators and financial institutions from across the globe based on transparency and a high level of trust.
