SC announces major initiative with Dubai Financial Services Authority
The Securities Commission (SC) today announced the commencement of a joint initiative with the Dubai Financial Services Authority (DFSA), on regulatory alignment designed to facilitate Islamic finance transactions between the Dubai International Financial Centre (DIFC) and Malaysia.
This initiative was announced during the signing of a Memorandum of Understanding (MoU) between the SC and the DFSA. The MoU will facilitate inter-jurisdiction co-operation on enforcement; strengthen channels for information exchange, co-operation and consultation; and promote development and training initiatives.
Chairman of the SC Dato’ Zarinah Anwar and Chief Executive of the DFSA Mr David Knott signed the MoU at a ceremony in Putrajaya, witnessed by the Second Finance Minister of Malaysia, Yang Berhormat Tan Sri Nor Mohamed Yakcop.
The joint initiative seeks to promote optimal implementation and cost effectiveness of cross border transactions, and will involve detailed work to streamline regulatory standards between Malaysia and DIFC.
Dato’ Zarinah said, “The DIFC is well placed as a gateway to the vast growth potential of the Middle East region. With its leadership position in Islamic finance, we feel that Malaysia is uniquely positioned to develop a significant international presence and offers a regional gateway for Islamic finance to the South and East Asian markets.”
“In order for both our jurisdictions to realise the full potential our respective markets have to offer all our market participants, we should proffer a seamless and facilitative regulatory environment that is of international standards. I am really pleased that the SC and the DFSA will be embarking on this very important initiative on regulatory alignment,” she continued.
In addition, it was announced that the DFSA will also consider the eligibility of Malaysia as a ‘Recognised Jurisdiction’ under its fund management laws, which will allow Malaysian unit trust funds to be marketed and distributed in Dubai. Dato’ Zarinah elaborated, “This is an important initiative that will further spur the growth of our domestic investment management industry.”
To date, the SC has signed 24 MoU with its foreign counterparts.