Recent Developments in UAE Financial Services Regulation

The United Arab Emirates (UAE) has undergone significant changes in its financial services regulatory landscape, particularly in Dubai and Abu Dhabi. These developments aim to enhance the country’s position as a hub for financial services and attract more investors.

Common Legislative Framework for Fund Passporting Rules

In November 2018, the Securities and Commodities Authority (SCA), Dubai Financial Services Authority (DFSA), and Financial Services Regulatory Authority (FSRA) agreed on a common legislative framework. This framework allows domestic funds to be promoted anywhere in the UAE.

• Key benefits:
  • Increased accessibility for investors
  • Simplified regulatory compliance

Updates to Financial Free Zones Anti-Money Laundering Regimes

The DFSA and FSRA have initiated changes to their anti-money laundering (AML) regimes to ensure compliance with the Financial Action Task Force (FATF) Recommendations.

• Key benefits:
  • Enhanced AML controls
  • Reduced risk of non-compliance

New DIFC Companies Law and Enhancements to the DFSA’s Funds Regime

The new companies’ regime aims to provide greater certainty and flexibility to companies by introducing private and public companies, where private companies are subject to less stringent requirements.

• Key benefits:
  • Increased flexibility for companies
  • Reduced regulatory burden

Regulation of Crypto Asset Activities in the ADGM

The FSRA issued its framework for regulating crypto asset activities, including exchanges, custodians, and other intermediaries.

• Key benefits:
  • Enhanced protection for investors
  • Increased transparency in the market

Regulation of Private Financing Platforms in the ADGM

The FSRA introduced a new Regulated Activity for operators of financing or funding platforms for non-public companies.

• Key benefits:
  • Increased access to funding options
  • Enhanced regulatory oversight