The Dubai Financial Services Authority (DFSA) has announced a package of temporary regulatory relief measures for firms operating in the Dubai International Financial Centre (DIFC).
The DFSA, which is the regulator of banking, wealth and asset management, capital markets and insurance in the DIFC, said the measures were designed to support the financial services community during what it described as an “exceptional operating environment.”
The relief is intended to assist regulated firms in continuing to support clients and markets pending the conclusion of the current circumstances.
“DIFC firms have demonstrated great resilience and financial strength during this exceptional period. The DFSA wishes to provide assistance to firms, on request, as a bridge to the resumption of normal trading and has developed a framework to provide temporary regulatory flexibility across a range of areas for those seeking DFSA authorisation and for existing authorised firms. These measures will ease operational challenges while ensuring our high regulatory standards continue to be met. We will continue to review the situation, as it unfolds, and will provide additional measures to assist firms, if needed, including assistance in returning to normal trading conditions,” Mark Steward, Chief Executive of the DFSA said in a statement.
Relief covers authorisation, governance, reporting and implementation timelines
The DFSA’s relief measures cover four areas.
The first concerns authorisation, licensing and administrative requirements, where the regulator will provide flexibility in application and supervisory timelines where it deems it appropriate.
The second relates to governance and staffing arrangements, reflecting what the DFSA described as “evolving staff location dynamics” and the continued integration of remote working practices.
The third area covers regulatory reporting and supervisory processes. The DFSA said it would extend timelines to allow firms capacity to manage operational challenges and to prioritise activities it considers to be of importance.
The fourth area involves implementation timelines for selected regulatory initiatives. The DFSA said postponement would be considered where it would not undermine regulatory outcomes.
The regulator said the measures were intended to be risk-based, proportionate and time-limited. It added that they would be applied in a manner reflecting the nature, scale and complexity of each firm.
The DFSA stressed that its regulatory standards and supervisory expectations remain unchanged. It said any relief provided would be temporary, subject to governance and oversight, and designed to support compliance and resilience rather than to dilute regulatory requirements.
The regulator said it would continue to monitor financial and operational conditions, maintain supervisory engagement and take action where it considers it necessary to safeguard the integrity and reputation of the DIFC’s financial services framework.
The DFSA said it was committed to working with the DIFC financial community, other UAE authorities and international partners to ensure the continued strength, resilience and standing of the DIFC as the leading international financial centre in the Middle East, Asia and South Asia (MEASA) region.
