Today the Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) with the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), the Federal Financial Supervisory Authority of Germany.
The MoU signing coincided with a visit to the DIFC by Mr. Jochen Sanio, President of the BaFin.
Established on 1 May 2002 as an integrated regulator of banks and financial service providers, insurance undertakings and securities trading, the BaFin is an independent public-law institution subject to the legal and functional oversight of the Federal Ministry of Finance. BaFin’s primary objective is to guarantee the proper functioning, stability and integrity of the German financial system.
Chief Executive of the DFSA, Mr. David Knott said: “The BaFin is one of Europe’s pre-eminent financial services authorities. As such this memorandum of understanding is a most significant initiative, recognising the importance of these arrangements for cooperation and information sharing between the two regulators.
“Although both the BaFin and the DFSA are signatories to the International Organisation of Securities Commissions (IOSCO) Multilateral MoU, today’s bilateral agreement reflects each agency’s responsibilities, not just for securities, but as an integrated regulator of its banking and insurance sectors.
As German financial services firms join the DIFC this bilateral relationship will assume increasing importance as both regulators rely on the quality of regulatory standards administered in the other’s jurisdiction.”
The signing follows a visit last week to the DIFC by Germany’s Finance Minister, Mr. Per Steinbrueck. Mr. Knott added, “I am particularly pleased that my friend Jochen Sanio has come to Dubai to sign this MoU against a background of increasingly warm ties between Germany and the UAE.”
"Our cross-sectoral MoU meets the highest international standards“, said BaFin President Jochen Sanio after signing the agreement. “The MoU is most timely”, he added. "and thanks to it, cross-border supervision between Germany and the DIFC will be enhanced"
The Dubai Financial Services Authority (DFSA) is an independent, integrated regulatory authority responsible for the regulation of all financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), including asset management, banking, securities trading, Islamic finance, re-insurance, and an international financial exchange. The DFSA has been created using principle-based primary legislation modelled closely on that used in London and New York, and the DFSA regulatory regime operates to standards that meet or exceed those applying in the world's major financial centres.
The Dubai Financial Services Authority (DFSA) is a central component of the DIFC, a new financial centre established to position Dubai as a recognised hub for institutional finance, and the regional gateway for capital and investment to the Middle East.
Mr. David Knott was appointed Chief Executive of the DFSA on June 1, 2005. He is a former Chairman of the Australian Securities and Investment Commission and was Chairman of the Technical Committee of the International Organisation of Securities Commissions (IOSCO).
The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) was established in May 2002 the Federal Financial Supervisory Authority bringing the supervision of banks and financial service providers, insurance undertakings and securities trading together under one roof. BaFin is an independent public-law institution and subject to the legal and functional oversight of the Federal Ministry of Finance.
BaFin’s primary objective is to guarantee the proper functioning, stability and integrity of the German financial system. As part of its solvency supervision, BaFin ensures the ability of banks, financial services institutions and insurance undertakings to meet their payment obligations. Through its market supervision BaFin also enforces standards of professional conduct which preserve investors' confidence in the financial markets. BaFin's investor protection role also extends to combating the carrying-on of unauthorised financial business.
Mr. Jochen Sanio is the inaugural president of the BaFin and has more than 30 years experience as a banking regulator, having joined the Federal Banking Supervisory Office (BAKred) in 1974. Prior to his appointment to BaFin in 2002, Mr. Sanio was President of BAKred, and before that Vice President. Mr Sanio was Chairman of the Financial Action Task Force
