The Dubai Financial Services Authority (DFSA) has entered into a Memorandum of Understanding with the Securities & Exchange Commission of Thailand (SEC).
The MoU was signed by Mr. David Knott, Chief Executive of the DFSA, and Mr. Thirachai Phuvanatnaranubala, Secretary General of the Thai SEC.
Established in 1992, the SEC is an independent regulatory body under the Securities and Exchange Act. Its roles are to promote, develop and supervise the Thai capital market.
The agency is also responsible for the authorisation, registration and supervision of the issuance, offer or sale of securities and derivatives, market intermediaries related to securities and derivatives, exchange, and clearing and settlement entities.
Mr. Knott said: “The Dubai International Financial Centre’s links with Asia are increasing, and Thailand is an important economy in that region. The SEC of Thailand has a strong international focus and has shown a firm commitment to regulatory cooperation. Both the SEC and the DFSA are active members of the Emerging Markets Committee of the International Organisation of Securities Commissions (IOSCO). They recognise the importance of these arrangements for cooperation and information sharing between the two regulators.”
Mr. Knott added: “This is the DFSA’s first MoU with a fellow regulator in Asia and indicates the reliance both regulators place on the quality of regulatory standards administered in the other’s jurisdiction.”
Dr Habib Al Mulla, Chairman of the DFSA, also welcomed the signing of the MoU. “It is pleasing to see closer regulatory ties with our Thai counterpart. It underlines the DFSA’s goal to build effective working relationships with regulators in other regions.”
Mr. Phuvanatnaranubala said: “This bilateral cooperation is timely and important. We are pleased to have the DFSA as our first MoU partner in the Middle East. We look forward to mutual assistance in the exchange of information and the promotion of international standards to foster favourable investment environments and orderly markets in Asia. East Asian countries are among the fastest growing regions of the world. We have many good quality investment products, Islamic and non-Islamic, that can attract Middle East investors, and Thailand intends to be active in offering them.”
He added: “We selected Dubai as our first point of linkage because we have full confidence in the development plan for regulatory oversight here. The SEC of Thailand is confident of DFSA’s aim to uphold international standards in order to enhance the confidence of investors in the Dubai market.”
The Dubai Financial Services Authority (DFSA) is a central component of the Dubai International Financial Centre (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.
The DFSA is an independent, integrated regulatory authority responsible for the regulation of all financial and ancillary services conducted in or from the Centre, 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 modeled 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.
Mr. David Knott was appointed Chief Executive of the DFSA on May 21, 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 Securities and Exchange Commission of Thailand (SEC) is responsible for regulating the capital market and securities businesses in Thailand. The SEC was established under the Securities Exchange Act B.E. 2535 (1992). Pursuant to the SEC Act, the SEC is empowered to
supervise and develop the primary and secondary markets of the country’s capital market system as well as securities-related participants and institutions.
Its primary role is to formulate policies, rules and regulations regarding supervision, promotion and development of securities businesses as well as other activities relating to securities businesses, securities exchanges, other organized securities trading centers, and entities related to securities businesses, including the issuance and offering of securities for sale to the public, the acquisition of securities for business takeovers, and the prevention of unfair securities trading practices.
Mr Thirachai Phuvanatnaranubala was appointed Secretary General of the SEC on December 29, 2003. He is also Chairman of the Asia-Pacific Regional Committee of IOSCO (the International Organisation of Securities Commissions). He was formerly Deputy Governor of the Bank of Thailand.
