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Jul 27 2011

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DFSA Renews Ties With Swiss Counterpart

The MoU was signed on behalf of the DFSA by its Chief Executive, Mr Paul M Koster and Professor Anne Héritier Lachat, Chair of the Board of Directors of FINMA, in advance of a meeting of the DFSA Board in Zurich.

FINMA was established in June 2007 by Federal legislation, the Swiss Financial Market Supervisory Authority (FINMASA) Act, which merged the Federal Office of Private Insurance (FOPI), the Swiss Federal Banking Commission (SFBC) and the Anti-Money Laundering Control Authority into one agency responsible for all financial regulation in Switzerland.

Mr Paul M Koster, Chief Executive of the DFSA said, "The DFSA Board meeting in Zurich this week underlines the significant presence of Swiss financial institutions in the Dubai International Financial Centre and the importance the DFSA attaches to Switzerland, which has long been regarded as among the world's leading international financial centres. FINMA plays a critical role as the national regulator, as did its predecessors, FOPI and the SFBC. In fact, this initiative reflects FINMA's status as an integrated financial services regulator and in adding co-operation in relation to insurance supervision; it enhances an existing relationship by extending the reach of an MoU which the DFSA and the SFBC have had in place since April 2007.

As active members of the International Organisation of Securities Commissions and the International Association of Insurance Supervisors, FINMA and the DFSA strive to embrace best practice and seek to reflect the resolutions of the international standard-setters. This initiative should be seen as an affirmation of a mutual willingness to co-operate and share information to those standards."

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The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre ( DIFC ), a purpose-built financial free-zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

Paul M Koster was appointed Chief Executive of the DFSA on 1 December 2008. Prior to becoming Chief Executive, he was Commissioner and Member of the Executive Board of the Autoriteit Financiële Markten (AFM), the national, integrated conduct of business financial services regulator for the Netherlands, where he was identified as one of the four leaders shaping the conscience of Dutch business. Mr Koster joined the AFM in March 2001 and in addition to his duties as a Commissioner, he chaired, from May 2006 until December 2007, CESR-Fin, the permanent working party of the Committee of European Securities Regulators that co-ordinates the endorsement and enforcement of financial reporting standards in Europe.

For the previous two years he had chaired CESRs Sub-committee on International Standards Endorsement. During his time with the AFM, he was also a Member of the IOSCO Chairs' Committee and, as Chief Executive of the DFSA, he remains actively involved in the work of IOSCO.

Mr Koster previously served as Executive Vice President (Corporate Internal Audit) at Royal Philips Electronics 1998 to 2001; as Managing Partner Corporate Finance, Coopers & Lybrand 1988 to 1998; and as Chief Compliance Officer and Acting Commissioner of Quotations, Amsterdam Stock Exchange 1986 to 1988; and carried out a number of senior finance functions in his earlier career, having trained as an accountant with Arthur Andersen. Mr Koster is a licensed Registered (Chartered) Accountant having qualified through the Royal Dutch Institute of Chartered Accountants in 1977 and certified as a registered auditor in 1983.

In May 2009, Mr Koster joined the Advisory Board of the Emirates Securities and Commodities Authority (SCA), the UAE's federal securities regulator, and in July 2009, he also became a Member of the Consultative Advisory Groups of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA).

In September 2010, Mr Koster won the 'CEO of the Year for Financial Services' award and was voted one of the most influential expatriates living and working in the region today.

The Swiss Financial Market Supervisory Authority (FINMA) was established on 1 January 2009. It was a merger between the Federal Office of Private Insurance (FOPI), the Swiss Federal Banking Commission (SFBC) and the Anti-Money Laundering Control Authority. This merger was effected by the Financial Market Supervisory Act (FINMASA), which defined FINMA's objectives as protecting creditors, investors, and policy holders as well as ensuring the smooth functioning of the financial markets, thus contributing to sustaining the reputation and competitiveness of Switzerland's financial centre.

As a state regulator, FINMA is endowed with sovereign authority over banks, insurances companies, stock exchanges, securities firms and collective investment schemes. It is responsible for combating money laundering, and where necessary, conducts financial restructuring and bankruptcy proceedings. FINMA grants operating licenses for companies. Through its supervisory activities, FINMA also ensures that the supervised institutions comply with the requisite laws, ordinances, directives and regulations, and continue at all times to fulfill the licensing requirements. It imposes sanctions and provides administrative assistance to the extent permissible by law.

Finally, FINMA also acts as a regulatory body; where it is authorised to do so, it participates in legislative procedures, issues its own rulings and circulars and is responsible for the recognition of self-regulatory standards. In relation to public takeover bids for listed companies, FINMA also has supervisory powers in respect of the disclosure of holdings and acts as the authority to hear appeals against decisions of the Takeover Board.

Anne Héritier Lachat was appointed Chair of the Board of Directors of FINMA in 2011, having been a member of that Board since 2009 and before that a member of FINMA's banking and securities predecessor, the Swiss Federal Banking Commission (SFBC). Since 1982, when she was awarded a PhD in Law, Dr Lachat has been an Attorney-at-law in Geneva and a teacher at the University of Geneva. In 2009, she became Associate Professor in the Law faculty of the University of Geneva. From 1993 until 2004, she was successively a legal advisor to, a member of, and then Vice-president of the Swiss Takeover Board. From 1987 until 1996 Professor Lachat was an alternate judge at the Cour de Justice of Geneva and from 1999 until 2001 a Judge at the Tribunal de première instance.

For further information please contact:
Angharad Irving-Jones (Ms)
Head of Corporate Communications
Dubai Financial Services Authority
Level 13, The Gate
Dubai, UAE
Tel: +971 (0)4 362 1661
Email: airvingjones@dfsa.ae

© Press Release 2011