|28 November, 2019

Dubai DFSA and Luxembourg's CSSF sign Financial Innovation agreement

As per the terms of the agreement, the authorities will share information about innovations in financial services in their respective markets

Image for illustrative purposes. Dubai International Financial Centre is regulated by Dubai Financial Services Authority.

Image for illustrative purposes. Dubai International Financial Centre is regulated by Dubai Financial Services Authority.

REUTERS/Nikhil Monteiro

LUXEMBOURG - The Dubai Financial Services Authority, DFSA, and the Commission de Surveillance du Secteur Financier, CSSF, Luxembourg, entered into an agreement to cooperate over the development of FinTech, reflecting efforts by both authorities to foster innovation at the Dubai International Financial Centre, DIFC, as well as in Luxembourg.

The agreement was signed by Saeb Eigner, Chairman of the DFSA, and Claude Marx, Director-General of the CSSF in Luxembourg. Under the terms of the agreement, the authorities will, subject to the applicable laws and regulations, share information about innovations in financial services in their respective markets, including emerging trends and developments, as well as innovation-related regulatory issues.

The agreement provides a framework for cooperation and referrals between each authority. It also sets out a mechanism, which will enable the authorities to refer innovator businesses between their respective innovation functions and provide them with regulatory support. The agreement builds on the DFSA’s existing Memorandum of Understanding with the CSSF signed in 2007.

Eigner said, "We firmly believe that cooperation with the CSSF is paramount to creating more stable and innovative financial services. This is a testament to our commitment to foster effective agreements with peer regulators across the globe and engage in emerging FinTech sectors and issues. We look forward to working with the CSSF to develop our FinTech proposition and contribute to the efficiency and further enhancements of our respective financial markets."

This latest cooperation is the DFSA’s eighth FinTech agreement and forms part of the authority's innovation strategy, which complements the National Innovation Strategy, as set out by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to make the UAE a global hub for innovation.

In May 2017, the DFSA launched its Innovation Testing Licence, a special class of financial services licence that allows FinTech firms to develop and test innovative FinTech concepts from the DIFC. In August 2017, the DFSA became the first regulator to launch a tailored regulatory regime for loan and investment crowdfunding platforms in the GCC. The DFSA also launched a property crowdfunding regime in July 2019, becoming the first regulator in the region to do so.

© Copyright Emirates News Agency (WAM) 2019.

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