The Securities and Commodities Authority (SCA) signed an MOU with the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) that covers bilateral cooperation in exchanging information and supervising capital markets and listed companies, as well as financial service companies. The MOU also provides for cooperation in regulatory matters and investor protection through a framework that facilitates mutual cooperation and understanding.
H.E. Abdulla Al Turifi and H.E. Ahmed Ali Al Sayegh
The MOU was signed between H.E. Abdulla Al Turifi, CEO of SCA, and H.E. Ahmed Ali Al Sayegh, Chairman of ADGM, in the presence of Richard Teng, Chief Executive of FSRA.
The MOU comes to establish a practical framework and determine the scope of cooperation between SCA and ADGM according to terms that specified areas of cooperation and coordination, most notably matters related to 1) supplying the other party with information that tends to assist it in performing supervisory functions, 2) supervising stock markets and clearing and settlement processes, as well as monitoring compliance with the rules and regulations in this regard, 3) ensuring that licensed persons are qualified and efficient and raising their professional level, 4) cooperating and coordinating in public offerings and mutual promotion of securities and financial products, as well as securities sector-related legislations, 6) enforcing rules and regulations in relation to issuing, dealing in, and advising on securities and other investment products, 7) cooperating and coordinating in licensing procedures for financial services and activities offered by companies subject to the supervision of both parties, and 8) countering and detecting money laundering crimes and activities.
Following the signing of the MOU, Al Turifi signaled that cooperation and coordinating efforts with FSRA reinforces SCA’s efforts aimed at developing the UAE capital markets and promoting their supervisory role, in addition to contributing to the implementation of the vision of the wise leadership to create a solid and diversified national economy according to the highest international standards.
Al Turifi added that the MOU constitutes a framework for SCA’s and FSRA’s efforts in boosting mutual cooperation, exchanging information, and promoting the regulatory and legislative roles, which are intended to increase the soundness and transparency of transactions executed in capital markets to be established within the free financial zone and provide further protection to investors, thus contributing to improving the performance level according to the highest standards.
For his part, H.E. Ahmed Ali Al Sayegh, Chairman of ADGM, said: “At ADGM, we believe that greater cooperation amongst authorities and relevant regulators makes a significant contribution towards the economic growth of Abu Dhabi and its wider region, particularly in today’s dynamic business environment. The MOU with SCA marks a pivotal milestone and dovetails well with ADGM’s vision in achieving a vibrant international financial center that caters to global trading and financial needs. ”
Richard Teng, Chief Executive of ADGM’s FSRA, highlighted that: “The MOU signifies the commitment of SCA and FSRA in collaborating closely to support the development of Abu Dhabi as an international financial center. By harnessing our joint regulatory expertise and strengths and commitment for cooperation, market participants can confidently leverage and take advantage of our trusted, well-regulated and internationally-recognized platform in Abu Dhabi to realize their regional and global ambitions.”
To strengthen the capacity of each party to boost mutual understanding and the exchange of expertise pertaining to financial regulations, the terms of the MOU stipulated the necessity that both parties increase mutual technical support through training visits, public conferences, and exchanging delegations to support mutual understanding and review the best common practices.