Change is brewing in the UAE’s regulatory landscape for insurance-based companies and investment advisors, according to a leading industry expert.
And as the sector develops, and more financial advisory firms set up shop in the Dubai International Financial Centre (DIFC), there is a need for clarification on the rules, David Kneeshaw, group CEO of IFGL, which owns RL360, Friends Provident International and other businesses, said.
There are now about six financial advisory firms in the DIFC regulated by the Dubai Financial Services Authority (DFSA).
“That’s about five more than there were a year ago,” Kneeshaw told Arabian Business. “So this is a new trend, and I think advisors and the DIFC and DFSA [need] to come to a common agreement about how that should progress and develop.
“And I think there’s still change to come… There’s more regulatory changes looming on the Insurance Authority side, which is now part of the central bank.”
He said that advisors are beginning to think about whether or not to make the shift from the Securities and Commodities Authority (SCA) or move to the DIFC.
No matter what they choose, “advisors should think quickly, make decisions quickly and act on it quickly”, Kneeshaw (pictured below) said.
Clarification has begun to come down, with a new law issued in May by Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum that lays out more plainly the duties and responsibilities of the DIFC’s president, governor, the centre and bodies. It also ensures the DIFC’s operational, financial and administrative independence.
The new DIFC law also provides clarity on what DIFC establishments may do outside their physical premises in the financial centre.
Details confirm that they may supply services and products to customers outside DIFC, providing they are primarily provided out of their premises in the centre. Marketing and promotion of their activities can also be conducted outside DIFC.
“Increasingly, the UAE is becoming a much better place to do business,” said Kneeshaw.
There are close to 3,000 firms operating in DIFC, with over 900 financial companies active in the centre, according to DIFC’s website.
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