Dubai approves temporary regulatory easing package in support of financial community

The Dubai Financial Services Authority (DFSA) has announced a package of temporary and appropriate regulatory easing measures to support the financial services community in the Dubai International Financial Centre (DIFC) during and beyond this emergency operating environment.

These measures are intended to support companies subject to the regulatory framework in order to continue to support customers and markets under the current circumstances until they end.

Mark Steward, Chief Executive Officer of the DFSA, said: "Companies operating in the DIFC have demonstrated exceptional resilience and financial strength during this unprecedented period. To support them, the Authority wishes to provide additional facilities to companies, upon request, to serve as a phased support mechanism for the resumption of normal trading. The Authority has therefore developed a framework that allows temporary regulatory flexibility in multiple areas, both for companies seeking a licence from the Authority and for existing licensed companies. These measures will mitigate current operational challenges while ensuring continued adherence to our high regulatory standards. We will continue to assess the situation in light of the emergency developments, and will approve additional measures to support businesses when needed, including assistance to resume normal activity."

The Authority's Regulatory Facility Initiative focuses on providing temporary and targeted flexibility across several areas, including:

Licensing and permit requirements, and administrative requirements: including providing some flexibility, if needed, in application timelines and control mechanisms. Governance and employee arrangements: Include taking into account the arrangements related to employee availability, while continuing to adopt the remote work model. Regulatory reporting processes and control procedures: These include extending timelines to increase companies' ability to manage operational challenges, and prioritizing critical activities. Timetables for the implementation of specific organizational initiatives: This allows them to be postponed without affecting the achievement of organizational goals or outputs. These measures are designed to be risk-based, flexible in application, and time-bound, considering the nature, size and complexity of each company.

The DFSA confirms that its regulatory standards and regulatory expectations have not changed. Any regulatory easing provided will be temporary, subject to appropriate governance and regulatory oversight, and designed to support compliance and flexibility, not undermine regulatory requirements.

The DFSA will continue to closely monitor the financial and operational conditions, continue to actively engage in oversight and, where necessary, take action to protect the integrity and reputation of the financial services system in the DIFC.

DIFC is committed to working constructively with the DIFC financial community, other UAE regulators and international partners to ensure that the DIFC continues to be strong, resilient and globally positioned as the leading international financial destination in the Middle East, Asia and South Asia.