Drafts of the law, which sets out the market’s regulatory boundaries, are being prepared with the assistance of international law firm Clifford Chance. The law will be followed by a federal decree that will act as the basis for a memorandum of understanding (MoU) to be drafted between the DIFC’s regulatory agency and the Central Bank of the UAE. The MoU will define clearly the issue of jurisdiction over financial institutions that take out licences to operate in the DIFC.
The agency is headed by Phillip Thorpe, who has previously worked as chief commissioner of the London-based Financial Services Authority. Its responsibilities are to ensure the market upholds the highest standards of financial practice and transparency (MEED 14:6:02).