The Cyprus and Securities and Exchange Commission and the Dubai Financial Services Authority have signed a memorandum of understanding in order to set the regulations and exchange information as regards the investigation of market abuse, clamping down on those who provide financial services without a license and any other violation of stock market regulations.
Signing the MoU were Cyprus and Securities and Exchange Commission chairman George Charalambous and Dubai FSA Chief Executive David Knott, who was accompanied by Mark McGinness.
Speaking after the signing ceremony, Charalambous said that “the global financial crises of recent times have shown that financial innovation, the development of complex international corporate structures, as well as the liberalization of capital movements and the facilitation of cross-border investments with the use of technology can potentially lead to increased risks to investors.”
He added that such developments may also affect the efficient and fair operation of markets in the absence of common regulatory standards, efficiently and effectively applied across jurisdictions, and co-operation and information exchange between regulators.
“The necessity for enhanced cooperation between regulators has never been greater,” Charalambous said.
“It is actively advocated both by the International Organisation of Securities Commissions (IOSCO) in the international level and CESR in the European level, covering not only the field of the exchange of information across borders and the development of common standards but also for the provision of mutual assistance in investigations and enforcement cases.”
“The Cyprus Securities and Exchange Commission places the fostering of international co-operation high up on its agenda. To this end, and recognizing the increased importance and sound standards of the Dubai capital market, we approached the Dubai Financial Services Authority with a view to signing a Memorandum of Understanding between our two authorities. The DFSA, sharing our commitment to international co-operation as an essential building block to financial stability, has responded positively to our proposal, and this ceremony marks the commencement of a mutually beneficial and fruitful cooperation.”
By Financial Mirror on 21/05/2008