SFC and Dubai Financial Services Authority bolster ties in supervising cross-border investment management

The Securities and Futures Commission (SFC) and the Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Centre (DIFC), today signed a Memorandum of Understanding (MoU) to deepen cooperation on the regulatory oversight and supervision of collective investment scheme managers in each other’s markets to ensure compliance, governance, and cross-border regulatory alignment.  

During the 10th Belt and Road Summit in Hong Kong, the MoU was presented as part of the MoU presentation ceremony officiated by the Chief Executive of Hong Kong SAR Mr John KC Lee and attended by the SFC’s Chairman Dr Kelvin Wong, its Chief Executive Officer (CEO) Ms Julia Leung and the DFSA’s Chief Executive Mr Mark Steward, underscoring the significance of cross-border regulatory collaboration and Hong Kong’s growing ties with Belt and Road jurisdictions.

Signed into effect by Ms Leung and Mr Steward, the MoU establishes a collaborative framework for consultation, cooperation and the exchange of information to enhance the regulators’ supervision and oversight of regulated entities engaging in cross-border investment management or advisory activities. It results from joint collaborative efforts by the SFC and the DFSA over the last year, including a high-level meeting and a co-hosted roundtable with leading asset managers in Hong Kong (Note 1).

Ms Julia Leung, CEO of the SFC, said: “The strengthened SFC-DFSA partnership underscores our shared commitment to bolstering regional market connectivity to create mutual long-term benefits for Hong Kong and DIFC as international financial hubs. This new milestone is set to reinforce Hong Kong’s pivotal role on the China-Middle East Corridor amidst ongoing global challenges.”

Mr Mark Steward, Chief Executive of DFSA, said: “DIFC, Dubai and the United Arab Emirates’ role as a gateway between Asia and the Middle East is more vital than ever. Our partnership with the SFC reflects a shared commitment to regulatory excellence, supervision  and cross-border innovation – ensuring that firms based in each other’s markets can operate with confidence, integrity, and impact. Together, we are laying the regulatory foundations for international capital to be mobilised ever more responsibly.” 

End

Note:

1. Please see the SFC’s press releases on 5 April 2024 and 31 May 2024 about the SFC-DFSA high-level meeting and their co-hosted roundtable.

For further information, please contact:

Secretariat and ExternalSecurities and Futures Commission (SFC)54/F, One Island East18 Westlands Road, Quarry BayHong KongTel: +852 2231 1222Email: enquiry@sfc.hkhttps://www.sfc.hk

The Securities and Futures Commission (SFC) is an independent statutory body responsible for regulating and overseeing the securities and futures markets in Hong Kong. Under powers conferred by statutes, the SFC regulates and supervises brokers, investment advisers, fund managers, virtual asset trading platforms and other intermediaries in carrying out regulated activities in Hong Kong, and authorises investment products for public offering. It also oversees listing matters in Hong Kong, including vetting of listing applications and disclosure by listed companies, and directly regulates takeovers, mergers and privatisations related to listed companies. In addition, the SFC formulates policies to promote the competitiveness of the industry, including the development of the asset and wealth management industry, and to facilitate the advancement of market infrastructure. It also combats market misconduct through its surveillance, investigative and disciplinary work, and assists the Financial Secretary in maintaining the financial stability of Hong Kong. Please refer to the SFC’s website for more information.

Corporate CommunicationsDubai Financial Services Authority (DFSA)Level 13, The Gate, West WingDubai, UAETel: +971 (0)4 362 1500Email: DFSAcorpcomms@dfsa.aehttps://www.dfsa.ae/ 

The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in and from the Dubai International Financial Centre (DIFC), a purpose-built financial free zone in Dubai, UAE. The DFSA regulates and supervises financial services firms and markets in the DIFC. These include asset managers, banks, custody and trust services, commodities futures traders, fund managers, insurers and reinsurers, traders of securities and fintech firms. The DFSA supervises exchanges and trading platforms for both conduct and prudential purposes, overseeing an international securities exchange (Nasdaq Dubai) and an international commodities derivatives exchange (Gulf Mercantile Exchange). The DFSA is also responsible for supervising and enforcing anti-money laundering and countering the financing of terrorism requirements applicable in the DIFC. Please refer to the DFSA’s website for more information.