The regulatory body, which oversees the activity of companies based within the Dubai International Finance Centre, said the new Markets Law 2012, which replaces the Markets Law 2004, brings about a number of “significant changes”.
Specifically, the new law includes changes to prospectus disclosure, what activities constitute an offer, market misconduct provisions and corporate governance.
In a statement, the DFSA said the prospectus changes include a new requirement for the document to be formally approved by the DFSA before it can be used to make an offer of securities to the public, or have the securities mentioned in the document admitted to the Official List of Securities maintained by the DFSA.
The statement added that the “new Laws are designed to promote investor protection in a manner that better aligns the DIFC to international standards, particularly European Union requirements and the Organisation for Economic Co-operation and Development”.
In addition, the DFSA has amended its Regulatory Law 2004 to support the changes brought about by the new Markets Law, for example the law now provides for the DFSA to undertake regulatory oversight of auditors of DIFC incorporated companies listed on an Authorised Market Institution (AMI) or any other exchange.
DFSA chief executive Ian Johnston said: “These changes bring our markets regime into closer alignment with the EU requirements while retaining features necessary to accommodate regional needs and circumstances.
“The DFSA’s supervisory oversight has also been expanded to include auditors for companies incorporated in the DIFC which seek listing on an exchange in the DIFC or in another jurisdiction. Such regulatory oversight of auditors would allow for the passporting of auditors registered by the DFSA into the EU, thus enabling those auditors to conduct audits of DIFC-based companies where they seek listings in the EU. These changes will also allow the DFSA to meet Principle 8 of the Core Principles of Independent Audit Regulators by the International Forum for Independent Audit Regulators, of which the DFSA is a member.”
