The FSA, based in Abu Dhabi, which regulates investment banks, financial institutions, and insurers, will have the oversight of conducting business, consumer protection and he daily business of running the financial system, wrote a writer at The National.
Simultaneously the Central Bank will continue to regulate and monitor capital markets and monetary policy, and take a ird eye view of the whole industry. It will also continue to regulate commercial banks for at least four more years.
Mazen Boustany, head of banking and finance at Habib Al Mulla, the law firm advising the Ministry of Finance as sponsor of the law was quoted by The National saying: he Government has decided to move to a twin peaks regulation model. It will mean you have two regulators for the financial sector--a prudential regulator and a conduct-of-business regulator. /p>
The co-founder of the recently launched Financial Services Association UAE said the association welcomes and is excited about the move.
"The UAE will benefit from aligning its regulatory model to international best practice, which will, as a result make the market more attractive to international firms wishing to establish presence, in the UAE, it will also give more confidence to existing firms to expand when market conditions allow, and provide added protection to investors and consumers. We look forward to supporting the UAE financial services industry during the transition to the new regulatory framework."
The new model is good news for Chinese investors who are interested in investing in the UAE. A source from the China Banking and Regulator Commission in Beijing said that the new regulations will provide more protections to their assets in the UAE, and that it should help spur more business opportunities in financial services in the country for Chinese people.
