GCC must cre­ate glob­ally har­monised laws: Ex­perts

The Pak Banker - - BUSINESS -

Eco­nomic ex­perts on Thurs­day dis­cussed GCC im­pli­ca­tions of the 'new oil or­der' and said traders' education is key to solve cur­rent mar­ket is­sues. The 2nd GCC Fi­nan­cial Mar­kets & Trea­sury Con­fer­ence opened in Dubai with the theme of the di­rect im­pact of the 'new oil or­der' on GCC coun­tries and the an­tic­i­pated eco­nomic im­pli­ca­tions of the rise of fis­cal deficits in the re­gion.

One of the high pro­file speak­ers at the event, Mar­shall Bai­ley, Pres­i­dent of ACI In­ter­na­tional, an­a­lysed what progress has been made in de­vel­op­ing and en­forc­ing codes of con­duct and risk man­age­ment in the GCC dur­ing a panel dis­cus­sion. "A lack of har­mon­i­sa­tion in rules and reg­u­la­tions con­tin­ues to be a ma­jor cause for con­cern among mar­ket par­tic­i­pants," said Bai­ley. "The vast ma­jor­ity of in­sti­tu­tions op­er­ate glob­ally, and there­fore, have to com­ply with mul­ti­ple laws and codes of prac­tice at the same time. When th­ese rules di­verge, con­tra- dict or are un­clear, com­pli­ance be­comes con­fus­ing, re­source-heavy and re­quires ad­di­tional per­son­nel, time and money," he ex­plained. For GCC reg­u­la­tors, the mes­sage from Bai­ley is to cre­ate laws which are as glob­ally har­monised as pos­si­ble, al­though he ac­knowl­edges there are fur­ther im­pli­ca­tions in re­la­tion to codes of con­duct, and to in­vest time and money into ed­u­cat­ing traders.

He added: "The num­ber one rule for any global code to be ef­fec­tive is that it has to ap­ply uni­ver­sally across bor­ders, so all par­tic­i­pants are clear on what is and is not ac­cept­able be­hav­iour. "The se­cond is education and aware­ness of the rules. Trader education, not regulation, is the key to solv­ing the cur­rent mar­ket is­sues, and once in­di­vid­u­als are made aware, their man­agers and com­pli­ance de­part­ments need to make sure it is en­forced ap­pro­pri­ately." In or­der to cre­ate clar­ity in the mar­ket, Bai­ley ad­vises na­tional reg­u­la­tors to adopt the clearly de­fined codes and if nec­es­sary, back those up with laws to em­bed the na­tion- al fi­nan­cial en­force­ment.

"Lev­el­ling the play­ing field in­ter­na­tion­ally in this way will pro­vide much needed clar­ity for fi­nan­cial mar­ket pro­fes­sion­als - some­thing that many in­sti­tu­tions are cry­ing out for. It is also ben­e­fi­cial for reg­u­la­tors, as they can mea­sure the be­hav­iour, ethics and con­duct of all par­tic­i­pants by the same cri­te­ria, re­gard­less of whether they are in New York, Lon­don, Dubai, Sin­ga­pore or Ja­pan, and any mis­de­meanours can be im­me­di­ately ad­dressed." The ACI Model Code will be high­lighted by Bai­ley at the con­fer­ence as the best place to start be­cause it is widely ac­cepted as the most com­plete of codes and pro­vides a com­pre­hen­sive moral com­pass to which pro­fes­sion­als can ad­here glob­ally.

The GCC Fi­nan­cial Mar­kets & Trea­sury Con­fer­ence is or­gan­ised by the UAE Fi­nan­cial Mar­kets As­so­ci­a­tion, in as­so­ci­a­tion with strate­gic part­ner Dubai In­ter­na­tional Fi­nan­cial Cen­tre, which has been in­stru­men­tal in con­nect­ing fi­nan-

reg­u­la­tions and guar­an­tee

strong cial in­sti­tutes to­gether. Other speak­ers at the event in­clude Thu­nayan Al Ghanim, Hon­orary Pres­i­dent, ICA and KFMA Kuwait; Pro­fes­sor Tom James, Co­Founder and Man­ag­ing Di­rec­tor, Novita's Re­sources; Fa­had Al Tur­kic, Chief Econ­o­mist and Head of Re­search, Jada In­vest­ment; and Mo­hammed Alsahlawi, Pro­fes­sor of Eco­nom­ics, King Fa­had Univer­sity of Pe­tro­leum.

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