UAE changes regulatory structure
The United Arab Emirates has introduced new structure for its regulators. Under an order issued by the ruler of the Emirates Sheikh Mohammed bin Rashed Al-Maktoum, the powers and responsibilities of the Insurance Authority in the United Arab Emirates have been assumed by the country’s Central Bank and the operational and executive powers of the Securities and Commodities Authority transferred to local licensed stock markets. These major changes, Sheikh Mohammed bin Rashed Al-Maktoum said, was designed to improve the efficiency of the insurance market and wider financial sector. The restructuring is being implemented in line with 2 federal decree laws. The first decree provides the central bank with the power to “regulate, develop and supervise the insurance sector and business, to propose and implement the legislation regulating it, to receive requests for establishing and opening branches and representative offices of insurance and re-insurance companies, agents and related professions, and to issue the necessary licences for them in accordance with the legislations regulating them. The second decree stipulates the transfer of all operational and executive powers and competencies established for the SCA to the licenced securities and commodities markets, while the SCA maintains regulation and oversight of the local financial markets.