DFSA Publishes Strategy to Protect Clients’ Assets

It's that time of the year when financial market watchdogs worldwide set out new policies to ease the operations of trading platforms and secure clients' assets. The Dubai Financial Services Authority (DFSA) is not left out.

The DFSA has prepared a strategic plan for the 2023/2024 financial year to increase Dubai's participation in the global financial market. This is part of its bid to create enabling structures for firms in its region. DFSA's Chairman, Fadel Al Ali, made this announcement on January 16th, 2023.

Details of the 2023/2024 DFSA Strategic Plan 

Dubai is fast becoming a hub for forex/cryptocurrency activities, and as expected of regulatory bodies, the DFSA has been trying to maintain this tempo. The regulator has, over the last few years, created and modified its regulatory strategies to attract more firms to its supervisory region. 

According to DFSA's Chairman, the plan is a two-year blueprint with an outline to actualize the goals of the Dubai International Financial Centre (DIFC). It covers vital projects curated from four themes with its primary focus on providing optimal security for clients' assets. With this blueprint, it is anticipated that the activities of the regulator will be more coordinated.

The DFSA's strategy is expected to combat financial market crimes and aid the local authorities in instituting the provisions of the joint review of the Financial Action Task Force (FATF). Following its plan to ensure the probity of the DIFC, the DFSA will tighten its rules on clients' assets security and reinforce its regulations via global methods. 

The DFSA will also improve its use of modern monitoring devices to perform its regulatory duties. This is set to promote the creation and use of innovative technologies by the DIFC's licensed communities. 

The DFSA pledged its continuity in adjusting to the DIFC's regulations to accommodate risky and innovative market changes. According to Al Ali, "Quality supervisory regulation, and increased application of modern technical solutions will allow us to further implement the visions of Dubai and the UAE."

The DFSA's Commitment to Improving its Global Operations

The DFSA has thus far been focused on maintaining a proactive relationship with its licensed community and counterpart regulators at the local, regional, and global levels. The DFSA is working to develop initiatives on investor protection, disclosure, and taxonomy at the national level.

The DFSA has also shown enthusiasm in ensuring that DIFC enterprises are actively involved and aware of Economic, Social, and Governance (ESG) concerns. This is expected to foster a robust global response to further aid the watchdog's capacity to secure clients' assets.