28 October 2017, Abu Dhabi, UAE : The United Arab Emirates Securities and Commodities Authority (SCA) and the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM FSRA) signed a Memorandum of Understanding (MoU) to enhance cooperation to foster financial innovation that serves the needs of the capital markets in the UAE. The Agreement was signed on 22 October by H.E. Dr. Obaid Saif Al Zaabi, Acting Chief Executive Officer of SCA and Mr Richard Teng, Chief Executive Officer of ADGM FSRA at the inaugural FinTech Abu Dhabi Summit.
This partnership and FinTech bridge were formed following close discussions between both Authorities on efforts to support the economic development and growth of the UAE. The Agreement provides a framework for SCA and the FSRA to share and exchange pertinent information on innovation, regulatory approaches to financial innovation, economic and commercial developments that impact each other’s jurisdictions. The MoU also enables the SCA and FSRA to provide support and facilitate financial and FinTech activities that are beneficial to the financial services industry in the UAE.
Following the signing of the MOU, Dr. Obaid Al Zaabi, Acting CEO of the Securities and Commodities Authority (SCA), said: “it is our great pleasure to sign this MOU today with the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) to promote our continuous cooperation over the past four years. ADGM and FSRA made ongoing achievements during that period as they are known of being fully committed to set high-level regulatory standards and to achieve its mission, all of which contribute to maintaining fair, efficient, and responsible markets, in line with the best international standards.”
Dr. Al Zaabi indicated that “SCA is seeking to keep open communication channels with its financial industry partners, especially those concerned with the development of financial technology (FinTech), and to understand their needs. This comes as part of its role to create a favorable regulatory environment, one that facilitates the development of innovative products and services to enhance the efficiency of securities market officials and to improve market performance”.
“In this context, SCA is launching necessary initiatives that will serve to create a ready, safe, cost-effective, and resilient technical infrastructure and to bring that infrastructure in line with modern technology before making it available to investors and market participants while providing, while at the same time providing support and regulatory advice for FinTech companies to ensure the protection of investor rights”.
Dr. Al Zaabi explained that “this MOU provides for cooperation between the two sides with respect to the various initiatives launched in this field and the exchange of information and expertise in an effort to set standards and requirements in service level agreements and to appropriately regulate financial technology to avoid systemic risk and ensure cyber protection”.
Mr Richard Teng, CEO, FSRA of ADGM, said: “We are pleased to further our relationship with the SCA and combined our efforts in supporting the UAE’s financial sector through fostering of financial innovation and Fintech activities. SCA and ADGM share a mutual objective in establishing an efficient, attractive and conducive financial hub that bolsters innovation and growth in a safe and well-regulated environment. We look forward to working closely with SCA to advance the financial development of our markets.”
The SCA partnership further enhances ADGM’s FinTech collaboration global FinTech hubs including Australia (the Australian Securities and Investments Commission), Canada (Canadian Securities Authorities of 8 Canadian Provinces), China (Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone), France (French Autorité des Marchés Financiers), Japan (Financial Services Authority), Kenya (Capital Markets Authority), and Singapore (Monetary Authority of Singapore).
As part of its ecosystem-building commitment, ADGM has formed strategic partnerships with FinTech leaders and industry players in the Middle East and Africa region, India, Europe, the United Kingdom, the USA and other jurisdictions. ADGM will continue to establish new initiatives and work closely with local and global stakeholders to foster an open and inclusive global FinTech hub to serve Abu Dhabi and the greater MENA region.