Review of Dubai Financial Services Authority Markets Brief No 6: Ongoing Market Disclosure
The Dubai Financial Services Authority ("DFSA") is the independent regulator of all financial and ancillary services conducted through the Dubai International Financial Centre ("DIFC"). In January 2014 the DFSA published Markets Brief No. 6 ("MB6") which discussed the DFSA’s policy on:
- Ongoing market disclosure requirements in relation to dividends and other distributions by Reporting Entities; and
- Connected Persons’ disclosures.
The DFSA's Markets Briefs provide guidance about the DFSA's approach and processes for the regulation of DFSA capital markets. The guidance, whilst not formally binding, provides valuable insight into the Regulator's current thinking and concerns. A full consideration of the policies discussed in MB6 is therefore likely to offer its own, regulatory, dividends.
In this paper, we review the regulations and rationale of each of the policies discussed in MB6, explaining why, from a legal and economic perspective, compliance is important. We also examine some wider issues related to these policies, with reference to problems experienced in other jurisdictions.
We find that the policies are a necessary element of a regulatory framework for a fair, transparent and efficient financial services centre, which global investors are prepared to trust. That trust is essential to attract, maintain and grow international investment. These policies therefore provide the DIFC with the platform to cement its position as the regional nexus for global capital flows, and develop into a financial centre as systemically important to the globalized economy as those found in the East and West.