While many regulatory bodies have been formed in response to financial crises, the DIFC is the first global financial centre to establish a world-class regulator and regulatory regime from the outset. The Dubai Financial Services Authority (DFSA) has set uncompromisingly high standards in creating a regulatory and legal framework built on the best practices of leading jurisdictions in Europe, North America and the Far East. But unlike other regulators, it has not had to make and mend within existing legacy frameworks, which can lead to complex and less relevant rules and regulations.

The DFSA is committed to the success of the DIFC concept and through clear and effective regulation seeks to encourage a strongly competitive environment. At the same time, those institutions licensed by the DFSA will need to demonstrate their ability to meet the high standards of the DFSA, and their willingness to maintain those standards. Where they fail, they will be held accountable for their actions.

The DFSA's guiding principles have been: integrity, transparency and efficiency. After reviewing the laws and regulations of the world's major financial centres, only the best rules have been considered and enhanced to produce a clear and flexible regulatory framework. They are written in English and benefit from extensive consultations with, and submissions from, leading financial institutions and their professional advisers. They are easy to apply, but extremely difficult to abuse.

Leading the development of the DFSA's robust regulatory framework is a team of experienced regulators drawn from internationally recognised regulatory bodies and major financial institutions. They have the responsibility to ensure that the DFSA promotes transparent and orderly markets which are not prone to market abuse and systemic risk.

http://www.dfsa.ae