DFSA, the Dubai Financial Services Authority revealed that it had reached a consensus with the Commission de Surveillance du Secteur Financier Luxembourg to strengthen cooperation around FinTech development. The strategy of cooperation demonstrates the efforts of both groups to facilitate innovation in Luxembourg as well as DIFC, Dubai International Financial Centre.
The pact was approved by the chairman of DFSA, Saeb Eigner, and the director-general of the CSSF, Claude Marx in Luxembourg.
According to the protocols of the treaty, the authorities are obliged to share data regarding the innovations through financial services in their designated markets, which should include emerging trends as well as developments and regulatory issues related to innovation.
It offers a cooperational framework for referrals amongst authorities. It also lays down an algorithm that will power the administrators to learn from innovator businesses of their Innovation Functions while providing them additional regulatory support.
The agreement takes shape on the existing agreement of DFSA with the CSSF approved in 2007.
During the event, Eigner announced:
“We are proud to be strengthening our relationship with the CSSF. The DFSA and the CSSF are actively engaged in the development of FinTech giving the market confidence through fair and proportionate regulation.“
The top official stated,
“We firmly believe that cooperation with the CSSF is paramount to creating more stable and innovative financial services. This is a testament to our commitment to foster effective agreements with peer regulators across the globe and engage in emerging FinTech sectors and issues.”
“We look forward to working with the CSSF to develop our FinTech proposition and contribute to the efficiency and further enhancements of our respective financial markets.”