DFSA approach

SUMMARY

The DFSA is an integrated principles-based regulator that follows a risk-based approach in the supervision of regulated firms, including Financial Institutions, Registered Auditors, and Credit Rating Agencies. The DFSA’s risk-based approach to the supervision of a firm may vary depending upon the nature, scale, complexity, size and circumstances of each individual firm and the specific risks it poses to the DFSA’s objectives.

We conduct prudential and conduct of business supervision and deploy our supervisory resources to those firms and financial services activities that pose the greatest risk to our regulatory objectives. The DFSA does not operate a “zero failure” regime because doing so would place excessive regulatory burden on financial institutions and adversely impact the efficiency of the financial system. Therefore, we aim to reduce the risk and impact of failure or of inappropriate behaviour by deploying supervisory resources to those Firms and activities that present the greatest risk to the DFSA’s objectives. 

Regulatory Objectives

• To foster and maintain fairness, transparency and efficiency in the financial services industry (namely, the financial services and related activities carried on) in the DIFC.
• To foster and maintain confidence in the financial services industry in the DIFC.
• To foster and maintain the financial stability of the financial services industry in the DIFC, including the reduction of systemic risk.
• To prevent, detect and restrain conduct that causes or may cause damage to the reputation of the DIFC or the financial services industry in the DIFC, through appropriate means, including the imposition of sanctions.
• To protect direct and indirect users and prospective users of the financial services industry in the DIFC.
• To promote public understanding of the regulation of the financial services industry in the DIFC.
• To pursue any other objectives as the Ruler of Dubai may, from time-to-time, set under DIFC Law.