Tuesday, October 2, 2007

Emirates regulator threatens suspension in bid to show teeth

by Mark Johnson from Financial News Online US

The main financial regulator in the United Arab Emirates has confirmed that 40 brokerages are facing possible suspension from the market if they fail to comply with new rules ... The UAE regulator is being forced to improve its policing methods as local markets open their boards to international investors. Esca's rules are based on Islamic sharia law, with which global investment banks and brokers are unused to working. By contrast, the nation's second regulator, Dubai Financial Services Authority, is based on internationally accepted financial rules drawn from the UK's Financial Services Authority and the US Securities and Exchange Commission. DFSA, currently has no jurisdiction over the UAE's main markets.

UPDATE: Esca suspends 11 brokerage firms

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