The Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Centre (DIFC), and the Securities and Futures Commission (SFC), the statutory body responsible for regulating Hong Kong’s securities and futures markets, have signed a MoU to enhance cooperation in the regulatory oversight of collective investment scheme managers in each other’s markets.

The agreement aims to ensure compliance, governance, and alignment of cross-border regulatory practices.

The MoU was presented during the 10th Belt and Road Summit in Hong Kong.

The MoU establishes a framework for consultation, cooperation, and information exchange to enhance the supervision of regulated entities involved in cross-border investment management or advisory activities.

The agreement follows a year of joint efforts by the SFC and DFSA, including a high-level meeting and a co-hosted roundtable with leading asset managers in Hong Kong.

Mark Steward, Chief Executive of the DFSA, said:

“Today’s MoU between the DFSA and the SFC will help firms operate in each other’s markets with confidence and integrity, and demonstrates our shared commitment to regulatory excellence and cross-border innovation. Together, we are strengthening the regulatory framework for global investment and capital mobility between Dubai and Hong Kong.”

Julia Leung, Chief Executive Officer of the SFC, said:

“The strengthened SFC-DFSA partnership underscores our shared commitment to bolstering regional market connectivity to create mutual long-term benefits for Hong Kong and DIFC as international financial hubs. This new milestone is set to reinforce Hong Kong’s pivotal role on the China-Middle East Corridor amidst ongoing global challenges.”

Featured image credit: DFSA