Dubai: The Securities and Commodities Authority (SCA) and the Dubai Financial Services Authority (DFSA) have signed a Memorandum of Understanding (MoU) aimed at enhancing audit oversight and fostering greater regulatory cooperation between the two organisations.
According to Emirates News Agency, the agreement will help to strengthen the regulatory oversight of the audit function, and will include areas such as firm registration and inspection, helping to improve financial reporting, market integrity, and boost investor confidence in the UAE’s financial sector.
Under the MoU, the SCA and DFSA will collaborate on monitoring and supervising audit functions, sharing expertise, and strengthening the overall framework for audit oversight within their respective areas.
This partnership comes at a time of rapid financial sector growth in the country and is designed to address the increasing complexity of financial markets. Waleed Saeed Al Awadhi, Chief Executive Officer of the SCA, commented, ‘As the UAE’s financial market continues to grow, it is essential that we strengthen our regulatory frameworks and promote best practices in auditing. This agreement will enhance our collective efforts to safeguard the integrity of the financial system and support the confidence of investors in the UAE.’
Mark Steward, Chief Executive of the DFSA, stated, ‘This is the start of a new era of collaboration between the DFSA and SCA. Our agreement will strengthen audit standards across all securities firms operating in the UAE and DIFC, including in the UAE’s capital markets.’
The agreement is expected to bring a more seamless and effective regulatory environment, where both authorities will share knowledge and resources to improve the enforcement of financial reporting standards and enhance the effectiveness of audit processes. Both authorities have expressed their commitment to fostering a strong, sustainable, and transparent financial market in the UAE.