In September 2005 the Dubai International Financial Centre (DIFC), established to plug the gap in the world markets between London and Frankfurt to the west and Tokyo to the east, opened its own financial exchange (the DIFX). As the big players in the financial world look to position their businesses to secure themselves a share of this new market, DIFC lawyers are being called upon to advise on the new regulatory rulebook that businesses will need to comply with when operating in the DIFC.
When setting up in the DIFC, businesses will need to consider the scope of their obligations under the rulebook, and particularly who they owe their duties to. Of course, regulated entities must comply with the rulebook to avoid sanctions from the local regulator, the Dubai Financial Services Authority (DFSA). Regulated entities will often also commit to complying with the rulebook in their contracts with their clients,...