Two decisions to merge the Insurance Authority with the "Central" ... and to transfer the operational powers of the "securities" to the financial markets
Mohammed bin Rashid: Our government will remain flexible and swift in taking appropriate economic decisions
The decree stipulates that the functions of the Central Bank include receiving requests for establishing and opening branches and representative offices for insurance and reinsurance companies.
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His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, affirmed that "the government will remain flexible, supportive and swift in taking appropriate economic decisions."
His Highness said in a tweet on the blogging site "Twitter": "The new economic organization in the country aims to raise the efficiency of the insurance sector, raise the efficiency and competitiveness of our local financial markets, and give them greater flexibility in their work."
The Council of Ministers, headed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, approved the issuance of a federal law decree amending some of the central bank's functions, merging the insurance authority with the bank, and a federal law decree regarding the distribution of competencies and powers between the Securities and Commodities Authority, and the securities and licensed commodity markets In the country, the operational and executive powers of the Securities and Commodities Authority will be transferred to these markets.
Efficiency and competitiveness
In detail, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, said in a tweet to His Highness on the Twitter site: “Today we issued a decision to merge the Insurance Authority with the Central Bank .. and transfer all the powers of the Securities and Commodities Authority. Operational and operational for the local stock markets, while the Authority maintains regulation and oversight of the local financial markets.
In another tweet, His Highness affirmed: “The new economic organization in the country aims to raise the efficiency of the insurance sector, raise the efficiency and competitiveness of our local financial markets, and give them greater flexibility in their work.”
His Highness added, "Our goal in all of this is to enhance the competitiveness of our national economy ... Our government will remain flexible, supportive and swift in taking appropriate economic decisions."
Legislation update
The two decisions come in light of government efforts to enhance the performance of financial institutions in the country, and support the work of these institutions, through continuous updating of the relevant legislative framework, in a way that contributes to developing the financial sector, achieving financial growth and stability, and granting financial markets operational and executive powers that help them raise The level of market performance.
«Insurance» and «Central»
The decree on amending the functions of the Central Bank stipulated the merging of the Insurance Authority with the Central Bank, and the transfer of all the powers of the Authority to be within the competencies of the bank, so that the Central Bank would work to provide the appropriate environment to develop and enhance the role of the insurance industry in supporting the national economy, encouraging fair and effective competition, and providing the best insurance services Competitive prices and coverage.
The decree-law also added to the functions of the Central Bank to regulate, develop and supervise the insurance sector and business, to propose and implement the regulating legislation in its regard, and to receive requests for establishing and opening branches and representative offices of insurance and reinsurance companies, insurance agents and related professions, and issuing the necessary licenses for them in accordance with the regulating legislation in their regard.
In addition, the bank protects the rights of the insured and the beneficiaries of the insurance business, and monitors the financial solvency of insurance companies, in order to provide adequate insurance cover to protect these rights, and it also works to raise the performance and efficiency of insurance companies and bind them to the rules of practicing the profession and its ethics, to increase their ability to provide better services For the beneficiaries of insurance, and achieving positive competition between them.
The Securities Commission
In the same context, the Council of Ministers, headed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, issued a decree regarding the distribution of competencies and powers between the Securities and Commodities Authority and the securities and licensed commodity markets in the country.
The Decree-Law stipulates the transfer of all operational and executive powers and competencies established for the Securities and Commodities Authority to the securities and commodity markets licensed in all of the state, and the Securities and Commodities Authority retaining the authority to regulate and control, and supervise the stock and commodity markets operating in the state.
In order to implement its provisions, the Decree-Law allowed the boards of directors of the securities and commodities markets, and market managers, to undertake the operational and executive functions that were prescribed for the board of directors of the Securities and Commodities Authority and the CEO of the Authority, in the regulations issued by them and according to the circumstances.
The decree stipulates that the Securities and Commodities Authority must coordinate with the markets, each within its jurisdiction, to transfer all regulations and data related to the market’s implementation of the competencies entrusted to it, in accordance with the provisions of this Decree-Law.
The most important amendments regarding the central bank
■ The Central Bank provides the appropriate environment to organize, develop and enhance the role of the insurance industry in supporting the national economy.
■ The Central Bank works to encourage fair and effective competition, and to provide the best insurance services.
■ Raise the performance and efficiency of insurance companies, and oblige them to practice the profession within the bank’s competencies.
Merging the Insurance Authority into the Central Bank.
The most important amendments regarding "securities" and money markets
■ Transferring the operational and executive powers and authorities established for "securities" to the stock market.
■ Securities retain the authority to regulate, monitor and supervise stock and commodity markets.
“Economy”: Offering more services and products and diversifying investment tools
The Minister of Economy and Chairman of the Board of Directors of the Securities and Commodities Authority, Abdullah bin Touq, said that “the decision to merge the Insurance Commission with the Central Bank, and to transfer all the operational and executive powers of the Commission to the local stock markets, while preserving the regulation and oversight of the local financial markets,” confirms the flexibility that The government of the United Arab Emirates is characterized by its rapid pace in taking appropriate economic decisions, in a way that guarantees the country's economy a regional and global leadership.
He added that «the decision will contribute to consolidating the best global practices in the regulation and supervision of the financial industry, and in a manner consistent with the government's directions in implementing the largest national work strategy of its kind to prepare for the next 50 years at all levels.
It also enables the financial industry in the country to provide more services and products and diversify investment tools in accordance with best practices and international standards.
He stressed that the decision is also in line with the directions of the Securities and Commodities Authority, aiming at developing the securities sector in the UAE, promoting markets to the ranks of developed markets, and increasing their competitiveness within the specialized global indicators, stressing that the directions of the Council of Ministers in everything related to economic and financial work in The UAE will continue to serve as a guide and guide for action in developing the business strategy to serve the UAE.
Abdullah bin Touq: "Consolidating best international practices in organizing and supervising the financial industry."
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