UAE to merge financial regulators
Saturday, 07 11 2020, Category: Insurance and Reinsurance, Country: U.A.E
The UAE government has confirmed its intention to combine the Securities and Commodities Authority (SCA) and the Insurance Authority (IA) into a single regulatory body to bring more clarity to the supervision of investment products.
The proposed merger had been the subject of much speculation ever since the Ministry of Justice convened a 10 member committee in September 2019 to explore the implications of consolidating the two watchdogs.
The news was part of a wider announcement on changes to government structure made by the UAE prime minister, Sheikh Mohammed bin Rashid Al Maktoum. "The goal of structural changes today is a government that is faster in decision-making, and is more up to date with changes," said Sheikh Mohammed.
There are no details as yet on how the merger will work but the confirmation will be welcomed by those market participants that were concerned about the regulatory overlap between the IA and the SCA, not least the financial advisory market.