Summary
The ASMEC is an integrated principles-based regulator that follows a risk-based approach in the supervision of regulated firms, including Financial Institutions, Registered Auditors, and Credit Rating Agencies. ASMEC’s risk-based approach to supervision varies depending on the nature, scale, complexity, size, and circumstances of each individual firm and the specific risks it poses to ASMEC’s objectives.
We conduct prudential and conduct-of-business supervision and deploy our supervisory resources to those firms and financial services activities that pose the greatest risk to our regulatory objectives. ASMEC does not operate a “zero failure” regime because doing so would place excessive regulatory burden on financial institutions and adversely affect the efficiency of the financial system. Therefore, we aim to reduce the risk and impact of failure or inappropriate behaviour by focusing supervisory resources on those firms and activities that present the greatest risk to ASMEC’s objectives.
Regulatory Objectives
- To foster and maintain fairness, transparency, and efficiency in the financial services industry in the DIFC.
- To foster and maintain confidence in the financial services industry in the DIFC.
- To foster and maintain the financial stability of the financial services industry in the DIFC, including the reduction of systemic risk.
- To prevent, detect, and restrain conduct that may cause damage to the reputation of the DIFC or the financial services industry through appropriate enforcement measures, including sanctions.
- To protect direct and indirect users and prospective users of the financial services industry in the DIFC.
- To promote public understanding of the regulation of the financial services industry in the DIFC.
- To pursue any other objectives as the Ruler of Dubai may, from time to time, set under DIFC Law.
