The European Commission (Commission) announced its decision, recently, to grant the Dubai Financial Services Authority’s (DFSA’s) audit monitoring system ‘equivalent status’ with European Union (EU) member states.

Following an assessment of the supervisory regime for auditors in the Dubai International Financial centre (DIFC), the Commission considered the DFSA’s audit oversight system equivalent with that of EU member states. On the basis of this decision, individual EU audit regulators may enter co-operative agreements with the DFSA with the view to relying on each other’s work on the supervision of auditors and audit firms.

Mr Ian Johnston, Chief Executive of the DFSA said: “This is further confirmation of the recognition of the DFSA as a regulator of international standing and of the DIFC as a reputable financial centre. Confidence in capital markets is absolutely fundamental to long-term growth.  Instilling and maintaining that confidence is, in no small part, the obligation of auditors. The DFSA has already established a Memorandum of Understanding with the audit oversight regulator in the United States, and we look forward to similar fruitful collaboration with our counterparts in Europe.”

The DFSA will now commence discussions with those individual EU regulators where DIFC debt and equity instruments are listed on their respective exchanges.