DFSA, Society Of Lloyd's Establish Framework For Cooperation
by Lorys Charalambous, Lowtax.net, Cyprus
15 April, 2016
The Dubai Financial Services Authority (DFSA), the regulator of the Dubai International Financial Centre (DIFC), entered into an arrangement on April 13, 2016, with the Society of Lloyd's, the specialist insurance market, to establish a Framework for co-operation.
The Framework promotes an efficient and effective flow of information between the DFSA and the Society of Lloyd's in relation to Lloyd's syndicate service companies and other coverholders who operate in the DIFC, the DFSA said.
While the DFSA has the responsibility for the licensing and supervision of Lloyd's coverholders in the DIFC, the Society of Lloyd's has statutory and supervisory powers relating to Lloyd's market participants who appoint the coverholders. Through a DIFC subsidiary, Lloyd's Ltd will provide a number of services to those coverholders. This creates a common interest between the DFSA and Lloyd's in seeking to ensure that these entities conduct their business properly and effectively.
Ian Johnston, Chief Executive of the DFSA, said: "The establishment of the Framework marks a significant step in the evolution of Lloyd's presence in the DIFC. While several Lloyd's participants have been licensed to conduct insurance activities in the DIFC for over a decade, Lloyd's Ltd's presence in the DIFC began in 2015. Its presence adds depth to the DIFC insurance market. We welcome them and look forward to strengthening our relationship with the Society of Lloyd's."
The DIFC offers a number of perks to firms established in the center, including zero percent income tax guaranteed for 50 years. It allows 100 percent foreign ownership and has no exchange controls.
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