DIFC Regulator Releases Insurance Consultation Paper
by Lorys Charalambous, Lowtax.net, Cyprus
24 November, 2015
The Dubai Financial Services Authority (DFSA), the regulator of the Dubai International Financial Centre (DIFC), has announced plans to amend its insurance sector regulatory regime.
The DFSA said that the proposals are designed to provide greater clarity and flexibility to those undertaking insurance activities in the DIFC, while also providing a regulatory framework that is proportionate to the risks associated with their activities.
A consultation paper was released inviting feedback from the insurance sector. The paper noted that the DFSA has not substantially reviewed the insurance regime since 2003. Since then, the insurance industry in the DIFC has grown significantly, becoming a substantial regional hub for reinsurance, it said.
The proposals include specifying what activities can be undertaken by different types of insurance intermediaries, and making it clearer where regulation is not required through clear exclusions, the DFSA said.
The regulator said it has also proposed changes to reflect developments in the European Union, particularly the adoption of the Insurance Distribution Directive.
The DIFC offers firms zero percent income tax guaranteed for 50 years, 100 percent foreign ownership, no exchange controls, and a legal system based on English common law.
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