The Dubai Financial Services Authority (DFSA) hosted the International Accounting Standards Board (IASB) Islamic Finance Consultative Group (IFCG) meeting last week. The DFSA’s involvement reflects its commitment to develop an effective and supportive regulatory framework for Islamic finance.
Mr Ian Johnston, Chief Executive of the DFSA, delivered the opening address where he said that the DFSA places great importance on maintaining the highest international standards in its regulatory processes including for financial institutions applying Islamic principles.
Mr Johnston said: “Since its inception, the DFSA has been tasked with supporting the Dubai Government’s ambitions to develop Dubai into a centre for Islamic finance. In line with the Islamic Economy Initiative of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, Ruler of Dubai, the DFSA has focused considerable effort on developing an effective and supportive regulatory framework for all types of Islamic finance activity, including the listing of Sukuk on Nasdaq Dubai.”
The DFSA is a member of the IFCG that was formed by IASB in 2013 with a mandate to focus on challenges that may arise in the application of International Financial Reporting Standards (IFRS) to instruments and transactions commonly referred to as Islamic finance. The meeting was attended by IFCG members from Bahrain, Indonesia, Malaysia, Pakistan, Saudi Arabia, UAE and the United Kingdom.
Following the IFCG meeting, the DFSA hosted an Outreach session with the IASB where an IASB board member and senior technical staff shared their approach to supporting implementation of IFRSs, in particular IFRS 9 (Financial Instruments), IFRS 15 (Revenue from Contracts with Customers), IFRS 16 (Leases) and IFRS 17 (Insurance Contracts). The session provided an opportunity for the stakeholders to provide comments about their experiences in implementing IFRS.
The event was attended by the DFSA Registered Auditors, UAE regulators, academia and professional accounting bodies. Over 50 stakeholders attended the event.