Many of the Securities and Commodities Authority’s operational and executive powers will be transferred to local stock markets
The UAE Cabinet issued a decree merging the Insurance Authority with the country’s Central Bank, Sheikh Mohammed bin Rashid, Vice-President and Prime Minister of the UAE, tweeted on Saturday.
The UAE Cabinet also issued another federal decree transferring most of the operational and executive powers of the Securities and Commodities Authority, the market regulator, to the local stock exchanges. However, the SCA will maintain regulation and oversight of local financial markets, Sheikh Mohammed tweeted.
“The new economic organisation in the country aims at raising the efficiency of the insurance sector … and raising the efficiency and competitiveness of our local financial markets and giving them greater flexibility in their work,” Sheikh Mohammed tweeted. “Our goal in all of this is to enhance the competitiveness of our national economy … our government will remain flexible, supportive and fast in making appropriate economic decisions.”
In July, the UAE announced the IA’s merger with the SCA as part of a wider simplification of the federal government’s structure.
Sheikh Mohammed said at the time the aim was “a government that can more quickly make decisions and deal with changes and more adeptly seize opportunities in dealing with this new stage in our history; a swift and agile government”.
“The new government has one year to achieve its new priorities. Continuous changes will be the headline of the new phase until we achieve the best governance model for the new era; and until we achieve a government that fulfils the ambitions of the Emirati people,” he added.
The IA recently implemented new regulations governing the life insurance sector earlier this month. The new rules are expected to reduce mis-selling of life insurance and family takaful insurance products as well as increase policyholder confidence in the market.
