Securities authority sets July deadline to adopt rules boosting transparency

Abu Dhabi: Emirates Securities and Commodities Authority (ESCA) and the UAE Ministry of Economy on Saturday set end-July 2009 as the deadline for auditors operating in the UAE to comply with a set of new regulations and procedures aimed at boosting transparency of the managements of public joint stock companies and advancing the level of governance to international standards.

The two bodies warned individual and corporate auditors against failure to comply with the regulations and threatened legal action against violators.

The step is based on the provisions of federal law No 8 1984 and federal law No 22 1995 on 'commercial companies' which were enacted to regulate the activities of accountants and auditors in the country as well as to set controls on governance and institutional discipline.

ESCA has urged auditors and accountants to be independent from the relevant firms and keep away from any direct or indirect relations with client companies as well as from having memberships on their boards.