StanChart studies big presence in DIFC

Standard Chartered Bank is seriously considering establishing a presence at the Dubai International Financial Centre (DIFC), where the multinational bank may open shops for more than one activity.

Speaking to Gulf News, Andrew Duff, chief executive officer, UAE and head of corporate banking, Gulf, said that the bank's board members had already visited and held discussions with DIFC top brass a few months back, on the future course of action.

Following this top level meeting, a couple of other sittings have taken place between the bank's local management team and DIFC officials.

Globally, Standard Chartered has a presence in almost all activities which are being planned by DIFC.

The list of DIFC activities include wholesale banking, asset management, insurance, re-insurance, securities underwriting, broking, dealing, corporate finance advice, investment advice, derivatives trading, etc.

DIFC's Regulatory Authority said that it has concluded or planning to conclude a satisfactory regulator-to-regulator memorandum of understanding (MoU) or some equivalent arrangement with entities including the UAE Central Bank, banking insurance and financial services regulators in the U.S., UK, other EEA countries, Canada, Japan, Hong Kong, Singapore and Australia.

As per DIFC plans, it is intended that financial institutions will be granted an 'umbrella' licence covering all financial services business, but with separate permissions for discrete activities like wholesale banking, asset management, insurance, re-insurance, securities underwriting, broking, dealing, corporate finance advice, investment advice, derivatives trading, etc.

This will indeed help huge financial institutions like Stanchart to avoid the cumbersome process of putting in separate applications for each activity. Stanchart, the international banking group, focuses its activities on Asia, Africa, the Middle East and Latin America.

Last week, DIFC Regulatory Authority issued an Information Paper on its proposed licensing criteria for institutions and individuals wishing to operate in the DIFC. The full details of the authority's licensing regime will be finalised later in 2002.

DIFC will make application forms for licensing available towards the end of September and commence preliminary processing of applications during the last quarter of 2002.

The Regulatory Authority will then be in a position to authorise those institutions and individuals, and issue licences, from the beginning of 2003.