These reviews aim to address key areas of concern and promote best practices within the financial ecosystem.

Focus Areas of the DFSA Thematic Reviews

1. High Growth Firms Review

   Objective: Assess the risks and operational impacts of rapid business growth from 2021 to 2024.

   Scope: The review will focus on firms experiencing significant expansion, evaluating the adequacy of their financial and operational systems to handle increased scale.

   Outcome: The DFSA will provide insights and recommendations to guide firms toward sustainable and controlled growth, ensuring long-term stability and regulatory compliance.

   
   

2. Self-Custody Review

   Objective: Evaluate fund managers using self-custody arrangements for compliance with regulatory standards.

   Scope: The review will examine governance frameworks, risk management practices, and adherence to regulatory requirements associated with self-custody operations.

   Outcome: Findings will be used to promote robust governance structures and mitigate risks inherent in self-custody arrangements.

   
   

Methodology

Both reviews will primarily be conducted through desk-based analysis, complemented by selective onsite visits. The DFSA plans to share its findings and examples of good practices with the broader industry, fostering a culture of excellence and innovation. Copy of the letter can be found here.

Implications for Firms

Firms operating within the DFSA jurisdiction should take proactive steps to:

• Assess the adequacy of their systems and controls in light of rapid growth.

• Review governance and risk management frameworks for self-custody arrangements.

• Prepare for potential engagement with the DFSA during these thematic reviews.

  
  

Conclusion

These thematic reviews reflect the DFSA’s commitment to ensuring the resilience and integrity of Dubai’s financial ecosystem. By addressing these critical areas, the DFSA aims to support firms in navigating growth and safeguarding operational excellence.

For more insights or assistance in preparing for regulatory reviews, contact j. awan & partners for tailored compliance and governance solutions. Get in touch with us here.