HBME’s relocation to DIFC ‘will have no bearing on activities’
DUBAI, October 9, 2015
HSBC Bank Middle East’s (HBME) planned relocation to the Dubai International Financial Centre (DIFC) from Jersey, will have no bearing on the activities, governance or performance of the bank, according to Fitch Ratings.
The bank plans to move its place of incorporation and head office to DIFC next year, which would result in the Dubai Financial Services Authority (DFSA) becoming its lead regulator, said a statement.
HBME is currently incorporated in Jersey but conducts no banking operations there, it said.
The bank has confirmed that this re-location will have no impact on any of its local regulatory relationships in the Middle East and North Africa (Mena) region or on its business in the countries in which it operates.
It has stated that among the reasons for the relocation is having its lead regulator in the same jurisdiction in which it carries out most of its business.
The DFSA's regulatory regime is closely aligned with internationally accepted standards and those of the UK's Prudential Regulation Authority, currently HSBC Group's lead regulator, said the statement.
As most of HBME's business is carried out in the UAE, having a regulator in same jurisdiction to its operations should aid regulatory supervision, in Fitch's view. - TradeArabia News Service
