The Dubai Financial Services Authority (DFSA) has come to an arrangement with the Society of Lloyd’s to establish a "framework for co-operation."

The object of the exercise is to promote an efficient and effective flow of information between the DFSA and the Society of Lloyd’s in relation to Lloyd’s syndicate service companies and other cover-holders that operate in the Dubai International Financial Centre.

This "framework for co-operation" will, it is hoped, promote effective supervision for Lloyd’s cover-holders. The DFSA is responsibile for licensing and supervising those coverholders in the DIFC, while the Society of Lloyd’s has statutory and supervisory powers relating to Lloyd’s market participants who appoint the cover-holders. Through a DIFC subsidiary, Lloyd’s Ltd, it will provide a number of services to those cover-holders. This creates a common interest between the DFSA and Lloyd’s in their good behaviour.