Special Features


DFSA enhances its Funds regime

Changes to the DFSA Collective Investment Funds regime, on which the Dubai Financial Services Authority (“DFSA”) consulted in October last year, will come into force today coinciding with the enactment of the DIFC Companies Law 2018 (“Companies Law”). The DFSA consultation included a wide-ranging set of proposals to support the continued development of the growing Funds industry in the Dubai International Financial Centre (“DIFC”). The DIFC now has almost 70 Funds, most of which have been registered over the last two years.



The new provisions strengthen the DFSA’s commitment to meeting international standards, particularly those of the International Organization of Securities Commissions (“IOSCO”) and the Financial Stability Board (“FSB”), through measures to enhance liquidity risk management in open-ended Funds. Open-ended Funds give their investors the right to have their Units redeemed at a price calculated based on the net asset value of the Fund’s portfolio of assets.



The new provisions:



- incorporate the Public Company and Private Company distinction, introduced by the Companies Law, into the Funds regime, so that all Investment Companies with retail investor participation would need to be Public Companies;

- remove the current limits on the number of investors which a DIFC Fund can have. Currently only a Public Fund is able to have more than 100 investors (including retail), with an Exempt Fund being limited to 100 or fewer investors and a Qualified Investor Fund (“QIF”) being limited to 50 or fewer investors. These changes do not alter the current focus of regulation of these Funds, which is based on the type of investors (e.g. any Fund with retail investors will receive higher levels of scrutiny).

introduce a new class of specialist Funds for Exchange-Traded Funds (“ETFs”). These are open-ended Funds, the Units of which are listed and traded on exchanges. ETFs have become increasingly popular among both retail and institutional investors over the past several years. Their introduction would give greater choice of Funds available to investors from the DIFC, with Fund Managers also having a greater choice of Funds they could offer; and

enables a Fund established as an Investment Company to be managed by its sole Corporate Director licensed as a Fund Manager to manage only that Fund and no other. This is a model available in the European Union, and we have made some adjustments to suit the DIFC regime.

The changes to the legislation can be viewed under the Notice of Amendments section on the DFSA website’



Bryan Stirewalt, the Chief Executive of the DFSA, said: “The DFSA continues to enhance its regulatory regime to facilitate the growth of the DIFC and the development of the financial sector in Dubai and the UAE. We have introduced a number of significant changes to the DFSA Funds regime to support and complement the continued development of the DIFC Funds sector, which has grown significantly during the past two years.”




View Special Features by Category
Airlines & Airports
Art & Gallery
Banks & Financial sector
Business
Car Industry
Construction
Dubai Government
Dubai Metro
E-Guides
Eco-Friendly
Education & Institutions
Electronics
Entertainment
Events & Occassions
Exhibition Center
Family Shows
Food & Beverages
Free Zones
Golf Clubs
Government Departments
Health & Fitness
History & Culture
Home/Furnishing/Interiors
Hospitals & Clinics
Hotels & Hospitality
Identity cards
Internet Services
Media & News
Mortgage
Music
Online Food Service
Online Store
Organisations
Other
Other Emirates
Parks & Beaches
Precious Metals
Real Estate & Property
Religion & Culture
Resorts & Clubs
Restaurants
Shopping Malls
Spas
Special Centres, Groups & Communities
Sports & Events
Sports Bars
Technology
Things To Do
Trade Fair
Travel & Leisure
UAE Market News
VIP Services
Wedding Planners

Back to top


We accept guest posts. Contact us now!
Interesting Links

www.dubairestaurantsguide.com
Bayzat - Health Insurance UAE
Corporate Gifts
Middle East News

GuestPosts