UAE makes further changes to fund regulations

The UAE’s Securities and Commodities Authority (SCA) has announced more changes to the rules around mutual funds as it seeks to boost the presence of local, onshore firms.

The New Fund Regulations came after the regulator announced an overhaul of its Foreign Funds Regulations earlier this month.

Those changes included a suspension of renewals for foreign investment funds aimed at retail investors, a move that has been interpreted as a strategy to encourage more international asset managers to establish an onshore presence in the country.

The amended fund regime announced by the SCA includes the introduction of two fund structures – family funds and self-managed funds.

There are also new categories for specialised funds, such as ESG funds, real estate development funds, precious metal funds, protected-cell funds and commodities investment funds.

An additional measure in the new rules is a reduction in the capital requirements of fund management companies and fund administrators.

According to Mena-based law firm Al Tamimi & Co, the new fund regulations will “certainly have an impact on both the establishment of local investment funds and the marketing and promotion of foreign funds in the UAE”.  

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