MENA Asset Management Survey 2012 - National Bank of Abu Dhabi

Regulatory Trends
with best international practices, yet tailored to serve the needs of the local and regional
markets.
Volume 7 additionally introduces rules for a newly established category called Private
Investment Undertakings "PIUs". PIUs are a new breed of mutual funds with a high
degree of flexibility in structuring, aimed to facilitate private investments, the like of club
deals, single investor, family held investments or a single investment type. Due to the
investment risk characteristics it may exhibit, such can only be initiated /offered to High
Net-worth Individuals and Institutional investors.
All CIUs’ authorised/ registered by the CBB prior to April 2012, are required to meet the
provisions of Volume 7 by 31st December 2012, whereas, the rules are effective
immediately for any newly established CIU.
Kuwait
Capital Market Authority issued amendments to fourteen articles and made two article
additions to investment fund regulations on February 2012. The announcement provided
until June 30, 2012 for adherence to new regulations. Some of the pertinent articles
include a requirement for fund managers to maintain a 5% stake in funds being
sponsored. The rules state that a fund cannot own more than 10% in a single security
(although a quick glance at a Kuwait equity fund’s holdings as of October showed that
actual allocation to a security continued to be in excess of this). The fee for marketing
foreign funds was changed from 1% of value of investment units to KWD 50,000 payable
on application and annual license renewal.
Qatar
A law providing for a body under the Qatar Central Bank to regulate banking, financial
services, insurance was approved in December 2012. The unified regulatory structure
covers the Central Bank, Qatar Financial Centre Regulatory Authority, Qatar Financial
Markets Authority, and insurance regulatory functions. The unified regulatory structure
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