MENA Asset Management Survey 2012 - National Bank of Abu Dhabi
MENA Asset Management Survey 2012 - National Bank of Abu Dhabi
MENA Asset Management Survey 2012 - National Bank of Abu Dhabi
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Regulatory Trends<br />
Q/ Foreign entities which want to promote foreign funds will need to appoint a<br />
local promoter. Can DIFC entities obtain an SCA license ?<br />
A/ The companies registered and listed by the Dubai International Financial Centre DIFC<br />
are foreign companies, therefore, they should all abide by the terms already cited in the<br />
article (38)regarding foreign companies.<br />
Q/ Regulation also refers to real estate investment trusts. What are the necessary<br />
elements for growth in REITs in your jurisdiction ?<br />
A/ The regulation aims to be an umbrella covering the various generalities <strong>of</strong> mutual<br />
funds, while providing connecting points for specific regulations (i.e. ETF and REIT) to<br />
expand it as the industry evolves.<br />
Q/ Article 41, clause 1 differentiates minimum subscription amounts between<br />
foreign funds and those established in free zones outside the UAE. Why is that<br />
given that article 35 requires foreign funds are subject to oversight <strong>of</strong> a regulator<br />
akin to SCA ?<br />
A/ The legislator has intended to distinguish between foreign funds established<br />
according to SCA’s comparable regulatory bodies license rules in the jurisdiction in<br />
which they are regulated and licensed and other funds that are not comparably regulated<br />
by the regulatory bodies where they are established, such as in free zones for instance.<br />
Q/ What are examples <strong>of</strong> jurisdictions which are considered as having comparable<br />
oversight <strong>of</strong> a regulator similar to SCA ? what are examples <strong>of</strong> jurisdictions that<br />
do not ?<br />
A/ SCA is preparing a list <strong>of</strong> such jurisdiction and exceptions. In general similarities are<br />
to be looked in investors’ protection level required: for example a UCITS Luxembourg<br />
registered fund is considered as originating from a similar regulator to SCA, that would<br />
not be the case if it was a non-UCITS Luxembourg registered fund.<br />
Q/ Articles 19 and 39 refer to daily rates being made available in subject <strong>of</strong>fer<br />
documents. Is daily liquidity the intent ?<br />
A/ The valuation has to be performed and its result made available as per the <strong>of</strong>fer<br />
documents independently <strong>of</strong> the timing <strong>of</strong> redemption notices.<br />
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