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/ In a recent newspaper article, Chief Executive <strong>of</strong> the DIFC Authority said that<br />
the SCA's new investment funds regulation have not just made it more difficult for<br />
financial firms to operate from the DIFC, but throughout the UAE and that the new<br />
rules had not made the UAE more competitive. How would you respond to that ?<br />
A/ It is worth mentioning that the terms and conditions laid for promoting the foreign<br />
funds in the UAE are flexible and resilient enough and complied with international best<br />
practices. The rules on promotion <strong>of</strong> investment funds are aimed at protecting investors<br />
interests a supervising the activities <strong>of</strong> these funds. Since SCA has started to supervise<br />
and monitor the promotion <strong>of</strong> foreign investment funds, over one hundred funds have<br />
been granted the right to be promoted in the UAE, this proves how SCA regulation has<br />
actually enhanced and facilitated the opportunities <strong>of</strong> foreign investment funds.<br />
SCA spares no efforts to consider and address any difficulty that may arise as a result <strong>of</strong><br />
the application <strong>of</strong> the investment fund regulation and may even amend it accordingly to<br />
solve such difficulties whenever required. This is the common approach that SCA adopts<br />
with all regulations it issued.<br />
Q/ New regulations covering market making, short selling, securities lending and<br />
borrowing and liquidity providing have been promulgated. Has there been<br />
growth/progress in these activities ?<br />
A/ The Market Maker regime and its complementing regulations have been issued only<br />
recently which makes it difficult for the time being to assess its impacts on the markets.<br />
Q/ What trends have you observed in applications for new fund managers / funds<br />
since release <strong>of</strong> new regulations ? Do you see any trends in types <strong>of</strong> funds being<br />
launched, and if so which types?<br />
A/ Although the regulation is relatively recent, the SCA has received several applications<br />
for several type <strong>of</strong> funds such as money market funds, fixed income funds, real-estate<br />
funds and equity funds. There has been a notable majority <strong>of</strong> application by funds<br />
complying with the principle <strong>of</strong> Islamic Sharia.<br />
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