Investment funds granted 12 months by SCA to adjust status

ABU DHABI — Investment funds in the UAE have been granted 12 months by the Securities and Commodities Authority, SCA, to adjust their status in accordance with the Investment Fund Regulations, with promoters of foreign funds given 6 months to rectify their status in line with the same regulations.

The SCA has announced that the decision applies to the investment funds founded by the Authority in the UAE as well those which have obtained the consent of the UAE Central Bank, adding that the decision also applies to the promotion of foreign funds that have the SCA’s consent before the application of the new regulations in the country.

The application of the regulations effective 1st August, 2016 is considered the first licensing date for the investment funds which had been incorporated ahead of that date and in such a case this fund is not required to pay the license application fees.

In case a foreign fund is not willing to continue to promote its holdings or increase its periodical rights issues which have been already contracted after the termination of the adjustment period, it is not obligated to pay any charges and consequently it has to stop both any promotion of its activities and increase of its periodical rights issues that have been contracted before; this fund however is required to continue to provide SCA with all required data needed for purposes of monitoring, auditing or inspection.

In case a foreign fund wishes to continue to promote its holdings, or increase its periodical rights issues, its status will be settled in a way that 1st August, 2016 shall be considered the first day of registration of the foreign fund that already has the SCA’s consent for promotion of its holdings effective this date. In such a case, the foreign fund is not required to pay the registration application fees, with the annual registration to be conducted effective 31st December, 2016 within a timeframe that does not exceed the adjustment period.

Source: Emirates News Agency