For property funds the DFSA has sought to simplify the current regime and align it better with international standards while still catering to specific features of the Dubai International Financial Centre (DIFC) market.
The key changes are to the valuation and related person transaction requirements, as well as amendments to the borrowing limits, investment restrictions and custody requirements for these types of funds.
The DFSA has also introduced a framework for the regulation of Money Market Funds (MMFs), drawing on the work that the Financial Stability Board (FSB) and the International Organization of Securities Commission (IOSCO) have done in this area.
Clarity goal
The new rules define what structure an MMF can have, and set out specific requirements for the liquidity, credit quality, and other features of allowable investments for MMFs and Islamic MMFs.
The both sets of changes came into force on 1 February 2016.
Ian Johnston, chief executive of the DFSA said: “The DFSA continues to work with stakeholders to improve the regulatory environment. These new rules provide clarity and certainty to fund managers and give greater flexibility to those operating property funds.”
The amendments to DFSA Rules are available on the DFSA website under: Notice of Amendments to Legislation.
