DUBAI: DFSA Makes Changes to the Collective Investment Funds Rules

Thursday February 11 2016

The Dubai Financial Services Authority (DFSA) has enacted changes to the regime for Collective Investment Funds, which came into force on Monday 1 February 2016.

Amendments have been made to the Rules for Property Funds, 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.

Key changes for these Funds are to:

• the valuation and Related Person transaction requirements;
• borrowing limits;
• investment restrictions; and
• custody requirements

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. The 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.

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