04 July 2007 — DFSA releases draft Hedge Fund Code
Dubai, U.A.E., July 4, 2007: The Dubai Financial Services Authority (DFSA) issues today, a draft Hedge Fund Code ("Code") for public comment.
Consultation Paper No. 50 and the Code, which are posted on the DFSA website www.dfsa.ae, seek comment on the DFSA’s proposals to introduce best practice standards for the Hedge Fund industry in the DIFC under 9 high level principles. This delivers on a promise made by the DFSA to develop such a Code in consultation with the industry after the first year of operation of the Collective Investment Funds regime.
Ian Johnston, Managing Director, Policy and Legal Services at the DFSA, said: "We thought it appropriate to develop best practice standards under high level principles, rather than detailed rules. We selected 9 areas of risk which are more specific to Hedge Fund operations than to other types of Collective Investment Funds. This approach is consistent with the DFSA’s risk-based approach to regulation and gives the industry the flexibility to develop their own practices within the framework set by the principles."
The Code builds upon the legal requirements applicable to all Collective Investment Funds in the DIFC.
By developing these proposals in line with international best practice, the DFSA is furthering its regulatory objective of ensuring that the DIFC is a well regulated and internationally competitive financial market.
Comments on the Code close on 4 October 2007. Subject to any changes resulting from public consultation, the DFSA hopes to introduce the Code in the first quarter of 2008.
For further information, please contact:
|Ms. Angharad Irving - Jones
Manager, Communications and Strategic Planning
Dubai Financial Services Authority
Level 13, the Gate Building, Dubai
Tel: +971 (0) 4 362 1660
Fax: +971 (0) 4 362 080
|Mr. Edward D’Mello
Group Account Director
Polaris Public Relations
Tel: + 971 (0) 4 3348520
Fax: + 971 (0) 4 3341326
The Dubai Financial Services Authority (DFSA) is an independent, integrated regulatory authority responsible for the regulation of all financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), including asset management, banking, securities trading, Islamic finance, re-insurance, and an international financial exchange. The DFSA has been created using principle-based primary legislation modelled closely on that used in London and New York, and the DFSA regulatory regime operates to standards that meet or exceed those applying in the world's major financial centres.
The DFSA is a central component of the DIFC, a financial centre established to position Dubai as a recognised hub for institutional finance, and the regional gateway for capital and investment to the Middle East.
Mr. David Knott was appointed Chief Executive of the DFSA on June 1, 2005. He is a former Chairman of the Australian Securities and Investment Commission (ASIC) and was Chairman of the Technical Committee of the International Organisation of Securities Commissions (IOSCO).