09 February 2006 — DFSA Seeks Public Comments on its Proposed Regime for Regulating Collective Investment Funds

The Dubai Financial Services Authority ("DFSA") today released a Consultation Paper seeking public comments on its proposals to regulate the activities of operating and marketing Collective Investment Funds ("Funds") within the Dubai International Financial Centre ("DIFC").

Included in the package of proposals for public comment are the drafts of the Collective Investment Law and the Collective Investment Rules. It also includes some consequential changes to other DFSA administered laws to give effect to the new regime, such as the introduction of a new Financial Service called Fund Administration.

Chief Executive of the DFSA, Mr David Knott, said:

"We have developed these proposals to promote the DIFC as a well regulated and competitive environment for local and international fund managers to establish their Funds. The proposals are also designed to facilitate the marketing by DFSA Authorised Firms Units of Foreign Funds established in other well regulated foreign jurisdictions in a manner that promotes a level playing field between Domestic Funds and Foreign Funds in the marketing of their Units.

When developing these proposals, we have taken into account the regulatory requirements applied in other comparable overseas jurisdictions, and also the standards developed by the International Organisation for Securities Commissions (IOSCO) for regulating collective investments schemes. Therefore, we believe that the Fund regime, when implemented after public consultation, will give Domestic Funds in the DIFC the ability to attract investment from, among others, institutional investors such as pension and insurance funds."

The Consultation Paper 25, and the associated other Consultation Papers 23, 24 and 26, are being published on the DFSA website at Consultation Paper 25 is open for public comment until 9 March 2006.