What's happening?

In August 2012, the UAE Securities and Commodities Authority (SCA) introduced a new regulatory framework governing the marketing and sale of foreign funds to investors in the United Arab Emirates. This was amended on 13 March 2013 to introduce a private placement exemption for a limited category of investors. Neither provided any clarity regarding the regulation of investment management activities conducted by foreign firms in the UAE and therefore non-licensed firms have continued to conduct investment management activities in reliance on tolerated practice guidelines.

This is now set to change following the recent release of Securities and Commodities Authority Decision No. 1/2014 (Concerning the Regulations on Investment Management) (the Regulation). The Regulation has been published in the Official Gazette and has full force and effect.

What does the Regulation cover?