The country's stock exchange regulator is making amendments to its draft regulations on fund management, in an effort to boost credibility for the industry and protect investors.
UAE's stock exchange watchdog on mission to boost credibility
The country's stock exchange watchdog is making amendments to its draft regulations on fund management, expected to be finalised in the next three months, to boost credibility for the industry and protect investors.
"The new regulations will be more comprehensive from the current legal framework," said Abdullah al Turifi, the chief executive of the Securities and Commodities Authority in Abu Dhabi. "We received feedback from the fund management industry and are now making amendments that are consistent with their needs and laws of the UAE," he said.
The draft, introduced in January, outlines the basic requirements for a fund if it is to be granted a license, and covers areas such as investment policy, special rules for investing in traded securities, the subscription process, listing, valuations, and redemptions.
The draft also addresses the prospectus for a fund and corporate governance matters in terms of unit holders' meetings, the powers, functions and responsibilities of the board, conflicts of interest and financial reporting.
The SCA and the UAE Central Bank entered into a memorandum of understanding, nearly two years ago, to pass more supervisory responsibilities to SCA from the Central Bank.