The most significant changes to the Funds Regime are as follows: DIFC-based Fund Managers are now permitted to establish and manage Funds in jurisdictions of their choice; Fund Managers from recognised jurisdictions outside the DIFC can establish and manage a Domestic Fund without having to establish a place of business in the DIFC; Scope for marketing of Foreign Funds in or from the DIFC has been expanded; A more competitive fee structure has been implemented. Notably, the Fund Manager Application Fee has been reduced from US$40,000 to US$10,000; An Exempt Funds regime has been established for Professional Clients, replacing the Private Funds regime, which will be completely phased out within 2 years. Exempt Funds are subject to lighter regulatory requirements but are only accessible by Professional Clients who make at least a minimum investment of US$50,000 each. Such Funds can only have 100 or fewer Unit holders and cannot be offered to the public – distribution being only by way of private placement. 

 

Abdulla Al Awar, CEO of the DIFC Authority said: “The DIFC welcomes the new Funds Regime as it will stimulate further growth of the Funds Management industry within the centre. The regulatory changes bring the DIFC in line with other leading financial hubs around the world and underline the centre’s position as the region’s most competitive financial centre for Fund Managers.”