The changes, introduced last month, also allow DIFC-based fund managers to run money outside of the DIFC in a recognised jurisdiction of their choice. Under the new rules, foreign investment houses will no longer have to
establish a place of busi-ness in the DIFC in order to domicile a fund there.
The costs associated with launching funds out of the DIFC have also been reduced.
The DFSA said the goal of reducing costs was one of its key considerations when reviewing the previous system, so it has reduced the application fee for a manager wishing to become a domestic fund
manager (i.e. based in the DIFC) by 75%, while the fee to register a fund in the DIFC has been reduced by 80%.
The DFSA sought the advice of a panel of industry experts to help it draw up the new rules, with the aim of establishing a regime which remained compliant with the internationally recognised principles for regulating collective investment schemes and making them more ‘business friendly’.
Jacques Visser, managing director, legal and compliance of Algebra Capital, and a member of the panel, said: “The DIFC and the DFSA have listened to the industry and have made changes to the DIFC’s funds regime.”
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