Financial authorities in the country agree to facilitate the licensing of investment funds

Media IN – 27 November 2018 / WAM /
The Securities and Commodities Authority (ESCA), the Dubai Financial Services Authority (DFSA) and the Abu Dhabi Global Financial Services Regulatory Authority have agreed to facilitate the licensing and promotion of their mutual funds across the UAE.
Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of the Board of Directors of the Securities and Commodities Authority, said the signing of the agreement and the implementation of its provisions would strengthen the partnership between the three bodies and facilitate the licensing and promotion of investment funds to attract foreign investments and open the way to channel savings to new financial instruments such as investment funds. To activate a number of financial services and activities related to investment funds such as custodian, investment and promotion department as well as management services of investment funds.
He added that the agreement adopts mutual recognition as a regulatory mechanism to promote and supervise the products of investment funds and to encourage foreign companies licensed in the free financial zones of other countries to move to the country markets, thus contributing to one of the main roles entrusted to the Securities and Commodities Authority The appropriate climate for investment of savings and funds in securities in line with the objectives of economic development of the UAE.
“We welcome this partnership which will strengthen the UAE’s position as an international financial center and a platform for entrepreneurship,” said Ahmed Ali Sayegh, UAE Minister of State and Chairman of the Abu Dhabi Global Market. “This cooperation will allow new market leaders, investors and companies to expand and grow in the UAE and the region. The agreement is in line with Abu Dhabi’s ongoing global efforts to maintain an innovative financial services market that supports the country’s economy. ”
In accordance with the terms of the agreement signed between the three bodies, a common legislative framework was agreed upon in their respective areas of competence. This framework enables each party – in adopting and adopting the legislative framework – to facilitate organizational coordination among them to license local funds among them. Licensed in accordance with the provisions of this Agreement and the license regulations may be promoted from the financial free zones within the State or the State within the financial free zones in accordance with the provisions of the Convention and the licensing regulations.
Under the terms of the agreement, a means of registration and notification will be established by each regulator to facilitate the promotion and sale of local funds established in the UAE, the DIFC or the Abu Dhabi International Market to potential investors and those located anywhere in the country through a unified license.
The Securities and Commodities Authority (ESCA), the Financial Services Regulatory Authority (ADSA) and the Dubai Financial Services Authority (DFSA) agreed to set common rules for the implementation of the regulatory agreement.