Drafting of law is both an art and science. Legalese being what it is, with all its repertoire of terms, cause and effects, including but not limited to the aforesaid, there would hardly be a situation or condition that it cannot tie in within its ambit. The more clumsy the law reads, there would be that much less confusion in its implications. A well-drafted law is one that leaves very little scope for interpretation.
The new investment fund regulations (IFR) issued by the UAE Securities and Commodities Authority (SCA) are so simple and straightforward that a lot of things already depend on interpretations. In fact, there is so much of ambiguity that senior members of the drafting team have begun holding workshops on the possible interpretations of what the rules state.
The IFRs are primarily targeted at firms and their representatives approaching clients in the UAE for investment in their products and securities. The need to rein in briefcase investment managers and bucket operators who fleece unsuspecting retail investors and institutions with their fancy offers has been felt for long and the new regulations are meant to introduce accountability on the part of these fly-in and fly-out experts.
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