UAE to allow flexibility in fund distribution:
The UAE will allow flexibility for distribution of domestic funds by asset management companies by allowing passporting of funds under various jurisdictions in the country.
Fund passporting is expected to give the asset management company the flexibility to distribute their funds in pre-approved jurisdiction. Earlier the fund had to get approval from each jurisdiction. This move will help in attracting more foreign investment and in providing more options for channelling savings to new financial instruments such as mutual funds.
Sultan Bin Saeed Al Mansouri, Minister of Economy and chairman of the board of directors of the Emirates Securities and Commodities Authority (ESCA), said the start of implementing the recently-signed Passporting Agreement as a regulatory mechanism for the mutual promotion and oversight of investment funds established in the different jurisdictions within the UAE is an important step to inspire the development of the mutual funds’ market so as to achieve the goal of having more diversified investment opportunities and products.
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