In This Issue:

- DIFC Funds: A New Investment Vehicle for the Middle East p. 1

- An Analysis of the EU and U.S. Regulations Affecting OTC Derivatives p. 4

- Enhancing the Investment Advisory Contract Review Process for U.S. Sub-Advised Funds p. 6

- Amendments to the Luxembourg Law on Specialised Investment Funds p. 8

- Impact of New Luxembourg-Germany Double Tax Treaty on the Funds Industry p. 11

- Applying FATCA in Asia: Still Oceans Apart p. 13

- Russia Finally Establishes a Central Securities Depository Increasing Transparency in the Russian Securities Market p. 16

- UK Investment Banks: Up to FSA Standard? p. 19

- The Asia Region Funds Passport: Myth or (Almost) Reality? p. 22

- Upcoming and Recent Events p. 30

Excerpt from DIFC Funds: A New Investment Vehicle for the Middle East by Chris Harran:

Until recently, the Kingdom of Bahrain was the only choice for domiciling a collective investment vehicle within the Middle East and North Africa (“MENA”). Since 2005, however, the Dubai International Financial Centre (“DIFC”) has provided an attractive alternative. The DIFC is a free zone established within Dubai, in the United Arab Emirates (“UAE”), with its own laws, regulations, court systems and, critically for those looking to establish a fund here, its own regulatory authority, the Dubai Financial Services Authority (“DFSA”).