In early August 2016, the UAE Securities & Commodities Authority (the SCA) issued draft new regulations (the Proposed Regulations) on arrangement and promotion activity in the UAE. Only an Arabic version of the Proposed Regulations was made available by the SCA.
The Proposed Regulations set out the procedures and restrictions for the marketing and sale of securities in the UAE, the licensing and the ongoing obligations applicable to local promoters licensed by the SCA and changes to the eligibility criteria of certain investors to whom local promoters may offer financial products. The Proposed Regulations helpfully make certain activities, including reverse solicitation, intragroup activity and the promotion of government issued financial products, exempt from its application. However, there are concerns as to how the Proposed Regulations would interact with existing private placement rules for foreign funds. Relevant stakeholders, including investment fund managers, may wish to provide comments on the Proposed Regulations during the consultation period.
Please see full Alert below for more information.