Securities and Commodities Authority
Chairman’s Office
BOARD DECISION NO. (13) OF 2013
CONCERNING THE AMENDMENT OF THE REGULATIONS AS TO
MUTUAL FUNDS
The Chairman of the Board of Directors of the Securities and
Commodities Authority,
Having perused the Federal Law No. (4) of 2000 concerning the Emirates
Securities and Commodities Authority and Market and amendments
thereof;
The Federal Law by Decree No. (18) of 2009 concerning the Formation
of the UAE Cabinet and amendments thereof;
The Resolution of the Cabinet No. (13) of 2000 on the Functioning
System of the Securities and Commodities Authority and amendments
thereof;
The Resolution of the Cabinet No. (108/7F/5) of 2010 on the Reformation
of the Board of Directors of the Securities and Commodities Authority;
The Board Decision No. (37) of 2012 concerning the Regulations as to
Mutual Funds;
The approval of the Board of Directors at its sixteenth meeting of the
fourth session held on 27.02.2013; and
As necessarily required for work interests,
Has decided
Article I
Two new clauses under Nos. (4) and (5) shall be added to Article (2) of
the Regulations as to Mutual Funds to read as follows:
4)
The provisions of this Regulation shall not apply to the private
promotion of foreign mutual funds that is targeting financial
portfolios owned by federal or local governmental agencies.
5)
The provisions of this Regulation shall not apply to the private
promotion of foreign mutual funds that is targeting companies,
institutions or entities whose main purpose, or one of their purposes,
is to invest in securities, provided on dealing with such companies,
institutions or entities shall be restricted only to their private
financial portfolios and not extended to their customers' portfolios.
The provisions of this Regulation shall not also apply to private
promotion that the units of the foreign mutual funds that are targeting
Investment Managers, where the power of the decision making as regards
the investment shall be only entitled to the Investment Manager.
Article II
Clauses (2 & 3) of Article (38) of the Regulations as to Mutual Funds
shall be amended to read as follows:
"2. Without prejudice to clause (1) in this article, the units of the foreign
mutual funds may be promoted within the UAE in a private offering
through the representation office or branch of a foreign company
who has already obtained the approval of the fund or its
representative on the promotion, or by an entity licensed by the SCA
to promote securities, provided that the promotion in such case shall
be to institutions only and subject to a minimum of (10) million
Dirhams per subscriber.
3.
The local promoter, the branch or the representation office of a
foreign company, as the case may be, shall provide all mechanisms
allowing the fund that is promoting its units to perform all its duties
and obligations towards the targeted units owners whose units have
been promoted in the UAE according to the offering placement."
Article III
Clause (6) of Article (39) of the Regulations as to Mutual Funds shall be
amended to read as follows:
"6.
Hand over to the subscriber a proof of its subscription in the fund,
the units allocated thereto / purchased for him and how he can
exercise the ownership rights of such units."
Article IV
This Decision shall be published in the Official Gazette and shall come
into force from the day following the date of its publication.
__________________________
Eng. Sultan bin Saeed al Mansouri
Chairman
Issued in Abu Dhabi on: 13/03/2013