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Dubai and Euro regulators sign MoUs
28 August 2013
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Dubai Financial Services Authority
Dubai International Financial Centre
European Securities and Markets Authority
The Dubai Financial Services Authority (DFSA) has signed bilateral Memoranda of Understanding (MoUs) with 26 European regulators, paving the way for Dubai-based managers to market alternative investment funds in Europe.
Under the terms of the MoUs, regulators have agreed to aid each other in the supervision of cross-border fund managers operating between the Dubai International Financial Centre (DIFC) and Europe.
Ian Johnston, chief executive of the DFSA, and signatory of the 26 MoUs said: “The DFSA’s efforts to improve cross-border opportunities will further facilitate investment flows and will benefit investors and the funds industry.
“In addition, it reflects the DFSA’s commitment to enhance the economy of the UAE and Dubai, furthering Dubai’s position as a prominent financial centre.”
The agreements were negotiated with the the European Securities and Markets Authority (Esma). They allow fund managers in the Dubai International Finance Centre (DIFC) to manage and market Alternative Investment Funds (AIFs) – such as hedge funds, private equity funds and real estate funds – in Europe under the terms of the recently-introduced Alternative Investment Fund Managers Directive (AIFM directive).
The DFSA said it hoped the agreements would broaden the range of available investors for DIFIC-based managers and would prove beneficial for the Dubai-based fund management industry.
In addition to the MoUs, the DFSA already had bi-lateral agreements in place with 13 key European counterparts.
The countries that signed MoUs with DFSA are: France, UK, Netherlands, Ireland, Portugal, Spain, Italy, Luxembourg, Cyprus, Sweden, Finland, Denmark, Norway, Iceland, Liechtenstein, Hungary, Malta, Lithuania, Greece, Belgium, Bulgaria, Poland, Estonia, Latvia, Czech Republic and Romania.