The Dubai Financial Services Authority has published Consultation Paper No. 173, outlining the most significant review of its Collective Investment Fund framework since 2010.
The proposals aim to modernise rules first introduced in 2006 and bring them closer to international standards.
The regulator, which oversees financial activity in the Dubai International Financial Centre, said the review reflects years of supervisory experience and industry engagement. It seeks to align regulatory requirements more closely with the actual risk profiles of funds and their investors, while cutting unnecessary complexity for firms operating in the centre.
Charlotte Robins, DFSA's Managing Director of Policy and Legal, said the funds industry has played a central role in establishing DIFC as the leading financial hub across the Middle East, Africa and South Asia region. She added that the reforms are designed to support sustainable growth and keep DIFC competitive for global asset managers.
Key proposals include shifting away from rigid private fund classifications toward a more flexible structure that accommodates hybrid and multi-strategy investing. The paper also simplifies authorisation requirements for investment managers and updates master-feeder fund structures by broadening outdated eligibility criteria.
Other changes involve scrapping the external fund manager regime, given DFSA's growing pipeline of firms seeking full authorisation, and expanding opportunities for employees to invest in private funds managed by their own employers.
The consultation also opens early discussion on two forward-looking topics: tokenisation of fund units and assets, including tokenised money market funds, and a possible long-term investment fund regime that would let retail investors access illiquid asset classes currently reserved for professionals.
DFSA is inviting feedback from fund managers, asset managers, custody providers and industry advisers until September 7, 2026, through its online response portal.
News Source: Emirates News Agency
