Dubai FSA Updates Rulebook Module, Proposes Credit Funds Regime
The Dubai Financial Services Authority (Dubai FSA) updated the Prudential Investment, Insurance Intermediation, and Banking Business Module of its Rulebook, following the finalization of a number of proposed legislative changes that had been set out in the Consultation Paper No. 139. Dubai FSA published the Prudential – Investment, Insurance Intermediation and Banking Business Module Rule-Making Instrument (No. 322) 2021, which repeals and replaces the Prudential – Investment, Insurance Intermediation and Banking Business Module of the Dubai FSA Rulebook with an updated version and came into force on January 01, 2022. Dubai FSA also proposed to introduce a regime for credit funds, with the feedback period open until January 19, 2022.
For the credit funds regime, Dubai FSA sets out proposals on the structure and regulatory requirements for credit funds. The regulatory authority proposes to allow fund managers to use fund property for the direct origination of loans or purchase of loan portfolios and to create a specialist class of funds that can originate loans and/or purchase loan portfolios—and are to be called credit funds. The credit funds would be subject to the restrictions and controls discussed in the proposals. According to the proposal, a credit fund must, as its investment objective, use at least 90% of the fund property for either loan origination or loan portfolio acquisition. As with other types of funds that are subject to similar limits on the composition of fund property, Dubai FSA does not intend to "impose any specific requirements as to the other types of investment, not exceeding 10% of the investment portfolio, which may be made."
Related Links
Comment Due Date: January 19, 2022 (Credit Funds Regime)
Effective Date: January 01, 2022 (Rulebook Module)
Keywords: Middle East and Africa, UAE, Dubai, Banking, Rulebook, Credit Funds, Lending, Loan Origination, Credit Risk, Portfolio Management, Dubai FSA
Previous Article
CBUAE Issues Rules on Real Estate Exposures, Extends Relief MeasuresRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
NGFS Report Explores Quantification of Climate Risk Differentials
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
EC Publishes Results on Review of Web Accessibility Directive
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
MAS Consults on Adjustment Spreads for Conversion of SOR Contracts
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.