Mixed messages on fund changes

“There is no doubt that the new IFRs have increased the troubles for the promoters of foreign funds, and the financial bodies in the UAE financial free zones which sell both foreign and local funds. The latest IFRs have increased client costs in the form of growth in fund fees as the foreign funds will now be required to renew their registration annually by submitting annual fees of USD 2000, while the registration fee of a foreign fund has more than doubled to USD 9,500 from USD 4,000.  Foreign funds accessing the UAE market will now have limited access since the only means by which a foreign fund can market its units in UAE is through reverse solicitation. Except, the SCA re-establishes larger exemptions for the foreign funds, the foreign issuers will rethink about marketing their products in UAE."