It aims to increase the funds under management by 100% within a year

"Securities" is developing a new system for investment funds

Al-Suwaidi confirmed during the media briefing that the new system will be implemented soon.

From the source

The Securities and Commodities Authority announced its development of a new system for investment funds, which aims to promote this industry locally, as one of the investment tools that are suitable for investors in the field of securities, noting that it will provide new types of local funds, such as “family” and investing in precious bullion. In addition to real estate development funds and charitable investment funds.

Maryam Al-Suwaidi, CEO of the Authority, said in a briefing yesterday, “Investment funds are one of the most important institutional investment tools, which are characterized by a relative degree of stability and achieving balance in financial markets, which the regulatory authorities are keen on having, in a way that reduces the potential for risks.” and price fluctuations in the financial market.

She explained that «the Authority aims, through its development of the investment funds system, to enhance the competitiveness and attractiveness of local investment funds, and to enable the local investment funds sector to play its active role in revitalizing, balancing and stabilizing the financial markets in the country, as well as supporting the contribution of the asset management sector to the development of various economic sectors within the country. and achieving sustainable development.

protection

In a special inquiry from «Emirates Today» about the risk indicators of these funds, Al-Suwaidi confirmed that «the authority adopts appropriate funds to protect investors' funds, such as those that invest in bonds in real estate», pointing out that the prospectus for all approved funds makes this clear in full.

Al-Suwaidi stated that “the new system will be implemented soon, as it will be officially applied on the next day from the date of its publication in the Official Gazette,” noting the introduction of new classifications and investment policies for the funds, as well as organizing the process of establishing the fund to enable it to use its legal personality, and the organization of the self-management fund. more clearly and in detail in accordance with international practices.

And she indicated that the Securities and Commodities Authority aims, during the first year of the issuance of the new system and the completion of awareness campaigns and introducing the benefits and facilities offered by the new investment funds system, to increase the volume of funds managed from local funds by at least 100%, while this percentage is expected to increase over the years. suffix.

Positive reflections

Al-Suwaidi pointed out that the Authority aims, through the new system for investment funds, to achieve positive repercussions on the sector of financial services providers (fund managers, administrative services, trustee, evaluators of in-kind shares, auditors), including the asset management sector because of its importance in Finding jobs, bringing expertise and moving money within the country.

She added, “The new system aims to develop a new vision and adopt quick and effective solutions, allowing for the provision of an integrated regulatory environment (Ecosystem) that is more appropriate and flexible, and focuses on stimulating and encouraging the establishment of local investment funds, creating an attractive climate for investment management companies and professional fund service providers, and creating a boom.” tangible in the local investment fund industry.

Simplify and facilitate

Al-Suwaidi explained that “the first axis of the new system focused on simplifying and facilitating the provisions and rules of the current investment fund system, to make it in line with the latest and best international practices, thus providing a more appropriate, flexible and stimulating regulatory environment for the process of establishing local funds, as the provisions for establishing and licensing local private funds were facilitated.” offered to qualified investors, avoid placing restrictions on its investment policy, and reduce the period of study and issuance of approvals for private funds to five working days and for public funds to 10 working days.

And she stated that «work has been done in the new system to ease investment restrictions and the requirements of investment policies for local public funds, in line with international best practices, and to simplify and facilitate the provisions of local real estate funds, as well as adding new types of specialized funds, such as family funds, real estate construction funds, and financing fund Direct, the Precious Bullion Investment Fund, the (ESG) Fund, the Capital Protection Fund, the Charitable Investment Fund, and the Qualified Commodity Investment Fund.

• Providing new types of funds such as "Family" and investing in precious bullion.

26 local funds with assets amounting to 3.44 billion dirhams

Maryam Al-Suwaidi, CEO of the Securities and Commodities Authority, said, “The number of existing local investment funds is currently about 26, while the value of net assets until the end of last month amounted to approximately 3.44 billion dirhams, while the number of foreign investment funds registered during the year amounted to about 64 funds, bringing the total number of registered and existing foreign investment funds to date to about 672 funds.

She added, "The number of promotion approvals issued by the authority during the current year amounted to 121 approvals, bringing the number of existing promotion approvals to date to about 1965 approvals."

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