Middle East Regulatory Update
Muneer Khan Partner - Dubai
Wednesday 05 & Thursday 06 October 2016
© Simmons & Simmons LLP 2015. Simmons & Simmons is an international legal practice carried on by Simmons & Simmons LLP and its affiliated partnerships and other entities.
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Agenda
Introduction
UAE “onshore”
DIFC
Saudi Arabia
ADGM
Iran Saudi Arabia Oman
UAE
Kuwait Bahrain
Qatar
© Simmons & Simmons LLP 2015. Simmons & Simmons is an international legal practice carried on by Simmons & Simmons LLP and its affiliated partnerships and other entities.
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Simmons & Simmons Middle East LLP
Asset Management & Fund Legal Firm of the Year IFN Law Awards 2016
Offices –Doha, Dubai, Jeddah*, Riyadh*
More than 20 year presence
Advising in the region for over 30 years
Focus on asset management & investment funds and financial institutions
Particular focus on financial regulation in the GCC
* In alliance with Hammad & Al-Mehdar
© Simmons & Simmons LLP 2014. Simmons & Simmons is an international legal practice carried on by Simmons & Simmons LLP and its affiliated partnerships and other entities.
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UAE Financial Regulatory Map
The Emirate of Dubai
The Emirate of Abu Dhabi
Dubai International Financial Centre ("DIFC")
UAE
Regulators UAE Securities and Commodities Authority ("SCA") UAE Central Bank UAE Insurance Authority Dubai Financial Services Authority ("DFSA") Financial Services Regulatory Authority ("FSRA")
Abu Dhabi Global Market ("ADGM")
© Simmons & Simmons LLP 2015. Simmons & Simmons is an international legal practice carried on by Simmons & Simmons LLP and its affiliated partnerships and other entities.
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What has changed in UAE “onshore”?
The Securities and Commodities Authority (“SCA”) recently released
new regulations in relation to funds.
Revised Mutual Funds Regulations and Mutual Funds Fees
Regulations.
Draft Arranging and Promoting Regulations.
© Simmons & Simmons LLP 2015. Simmons & Simmons is an international legal practice carried on by Simmons & Simmons LLP and its affiliated partnerships and other entities.
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Mutual Funds and Mutual Funds Fees
Revised Mutual Funds and Mutual Funds Fees Regulations – restriction on the marketing of foreign funds – exempt investors changes – fund registration fees – treatment of specific products
Draft of the Arranging and Promoting Regulations – licencing requirements – exempt investors changes
SCA Working Group – Black letter law vs. in practice
© Simmons & Simmons LLP 2015. Simmons & Simmons is an international legal practice carried on by Simmons & Simmons LLP and its affiliated partnerships and other entities.
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DIFC
Recent case law – CA 003/2015 (1) Rafed Abdel Mohsen Bader Al Khorafi (2) Amrah Ali Abdel
Latif Al Hamad (3) Alia Mohamed Sulaiman Al Rifai v (1) Bank Sarasin-Alpen (ME) Limited (2) Bank J. Safra Sarasin Limited (formerly Bank Sarasin & Co. Ltd) – Client classification – Anti money laundering
Growing number of DFSA actions
© Simmons & Simmons LLP 2015. Simmons & Simmons is an international legal practice carried on by Simmons & Simmons LLP and its affiliated partnerships and other entities.
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Saudi Arabia
Capital Markets Authority’s (the “CMA”) FAQ Guidance – A change in CMA’s tolerated approach on licensing for cross-border
business. – Requirements for foreign financial institutions to perform securities business
activities.
QFI Regime – Who can be a QFI / QFI Client – Assessing Authorised Person – Investment limitations
Real estate investment traded funds (“REITFs”)
© Simmons & Simmons LLP 2015. Simmons & Simmons is an international legal practice carried on by Simmons & Simmons LLP and its affiliated partnerships and other entities.
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ADGM
Financial Services Regulatory Framework
FinTech Regulatory Framework
© Simmons & Simmons LLP 2015. Simmons & Simmons is an international legal practice carried on by Simmons & Simmons LLP and its affiliated partnerships and other entities.
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Iran
Lifting of UN, US and EU nuclear-related sanctions – Joint Comprehensive Plan of Action 14 July 2015 – Implementation Day 16 January 2016
OFAC General Licence H – Does not effect primary sanctions – Relevant to companies ‘owned’ or ‘controlled’ by a US Person (natural or
not) – Other restrictions
Key concerns – due diligence – OFAC 50% Rule – IRGC (Iranian Revolutionary Guard Corps) Risk
© Simmons & Simmons LLP 2015. Simmons & Simmons is an international legal practice carried on by Simmons & Simmons LLP and its affiliated partnerships and other entities.
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Contact details Muneer Khan Partner Financial Markets T +971 4 709 6699 E [email protected]
© Simmons & Simmons LLP 2015. Simmons & Simmons is an international legal practice carried on by Simmons & Simmons LLP and its affiliated partnerships and other entities.
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© Simmons & Simmons LLP 2015. Simmons & Simmons is an international legal practice carried on by Simmons & Simmons LLP and its affiliated partnerships and other entities.
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