The Dubai Financial Services Authority has published Consultation Paper No. 173 proposing a broad overhaul of its Collective Investment Fund framework in the Dubai International Financial Centre. The package would shift the regime further toward a risk-based approach tied to the profile of a fund and its investors, with the stated aims of improving clarity, aligning more closely with international standards and reducing unnecessary regulatory burden. The proposals cover several substantive changes. They would replace rigid specialist private fund classifications with a more flexible approach for hybrid and multi-strategy funds, simplify authorisation requirements for investment managers by clarifying that dealing as agent and arranging are covered by a managing assets licence when integral to fund management, and update master-feeder public fund structures by removing outdated eligibility criteria and broadening the definition of a master fund. The paper also proposes removing the external fund manager regime, widening the scope for employee investment in private funds managed by their employer directly or through dedicated vehicles, and making targeted technical amendments to the Collective Investment Law. The consultation also seeks early-stage feedback on two areas that may lead to future policy proposals: tokenisation of fund units and fund assets, including tokenised money market funds, and a possible long-term investment fund regime that would allow retail investors to access illiquid real-economy asset classes that are currently limited to professional investors. Responses to the consultation are requested by 7 September 2026.

Original source Back to tracker