DIFC Authority announces changes to existing Companies Regulations provisions dealing with Protected Cell CompaniesPress Release 23 Sep 2010 11:40 am
The Dubai International Financial Centre Authority (“DIFCA”) today announced that it has processed amendments to existing Companies Regulations (COR) provisions dealing with Protected Cell Companies (PCC) based on recommendations made by a panel of market practitioners and the Dubai Financial Services Authority (“DFSA”).
The amendments, which come into effect as of 24 August 2010, allow the protected cell or compartment structure to be used by both public and private Umbrella Funds, and enhance the PCC provisions to address redemption of Units of open-ended Sub-Funds in accordance with net asset value (NAV) calculations as required under Collective Investment Rules (CIR). In addition, the amendments ensure that the CIR prohibitions relating to cross investments of one Sub-Fund's assets in other Sub-Funds in the same Umbrella Fund are applicable to Umbrella Funds using the PCC structure.
These updates come in line with the DFSA’s earlier changes to the DIFC’s Collective Investment Funds regime, which were implemented by the DFSA on July 11, 2010.