Comparison Chart for the setting up of an Investment Fund in the Abu Dhabi Global Market and the Dubai International Financial Centre

setting up of investment fund in adgm and difc dubai abu dhabi uae

07 May 2019 Comparison Chart for the setting up of an Investment Fund in the Abu Dhabi Global Market and the Dubai International Financial Centre

  ABU DHABI GLOBAL MARKET (ADGM) DUBAI INTERNATIONAL FINANCIAL CENTRE (DIFC)
Exempt Fund Qualifying Investor Fund (QIF) Exempt Fund Qualifying Investor Fund (QIF)
Regulatory Regime Regulated by the Abu Dhabi Financial Services Authority (“FSRA”). Regulated by the Dubai Financial Services Authority (“DFSA”).

 

Structure Exempt Funds and QIFs, can be structured as:

· Open or close ended investments companies;

· Investment trusts;

· Limited partnerships;

· Protected cell companies (“PCC”) and incorporated cell companies (“ICC”);

· Restricted scope companies; master/feeder structures; and

· Umbrella funds.

Exempt Funds and QIFs, can be structured as:

· Open or close ended investments companies;

· Investment trusts;

· Limited partnerships;

· Protected cell companies (“PCC”);

· Restricted scope companies; master/feeder structures; and

· Umbrella funds.

 

Approval Process A Fund Manager of an Exempt Fund must notify the FSRA within 14 days prior to the initial offer of units and must include:

· The Application Form

· General description of the fund including nature of its investments and the intended size of the fund in monetary terms;

· Details of prime broker, if appointed; and

· If it is a foreign fund manager, the name of the jurisdiction in which that foreign fund manager is domiciled.

A PCC cannot be established in the ADGM without the consent of the FSRA.

An application to the FSRA in connection to the establishment of a PCC is made in such form and be accompanied by such documentation as the FSRA may prescribe.

A PCC may not create a new cell unless approval has been granted by the FSRA.

A Fund Manager of an Exempt Fund must notify the FSRA in advance prior to the initial offer of units and must include:

· The Application Form

· General description of the fund including nature of its investments and the intended size of the fund in monetary terms;

· Details of prime broker, if appointed; and

· If it is a foreign fund manager, the name of the jurisdiction in which that foreign fund manager is domiciled.

A PCC cannot be established in the ADGM without the consent of the FSRA.

An application to the FSRA in connection to the establishment of a PCC is made in such form and be accompanied by such documentation as the FSRA may prescribe.

A PCC may not create a new cell unless approval has been granted by the FSRA.

DFSA approval required prior to the launch.

DFSA will issue the Exempt Fund license/QIF notification after the submission of the following documents:

· Application Form;

· Prospectus;

· Draft Memorandum and Articles of Association;

· Consent Letter from Auditors; and

· Registration Fee.

 

 

Timeline As indicated above for Exempt Funds that are not structured as a PCC only require 14 days prior notification to the FSRA before launching units.

Three (3) – five (5) working days for a PCC to be registered with the Registration Authority.

 

As indicated above for QIFs that are not structured as a PCC only require notification to the FSRA before launching units.

Three (3) – five (5) working days for a PCC to be registered with the Registration Authority.

 

Thirty (30) working days. Two (2) working days.
Minimum Share Capital N/A USD 50,000 USD 50,000
Eligible Assets Unrestricted (any type of assets and investments are acceptable) Unrestricted (any types of assets and investments are acceptable)
Investment Restrictions & Risk Spreading No restrictions (other than those specified in the Prospectus) No restrictions (other than those specified in the Prospectus).
Segregated Sub-Funds Yes. Yes.
Eligible Investors Professional Clients only Professional Clients only Professional Client only Professional Client only

 

Number of Investors No maximum number of investors Hundred (100). Fifty (50).
Minimum Initial Investments USD 50,000 USD 500,000 USD 50,000 USD 500,000
Reporting A Fund Manager must produce:

· One interim report within three (3) months after the end of each interim accounting period; and

· One annual report and Fund Manager’s report within six (6) months after the end of each annual accounting period.

The requirement for a fund auditors report may be waived by the FSRA on a case by case basis where the fund manager has obtained a special resolution of unitholders in support of such a waiver.

 

A Fund Manager must produce:

· One annual report and a Fund Managers’ report within six (6) months after the end of each annual accounting period.

 

 

An interim report is required only if there has been a material change during the interim accounting period.

The requirement for a fund auditors report may be waived by the FSRA on a case by case basis where the fund manager has obtained a special resolution of unitholders in support of such a waiver.

A Fund Manager must produce:

· One interim report within two (2) months after the end of each interim accounting period; and

· One annual report within four (4) months after the end of each annual accounting period.

 

A Fund Manager must produce:

· One annual report within four (4) months after the end of each annual accounting period.

· An interim report is required only if there has been a material change during the interim accounting period.

 

Service Providers · Board of Directors

· Fund Manager  – licensed by the FSRA (core requirement)

· Fund Administrator

· Eligible Custodian

· Fund Auditor

 

· Board of Directors

· Fund Manager – licensed by the DFSA (core requirement).

· Fund Administrator

· Eligible Custodian

· DFSA Registered Auditor

 

Public Offering No. No.
UAE Passport Yes. Yes.
Fees & Expenses (approximates) Registration Authority Fees:

· Initial registration: USD 1,000

· Renewal: USD 1,100

FSRA Fees:

· Registration: Nil

· Sub- Fund registration: Nil

Incorporation Fee: USD 1,200

· DFSA license fee: USD 4,000 and USD 1,000 per sub fund

· Annual Registry Fee: USD 3,659

· Annual DFSA license Fee: USD 4,000 and USD 1,000 per sub fund

 

Incorporation Fee: USD 1,200

· DFSA license fee: USD 4,000 and USD 1,000 per sub fund

· Annual Registry Fee: USD 3,659

· Annual DFSA license Fee: USD 4,000 and USD 1,000 per sub fund

 

 

celaine vella

Author:

Hooriya Qazal Rajput

Structuring and incorporation of financial and non-financial companies; corporate and commercial documentation drafting; joint ventures and reputation management.

 

 



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