UAE advisers react to SCA renewals suspension of public foreign investment funds

Advisers have reacted to the UAE's Securities and Commodities Authority's suspension of all renewals of foreign investment funds aimed at the public until further notice, as reported by International Investment on Friday 13 January. 

Con Lillis, CEO at Abacus Financial Consultants, said: "At Abacus we continue to work closely with our regulator SCA in the UAE and will fully comply with their guidelines and directives. We are awaiting further clarification from the regulator as to the impact of these changes and will keep our clients informed accordingly."

While Sean Kelleher, CEO, Mondial Dubai, said: "My reaction is 'something is afoot'. But reactions based on the fund thing in isolation I believe are mis-placed. SCA have started making the "Analysts" (financial advisers) exams easier as if there will be a clear line between a licensed/authorised individual and an unlicensed/unauthorised one."

According to a source, the regulator has cited evolving market practices and the need to review regulations for updates as its reasoning for the move. 

No further details were forthcoming from the SCA at the time of publication of this article.