Middle East Regulatory Update

Muneer Khan Partner - Dubai

Wednesday 05 & Thursday 06 October 2016

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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 muneer.khan@simmons-simmons.com

© 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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