Dubai International Financial Centre (DIFC) has detailed it’s plans to combine the existing regulations for Special Purpose Companies (SPC’s) and Intermediate Special Purpose Vehicles (iSPV’s) under one new initiative. These types of entities will now be know as Prescribed Companies.
“The new Prescribed Companies regime is a very positive regulatory development that is going to make the DIFC an even more accessible jurisdiction for businesses looking to tap into the MEASA opportunity. By replacing Intermediate Special Purpose Vehicles and Special Purpose Companies regimes with a unified, simplified and more expansive regime with a very competitive cost-structure, we are well aligned with international best practices while also ensuring local market needs are met,” said Mr Jacques Visser, Chief Legal Officer at DIFC.
The new Prescribed Companies regulations will expand the previous regime to allow certain firms to establish themselves in the DIFC with more flexible office requirements. These include firms that are either regulated by Dubai Financial Services Authority (DFSA) (or a recognised foreign regulator), FinTech firms, Family Offices, Holding and Investment Companies. Just like SPC’s previously, companies that have structured finance transactions in place will also be eligible.