DFSA Consultation Paper Seeks Feedback on Regulation of Family Offices in DIFC
The Dubai Financial Services Authority (DFSA) has released a consultation paper (CP148) regarding the regulation of family offices.
This consultation paper aims to make changes to the DFSA rulebook following the recent introduction of the Dubai International Financial Centre’s (DIFC) family arrangements new regulations. In parallel, the DIFC single family office old regulations have been abolished.
The DFSA is seeking feedback from family offices, their advisers, potential applicants, and other industry participants before 24 March 2023.
The main areas of change are the inclusion of single family offices (SFOs) in the category of designated non-financial businesses and professions (DNFBPs) in the AML module and the exclusion provided to SFOs from financial services regulation in the general module.
The DFSA is proposing that family offices in the DIFC should no longer be required to register as DNFBPs and that family offices acting for a single family should be exempt from financial services regulation.
This means that both new and existing family offices in the DIFC would have to consult with the DFSA to determine if their activities require regulation by the DFSA, as the previous exclusion enjoyed by single family offices would no longer apply.
Sources : Thomson-Reuters, Dubai Financial Services Authority.
DISCLAIMER: This article is informative and should not be considered as a legal, tax or any other advice or opinion. We strongly advise you to contact our experts at Monaco Private Advisory Multi-Family Office (MPA MFO) for an accurate assessment of your situation.