We’re one step closer to a GCC Funds Marketing Passport: GCC financial services authorities approved a fund passporting framework at the latest GCC Committee of Heads of Financial Market Authorities meeting, the Securities and Commodities Authority (SCA) said in a statement. Set to be implemented in early 2025, the framework aims to boost integration between Gulf financial markets and will allow funds from one GCC jurisdiction to be marketed in others.

What we know: The passporting regulations will simplify cross-border investment processes by streamlining the registration and promotion of investment fund units. The unified regulatory framework will also include provisions for deregistering non-compliant funds to protect unit holders' rights. The framework will mirror the EU’s UCITS/AIFMD framework.

We knew this was coming: We first found out that the SCA and other GCC financial services regulators’ have been working on drafting the GCC Funds Marketing Passport last April.

REMEMBER- The SCA recently banned banks from marketing foreign funds to retail investors: The UAE's financial services watchdog’s rule banning onshore banks from promoting or marketing foreign funds to retail investors entered into effect in April. The change aimed to encourage foreign fund managers to establish an onshore presence and curb capital outflows while boosting the local funds market. In April, the SCA was also in early talks with the Dubai Financial Services Authority and the ADGM to introduce a dual licensing framework for fund managers.

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