DIFC announces consultation of new Variable Capital Company regulations

Dubai International Financial Centre (DIFC) proposes to enact new Variable Capital Company (VCC) Regulations. The proposed regulations seek to significantly enhance investment structuring and asset management options for proprietary investment in the DIFC.

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Jacques Visser, Chief Legal Officer at DIFC Authority, said: “DIFC Authority is pleased to announce the public consultation for our new Variable Capital Company Regulations. The proposed regime offers a unique vehicle with flexible share capital structuring for proprietary investment activities.”

The proposed VCC framework is designed to accommodate proprietary investment activities and will not require DFSA authorisation or a requirement for a regulated fund manager, unless the vehicle engages in regulated financial services activities. This positions the VCC as an efficient vehicle for investors seeking the benefits of collective investment activity, or segregated investment strategies, whilst leveraging the flexibility and reduced procedural requirements for managing share capital.