Dubai International Financial proposes amendments that expand the specified companies regime and enhance the role of service providers

Dubai, April 30 / WAM / The Dubai International Financial Center announced a proposal to amend the regulatory framework of the “Specific Companies” system, in a way that contributes to improving the options for organizational structures within the center, in addition to enhancing the role of corporate service providers within its framework.

Jack Visser, Chief Legal Officer at the DIFC Authority, said that the amendments to the specific company regulations proposed for public consultation open the system to all applicants without exception, which greatly enhances the scope of this regulatory framework, and expands the role of corporate service providers within the centre.

The proposed amendments open the “specified companies” system to all applicants, by removing the current requirements relating to qualifying purpose, applicant identity, and association or legal connection requirements contained in existing legislation.

This change contributes to significantly expanding access to the system, and reflects the development of the DIFC’s regulatory framework, in addition to its compatibility with international standards on tax transparency and disclosure requirements.

The new regulations propose strengthening and clarifying the role assigned to corporate service providers licensed by the Dubai Financial Services Authority. Under the proposed system, designated companies must appoint a corporate services provider to be the main body responsible for administrative follow-up and regulatory compliance before the Registrar of Companies at the Centre, while exempt companies can, without obligation, appoint a service provider to perform this role on their behalf.

These amendments are in line with the recently issued “Variable Capital Companies” regulations, reflecting the standards for establishing these entities and expanding the role of corporate service providers.

The proposed amendments also include the inclusion of clear legal duties and obligations for corporate service providers, along with implementation support mechanisms, in a way that enhances their role within the DIFC system and ensures an appropriate level of accountability as the scope of the system expands.

The consultation process also includes proposed amendments to the operating regulations of the Dubai International Financial Center, with the aim of clarifying the current powers granted to the registrar with regard to obtaining information from registered entities, including financial statements, in addition to enabling restricted disclosure of this information for statistical purposes.

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