Dubai International Financial Centre (DIFC) has proposed the introduction of new Variable Capital Company (VCC) Regulations. These proposed rules aim to greatly improve investment structuring and asset management opportunities for proprietary investments within the DIFC.
Jacques Visser, Chief Legal Officer at the DIFC Authority, stated: “We are pleased to open the public consultation for our new Variable Capital Company Regulations. The proposed framework introduces a distinctive structure offering flexible share capital arrangements suited to proprietary investment purposes.”
The planned VCC regime is specifically tailored to support proprietary investment operations and, unless involved in regulated financial services, will not require authorisation from the Dubai Financial Services Authority (DFSA) or the appointment of a regulated fund manager. This makes the VCC an effective vehicle for investors seeking the advantages of collective investment or segregated investment strategies, while benefiting from flexibility and streamlined procedures for managing share capital.
