Where a local investment fund is established by an entity licensed to conduct family investment management, what minimum proportion of the units must be owned by family members?
CISI UAE Financial Rules and Regulations specify that when a local investment fund is established by an entity licensed for family investment management, at least 90% of the fund units must be owned by family members. This high ownership threshold ensures that the fund serves its intended purpose as a family investment vehicle, restricting external investor participation. The rule protects the fund’s family-oriented investment strategy, governance, and compliance with related regulatory provisions. It also aligns with the regulatory framework promoting transparency and proper segmentation of family investment funds in the UAE financial markets.
[Reference: CISI UAE Financial Rules and Regulations — Family Investment Management Funds, Ownership Requirements, Section 6.6.5 (2023)., ]
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