SCA Decision On The Regulation Of SPVs

In Brief:

• The Securities and Commodities Authority (SCA) has issued a Decision on the Regulation of Special Purpose Vehicles (SPVs).
• Through the issuance of such Decision, the SCA regulates the establishment and conduct of business of SPVs and related matters.

The Securities and Commodities Authority (SCA) issued Decision No.25/RM/2024 on the Regulation of Special Purpose Vehicles on 19 July 2024 (the Decision). The Decision, which applies "onshore" UAE (i.e., to the exclusion of the financial freezones), defines and categorises special purpose vehicles (SPVs), prescribes the application process for SPVs, sets out the duties and obligations of the person managing the SPV (the SPV Manager) and describes the circumstances in which SPVs may be terminated or liquidated.