Fund managers in the Middle East should be making changes ahead of new UAE asset management regulations, according to technology provider Advent Software.
The firms says fund managers need to prepare for increased transparency requirements when the Emirates Securities and Commodities Authority (ESCA) new fund regulations are submitted later this year.
The regulations will request daily NAV publishing, quarterly reports, independent audits, and better due diligence, according to Advent.
The original ESCA draft released earlier this year was criticized for its potential to push fund managers out of the UAE.
Despite regulatory concerns, Advent’s 2011 Middle East Fund Survey revealed cautious optimism from GCC and Levantine fund industry professionals, with 87 percent of fund companies predicting a net inflow and 60 percent looking to hire new staff this year.
A weak and opaque regulatory framework was cited as the most pressing concern by 40 percent of investors, 25 percent of asset managers and 35 percent of fund distributors questioned.
The survey, conducted by Advent Software and MEED Insight, questioned 111 investors, 25 fund companies and 34 fund distributors. The majority of respondents were GCC based with at least 50 employees.