Regulatory Alerts2014-01-01
Decision of the Board of Directors of the Authority No. (53) of 2014
The General Authority for Financial Supervision issued Decision No. (53) of 2014 to establish regulatory controls and procedures for investment funds offering their documents in installments and for closed-end fund companies seeking approval to issue additional document tranches. The decision mandates that installment payments apply exclusively to private equity and non-public real estate funds, requires a minimum 25% initial payment with a maximum five-year completion period, and outlines strict notification, dividend distribution, and default sale procedures. Furthermore, it stipulates that closed-end funds must fully pay the nominal value of prior issuances before launching new ones, requiring shareholder approvals, specific quorum rules, fair value assessments, and regulatory authorization prior to any offering.