Regulatory Alerts2019-01-01
Decision of the Board of Directors of the Financial Regulatory Authority No. 45 of 2019 Amending Certain Provisions Regulating Investment Fund Activities
The Financial Regulatory Authority (FRA) issued Decision No. 45 of 2019 to amend the investment controls for real estate investment funds. The regulation mandates that real estate investment funds targeting income-generating assets must maintain a minimum allocation of 70% of their total assets to such assets, which are defined as assets yielding periodic returns without requiring sale for income realization. Additionally, the decision permits the establishment of holding companies to found or participate in founding investment fund companies, while explicitly prohibiting these holding companies from conducting the activity themselves.
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