Regulatory Alerts2017-01-01
General Authority for Financial Supervision Board of Directors Resolution No. (28) of 2017
The General Authority for Financial Supervision issued Resolution No. (28) of 2017 to regulate the cases, conditions, and procedures for closed-end investment funds to reduce their size. The resolution permits reductions due to realized losses, installment-based document valuations, charitable fund objectives, or other Authority-approved cases, while strictly limiting reductions to once annually with a maximum 20% ratio per instance and mandating that capital and liability thresholds remain intact. Funds must execute a multi-step approval process involving investment manager studies, board and auditor reviews, document holders' assembly quorums, and Extraordinary General Assembly voting before submitting a complete request to the Authority for a ruling within two weeks.