The UAE announced yesterday it is introducing a new law to support the wealth management sector in the Gulf country.
The Ministry of Finance issued a statement specifying that the new law, issued by decree, will give additional mechanisms for comapnies to better manage trusts and funds. The ministry added that "trusts form an important addition to the advanced legislative structure of the UAE."
Younis Al Khoori, undersecretary of the Ministry of Finance, said yesterday the new law is aimed at supporting the wider wealth management industry in the UAE: "The Ministry of Finance issued the Trust Law to create legal tools that enable companies or people who own various capital and financial rights to hand over these wealth and rights as a financial trust to a Trustee who is entrusted with managing and developing said funds."
He added: "This is done through a special document called a Trust Deed, and it is recorded electronically to reflect the assets - whether movable or property. After that, the existence of Trust rights is indicated in the official records of those assets."
Al Khoori said: "The Ministry of Finance continues to work and cooperate with all relevant authorities to devise appropriate financial and monetary policies."
According to Gulf News, the law contains a clause specifically for private trusts, normally set up for different forms of securities trading. These include the acquisition, investment and trading of securities. Private Trusts are also established for setting up pension funds.
The government said on Wednesday the new law allows for the creation of "an integrated system" better supporting trusts and trustees. The minister added that family offices will be a clear beneficiary of the new regulations.
The legislation follows a year of changes to the UAE regulatory scene, with the Insurance Authority last October introducing the long-awaited BOD-49 reforms to the life assurance sector.