DIFC updates regulations to boost use of special purpose vehicles

The Dubai International Financial Centre (DIFC) has announced updates to its Prescribed Company (PC) Regulations, aiming to broaden the utility of its Special Purpose Vehicles (SPVs). These revisions are designed to make DIFC a more attractive jurisdiction for efficient holding and structuring vehicles.

The updated PC Regulations significantly simplify the existing regime. This enhancement aims to bolster DIFC's offering for companies seeking efficient holding and structuring solutions. The changes maintain a balanced approach to governance and regulatory oversight.

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The updated Prescribed Company Regulations demonstrate DIFC’s continued commitment to a responsive, flexible and business friendly legal framework.

Jacques Visser, Chief Legal Officer at DIFC Authority, stated that the updated regulations underscore DIFC's dedication to a responsive, flexible, and business-friendly legal framework. He noted that the enhanced regime expands access to holding company and structuring SPVs for legitimate purposes. However, it requires the appointment of a DIFC-licensed Corporate Service Provider in most cases. This measure is intended to support effective compliance oversight and regulatory engagement, aligning with DIFC's established high standards.

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The enhanced regime broadens access to holding company and structuring special purpose vehicles for legitimate purposes, while requiring the appointment of a DIFC licensed Corporate Service Provider (CSP) in most instances to support effective compliance oversight and regulatory engagement in line with DIFC’s high standards.