His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai has enacted two new laws that aim to improve and expand the DIFC’s already successful private wealth management and succession planning platforms.
Both the Trust Law and Foundations Law are in line with the previous recommendations of the DIFC’s Wealth Management Working Group and are the product of global benchmarking and extensive consultation with industry professionals and family business networks both regionally and globally. The new laws have been welcomed by academics and practitioners alike in setting a new global standard. In addition to serving families in their wealth and succession planning, the laws will be equally adept at serving the financial services community in structured financing transactions in creating insolvency remote and orphan structures.
The new Trust Law No. 4 of 2018 is a self-contained enhancement of the DIFC Trust Law in line with international best practice. The new law provides an appropriate environment for the operation of trusts in DIFC, taking into account the requirements of local families, particularly in the context of succession planning. It contains significant enhancements and refinements to promote better trust administration and provides greater certainty and flexibility for settlors, trustees and beneficiaries, as well as certain technical amendments.
The DIFC’s established wealth management sector, comprising around 200 asset management companies and specialist advisers, stands to benefit significantly from the DIFC’s new private wealth regime, inclusive of the newly proposed Trust Law and Foundation Law regimes.
Source: Al Khaleej Times