The Emirates Securities and Commodities Association (SCA) is planning to introduce a series of fund distributor fees in the UAE.
As per the new fee regime, those who look to distribute funds in the UAE must pay total costs of between AED15,000 (US$4,000), and AED35,000 (US$9000) while foreign firms should pay more of the pay scale.
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International Adviser reported that the new fee regime also requires distributors to apply for a licence, at a cost of AED5,000 in order to sell funds in the UAE.
The distributor, after securing permit, will be allowed to purchase a licence for AED10,000 which should be renewed every year by paying additional AED5,000.
Insight Discovery chief executive of research house Nigel Silitoe was quoted by International Adviser
as saying that the new fees have surprised many working in financial services in the UAE.
"Compared to other jurisdictions the fees are on the high side," Silitoe said.
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By GlobalData"As these fees are per fund and in theory should be paid by the bank/distributor marketing the funds I don’t believe too many banks will be willing to pay these fees, especially if they currently market, for example, 20 funds to their customers as this would result in a AED700,000 fee being paid to the SCA."
