Recently the DIFC (or Dubai International Financial Centre) had new Laws issued that pertain to themselves (the DIFC) and the DIFC Financial Services Authority (DFSA that acts as the DIFC’s independent regulatory authority.) Amongst those involved in issuing the Federal Decree included the Crowned Prince of Dubai, The President of the DIFC, the UAE Defense Minister and General Shaikh Mohammad Bin Rashid Al Maktoum.
As the main International financial hub for the region, these measures were taken to make sure the DIFC strengthened its regulatory framework and remained compliant with International best practices.
In a statement, the chairman of the DFSA Regulatory Council expressed how magnificent this is for the DFSA and the DIFC as it is the first time in the region an entire legal system has been customized and created from scratch. He also commented that the new laws were innovative creations covering the full range of commercial and civil activities for the DIFC.
The overall list of Laws amended or created are:
- Insolvency Law
- Arbitration Law
- Data Protection Law
- General Partnership Law
- Markets Law
- Regulatory Law
- Companies Law
- The Law Regulating Islamic Financial Business
- Law on the Application of Civil and Commercial Laws
- Law relating to the Application of DIFC Laws
- Limited Liability Partnership Law
- Contract Law
However, the key amended areas include:
Amendments to the Employment Law
This involves amending the Employment Law No.2 of 2019 and creating new Employment Regulations relating to vacation leave, workplace health and safety, probation duration and short-term fixed contracts (amongst other things)
Amendments to the Data Protection Law
This involved amendments to DIFC Law No. 5 of 2020, as well as the Insolvency Law along with the DIFC Law No. 1 of 2019 and Insolvency Regulations 2019 that are the subject of Consultation Paper No. 2 of 2021.
Amendments to the Insolvency Law – the 4 key features:
Amendments were made to the Insolvency Law No. 1 of 2019 and Insolvency Regulations 2020. The four key points to remember here are:
- As bonding arrangements are not readily available in the UAE for insolvency specialists these amendments to the Insolvency law are intended to make it easier to acquire a bond under the proposed Insolvency Law and Regulations.
- The amendments will make sure a liquidator’s reporting obligation stays consistent. This will apply to all the various different types of liquidation procedures that exist under the Insolvency Law.
- To ensure that the vesting of property with regards to a dissolved entity is done consistently for all DIFC entities under the provisions of Article 32 of the Operating Law of 2018.
- Various references pertaining to the DFSA in Regulation 7 of the Insolvency Regulation will be identified and removed.
The above amendments have since been released for public consultation via Dubai International Financial. Public deliberation and comment submission will proceed for a period of 30 days (making the deadline fall on the 28th of March, 2021.) Once closed the comments reviewed at length and appropriate actions taken.
How Insolvency Experts will help you?
If you have any issues regarding to Insolvency do not hesitate to contact experts like HHS Lawyers in Dubai. Insolvency Experts have extensive knowledge in the field and can guide you through any process step by step.
