DFSA proposes overhaul of DIFC collective investment funds framework

On 7 July 2026, DFSA published Consultation Paper No. 173 (CP 173), proposing a comprehensive modernisation of the DIFC’s Collective Investment Funds framework. The consultation represents the most significant review of the regime since its introduction in 2006 and subsequent reforms in 2010. It reflects the considerable growth and increasing sophistication of the DIFC’s asset management sector, as well as evolving international regulatory standards and the DFSA’s supervisory experience. At its core, CP 173 seeks to move the regime towards a more risk-based and proportionate model, particularly for funds marketed to professional investors. The proposed reforms would reduce prescriptive requirements where investor protection concerns are lower, while maintaining safeguards in areas the DFSA considers to present material risks.