Recommendations will strengthen the regulatory framework and attract investment
Washington, D.C. — MFA supports the Abu Dhabi Global Market (“ADGM”) Financial Services Regulatory Authority’s (“FSRA”) objectives to refine the regulatory framework for private funds and fund managers in a comment letter submitted last Friday. A framework that’s appropriately tailored to fund activities will help make the United Arab Emirates a more attractive place to do business.
“The proposed reforms offer an opportunity to strengthen the UAE’s standing in the region by making it a more attractive place to work and invest,” said Rob Hailey, MFA Head of EMEA Government Affairs. “Refined, proportionate regulation aligned with global standards will help private fund managers to better serve the investment needs of institutional investors.”
The FSRA’s proposed reforms offer a thoughtful, risk-based approach to regulating private funds that serve sophisticated, institutional investors.
MFA provided the following comments on the proposal in the letter:
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Tailor the regulatory framework for private funds, available only to sophisticated, institutional investors, to help attract global managers and capital.
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Avoid prescriptive leverage caps for private funds, and instead rely on disclosure and risk-based guardrails calibrated for different strategies and risk profiles.
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Streamline regulation for smaller fund managers to lower barriers to entry and support market growth.
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Strengthen accountability for foreign fund managers while allowing targeted exceptions where local custody or administration requirements are impractical.
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Integrate specialist investment strategies into the broader framework to reduce fragmentation and enhance ADGM’s competitiveness.
Read the full letter here.
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About the global alternative asset management industry
The global alternative asset management industry — including hedge funds, private credit funds, and hybrid funds — serves thousands of public and private pension funds, charitable endowments, foundations, and other global institutional investors. The industry provides portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets throughout the economic cycle.
About MFA
Managed Funds Association (MFA), based in Washington, D.C., New York City, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest it, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 180 fund manager members, including traditional hedge funds, private credit funds, and hybrid funds, that employ a diverse set of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors diversify their investments, manage risk, and generate attractive returns throughout the economic cycle.
