DIFC opens SPV registration to all applicants under updated regulations

The Dubai International Financial Centre (DIFC) has removed previous restrictions on Special Purpose Vehicle (SPV) registrations, allowing any applicant to establish these entities under newly enacted regulations. The DIFC Authority confirmed on Monday, 3 August, that the updated Special Purpose Vehicle Regulations 2024 replace the previous 2018 framework with immediate effect. Universal Access and New Fees Under the revised rules, the requirement for applicants to have a "nexus" or existing connection to the DIFC has been eliminated. Previously, SPVs were largely restricted to applicants with a presence in the centre or those involved in specific regional transactions. The new regime now permits individuals and corporate entities from any jurisdiction to register an SPV to hold assets or facilitate transactions. The DIFC Authority has also introduced a revised fee structure to manage the expected increase in volume. The registration fee for a new SPV is now set at $1,000. For existing SPVs, the annual license renewal fee has been established at $2,000. These changes aim to streamline the administrative process while maintaining the financial hub’s regulatory standards. Compliance and Governance Changes The 2024 regulations introduce stricter governance requirements to ensure transparency. Every SPV must now appoint at least one director who is a resident of the UAE. Furthermore, the roles of director and secretary can no longer be held by the same individual, a move…