Dubai, U.A.E., December 11, 2007: The Dubai Financial Services Authority (DFSA) today issued its Hedge Fund Code of Practice (Code), the first of its kind to be issued by a regulator and a landmark code in the regulation of the international Hedge Fund industry.

The Code sets out best practice standards for Operators of Hedge Funds in the Dubai International Financial Centre (DIFC).

The DFSA's initiative to issue a Code of Practice comes in the wake of enhanced industry and regulatory focus on Hedge Funds. The Code addresses some specific risks that are associated with Hedge Funds and reflects the DFSA's commitment to risk-based regulation.

The issuance of the Code follows several months of consultation with industry professionals and international regulators who were invited to comment on the proposed rules and offer their opinions on the Code of Practice.

There are nine high-level principles in the Code, which cover areas of key operational, management and market-related risks, particularly in the areas such as valuation of assets, back office functions and exposure to market risks.

David Knott, Chief Executive of the DFSA said: "While there are a number of industry-based Hedge Fund Codes, the DFSA's Code is the first of its kind to be issued by a regulator. Having received highly positive feedback throughout the consultation period, we are confident that the Code will provide investors and Hedge Fund Managers with a backdrop for the successful development of Hedge Funds in the DIFC by ensuring the industry has the necessary regulations in place to prosper. This initiative reflects our commitment to the continued development of the DIFC as an attractive and well-regulated environment for Hedge Fund Operators and prospective investors."

For the full DFSA Hedge Fund Code of Practice, refer to the website at www.dfsa.ae.

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The Dubai Financial Services Authority (DFSA) is an independent, integrated regulatory authority responsible for the regulation of all financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), including asset management, banking, securities trading, Islamic finance, re-insurance, and an international financial exchange. The DFSA has been created using principle-based primary legislation modelled closely on that used in London and New York, and the DFSA regulatory regime operates to standards that meet or exceed those applying in the world's major financial centres.

The Dubai Financial Services Authority is a central component of the DIFC, a financial centre established to position Dubai as a recognised hub for institutional finance, and the regional gateway for capital and investment to the Middle East.

David Knott was appointed Chief Executive of the DFSA on 1 June, 2005. He is a former Chairman of the Australian Securities and Investments Commission (ASIC) and was Chairman of the Technical Committee of the International Organisation of Securities Commissions (IOSCO).  Other positions previously held by him include COO of the Australian Prudential Regulation Authority (APRA); CEO of Commonwealth Funds Management; CEO of the Australian Financial Institutions Commission (AFIC) and Director of the Australian Crime Commission.

For further information please contact:
Ms. Angharad Irving - Jones        
Manager, Communications and Strategic Planning   
Dubai Financial Services Authority
Level 13, The Gate
Dubai, U.A.E.
Tel: +971 (0)4 362 1661         
Fax: +971 (0)4 362 0801       
Email: airvingjones@dfsa.ae
www.dfsa.ae

© Press Release 2007