The International Financial Services Centres Authority (IFSCA),on October 19, 2026, published the comments and suggestions received on its consultation paper dated 22 October 2025, concerning a proposed regulatory framework for differential distribution in Restricted Schemes and Venture Capital Schemes to facilitate blended finance and other fund structures. The comments focus on improving sustainability-related disclosures, investor protection, governance and transparency.
Key suggestions include requiring ESG schemes to disclose alignment with the United Nations Sustainable Development Goals (SDGs), publish a Sustainable Financing Framework vetted through an independent second-party opinion, and provide more granular information on the intended use of funds and expected impact metrics. Other proposals include capping grants at 20% of the scheme corpus, introducing a gradual phase-out of concessional support, prioritising junior tranches for grant providers, clarifying voting rights for subordinate investors, and permitting junior units to convert into senior units upon achieving predetermined milestones.
Further recommendations include establishing advisory committees, defining the roles of donors, fund managers and investors, adopting a Theory of Change framework aligned with IFC Impact Principles, and implementing standardised reporting with independent verification or audit and periodic disclosures. These are stakeholder suggestions on the consultation paper, not confirmed final regulatory requirements. The supplied text does not specify a final decision or implementation date.
The comments were published by IFSCA on 19 October 2026 for stakeholder information. Separately, IFSCA issued the Framework for Differential Distribution in Venture Capital Schemes and Restricted Schemes on 25 September 2026. Accordingly, the published comments should be treated as feedback received during consultation, rather than amendments automatically incorporated into the final framework.
