Entire Section

  • Part 1 Part 1 Introduction

    • CIR 1 CIR 1 Application and Interpretation

      • CIR 1.1 CIR 1.1 Application

        • CIR 1.1.1 CIR 1.1.1

          The Rules in this module (CIR):

          (a) are made for the purposes of the Collective Investment Law 2010 and the Investment Trust Law 2006; and
          (b) apply to every Person to whom the legislation in (a) applies except as otherwise provided.
          Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

          • CIR 1.1.1 Guidance

            1. Article 1 of the Collective Investment Law 2010 provides as follows:
            "(a) This Collective Investment Law 2010 repeals and replaces the Collective Investment Law 2006 ("the Previous Law") and may be cited as the "Collective Investment Law of 2010" ("this Law").
            (b) Except where otherwise provided in the Rules, anything done or omitted to be done pursuant to or for the purposes of the Previous Law is deemed to be done or omitted to be done pursuant to or for the purposes this Law.
            (c) Without limiting the generality of Article 1(b), such repeal shall not affect:
            (i) any right, privilege, remedy, obligation or liability accrued to or incurred by any person; or
            (ii) any investigation or legal or administrative proceeding commenced or to be commenced in respect of any right, remedy, privilege, obligation or liability,
            under the Previous Law and, any such investigation or legal or administrative proceeding may be instituted, continued or enforced, including any penalty, fine or forfeiture, under this Law.
            (d) The DFSA may, by Rules, prescribe any transitional or saving provisions as are or are deemed necessary to give effect to, or to facilitate, the transition from the Collective Investment Law 2006 to this Law."
            Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

        • CIR 1.1.2

          CIR applies to every Person who carries on, or intends to carry on, in or from the DIFC the Financial Services of:

          (a) Managing a Collective Investment Fund;
          (b) Providing Fund Administration to a Fund;
          (c) Providing Custody to a Fund; or
          (d) Acting as the Trustee of a Fund.
          Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

        • CIR 1.1.3

          CIR applies to every Person who is, or intends to be:

          (a) a Fund Manager;
          (b) an External Fund Manager;
          (c) a member of the Governing Body;
          (d) a director of a Corporate Director;
          (e) an Eligible Custodian
          (f) a Trustee; and
          (g) an oversight provider.
          Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
          [Amended] DFSA RM137/2014 (Made 21st August 2014). [VER17/06-14]
          [Amended] DFSA RM218/2018 (Made 22nd February 2018) [VER23/12-18].

        • CIR 1.1.4 CIR 1.1.4

          (1) CIR also applies to an Authorised Firm other than a Representative Office that:
          (a) provides a Financial Service; or
          (b) undertakes a Transaction in or from the DIFC;
          in relation to a Domestic Fund or Foreign Fund.
          (2) In the case of a Representative Office, only the Rules in CIR chapter 15 apply.
          Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

          • CIR 1.1.4 Guidance

            In regard to CIR Rule 1.1.4(2), a Representative Office is authorised under its Licence to market, among other financial products, the Units of Foreign Funds, however, the scope of such marketing is limited to marketing the Units of the Foreign Funds that fulfil the criteria set out under REP section 4.7 as appropriate.

            Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

        • CIR 1.1.5 CIR 1.1.5

          (1) CIR also applies to a Fund whether or not it has a separate legal personality.
          (2) Where a Rule imposes an obligation on a Fund, each Director, Partner or other Person charged with the management of that Fund must take reasonable steps to ensure compliance with the requirement by the Fund.
          Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

          • CIR 1.1.5 Guidance

            1. The Rules in this module (CIR) establish a regime to regulate Domestic Funds, which may be Public Funds, Exempt Funds or Qualified Investor Funds. Domestic Funds include External Funds as defined in Article 14(1) of the Law. In addition, this module also regulates Fund Managers, which include External Fund Managersas defined in Article 20(5) of the Law.
            2. CIR also applies to marketing and selling of Units of Foreign Funds in or from the DIFC and to the provision of a Financial Service to a Foreign Fund where any such activity is undertaken by an Authorised Firm. In that regard, the COB Rules also apply to the provision of Financial Services by an Authorised Firm.
            3. If a Domestic Fund or Foreign Fund intends to list its Units on an Authorised Market Institution (AMI), it will need to comply with the relevant Rules in the MKT module and the AMI's listing Rules in respect of Domestic Funds. Exempt Funds and Qualified Investor Funds cannot be listed.
            4. A Public Property Fund is required to be a closed-ended and Listed Fund and to be structured as an Investment Company or an Investment Trust. A Property Fund that is an Exempt Fund or QIF can be either Open-ended or Closed-ended.
            Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
            [Amended] DFSA RM93/2012 (Made 14th June 2012). [VER14/06-12]
            [Amended] DFSA RM137/2014 (Made 21st August 2014). [VER17/06-14]
            [Amended] DFSA RM218/2018 (Made 22nd February 2018) [VER23/12-18].

      • CIR 1.2 CIR 1.2 Interpretation

        • CIR 1.2.1

          Any references to "the Law" or to "Articles" are to be construed as references to the Collective Investment Law 2010 and to Articles in that law.

          Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

      • CIR 1.3 CIR 1.3 Client Classification

        • CIR 1.3.1

          For the purposes of Article 16(7)(a) of the Law:

          (a) the criteria to be classified as a Professional Client are specified in COB Rule 2.3.3, and
          (b) the criteria to be classified as a Retail Client are specified in COB Rule 2.3.2.
          [Added] DFSA RM137/2014 (Made 21st August 2014). [VER17/06-14]
          [Amended] DFSA RM150/2015 (Made 11th February 2015) [VER18/04-15]

      • CIR 1.5 CIR 1.5 The Fund Protocol in the UAE

        • CIR 1.5 Guidance

          1. The authorities responsible for the regulation of Funds in the UAE (the DFSA, SCA and the FSRA) have entered into arrangements (the "Fund Protocol") to facilitate domestic funds established or domiciled in one jurisdiction (the Home Jurisdiction) being Promoted in the other jurisdictions (the Host Jurisdictions).
          2. The Fund Protocol Rules (FPR) set out, among other things, the procedures and requirements that apply if a Fund established or domiciled in the DIFC (whether a Public Fund, Exempt Fund or Qualified Investor Fund) wishes to Promote the Fund in the other jurisdictions (a 'Passported Fund').
          3. A Fund established or domiciled in the DIFC that wishes to be a Passported Fund will, in addition to complying with the procedures and requirements in FPR, still need to comply with relevant requirements in this module. In some cases, requirements in this module are modified for a Passported Fund for consistency with FPR. In summary, the main additional or modified requirements in FPR relate to:
          (a) custodian requirements for Public Funds;
          (b) prospectus requirements for Public Funds, including the requirement for a Key Investor Information Document (KIID); and
          (c) requirements for notification of certain material events.
          4. For more information about the procedures and requirements for a Passported Fund, see the Fund Protocol Rules (FPR).
          5. If a Passported Fund is established or domiciled in one of the other UAE jurisdictions, many of the requirements in this module do not apply to the Fund as it is a Foreign Fund rather than a Domestic Fund (as those terms are defined in the Law). Only certain requirements in this module apply to Foreign Funds (e.g. Chapter 15: marketing of Foreign Funds). Instead, the Passported Fund will need to comply with the requirements in its Home Jurisdiction, including the relevant Fund Protocol rules or regulations made by its Home Regulator.
          Derived from RM235/2019 (Made 20th February 2019). [VER24/02-19]