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
Rulesin 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 Personto whom the legislation in (a) applies except as otherwise provided.
CIR 1.1.1 Guidance1. 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."
CIR applies to every
Personwho carries on, or intends to carry on, in or from the DIFCthe Financial Servicesof:(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.
CIR applies to every
Personwho 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.
CIR 1.1.4 CIR 1.1.4(1) CIR also applies to an
Authorised Firmother than a Representative Officethat:(a) provides a Financial Service; or(b) undertakes a Transactionin or from the DIFC;in relation to a Domestic Fundor Foreign Fund.(2) In the case of a Representative Office, only the Rulesin CIR chapter 15 apply.
CIR 1.1.4 Guidance
In regard to CIR Rule 1.1.4(2), a
Representative Officeis authorised under its Licenceto market, among other financial products, the Unitsof Foreign Funds, however, the scope of such marketing is limited to marketing the Unitsof the Foreign Fundsthat fulfil the criteria set out under REP section 4.7 as appropriate.
CIR 1.1.5 CIR 1.1.5(1) CIR also applies to a
Fundwhether or not it has a separate legal personality.(2) Where a Ruleimposes an obligation on a Fund, each Director, Partneror other Personcharged with the management of that Fundmust take reasonable steps to ensure compliance with the requirement by the Fund.
CIR 1.1.5 Guidance1. The
Rulesin this module (CIR) establish a regime to regulate Domestic Funds, which may be Public Funds, Exempt Fundsor Qualified Investor Funds. Domestic Fundsinclude External Fundsas 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 Unitsof Foreign Fundsin or from the DIFCand to the provision of a Financial Serviceto a Foreign Fundwhere any such activity is undertaken by an Authorised Firm. In that regard, the COB Rules also apply to the provision of Financial Servicesby an Authorised Firm.3. If a Domestic Fundor Foreign Fundintends to list its Unitson an Authorised Market Institution(AMI), it will need to comply with the relevant Rulesin the MKT module and the AMI's listing Rules in respect of Domestic Funds. Exempt Fundsand Qualified Investor Fundscannot be listed.4. A Public Property Fundis required to be a closed-ended and Listed Fundand to be structured as an Investment Companyor an Investment Trust. A Property Fundthat is an Exempt Fundor QIF can be either Open-ended or Closed-ended.
CIR 1.2 CIR 1.2 Interpretation
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.
CIR 1.3 CIR 1.3 Client Classification
CIR 1.4 CIR 1.4 The different types of Domestic Funds
CIR 1.4 Guidance
Article 13 of the Law defines
Fundsas either Domestic Fundsor Foreign Funds. Article 15 of the Law then further divides Domestic Fundsinto three categories which are listed below in terms of the level of regulation (from most intensively regulated to least intensively regulated):(a) Public Funds;(b) Exempt Funds; and(c) Qualified Investor Funds.
This table illustrates the different Rules applicable to the three categories of
CIR 1.5 CIR 1.5 The Fund Protocol in the UAE
CIR 1.5 Guidance1. The authorities responsible for the regulation of
Fundsin the UAE(the DFSA, SCAand 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 Fundestablished or domiciled in the DIFC(whether a Public Fund, Exempt Fundor Qualified Investor Fund) wishes to Promotethe Fundin the other jurisdictions (a 'Passported Fund').3. A Fundestablished or domiciled in the DIFCthat wishes to be a Passported Fundwill, 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 Fundfor consistency with FPR. In summary, the main additional or modified requirements in FPRrelate 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 Fundis established or domiciled in one of the other UAEjurisdictions, many of the requirements in this module do not apply to the Fundas it is a Foreign Fundrather 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 Fundwill need to comply with the requirements in its Home Jurisdiction, including the relevant Fund Protocolrules or regulations made by its Home Regulator.Derived from RM235/2019 (Made 20th February 2019). [VER24/02-19]