Entire Section
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 everyPerson 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 theRules , 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 theDIFC theFinancial Services of:(a) Managing aCollective 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) aFund Manager ;(b) anExternal Fund Manager ;(c) a member of theGoverning Body ;(d) a director of aCorporate Director ;(e) an Eligible Custodian(f) aTrustee ; 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 anAuthorised Firm other than aRepresentative Office that:(a) provides aFinancial Service ; or(b) undertakes aTransaction in or from theDIFC ;in relation to aDomestic Fund orForeign Fund .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 itsLicence to market, among other financial products, theUnits ofForeign Funds , however, the scope of such marketing is limited to marketing theUnits of theForeign 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 aFund whether or not it has a separate legal personality.(2) Where aRule imposes an obligation on aFund , eachDirector ,Partner or otherPerson charged with the management of thatFund must take reasonable steps to ensure compliance with the requirement by theFund .Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]CIR 1.1.5 Guidance
1. TheRules in this module (CIR) establish a regime to regulateDomestic Funds , which may bePublic Funds ,Exempt Funds orQualified Investor Funds .Domestic Funds includeExternal Funds as defined in Article 14(1) of the Law. In addition, this module also regulatesFund Managers , which includeExternal Fund Managers as defined in Article 20(5) of the Law.2. CIR also applies to marketing and selling ofUnits ofForeign Funds in or from theDIFC and to the provision of aFinancial Service to aForeign Fund where any such activity is undertaken by anAuthorised Firm . In that regard, the COB Rules also apply to the provision ofFinancial Services by anAuthorised Firm .3. If aDomestic Fund orForeign Fund intends to list itsUnits on anAuthorised Market Institution (AMI), it will need to comply with the relevantRules in the MKT module and the AMI's listing Rules in respect ofDomestic Funds .Exempt Funds andQualified Investor Funds cannot be listed.4. APublic Property Fund is required to be a closed-ended andListed Fund and to be structured as anInvestment Company or anInvestment Trust . AProperty Fund that is anExempt 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 aProfessional Client are specified in COB Rule 2.3.3, and(b) the criteria to be classified as aRetail 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 1.4 CIR 1.4 The different types of Domestic Funds
CIR 1.4 Guidance
Article 13 of the Law defines
Funds as eitherDomestic Funds orForeign Funds . Article 15 of the Law then further dividesDomestic Funds into 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
Domestic Fund .[Added] DFSA RM137/2014 (Made 21st August 2014). [VER17/06-14]
[Amended] DFSA RM218/2018 (Made 22nd February 2018) [VER23/12-18]
[Amended] DFSA RMI248/2019 (Made 18th December 2019) [VER26/12-19].
[Amended] DFSA RMI279/2020 (Made 28th October 2020). [VER29/11-20]
[Amended] DFSA RMI 323/2022 (Made 27th April 2022). [VER33/06-22]CIR 1.5 CIR 1.5 The Fund Protocol in the UAE
CIR 1.5 Guidance
1. The authorities responsible for the regulation ofFunds in theUAE (theDFSA ,SCA and theFSRA ) have entered into arrangements (the "Fund Protocol") to facilitate domestic funds established or domiciled in one jurisdiction (theHome Jurisdiction ) being Promoted in the other jurisdictions (theHost Jurisdictions ).2. The Fund Protocol Rules (FPR) set out, among other things, the procedures and requirements that apply if aFund established or domiciled in theDIFC (whether aPublic Fund ,Exempt Fund orQualified Investor Fund ) wishes toPromote theFund in the other jurisdictions (a 'Passported Fund').3. AFund established or domiciled in theDIFC that wishes to be aPassported Fund will, in addition to complying with the procedures and requirements inFPR , still need to comply with relevant requirements in this module. In some cases, requirements in this module are modified for aPassported Fund for consistency withFPR . In summary, the main additional or modified requirements inFPR relate to:(a) custodian requirements forPublic Funds ;(b) prospectus requirements forPublic 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 aPassported Fund , see the Fund Protocol Rules (FPR).5. If aPassported Fund is established or domiciled in one of the otherUAE jurisdictions, many of the requirements in this module do not apply to theFund as it is aForeign Fund rather than aDomestic Fund (as those terms are defined in theLaw ). Only certain requirements in this module apply toForeign Funds (e.g. Chapter 15: marketing of Foreign Funds). Instead, thePassported Fund will need to comply with the requirements in itsHome Jurisdiction , including the relevantFund Protocol rules or regulations made by itsHome Regulator .Derived from RM235/2019 (Made 20th February 2019). [VER24/02-19]