CIR 6.2 CIR 6.2 Requirements for External Funds
CIR 6.2 Guidance
Article 14(1) of the Law provides that a
Fundis an External Fundif that Fund:a. is established in a jurisdiction other than the DIFC; andb. is managed by a Fund Managerwhich is an Authorised Firm.
This section applies to the
Fund Managerof an External Fund.
CIR 6.2.2 CIR 6.2.2
Fund Managerof an External Fundmust:(a) have systems and controls which are adequate to ensure compliance with the requirements that apply to the External Fundin the jurisdiction in which it is established or domiciled; and(b) inform the DFSAof the jurisdiction in which the Fundis or is to be established or domiciled and the nature of regulatory requirements applicable to the Fundin the host jurisdiction.
CIR 6.2.2 Guidance1. A
Fund Managerof an External Fundis generally not subject to the requirements that otherwise apply to other Domestic Funds(see Article 14(2) of the Law). However, some limited requirements apply to External Funds. See for example the disclosure required under Rules CIR 14.2.4–CIR 14.2.7. Should such a requirement conflict with any requirements that apply to an External Fundin the jurisdiction in which the Fundis domiciled, the Fund Managermay apply to the DFSAfor appropriate waivers or modifications of the DFSArequirements.2. The DFSAmay, upon receipt of the information referred to in CIR Rule 6.2.2(b), assess the desirability of establishing an External Fundin the particular jurisdiction chosen by the Fund Manager. Relevant considerations include:a. the Fund Manager'sneed to establish the Fundin the particular jurisdiction for reasons such as the physical location of the Fundassets or investor preference;b. any regulatory risks arising from establishing the External Fundin the relevant jurisdiction, particularly if the Fundis to be open to retail investors; andc. whether the relevant jurisdiction complies with the FATFor other relevant international standards or requirements.
Fund management of external Credit Fund not permitted
Fund Managermust not manage an External Fundthat is a Credit Fund.Derived from DFSA RMI 323/2022 (Made 27th April 2022). [VER33/06-22]