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  • Application

    • CIR 6.2.1

      This section applies to the Fund Manager of an External Fund.

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

    • CIR 6.2.2 CIR 6.2.2

      The Fund Manager of an External Fund must:

      (a) have systems and controls which are adequate to ensure compliance with the requirements that apply to the External Fund in the jurisdiction in which it is established or domiciled; and
      (b) inform the DFSA of the jurisdiction in which the Fund is or is to be established or domiciled and the nature of regulatory requirements applicable to the Fund in the host jurisdiction.
      Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

      • CIR 6.2.2 Guidance

        1. A Fund Manager of an External Fund is 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 Fund in the jurisdiction in which the Fund is domiciled, the Fund Manager may apply to the DFSA for appropriate waivers or modifications of the DFSA requirements.
        2. The DFSA may, upon receipt of the information referred to in CIR Rule 6.2.2(b), assess the desirability of establishing an External Fund in the particular jurisdiction chosen by the Fund Manager. Relevant considerations include:
        a. the Fund Manager's need to establish the Fund in the particular jurisdiction for reasons such as the physical location of the Fund assets or investor preference;
        b. any regulatory risks arising from establishing the External Fund in the relevant jurisdiction, particularly if the Fund is to be open to retail investors; and
        c. whether the relevant jurisdiction complies with the FATF or other relevant international standards or requirements.
        Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]