Entire Section

  • CIR 7.1 CIR 7.1 Application

    • CIR 7.1.1

      (1) This chapter applies to a Fund Manager, and where appointed a Trustee, of a Domestic Fund.
      (2) Only this Rule and Rules 7.1.2(1)(b), 7.1.2(2) and 7.1.4 apply to a Fund Manager and, where appointed, a Trustee, of a Qualified Investor Fund.
      Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
      [Amended] DFSA RM137/2014 (Made 21st August 2014). [VER17/06-14]

    • Instrument Constituting the Fund

      • CIR 7.1.2 CIR 7.1.2

        (1) The Fund Manager and, in the case of an Investment Trust, both the Fund Manager and the Trustee of a Fund, must ensure that the written Constitution which every Fund is required to have pursuant to Article 27(1) of the Law:
        (a) contains the statements and disclosures prescribed in the table in CIR App5 as are applicable to the Fund; and
        (b) does not contain any provision that is prejudicial to the interests of the Unitholders generally or to the Unitholders of any class of Units.
        (2) The Fund Manager and, in the case of an Investment Trust, both the Fund Manager and the Trustee, are responsible for maintaining the Constitution and for making necessary alterations to it in accordance with the applicable legislation.
        Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

        • CIR 7.1.2 Guidance

          Guidance

          In the case of a Fund on a Fund Platform, such a Fund, being an Incorporated Cell of an Incorporated Cell Company, needs its own Articles of Association under the ICC Regulations.

      • CIR 7.1.3

        (1) A Fund Manager may issue and in the case of an Investment Trust, may instruct the Trustee to issue such classes of Units as are set out in the Constitution, provided the rights of any class are not unfairly prejudicial to the interests of the Unitholders of any other class of Units in that Fund.
        (2) Units whose issue may be limited can be issued by a Fund Manager if permitted by the Constitution and if in accordance with the conditions set out in the Prospectus, provided that such issue will not materially prejudice any existing Unitholders in the Fund.
        (3) In the case of an Investment Trust, the Trustee must take reasonable measures to ensure, before carrying out the Fund Manager's instructions, that those instructions comply with the requirements in (1) and (2).
        Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

    • Name of the Fund

      • CIR 7.1.4 CIR 7.1.4

        The Fund Manager, and if appointed the Trustee, of a Fund must ensure that the name of the Fund or any Sub-Fund or class of Units in the Fund or Sub-Fund, is not undesirable, misleading or in conflict with the name of another Fund or another Sub-Fund or class of Units in the Fund or Sub-Fund.

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

        • CIR 7.1.4 Guidance

          1. Article 27(4) of the Law and this Rule give the DFSA the power to make a direction if a name of a Fund, Sub-Fund or class of Units in a Fund is undesirable, misleading or conflicts with a name used by another Fund, Sub-Fund or class of Units of a Fund. In the case of a Protected Cell Company or an Incorporated Cell Company, the PCC and the ICC Regulations confer additional powers on the DFSA to give a direction in relation to those companies and their cells.
          2. In determining whether to make a direction under these powers, the matters that the DFSA may take into account include whether the name of the Fund, Sub-Fund or class of Units as the case may be:
          a. implies that the Fund, Sub-Fund or class of Units has merits which are not, or might not be, justified;
          b. is inconsistent with the Fund's investment objectives or policy;
          c. might mislead Unitholders or prospective Unitholders into thinking that a Person other than the Fund Manager is responsible for the Fund, Sub-Fund or class of Units of the Fund;
          d. is substantially similar to the name of another Collective Investment Fund in the DIFC or elsewhere;
          e. implies that it is a specialist class of Fund or Sub-Fund, where the relevant requirements relating to that class of specialist Fund are not met; or
          f. is in the opinion of the DFSA likely to offend the public.
          Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
          [Amended] RM158/2015 (Made 9th December 2015). [VER19/02-16]
          [Amended] DFSA RMI248/2019 (Made 18th December 2019) [VER26/12-19].

      • CIR 7.1.5 CIR 7.1.5

        Before using as part of or in connection with the name of a Fund, Sub-Fund or class of Units in a Fund the words "guaranteed", "protected" or any other words with a similar meaning implying a degree of security in relation to the capital or income, the Fund Manager must demonstrate to the satisfaction of the DFSA that:

        (a) the guarantor has the authority and resources to honour the terms of the guarantee; and
        (b) all the terms of the guarantee and the credentials of the guarantor are clearly set out in detail in the Prospectus and that any exclusions such as force majeure are highlighted.
        Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
        [Amended] RM158/2015 (Made 9th December 2015). [VER19/02-16]

        • CIR 7.1.5 Guidance

          In considering whether to permit a Fund Manager to use the words "guaranteed" or "protected" as part of or in connection with the name of a Fund, Sub-Fund or class of Units in a Fund, the DFSA will also take into account whether the degree of security implied by the name fairly reflects the nature of the arrangements for providing that security.

          Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
          [Amended] RM158/2015 (Made 9th December 2015). [VER19/02-16]

    • Alterations to the Constitution of a Fund

      • Guidance

        Articles 35 and 36 of the Law govern the process of making alterations to a Constitution. These requirements apply to the alteration of Articles of Association of a Fund on a Fund Platform (i.e. an Incorporated Cell of an Incorporated Cell Company).

        Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
        [Amended] DFSA RMI248/2019 (Made 18th December 2019) [VER26/12-19].