CIR 8.2 CIR 8.2 Duties in Relation to Fund Property
CIR 8.2.1(1) A
Fund Managermust make decisions as to the constituents of the Fund Propertythat are in accordance with the Constitutionof the Fundand investment objectives and policy stated in the Prospectus.(2) A Fund Managermust take all steps and execute all documents to ensure that transactions relating to the Fund Propertyare properly entered into for the account of the relevant Fundor Sub-Fund.(3) A Fund Managerof an Investment Trustmust ensure that instructions it gives to the Trusteein relation to the Fund Propertyare in accordance with the agreement creating the Investment Trust, the Fund's Constitution, and the Prospectus.Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
CIR 8.2.2 CIR 8.2.2(1) In the case of an
Investment Companyor an Investment Partnership, the Fund Manageris responsible to the Unitholdersfor the safekeeping of the Fund Property.(2) Without removing the generality of the obligation under (1) and subject to (3), a Fund Managermust, in the case of a Fundwhich is an Investment Companyor Investment Partnership:(a) delegate the activity of Providing Custodyin relation to the Fund Propertyto a Service Providerwho is an Eligible Custodian; and(b) comply with the delegation procedures set out in CIR section 8.12 in relation to such a delegation.(3) The requirement in (2) does not apply to:(a) a Property Fundin respect of Real Property:(i) that is held by the Fund Manageror by an Incorporated Cell Company in accordance with CIR Rule 13.4.2 or CIR 13.4.2A; or(ii) for which the Fund Managerhas made adequate alternative arrangements in accordance with CIR Rule 13.4.2B;(b) a Private Equity Fundwhere the Fund Managerhas made adequate alternative arrangements that are in accordance with CIR Rule 13.3.1; or(c) an Exempt Fundwhere the Fund Property:(i) comprises of an interest in the operation of a Real Propertyasset (such as an investment in an infrastructure project); and(ii) the Fund Managermakes alternative arrangements to ensure that the Fund Propertyis clearly distinguishable as belonging to the Fund, and is segregated from the assets of the Fund Managerand from the assets of any other Fundwhich the Fund Managermanages.
CIR 8.2.2 Guidance1. CIR Section 8.12 of this module governs the power of a
Fund Managerto delegate certain of its Financial Serviceactivities, and to outsource its functions.2. Where a Fundinvests in infrastructure projects (for example, the development of public facilities such as roads, railways or bridges), the interest acquired by the Fundmay not necessarily be suited to the conventional forms of holding custody of Real Property. Where this is the case, a Fund Managermay use adequate alternative custody arrangements that meet the requirements in CIR 8.2.2(3)(c)(2)(ii).
CIR 8.2.3 CIR 8.2.3
In the case of an
Investment Trust:(a) the Trusteeof the Fundmust hold the Fund Propertyin trust for the Unitholdersand accordingly is responsible to the Unitholdersfor the safekeeping of the Fund Property;(b) the legal title of the Fund Propertymust be registered with the Trusteeexcept in the case of a Property Fundinvesting in Real Propertywhere the Trusteehas made adequate alternative arrangements that are in accordance with CIR Rule 13.4.2B; and(c) the Trusteemust not act on instructions of the Fund Managerin relation to the Fund Propertyif such instructions are not in accordance with the agreement creating the Investment Trust, the Fund's Constitution, or the Prospectus.
For the purposes of the Rules in this module, except as provided in CIR Rule 8.2.5, an
Eligible Custodianis a Personwho is a separate legal entity from the Fund Managerand who also meets one of the following criteria:(a) an Authorised Firmwhose Licenceauthorises it to Provide Custody Services;(b) an Authorised Firmthat is a Bank;(c) an Authorised Market Institution;(d) a legal entity that is authorised to provide custody services, and is supervised, by a Financial Services Regulatorin the State;(e) a legal entity that is authorised to provide custody services, and is supervised, by a Financial Services Regulatorin a Recognised Jurisdiction;(f) a legal entity where it, or its holding company, is authorised to provide custody services and is supervised by a Financial Services Regulatorin another jurisdiction which is a Zone 1country; or(g) a legal entity that is authorised or recognised by a Financial Services Regulatorto operate as an exchange or a clearing house in a Recognised Jurisdiction;(h) a legal entity that is:(i) controlled and wholly owned by one or more of the national governments of the five member states of the Gulf Cooperation Council, other than the State; and(ii) authorised to provide custody services, and supervised, by a Financial Services Regulatorof at least one of the national governments specified in (i).