Entire Section

  • CIR 8.2 CIR 8.2 Duties in Relation to Fund Property

    • Fund Manager

      • CIR 8.2.1

        (1) A Fund Manager must make decisions as to the constituents of the Fund Property that are in accordance with the Constitution of the Fund and investment objectives and policy stated in the Prospectus.
        (2) A Fund Manager must take all steps and execute all documents to ensure that transactions relating to the Fund Property are properly entered into for the account of the relevant Fund or Sub-Fund.
        (3) A Fund Manager of an Investment Trust must ensure that instructions it gives to the Trustee in relation to the Fund Property are 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 Company or an Investment Partnership, the Fund Manager is responsible to the Unitholders for the safekeeping of the Fund Property.
        (2) Without removing the generality of the obligation under (1) and subject to (3), a Fund Manager must, in the case of a Fund which is an Investment Company or Investment Partnership:
        (a) delegate the activity of Providing Custody in relation to the Fund Property to a Service Provider who 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 Fund in respect of Real Property:
        (i) that is held by the Fund Manager or by an Incorporated Cell Company in accordance with CIR Rule 13.4.2 or CIR 13.4.2A; or
        (ii) for which the Fund Manager has made adequate alternative arrangements in accordance with CIR Rule 13.4.2B;
        (b) a Private Equity Fund where the Fund Manager has made adequate alternative arrangements that are in accordance with CIR Rule 13.3.1; or
        (c) an Exempt Fund where the Fund Property:
        (i) comprises of an interest in the operation of a Real Property asset (such as an investment in an infrastructure project); and
        (ii) the Fund Manager makes alternative arrangements to ensure that the Fund Property is clearly distinguishable as belonging to the Fund, and is segregated from the assets of the Fund Manager and from the assets of any other Fund which the Fund Manager manages.
        Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
        [Amended] RM158/2015 (Made 9th December 2015). [VER19/02-16]
        [Amended] DFSA RM218/2018 (Made 22nd February 2018) [VER23/12-18]
        [Amended] DFSA RMI248/2019 (Made 18th December 2019) [VER26/12-19].

        • CIR 8.2.2 Guidance

          1. CIR Section 8.12 of this module governs the power of a Fund Manager to delegate certain of its Financial Service activities, and to outsource its functions.
          2. Where a Fund invests in infrastructure projects (for example, the development of public facilities such as roads, railways or bridges), the interest acquired by the Fund may not necessarily be suited to the conventional forms of holding custody of Real Property. Where this is the case, a Fund Manager may use adequate alternative custody arrangements that meet the requirements in CIR 8.2.2(3)(c)(2)(ii).
          Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
          [Amended] DFSA RM218/2018 (Made 22nd February 2018) [VER23/12-18]

    • Trustee

      • CIR 8.2.3 CIR 8.2.3

        In the case of an Investment Trust:

        (a) the Trustee of the Fund must hold the Fund Property in trust for the Unitholders and accordingly is responsible to the Unitholders for the safekeeping of the Fund Property;
        (b) the legal title of the Fund Property must be registered with the Trustee except in the case of a Property Fund investing in Real Property where the Trustee has made adequate alternative arrangements that are in accordance with CIR Rule 13.4.2B; and
        (c) the Trustee must not act on instructions of the Fund Manager in relation to the Fund Property if such instructions are not in accordance with the agreement creating the Investment Trust, the Fund's Constitution, or the Prospectus.
        Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
        [Amended] RM158/2015 (Made 9th December 2015). [VER19/02-16]

        • CIR 8.2.3 Guidance

          CIR Section 8.12 of this module governs the power of a Trustee to delegate certain of its Financial Service activities, and to outsource its functions.

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

    • Eligible Custodian

      • CIR 8.2.4

        For the purposes of the Rules in this module, except as provided in CIR Rule 8.2.5, an Eligible Custodian is a Person who is a separate legal entity from the Fund Manager and who also meets one of the following criteria:

        (a) an Authorised Firm whose Licence authorises it to Provide Custody Services;
        (b) an Authorised Firm that 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 Regulator in the State;
        (e) a legal entity that is authorised to provide custody services, and is supervised, by a Financial Services Regulator in 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 Regulator in another jurisdiction which is a Zone 1 country; or
        (g) a legal entity that is authorised or recognised by a Financial Services Regulator to 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 Regulator of at least one of the national governments specified in (i).
        Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
        [Amended] RM158/2015 (Made 9th December 2015). [VER19/02-16]
        [Amended] RM235/2019 (Made 20th February 2019). [VER24/02-19]

      • CIR 8.2.5

        For a Public Fund (other than a Property Fund) that is a Passported Fund, the Eligible Custodian must be a Person who meets the requirements in FPR Rule 6.5.3.

        Derived from RM235/2019 (Made 20th February 2019). [VER24/02-19]