CIR 8.3.1 CIR 8.3.1(1) The
Fund Managerand, if it is a Fundstructured as an Investment Trust, the Trustee, must take reasonable steps to ensure that in any dealing in relation to the Fund Propertysuch dealings do not give rise to a conflict of interest.(2) Where a conflict of interest arises, whether in dealings with Related Partiesor otherwise, the Fund Managerand, if appointed, the Trustee, must disclose to the Unitholdersthe nature of the conflict and how the conflict will be managed.(3) The Fund Managermust take reasonable steps to establish and implement remuneration policies and practices which:(a) are consistent with sound and effective risk management of the Fundsit manages; and(b) do not, to the extent practicable, encourage risk-taking inconsistent with the investment objectives and risk profile of such Funds.
CIR 8.3.1 Guidance
GEN Rule 4.2.12 (Principle 12) requires an
Authorised Firmto have remuneration structures and strategies which are well aligned with the long term interests of the firm, and are appropriate to the nature, scale and complexity of its business. That requirement is extended under CIR Rule 8.3.1(3) to cover remuneration practices relating to Fundswhich a Fund Managermanages.[Derived from] DFSA RM218/2018 (Made 22nd February 2018) [VER23/12-18]