Entire Section
CIR 16 CIR 16 Transfer Schemes Relating to Domestic Funds
CIR 16.1 CIR 16.1 Application of the Regulatory Law
CIR 16.1 Guidance
1. Pursuant to Part 9 of the Regulatory Law 2004, aFund may be transferred in whole or in part to another body in accordance with that Part.2. TheDFSA may makeRules for the purposes of that Article pursuant to the power conferred under Article 113 of the Regulatory Law 2004.Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]CIR 16.1.1 CIR 16.1.1
This Chapter applies to a
Fund Manager and, where appointed, theTrustee of aDomestic Fund and, if theFund is anUmbrella Fund using the form of aProtected Cell Company , in respect of each cell as if though each cell is a separateFund .Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]CIR 16.1.1 Guidance
Guidance
A Fund Manager of a Fund that is an Incorporated Cell of an ICC is, in addition to the requirements in this chapter, required to comply with the requirements in the ICC Regulations that apply to the transfer of an Incorporated Cell.
CIR 16.1.2
Pursuant to Article 113 of the Regulatory Law 2004, the
DFSA prescribes, in CIR Rule 16.1.3, the modification to Part 9 of that Law necessary for the purposes of transferring aFund's property or liability to anotherFund .Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]CIR 16.1.3
(1) Part 9 of the Regulatory Law 2004 is to be read and, to have effect, as if it were subject to the provisions set out in this Rule.(2) Where, for the purpose of a transfer scheme, it is proposed that the property of aFund should become the property of anotherFund or the property of aSub-Fund of anUmbrella Fund , the proposal must not be implemented without the sanction of aSpecial Resolution of theUnitholders in theFund , unless (3) applies.(3) Where, for the purposes of a transfer scheme, it is proposed thatFund Property attributable to aSub-Fund of anUmbrella Fund should become the property of anotherFund , the proposal must not be implemented without the sanction of:(a) aSpecial Resolution of theUnitholders in theSub-Fund of thatUmbrella Fund ; and(b) in the case of anUmbrella Fund that does not use the form of aProtected Cell Company , unless implementation of the transfer scheme is not likely to result in any material prejudice to the interests of theUnitholders in any otherSub-Fund of thatUmbrella Fund , aSpecial Resolution of theUnitholders of otherSub-Funds of that thatUmbrella Fund .(4) If it is proposed that aFund or aSub-Fund of anUmbrella Fund should receive property, other than its first property pursuant to a transfer scheme, or an arrangement equivalent to a scheme of arrangement entered into with some otherFund orSub-Fund , or aBody Corporate , the proposal must not be implemented without the sanction of aSpecial Resolution of theUnitholders in the relevantFund orSub-Fund and, in the case of anUmbrella Fund which is not in the form of aProtected Cell Company , the class or classes ofUnits related to theSub-Fund , unless (5) applies.(5) In (4), if theFund Manager and if appointed theTrustee agree that the receipt of the property concerned for the account of theFund :(a) is not likely to result in any material prejudice to the interest of theUnitholders of theFund ;(b) is consistent with the objectives of theFund orSub-Fund of anUmbrella Fund ; and(c) could be effected without any breach of the requirements relating to the borrowing and investment restrictions relating to theFund orSub-Fund in CIR chapter 10.5;then the transfer may be effective and the issue ofUnits in exchange for assets as part of a transfer scheme may be undertaken.Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
[Amended] RM158/2015 (Made 9th December 2015). [VER19/02-16]