CIR 16 CIR 16 Transfer Schemes Relating to Domestic Funds
CIR 16.1 CIR 16.1 Application of the Regulatory Law
CIR 16.1 Guidance1. Pursuant to Part 9 of the Regulatory Law 2004, a
Fundmay be transferred in whole or in part to another body in accordance with that Part.2. The DFSAmay make Rulesfor the purposes of that Article pursuant to the power conferred under Article 113 of the Regulatory Law 2004.
CIR 16.1.1 CIR 16.1.1
This Chapter applies to a
Fund Managerand, where appointed, the Trusteeof a Domestic Fundand, if the Fundis an Umbrella Fundusing the form of a Protected Cell Company, in respect of each cell as if though each cell is a separate Fund.
CIR 16.1.1 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.
Pursuant to Article 113 of the Regulatory Law 2004, the
DFSAprescribes, in CIR Rule 16.1.3, the modification to Part 9 of that Law necessary for the purposes of transferring a Fund'sproperty or liability to another Fund.
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 a
Fundshould become the property of another Fundor the property of a Sub-Fundof an Umbrella Fund, the proposal must not be implemented without the sanction of a Special Resolutionof the Unitholdersin the Fund, unless (3) applies.(3) Where, for the purposes of a transfer scheme, it is proposed that Fund Propertyattributable to a Sub-Fundof an Umbrella Fundshould become the property of another Fund, the proposal must not be implemented without the sanction of:(a) a Special Resolutionof the Unitholdersin the Sub-Fundof that Umbrella Fund; and(b) in the case of an Umbrella Fundthat does not use the form of a Protected Cell Company, unless implementation of the transfer scheme is not likely to result in any material prejudice to the interests of the Unitholdersin any other Sub-Fundof that Umbrella Fund, a Special Resolutionof the Unitholdersof other Sub-Fundsof that that Umbrella Fund.(4) If it is proposed that a Fundor a Sub-Fundof an Umbrella Fundshould 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 other Fundor Sub-Fund, or a Body Corporate, the proposal must not be implemented without the sanction of a Special Resolutionof the Unitholdersin the relevant Fundor Sub-Fundand, in the case of an Umbrella Fundwhich is not in the form of a Protected Cell Company, the class or classes of Unitsrelated to the Sub-Fund, unless (5) applies.(5) In (4), if the Fund Managerand if appointed the Trusteeagree that the receipt of the property concerned for the account of the Fund:(a) is not likely to result in any material prejudice to the interest of the Unitholdersof the Fund;(b) is consistent with the objectives of the Fundor Sub-Fundof an Umbrella Fund; and(c) could be effected without any breach of the requirements relating to the borrowing and investment restrictions relating to the Fundor Sub-Fundin CIR chapter 10.5;then the transfer may be effective and the issue of Unitsin exchange for assets as part of a transfer scheme may be undertaken.