Entire Section

  • CIR A1.2.1 CIR A1.2.1

    (1) A Fund Manager or Trustee must ensure that any agreement specified in Rule A1.1.1:
    (a) sets out the functions or activities and service standards that will be applied to the carrying out of such functions or activities;
    (b) provides that the Service Provider cannot in turn, delegate any activities delegated to it, or outsource any functions outsourced to it, without prior approval of the Fund Manager or Trustee as applicable;
    (c) requires the Service Provider to:
    (i) maintain records to show and explain transactions in relation to each activity or function performed in relation to the Fund;
    (ii) maintain such records in a manner to enable the Fund Manager or Trustee to prepare accounts in compliance with these Rules and any other applicable legislation;
    (iii) retain the records for at least six years from the date to which they relate;
    (iv) keep the records, at all reasonable times, open to inspection by the DFSA, the Fund's Auditor and any Person providing the oversight function for the Fund; and
    (v) ensure that the records are, if requested by the DFSA, capable of reproduction within a reasonable period not exceeding 3 days, in hard copy and in English.
    (2) A Fund Manager or Trustee must ensure that a Delegation Agreement contains an undertaking by the Service Provider to:
    (a) comply with any DFSA Rules applicable to the activity; and
    (b) disclose to the DFSA and to the Fund Manager or Trustee, as the case may be, any material information that it would disclose to its Financial Services Regulator, if relevant, in relation to the conduct of the activity.
    (3) A Fund Manager or Trustee must maintain records of all agreements, and any instructions given to a Service Provider under the terms of an agreement, for at least six years.
    Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

    • CIR A1.2.1 Guidance

      1. Other Rules may also impact on the contents of a Delegation Agreement or Outsourcing Agreement. For instance, consideration should be given to GEN Rule 5.3.21 and accompanying Guidance.
      2. Without limiting the application of any Rules, the DFSA expects that any agreement would include as a minimum:
      a. unambiguous descriptions and definitions of the activities or functions to be provided by the Service Provider and the duties of both parties;
      b. an agreed standard between the parties or resources and services supported as necessary by performance measures in accordance with the applicable Rules;
      c. the requirement for regular detailed reporting to a specified frequency from the Service Provider in respect of its duties and activities;
      d. provisions relating to the reporting of relevant events such as technological changes or error reporting and, in particular, any event which undermines the ability of the Service Provider to fulfil its duties; and
      e. the requirement for an annual review (at a minimum) of the performance of the Service Provider.
      Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]