Entire Section
CIR App 3 CIR App 3 Approvals and Notifications
CIR A3.1 CIR A3.1 Alterations to a Fund
CIR A3.1.1 CIR A3.1.1
(1) TheFund Manager of aPublic Fund must, by way of aSpecial Resolution , obtain prior approval from theUnitholders for any proposed change to theDomestic Fund which is a fundamental change.(2) In addition to the specific fundamental changes in relation to aFund prescribed under Article 35(1) of the Law and also under Rules CIR Rule 8.3.2, CIR Rule 8.13.3, CIR Rule 13.4.4(2) and CIR Rule 16.1.3(2), a "fundamental change" under (1) is a change or event which:(a) changes the purpose or nature of theFund ;(b) may materially prejudice aUnitholder ;(c) alters the risk profile of theFund ; or(d) introduces any new type of payment out ofFund Property .(3) Notwithstanding (2) above, any change may be fundamental depending on its degree of materiality and effect on theFund and itsUnitholders . Consequently, theFund Manager must determine whether in each case a particular change is fundamental in nature and, if theFund is anInvestment Trust , obtain theTrustee's agreement to the outcome of the determination.Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
[Amended] DFSA RM137/2014 (Made 21st August 2014). [VER17/06-14]CIR A3.1.1 Guidance
For the purpose of this section, a fundamental change to a
Fund is likely to include:a. any proposal for a scheme of arrangement;b. a change in the investment policy to achieve capital growth from investment in one country rather than another;c. a change in the investment objective or policy to achieve capital growth through investment in fixed interest rather than in equity investments;d. a change in the investment policy to allow theFund to invest in derivatives as an investment strategy which increases its volatility;e. a change to the characteristics of aFund to distribute income annually rather than monthly;f. the introduction of limited redemption arrangements; org. a change of the custodian, trustee or other oversight arrangement.Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]CIR A3.1.2 CIR A3.1.2
(1) TheFund Manager of aPublic Fund must give prior written notice toUnitholders in respect of any proposed change to the operation of aFund where the change constitutes a significant change.(2) A "significant change" in (1) is a change or event which is not a fundamental change under CIR Rule A3.1.2 but:(a) affects aUnitholder's ability to exercise his rights in relation to his investment;(b) would reasonably be expected to cause theUnitholder to reconsider his participation in theFund ;(c) results in any increased payments out of theFund Property to theFund Manager , theTrustee or any other director or an associate of either; or(d) materially increases other types of payment out ofFund Property .(3) Changes may be significant depending in each case on their degree of materiality and effect on theFund and itsUnitholders . Consequently theFund Manager will need to determine whether in each case a particular change is significant in nature or not and if theFund is anInvestment Trust obtain theTrustee's agreement of the outcome of the determination.Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
[Amended] DFSA RM137/2014 (Made 21st August 2014). [VER17/06-14]CIR A3.1.2 Guidance
1. The notice period required for a pre-event notification to theUnitholder should be of a reasonable length, which is expected to be at least 30 days.2. For the purpose of this section, a significant change is likely to include:a. a change in the method of price publication;b. a change in any operational policy such as dilution policy or allocation of payments policy; orc. an increase in the preliminary charge whereUnits are purchased through a group savings plan.Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]CIR A3.1.3 CIR A3.1.3
(1) AFund Manager must to informUnitholders in an appropriate manner and timescale of any notifiable changes that are reasonably likely to affect, or to have affected, the operation of theFund .(2) A notifiable change in (1) is a change or event, other than a fundamental change or a significant change specified in this Appendix, which aUnitholder must be made aware of unless theFund Manager concludes that the change is insignificant.Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]CIR A3.1.3 Guidance
1. The circumstances causing a notifiable change may or may not be within the control of theFund Manager .2. For the purpose of this section, a notifiable change might include:a. a change of a named investment manager where theFund has been marketed on the basis of that investment manager's involvement;b. a significant political event which impacts on theFund or its operation;c. a change to the time of the valuation point;d. the introduction of limited issue arrangements; ore. a change in the name of theFund .3. The appropriate manner and timescale of notification in this section would depend on the nature of the change or event. Consequently, theFund Manager will need to assess each change or event individually.4. An appropriate manner of notification could include:a. sending an immediate notification to theUnitholder ;b. publishing the information on a website; orc. the information being included in the next periodical report of theFund .Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]