Entire Section

  • GEN 2.10.2 GEN 2.10.2

    A Person who is not an Authorised Firm or an Authorised Market Institution does not Manage Assets if:

    (a) he is a Person formally appointed in writing by the owner of the assets to manage the assets in question; and
    (b) all day-to-day decisions relating to the Investments which are included in those assets are taken by an Authorised Firm or a Regulated Financial Institution.

    Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]

    • GEN 2.10.2 Guidance

      1. A Person does not become a Fund Manager of a Fund merely by being appointed by a Fund Manager of a Fund to provide the Financial Service of Managing Assets to the Fund. This is because the Fund Manager remains legally accountable to the Unitholders of the Fund for the proper management of the Fund in accordance with its Constitution and Prospectus.
      2. If an Authorised Firm has a discretionary portfolio mandate from a Client to manage assets on behalf of the Client, the firm controls those Client Assets as it can execute transactions relating to those assets, within the parameters set in the mandate (see also COB Rule 6.11.4(d)).
      [Added] DFSA RM72/2010 (Made 11th July 2010) [VER26/07-10]
      [Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]