GEN 2.10.2 GEN 2.10.2
Personwho is not an Authorised Firmor an Authorised Market Institutiondoes not Manage Assetsif:(a) he is a Personformally 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 Investmentswhich are included in those assets are taken by an Authorised Firmor a Regulated Financial Institution.
Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
GEN 2.10.2 Guidance1. A
Persondoes not become a Fund Managerof a Fundmerely by being appointed by a Fund Managerof a Fundto provide the Financial Serviceof Managing Assetsto the Fund. This is because the Fund Managerremains legally accountable to the Unitholdersof the Fundfor the proper management of the Fundin accordance with its Constitutionand Prospectus.2. If an Authorised Firmhas a discretionary portfolio mandate from a Clientto manage assets on behalf of the Client, the firm controls those Client Assetsas it can execute transactions relating to those assets, within the parameters set in the mandate (see also COB Rule 6.11.4(d)).