Entire Section

  • CIR 13.4.2 CIR 13.4.2

    (1) A Fund Manager of a Public Property Fund is not required to appoint an Eligible Custodian under CIR Rule 8.2.2(2) for Real Property if the Fund Manager:
    (a) acts as custodian of the Real Property;
    (b) has in place adequate systems and controls to ensure the proper segregation and protection of the Real Property; and
    (c) has in place effective arrangements which ensure that the real Property is not available to creditors if the Fund Manager becomes insolvent.
    (2) The systems and controls referred to in (1)(b) must, as a minimum, ensure that:
    (a) legal title to the Real Property is registered in the name of the Fund;
    (b) the Fund Manager identifies, manages and monitors any conflicts of interest that may arise due to it acting as custodian of the Real Property;
    (c) the Fund Manager clearly designates the employees who are responsible for safeguarding the ownership rights of the Fund over any Real Property including but not limited to:
    (i) safekeeping title deeds and other legally relevant documents relating to the Real Property; and
    (ii) ensuring that legal title to the Real Property is registered in the name of the Fund; and
    (d) the employees referred to in (c) are not required to carry out duties and functions which may conflict with their duties and functions referred to in that paragraph.
    (3) If a Fund Manager referred to in (1) uses a Fund Platform, the Incorporated Cell Company (ICC) may act as the custodian of the Real Property.
    (4) If an ICC acts as the custodian under (3), this Rule applies as if a reference to:
    (a) the Fund Manager acting as custodian is to the ICC acting as custodian; and
    (b) the Fund Manager becoming insolvent is to the ICC becoming insolvent.
    [Added] RM158/2015 (Made 9th December 2015). [VER19/02-16]
    [Amended] DFSA RMI248/2019 (Made 18th December 2019) [VER26/12-19].

    • CIR 13.4.2 Guidance

      1. A Fund Manager of a Public Property Fund may itself act as custodian of Real Property if it has in place adequate systems and controls to ensure the segregation and protection of the Real Property. This option only applies for Real Property (defined as land or buildings, whether freehold or leasehold, where the unexpired term of any lease exceeds 20 years). It does not permit the Fund Manager to act as custodian of Property Related Assets such as Shares in a Body Corporate which invests in Real Property or Units in another Property Fund.
      2. In identifying, managing and monitoring conflicts of interest that may arise due to it acting as custodian, the Fund Manager must take into account that it is required under the Law to give priority to Unitholders' interests if there is a conflict between its own interests and the interests of Unitholders.
      3. If a Fund Manager decides to act as custodian of Real Property as permitted under this Rule, it must disclose in the Fund's Prospectus that it acts as custodian, the additional risks that may arise due to it acting as custodian, and how it has addressed those risks (see CIR Rule 14.4.4A).
      [Added] RM158/2015 (Made 9th December 2015). [VER19/02-16]