FPR App 1 FPR App 1 Minimum Requirements for Public Funds
Fund Managerof a Passported Fundthat is a Public Fundmust ensure that:(a) the incorporation and other legal formalities relating to the formation of the Public Fundare completed;(b) if it is a trust, it has a trustee which meets the requirements set out for acting as a trustee of a Public Fundin the Home Jurisdiction;(c) it has appointed an auditor who complies with the relevant audit rules in the Home Jurisdiction; and(d) the Prospectusfor the Fundmeets the minimum requirements set out in FPR A1.1.2.
FPR A1.1.2 FPR A1.1.2
Prospectusfor a Passported Fundthat is a Public Fundmust contain, at a minimum, the information prescribed in the following table. 1. Document Status A statement that this document is the Prospectusof the Public Fundand is valid as at a particular date which shall be the date of the Prospectus. 2. Description of the Fund Information detailing:
(a) the name of the
Public Fundand the fact that it is a Public Fundestablished in the DIFC;(b) the effective date of commencement of the Public Fund's operations and, if the duration of the Public Fundis not unlimited, when it will or may terminate;(c) the legal structure of the Public Fund;(d) the basis upon which persons are eligible to participate in the Public Fundand, where applicable, the minimum initial investment;(e) that the Unitholdersare not liable for the debts of the Public Fund, unless the applicable legislation in the DIFCprescribes otherwise and, if so, a statement specifying the circumstances in which Unitholders may be so liable;(f) the base currency of the Public Fundand, where relevant, the maximum and minimum sizes of the Public Fund's capital;(g) the circumstances in which the Public Fundmay be wound up; and(h) that no Units will be issued on the basis of the Prospectusafter the expiry date specified in the Prospectus. 3. Investment Objectives and Policy Sufficient information to enable a Unitholderor a prospective Unitholderto ascertain:
(a) the investment objectives of the
Public Fundand its investment policy for achieving those investment objectives;(b) the Public Fund's policy and any operating restrictions in relation to the use of debt;(c) a description of any restrictions in the assets in which investment may be made; and(d) the extent, if any, to which that investment policy does not envisage remaining fully invested at all times.
If intended, whether the
Fund Propertymay consist of Units in Domestic Fundswhich are managed or operated by the Fund Manageror by one of its associates and a statement specifying:(a) the basis of the maximum amount of the charges in respect of transactions in the Fundinvested in; and(b) the extent to which any such charges will be reimbursed to the Public Fund. 4. The characteristics of Units in the Public Fund Information as to:
(a) the names of the classes of
Unitsof the Public Fundin issue or available for issue and the rights attached to them in so far as they vary from the rights attached to other classes of Unitsin the Public Fund;(b) how Unitholdersmay exercise their voting rights and what they are; and(c) the circumstances where a mandatory redemption, cancellation or conversion of a Unitfrom one class to another may be required. 5. The Fund Manager The following particulars of the Fund Manager:
(a) its name, the jurisdiction in which the
Fund Manageris incorporated and the date of such incorporation;(b) confirmation that the Fund Managerhas been authorised to manage a Fundby the DFSA;(c) its address;(d) the names and brief biographies of the directors or other officers of the Fund Manager;(e) if it is a subsidiary, the name of its ultimate holding company and the country or territory in which that holding company is incorporated;(f) the amount of its issued share capital and how much of it is paid up; and(g) a summary of the material provisions of the contract between the Public Fundand its Fund Managerwhich may be relevant to Unitholders, including provisions relating to termination, compensation on termination and indemnity. 6. Directors and other Officers If the Public Fundhas directors or other officers, the names and brief biographies of those directors or other officers. 7. Service Providers and Advisers If a Fund Managerdelegates any activities or outsources any functions to a service provider, or if an investment adviser is retained in connection with the business of the Public Fund:
(a) its name;(b) its
Home Regulator; and(c) details of the arrangements. 8. The Auditor, Custodian and Trustee The name of the Auditor, the name of the custodian and (if applicable) the name of the Trustee. 9. The Register of Unitholders Details of the address in the DIFCwhere the register of Unitholdersis kept and can be inspected by Unitholdersof the Public Fund. 10. Payments out of the Fund Property The payments that may be made out of the Fund Propertyto any person, whether by way of remuneration for services or reimbursement of expenses. For each category of remuneration or expense, the following should be specified in a manner which is clear, concise and understandable for Retail Clientswhere the Public Fundis to be offered:
(a) the current rates or amounts of such remuneration;(b) how the remuneration will be calculated and accrue and when it will be paid;(c) how notice will be given to
Unitholdersof the Fund Manager's intention to:(i) introduce a new category of remuneration for its services;(ii) increase the basis of any current charge;(iii) change the basis of the treatment of a payment from the capital property; and(iv) particulars of that introduction or increase and when it will take place;(d) the types of any other charges and expenses that may be taken out of the Fund Property; and(e) if all or part of the remuneration or expenses are to be treated as a capital charge:(i) that fact; and(ii) the basis of the charges which may be so treated. 11. Dealing Details of:
(a) the dealing days and times in the dealing day on which the
Fund Managerwill receive requests for the sale and redemption of Units;(b) the procedures for effecting:(i) the issue, sale and redemption (including in specie) of Units; and(ii) the settlement of transactions;(c) the steps required to be taken by a Unitholderin redeeming Unitsbefore he can receive the proceeds, including any relevant notice periods, and the circumstances and periods in which a deferral of payment may be applied;(d) the circumstances in which the redemption of Unitsmay be suspended;(e) details of the minimum number or value of each type of Unitin the Public Fundwhich:(i) any one person may hold; and(ii) may be the subject of any one transaction of issue, sale or redemption by the Fund Manager;(f) the circumstances in which the further issue of Unitsin any particular class may be limited and the procedures relating to this. 12. Valuation of the Fund Property Details as to:
(a) how frequently and at what times of the day the
Fund Propertywill be regularly valued to determine the price at which Unitsin the Public Fundmay be purchased from or redeemed by the Fund Managerand a description of any circumstance where the Fund Propertymay be specially valued;(b) in relation to each purpose for which the Fund Propertymust be valued, the basis on which it will be valued;(c) how the single price of Unitsof each class will be determined, including whether a forward or historic price basis is to be applied;(d) details as to how the prices of Unitswill be published following each valuation; and(e) if valuation is to be suspended under certain circumstances, details of such circumstances. 13. Sale and Redemption Charges If the Fund Managerimposes any charges on sale or redemption of Units, details of the charging structure and how notice will be provided to Unitholdersof any change in the relevant charge. 14. Financial Reports Details as to:
(a) when annual and interim reports will be published; and(b) the address in the
DIFCat which copies of the Fund Constitution, any amending instrument and the most recent annual and interim reports may be inspected and from which copies may be obtained. 15. Information in respect of Umbrella Funds In the case of an umbrella fund, the following information:
(a) that a
Unitholdermay exchange Units in one sub-fund for Unitsin another sub-fund and that such an exchange is treated as a redemption and sale;(b) what charges may be made on exchanging Unitsin one sub-fund for Units in other sub-funds;(c) the policy for allocating between sub-funds any assets of, or costs, charges and expenses payable out of, the Fund Propertywhich are not attributable to any particular sub-fund;(d) in respect of each sub-fund, the currency in which the Fund Propertyallocated to it will be valued, and the price at which Units will be calculated and payments will be made, if this currency is not the base currency of the umbrella fund; and(e) in the case of an umbrella fund that is not formed as a protected cell company, in the event of such an umbrella fund being unable to meet liabilities attributable to any particular sub-fund out of the assets attributable to that sub-fund, that the remaining liabilities may have to be met out of the assets attributable to other sub-funds (i.e., that the sub-funds are not "ring fenced"). 16. Key Investor Information Document (KIID) A summary of the key features of the Fundin Arabic and English.
FPR A1.1.2 Guidance1. The
Rulesin this module do not require an additional Prospectusto be made available for a Public Fundthat is domiciled in the DIFC. If the Fundhas a Prospectusthat complies with the Rulesin CIR, a Fund Managerwould comply with FPR A1.1.2 if it amends its Prospectusso as to include the additional minimum content required under this Rulethat is not required under CIR.2. The Prospectusfor a Passported Fundmust be made available in English. The Key Investor Information Document (KIID) referred to in the table in FPR A1.1.2 must be made available in both English and Arabic.