Entire Section

  • Investment Options

    • COB 12.3.9

      (1) The Operator of a Scheme must:
      (a) establish a range of investment options offered on the Investment Platform, which are suitable for the investment objectives and risk profile of the different classes of Members of the Scheme;
      (b) ensure that the investment options include investments that are suitable for Members who are:
      (i) highly risk averse, and therefore, for whom capital preservation is paramount; or
      (ii) seeking Shari’a compliant options;
      (c) take appropriate action to remove any investment option that is found to not be meeting the applicable criteria; and
      (d) implement adequate measures to protect the interests of Members when an investment option is to be removed from the Investment Platform.
      (2) The Operator of a Scheme must consult with a Professional Adviser before carrying out its functions under (1).
      (3) Where the Operator of a Scheme does not act on a recommendation provided by the Professional Adviser, the Operator must do so on reasonable grounds which are clearly documented.
      (4) The Professional Adviser referred to in (2) must be a person who:
      (a) is either:
      (i) authorised under its Licence for Advising on Financial Products; or
      (ii) regulated and supervised for that activity by a Financial Services Regulator;
      (b) has appropriate skills and expertise relating to the type of investment options that are to be offered on the Investment Platform; and
      (c) is independent of the Operator and Administrator of the Scheme.
      Derived from DFSA RMI261/2019 (Made 18th December 2019). [VER35/01-20]
      [Amended] DFSA RMI302/2021 (Made 30th June 2021). [VER38/09-21]

    • COB 12.3.10

      The Operator of a Scheme must:

      (a) enter into an agreement with each person who is responsible for an investment option (investment manager) to be offered on the Investment Platform, that sets out:
      (i) the criteria to be met by the investment manager;
      (ii) a requirement for the investment manager to ensure that its fees and charges are reasonable, taking into account the fees and charges of similar investments;
      (iii) the obligation of the investment manager to provide information relating to the investment options which Members are to use when making their investment options;
      (iv) the circumstances in which an investment option is to be removed from the Investment Platform and the procedures that apply to the removal; and
      (v) the measures to protect the interests of Members on the removal of an investment option from the Investment Platform;
      (b) make available to Members and prospective members of the Scheme, information relating to each investment option offered on the Investment Platform; and
      (c) provide Members with a facility to switch, free of charge at specified intervals, between investment options offered on the Investment Platform.
      Derived from DFSA RMI261/2019 (Made 18th December 2019). [VER35/01-20]