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.
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]