GEN A2.1 GEN A2.1 General definition of investments
GEN A2.1.1 GEN A2.1.1(1) An
Investmentis, subject to (3), either:(a) a Security; or(b) a Derivative,(2) Such a Securityor Derivativeincludes:(a) a right or interest in the relevant Securityor Derivative;(b) the Securityor Derivativein the form of a cryptographically secured digital representation of rights and obligations that is issued, transferred and stored using DLT or other similar technology;(c) a cryptographically secured digital representation of rights and obligations that is issued, transferred and stored using DLT or other similar technology and:(i) confers rights and obligations that are substantially similar in nature to those conferred by a Securityor Derivative; or(ii) has a substantially similar purpose or effect to a Securityor Derivative; and(d) any instrument declared as a Securityor Derivativepursuant to GEN Rule A2.4.1(1).(3) In these Rules, an Investment Token means an instrument specified in (2)(b) or (c).(4) Where a Ruleprovides that a Securityor Derivativehas a different classification for a specified purpose, it shall have that effect for that specified purpose and no other purpose.
GEN A2.1.1 Guidance1. A Token is defined in GLO as a cryptographically secured digital representation of value, rights or obligations, which may be issued, transferred and stored electronically, using DLT or other similar technology.2. GEN Rules A2.1.1(2)(b) and (c) specify when a Token will be an Investment. A Token that is an Investment may be either a Security or a Derivative and will be treated under the Rules as being the particular type or particular types of Security or Derivative to which it is substantially similar in nature. A Token that is an Investment is defined in these Rules as an Investment Token.3. An Investment Token that is the same as, or substantially similar in nature, purpose or effect to, a Share, Debenture, Warrant, Certificate, Unit or Structured Product is defined in GLO as a “Security Token”. An Investment Token that is the same as, or substantially similar in nature, purpose or effect to, an Option or a Future is defined in GLO as a “Derivative Token”.4. GEN App 6 sets out further Guidance relating to whether a particular Token is an Investment Token.5. An example of the application of GEN Rule A2.1.1(4) is GEN Rule A2.1.2(2), where a
Derivativeis treated as a Securityfor the purposes of the requirements in PIB.
GEN A2.1.2(1) For the purposes of GEN Rule A2.1.1(1)(a), a
Securityis:(a) a Share;(b) a Debenture;(c) a Warrant;(d) a Certificate;(e) a Unit; or(f) a Structured Product.(2) For the purposes of the requirements in PIB, each Derivativespecified in GEN Rule A2.1.3 is to be treated as a Security.[Added] DFSA RM62/2008 (Made 4th January 2009). [VER22/01-09]