Part 6: Part 6: Prospectus Requirements for Domestic Funds
41. General requirements(1) The Operator of a Domestic Fund shall produce and make available to prospective Unitholders a Prospectus in accordance with this Law and any Rules made under this Law.(2) Such Rules may make different provision for different classes or types of Domestic Funds including prescribing reduced content requirements for Private Funds.
42. Prospectus(1) The presentation of information in the Prospectus shall be clear, concise and understandable.(2) The Prospectus shall comply with the contents requirements set out in the Rules and contain any other material information investors would reasonably require for the purpose of making an informed decision to become a Unitholder in the Fund.(3) If at any time after the preparation of a Prospectus which has been issued, there is a material change affecting any matter contained in the Prospectus or a significant new matter arises, the Operator shall in accordance with the Rules issue a supplementary Prospectus which:(a) provides details of the change or new matter;(b) complies with the requirements of this Article; and(c) complies with any information required by the Rules.
43. Publicity(1) A person shall not issue or cause to be issued any financial promotion in respect of a Prospectus or supplementary Prospectus or the Units offered in such a Prospectus unless:(a) the information contained in the Prospectus complies with the Rules;(b) the Operator, in the case of a Public Fund, has filed a copy of the Prospectus with the DFSA; and(c) the financial promotion states the prospectus has been published and gives an address where a copy may be collected in the DIFC.(2) Nothing in Article 43(1) prevents a person from issuing a financial promotion before the issue of a Prospectus provided it clearly states that a Prospectus will be issued and where a copy may be collected in the DIFC.
44. Mandatory statements(1) Every Prospectus shall contain a prominent statement in respect of the relevant Fund's regulatory status and the regulatory regime applying to the Fund and, in particular, its Prospectus.(2) A Prospectus shall include the text prescribed in Rules made by the DFSA for the purposes of this Article.
45. Liability for misleading statements(1) Any person prescribed in Rules made by the DFSA as being responsible for a Prospectus is liable to pay compensation to another person who has acquired Units to which the Prospectus relates and who has suffered loss or damage arising from any untrue, deceptive or misleading statement in the Prospectus or the omission from it of any material matter required to have been included in the Prospectus under the Law or Rules.(2) The DFSA may make Rules prescribing circumstances in which a person who would otherwise be liable under Article 45(1) will not be so liable.(3) Nothing in this Article affects the powers, rights or liabilities that any person may have apart from this Article including the power to institute proceedings under Article 94 of the Regulatory Law 2004.