CIR 15.1 Guidance

Past version: effective from 18/12/2018 - 24/02/2019
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1. Rules CIR 4.1.3 and CIR 4.1.4 exclude from being treated as Offers any Transactions undertaken by an Authorised Firm where such Transactions are Execution-only Transactions, or Transactions for the purposes of managing a Discretionary Portfolio for a Client, or for the purposes of redeeming a Unit of a Fund for a Client. Similarly, an offer made by an Authorised Firm to a Market Counterparty is also excluded from being an Offer. As a result, such excluded Transactions and offers do not attract the marketing prohibition in Article 50 of the Law and the requirements in both the Law and this module relating to the marketing of Units.
2. Article 54(1) of the Law prohibits the Offer of Units of a Foreign Fund unless one of three specified criteria in that Article are met, i.e.
a. the Foreign Fund meets either:
i. the criteria for a Designated Fund in a Recognised Jurisdiction; or
ii. other criteria prescribed in the Rules;
b. the Authorised Firm has a reasonable basis for recommending the Unit of the Foreign Fund as suitable for the particular Client to whom the Offer is made; or
c. the Foreign Fund, had it been a Domestic Fund, would meet the Exempt Fund criteria in Article 16(4) of this Law or Qualified Investor Fund criteria in Article 16(5) and the Offer is made in a manner that does not breach the requirements in that Article.
3. Under Article 54(2) of the Law, the DFSA has the power to prescribe any additional criteria, requirements or conditions that apply to the Offer of Units of a Foreign Fund, including disclosure that must be included in a Prospectus and the legal form and structure of the Fund such as being Open-ended or Closed ended or listed or not. This section contains additional criteria and requirements prescribed pursuant to Article 54(2) of the Law.
Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
[Amended] DFSA RM218/2018 (Made 22nd February 2018). [VER23/12-18]