21. General requirements

Past version: effective from 18/04/2006 - 31/07/2006
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(1) Every Domestic Fund shall have a written Constitution which complies with the Rules made for the purposes of this Law.
(2) Any provision in the Constitution of a Domestic Fund is void in so far as it would have the effect of exempting the Fund or the Operator from liability for any failure to discharge its obligations under this Law, the Regulatory Law 2004, the Law Regulating Islamic Financial Business 2004, or any rules made under any of these laws.
(3) Every Domestic Fund shall employ single pricing in relation to the price of its Units and Unitholders shall be entitled to have their Units redeemed by the Operator of the Fund at a price related to the net asset value of the property to which the Units relate calculated in accordance with the Rules made under this Law.
(4) The purpose of a Fund must be reasonably capable of being successfully carried into effect.
(5) The Operator of a Domestic Fund shall appoint an auditor in accordance with Part 5 and an eligible person with whom the legal title of the Fund's property is registered.
(6) The DFSA shall, for the purposes of Article 21(5), make Rules prescribing criteria that a person must meet to be considered "eligible".
(7) If in the opinion of the DFSA, the name of a Fund or of a sub-fund of a Fund conflicts with the name of another Fund or is undesirable or misleading it may direct the Operator to change the name of the Fund.
(8) The DFSA may make Rules requiring specified types, or classes of Domestic Funds to be open-ended or closed-ended or listed on an Authorised Market Institution. Such Rules may also prohibit specified types or classes of Domestic Funds from listing on an exchange.