CIR 8.1.1 Guidance
1. Article 22 of the Law requires the
Fund Manager of a Domestic Fund to manage the Fund in accordance with the Fund's Constitution and its most recent Prospectus and to perform the functions conferred on it by the Constitution and the Law. In doing so, the Fund Manager is required under that Article to comply with any conditions or restrictions on its Licence as well as any limitations or requirements imposed by or under the Law or Rules.
2. Article 38 of the Law requires the
Fund Manager to establish and maintain systems and controls including but not limited to financial and risk controls to ensure sound management of the Fund in accordance with the Fund's Constitution and its most recent Prospectus, taking due account of the nature, scale and complexity of the Fund's investments and operations. There is an additional obligation on Fund Managers of all Open-ended Domestic Funds to have adequate systems and controls to address liquidity risks in such Fund—see CIR Rule 8.6A.1.
3. The requirements in this chapter apply to
External Fund Managers in the same manner as they apply to Fund Managers of Domestic Funds, unless otherwise provided. External Fund Managers and External Funds attract additional requirements, which are set out in CIR chapter 6.
4. This chapter sets out more detailed obligations of the
Fund Manager, and where appointed the Trustee, of a Domestic Fund with regard to:
a. Duties relating to
b. Conflicts of interests;
c. Valuation of
d. Determination of single price;
e. Issue and redemption of
g. Meetings of
Governing Body and Unitholders;
h. Approvals and notifications;
i. Maintenance of records;
k. Delegations and outsourcing; and
l. Charges and expenses.
5. When a Fund Manager manages Funds that are Incorporated Cells of an ICC, the Fund Manager is subject to the additional duties under chapter 6A (as well as the duties in this chapter). The Fund Manager will need to ensure that it meets all of its obligations relating to each Fund on the Fund Platform, even if some activities or functions of the Fund Manager are carried out by the Fund Platform.