Fund Manager must not enter into a Related Party Transaction unless it is in accordance with the requirements in this Rule.
Fund Manager must ensure that any Related Party Transaction is on terms at least as favourable to the Fund as any comparable arrangement on normal commercial terms negotiated at arm's length with an independent third party.
Fund Manager must, before entering into a Related Party Transaction:
(a) issue to the
Unitholders a circular containing the details of the proposed transaction; and
Unitholders' prior approval by Special Resolution, or by ordinary resolution in the case of a Property Fund, in respect of the proposed transaction if the total consideration or value of the transaction is 5% or more of the most recent net asset value of the Fund as disclosed in the latest published audited accounts of the Fund.
Fund Manager must:
Unitholder's prior approval is required pursuant to (3)(b), issue a notice to Unitholders providing details of the results of the Unitholders' voting at the general meeting as soon as practicable after the meeting;
(b) include, in the
Fund's next published interim or annual report, a brief summary of the Related Party Transaction, and certification that the requirements in these Rules have been met for the transaction; and
(c) include, in the annual report of the
Fund, the total value of any Related Party Transactions, their nature and the identities of the Related Parties with whom such transactions were made. Where there is no such transaction conducted during the financial year covered by the annual report, an appropriate negative statement to that effect must be made in the annual report.
(5) The requirements in (3) and (4)(a) do not apply in relation to an
Exempt Property Fund.
(6) The requirements in (3) and (4)(a) do not apply to a
Public Property Fund in respect of a Related Party Transaction if:
(a) the transaction is for the acquisition or sale of
Real Property in the State; and
(b) all of the conditions in CIR Rule 13.4.11A(1) are met.
(7) The requirements in (3) and (4) do not apply to the
Fund Manager of an ETF in relation to the appointment of a Price Information Provider, who is a Related Party, where such an appointment occurs at the time of establishment of the ETF.