CIR 8.6.1 Guidance

1. Refer to Article 18A(2) of the Law for the definition of an Open-ended Fund.
2. The Prospectus of a Public Fund is required to set out, among other things, the dealing days and times in the dealing day on which the Fund Manager will receive requests for the sale and redemption of Units and redemption procedures. The Constitution or offer documents (i.e. the Information Memorandum) of an Open-ended Exempt Fund or QIF may specify the Fund's dealing days, but where it does not do so, the maximum period between dealing days will depend on the reasonable expectations of the target investor group and the particular investment objectives and policy of the Fund.
3. Capital reductions or share buy-backs that occur in a Closed-ended Fund are not treated as redemptions and resales of Units of Funds based on NAV in the same manner as occurs in the case of an Open-ended Fund as provided in these Rules. See Article 18A(3) of the Law for the definition of a Closed-ended Fund.
4. The circumstances in which a Fund Manager may withhold redemption proceeds under (3) include where there are any dues from the redeeming Unitholder, such as under any margin lending arrangements.
5. See Article 37 of the Law for provisions dealing with suspension of dealings of Open-ended Funds.
6. If an Open-ended Domestic Fund is listed and traded, the redemption and reissue of its Units in the primary market does not generally take place concurrently, unless it is an Exchange Traded Fund (ETF). However, the exchange on which an Open-ended Fund is listed and traded may permit the Fund Manager to offer periodic windows for redemption and reissue of Units of the Fund (which would have to be based on NAV). The DFSA regime allows such windows, subject to disclosure in the Fund's Prospectus and to the relevant exchange as to when such windows would be offered.
Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
[Amended] DFSA RM218/2018 (Made 22nd February 2018) [VER23/12-18]