CIR 8.6A.1 Guidance

1. The DFSA expects Fund Managers to take into account the Final Report: "Open-ended Fund liquidity and risk management—Good Practices and Issues for Consideration" issued by OICU-IOSCO in February 2018, (which can be found at The DFSA believes that the measures identified in that report would, if adopted by the Fund Managers as appropriate to the nature, scale and complexity of their Funds, would enable such managers to meet their overarching obligations in CIR Rule 8.6A.1.
2. In the DFSA's view, there are certain specialist classes of Funds which generally do not lend themselves to be Open-ended, such as Private Equity Funds (because of the long-term nature of their investments), and Fund of Funds or Feeder Funds (unless the Funds in which they invest themselves are Open-ended). Conversely, there are Funds which may lend themselves better to being structured as Open-ended Funds offering redemptions, such as Funds investing in transferable securities (e.g. UCITS style Funds), or ETFs—due to the liquidity of the underlying classes of their assets, provided they meet the liquidity risk management controls referred to in CIR Rule 8.6A.1. However, it is a matter for the Fund Manager to objectively assess the liquidity profile of the Fund and associated risks.
Derived from DFSA RM218/2018 (Made 22nd February 2018) [VER23/12-18]