FPR 1.2 Guidance
1. The three
UAE securities regulators: the SCA, the DFSA and the FSRA have agreed a "Protocol" regarding co-ordinated supervision of the marketing and selling of units of domestic funds within the UAE (State). The "Protocol" introduces a notification and registration process to enhance the monitoring and supervision of the financial services associated with the marketing and sale of units in domestic funds. The Protocol sets out a common regulatory framework which is to be implemented by each of the regulators. The Protocol is implemented in the DFSA Rulebook primarily through this module (FPR).
2. FPR specifies procedures and requirements that apply in relation to a
Passported Fund where the DFSA is either the Home Regulator or the Host Regulator of the Fund.
3. FPR is applicable to
Fund Managers of Domestic Funds (as that term is defined in FPR Rule 1.3.1) but also to other Authorised Firms that propose to carry on, or are carrying on, the marketing and selling of the Units of such Funds from the DIFC to potential investors and Clients situated in the ADGM or the State, outside the DIFC. It will also be relevant to Fund Managers, their Agents and any other Licensed Persons domiciled outside the DIFC that propose to carry on the marketing and selling of the Units of Domestic Funds to potential investors and Clients situated in the DIFC. However, where a Fund Manager or any other Authorised Firm only carries on Financial Services involving the Units of Domestic Funds with or for potential investors and Clients situated within the DIFC, then the Rules in FPR will not be relevant.
4. Provided the
Fund Manager has notified the DFSA and complies with other requirements of the Fund Protocol Rules, the manager may market and sell the Units in their Domestic Funds, or continue to do so, to potential investors and Clients situated in the DIFC or in the State outside the DIFC without the need for further authorisation or approval by any authority. Authorised firms other than the Fund Manager may also carry out such activities if the Fund has been registered under the Fund Protocol Rules.
Derived from RMI233/2019 (Made 20th February 2019). [VER1/02-19]