Home   Browse contents   View updates   Search  
     Quick search

Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Rulebook Modules
Collective Investment Rules (CIR) [VER25/07-19]
Part 6 Rules Specific to Specialist Classes of Domestic Funds
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Financial Markets Tribunal

Whole SectionText only Print Print Manager Link

(2 versions)
Jul 11 2010 - Jan 31 2016Feb 1 2016 onwards

CIR 13.4.4

View whole sectionWhole Section PDF

The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

(1) A Fund ManagerG must, subject to (2), ensure that the assets of a Property FundG , except where otherwise provided in the RulesG in this section, consist only of any or all of:
(a) Real PropertyG ;
(b) Property Related AssetsG ; or
(c) Units in another Property FundG ; and
(d) cash, government and public SecuritiesG , up to a maximum of 40%.
(2) The requirements in (1) do not apply to a Fund ManagerG during the initial 6 month period of the Fund'sG operation and in any case, will be subject to any other time period set out in the ProspectusG or as approved by a Special ResolutionG of the UnitholdersG .
(3) A Fund ManagerG must ensure that:
(a) Property Related AssetsG of a Public Property FundG :
(i) are listed and traded on an ExchangeG which is provided for in the ProspectusG of the FundG ; or
(ii) if not listed and traded as specified in (i), are approved and reviewed regularly by the investment committee of the FundG to ensure that they are sufficiently liquid and can be accurately valued; and
(b) the Property Fund does not grant any Person an option to acquire any property included in the Fund.
(4) The Fund ManagerG or, where appointed, the TrusteeG , must, subject to (5), ensure that the FundG holds good marketable legal and beneficial title in all its Real PropertyG , whether directly or via Special Purpose VehiclesG controlled by the FundG . The FundG may hold such title as joint tenants or tenants-in-common with one or more third parties provided that the FundG must hold the majority interest and control and have the freedom to dispose of its interest.
(5) Any special arrangement entered into in respect of Fund PropertyG for the purposes of Islamic finance arrangements where the legal title to the property is held by a financial institution will be acceptable for the purposes of (4) provided information relating to such arrangements either disclosed in the ProspectusG of the FundG or approved by Special ResolutionG of UnitholdersG .
(6) The Fund ManagerG and, if appointed, the TrusteeG , must take all reasonable care to ensure that the Fund ManagerG arranges adequate property insurance and public liability insurance coverage in relation to the Real PropertyG of a FundG .
Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
[Amended] RM158/2015 (Made 9th December 2015). [VER19/02-16]