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(2 versions)
 
Jan 3 2010 - Jul 10 2010Jul 11 2010 onwards

REP 4.7.3



Whole 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 Representative OfficeG may market a UnitG of a Foreign FundG where:
(a) one or more of the following apply:
(i) the custodian of the FundG meets one of the requirements in (4) and the investment manager of the FundG meets one of the requirements in (5);
(ii) both the custody and investment management activities of the FundG are performed by a PersonG who meets the requirements in (6); or
(iii) the FundG has been rated in accordance with the requirement in (7);
and
(b) if the FundG is a Property FundG , the requirements in REP Rule 4.7.4 are satisfied.
(2) For the purposes of (1)(a), the "custodian" is a PersonG who is retained by the FundG , the Fund ManagerG or the Fund'sG DirectorsG or PartnersG under a commercial arrangement which is not an employee contract of service to safeguard the Fund'sG assets.
(3) For the purposes of (1)(a), the "investment manager" is a PersonG who is retained by the FundG , the Fund ManagerG or the Fund'sG DirectorsG or PartnersG under a commercial arrangement which is not an employee contract of service to manage the Fund'sG assets.
(4) For the purposes of (1)(a)(i), the custodian must be:
(a) an Eligible CustodianG ;
(b) a member of a GroupG that is subject to consolidated supervision by a Financial Services RegulatorG in a Recognised JurisdictionG and the activities of the custodian are included within the scope of that supervision;
(c) appointed under an agreement by a PersonG who is subject to supervision by a Financial Services RegulatorG in a Recognised JurisdictionG and the agreement is in accordance with the requirements of that RegulatorG ; or
(d) a PersonG as to whom the Representative OfficeG is satisfied has adequate custody and asset safety arrangements in respect of the Foreign FundG after performing due diligence taking into consideration each of the following factors:
(i) whether the PersonG providing custody is authorised and supervised by a Financial Services RegulatorG for the purposes of providing custody;
(ii) the extent of segregation of assets;
(iii) independence and management of conflicts of interests;
(iv) the terms of the safe custody agreement; and
(v) periodic reporting requirements.
(5) For the purposes of (1)(a)(i), the investment manager must be a PersonG who is:
(a) authorised and supervised by the DFSAG or a Financial Services RegulatorG located in a Recognised JurisdictionG ;
(b) a member of a GroupG that is subject to consolidated supervision by a Financial Services RegulatorG in a Recognised JurisdictionG and the activities of the investment manager are included within the scope of the supervision; or
(c) appointed under an agreement by another PersonG who is subject to supervision by a Financial Services RegulatorG in a Recognised JurisdictionG and the agreement is in accordance with the requirements of the RegulatorG .
(6) For the purposes of (1)(a)(ii), the PersonG carrying out both the custody and investment management activities of the FundG must be a PersonG who is:
(a) authorised and supervised by the DFSAG or a Financial Services RegulatorG located in a Recognised JurisdictionG in respect of both of its custody and investment management activities;
(b) a member of a GroupG that is subject to consolidated supervision by a Financial Services RegulatorG in a Recognised JurisdictionG and its custody and investment management activities are included within the scope of that supervision; or
(c) appointed under an agreement by another PersonG who is subject to supervision by a Financial Services RegulatorG in a Recognised JurisdictionG and the agreement is in accordance with the requirements of that RegulatorG .
(7) The requirement in (1)(a)(iii) in respect of the Foreign FundG is that the FundG has been rated or graded as at least "investment grade" by Moody's, Fitch or Standard & Poor's or such other international rating agency as may be recognised by the DFSAG .
Derived from DFSA RM68/2009 (Made January 3rd 2010). [VER1/01-10]
[Amended] DFSA RM72/2010 (Made 11th July 2010). [VER2/07-10]