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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Collective Investment Rules (CIR) [VER25/07-19]
Part 4 Core Rules Relating to Establishment and Management of Domestic Funds
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Whole SectionText only Print Print Manager Link


  Versions
(1 version)
 
Jul 11 2010 onwards

CIR 8.12 Guidance



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. This section sets out the general requirements that apply to a Fund ManagerG , or where appointed the TrusteeG , of a Domestic FundG where it delegates or outsources any Financial ServiceG activity or function to another PersonG . Such a PersonG is defined as a "Service ProviderG " for the purposes of this module.
2. Under Article 24 of the Law and Article 24 of the Investment Trust Law 2006, a Fund ManagerG or where appointed the TrusteeG of a FundG respectively may, subject to any restriction in the ConstitutionG of the Domestic FundG and any provisions of the RulesG , delegate any of its Financial ServiceG activities or outsource any of its functions to a Service ProviderG , which may be located in or outside the DIFCG .
3. Fund ManagersG of Domestic FundsG structured as an Investment CompanyG or Investment PartnershipG are required under CIR Rule 8.2.2(2) to delegate the activity of Providing CustodyG to an Eligible CustodianG . This obligation does not apply where there are adequate alternative arrangements. This chapter sets out the circumstances in which the obligation under CIR Rule 8.2.2(2) does not apply.
4. A Fund ManagerG or TrusteeG 'outsources' a function relating to the operation of the FundG where the function, whether or not relating to a Financial ServiceG activity, is contracted to be performed by a Service ProviderG . Where the extent of any such function or functions is such that they effectively constitute the carrying on of a Financial ServiceG activity, the DFSAG will consider this to comprise a 'delegation' of the Financial ServiceG .
5. If the Fund ManagerG or the TrusteeG delegates any activities or outsources any functions, the Fund ManagerG or the TrusteeG remains liable to the UnitholdersG for any acts or omissions of the Service ProviderG as if they were the acts or omissions of the Fund ManagerG or TrusteeG .
6. The RulesG permitting the use of a Service ProviderG do not relieve the Fund ManagerG or the TrusteeG from their obligations, including any restrictions on delegation or outsourcing arising from the Fund'sG ConstitutionG or ProspectusG .
7. Rules GEN 5.3.21 and GEN 5.3.22 also govern outsourcing of functions and activities by an Authorised FirmG . Those RulesG are not disapplied by this section.
Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]