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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Rulebook Modules
Collective Investment Rules (CIR) [VER25/07-19]
Part 4 Core Rules Relating to Establishment and Management 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

(1 version)
Dec 18 2018 onwards

CIR 8.3.2 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. If a Fund ManagerG of an Exchange Traded FundG (ETF) has an arrangement with a Related PartyG , for that Related PartyG to provide an index or benchmark, then the Fund ManagerG is required to also treat that arrangement as a Related Party TransactionG (see CIR Rule 13.9.5) and comply with CIR Rule 8.3.2 in relation to the transaction.
2. An ETFG Fund ManagerG is not required to comply with the requirements in CIR Rule 8.3.2(3) and (4) in relation to a Price Information ProviderG (PIP), who is a Related PartyG and provides a custom made index or other benchmark which the ETFG tracks, if that appointment takes place at the time of establishing the ETFG . This is because, generally, there are no investors in the FundG at that time to give the prior approval that is envisaged.
3. However, such an ETFG Fund ManagerG does need to comply with the arm's length transaction requirement in CIR Rule 8.3.2(2) and, also, disclose in the Fund ProspectusG that it tracks a custom made index, or other benchmark, provided by a Related PartyG PIP (under CIR Rule 14.4.8(d)).
Derived from DFSA RM218/2018 (Made 22nd February 2018) [VER23/12-18]