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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
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
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Financial Markets Tribunal
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Dec 18 2018 onwards

CIR 8.6A.1

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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 of an Open-ended Domestic FundG must ensure that the FundG has sufficient liquidity to meet redemption requests as stated in the Fund's ConstitutionG and its most recent ProspectusG , as appropriate to the nature and risk profile of the relevant FundG .
(2) For the purposes of meeting the requirement in (1), the Fund Manager'sG systems and controls must, at a minimum, contain well-documented and detailed policies and strategies, which:
(a) include appropriate liquidity buffers and limits on illiquid assets, and the availability of other resources, such as lines of credit;
(b) take into account:
(i) the underlying classes of assets of the FundG ;
(ii) if such assets are traded on-exchange, the liquidity in those markets;
(iii) investors' redemption patterns and behaviour; and
(iv) any other factors that affect or potentially affect the liquidity of the relevant classes of assets;
(c) include appropriate mechanisms to measure, monitor, stress test and manage the controls referred to in (a) to assess whether they are adequate, and are operating as intended in both normal and stressed conditions and the procedures available to the Fund ManagerG to address any gaps and failures identified; and
(d) include powers available to the Fund ManagerG to address liquidity stresses which pose, or have the potential to pose, risks to its ability to effect redemptions (such as the power to impose anti-dilution levies, create side pockets to ring-fence illiquid assets and create redemption gates or suspend redemptions), and clear triggers and procedures for exercising such powers.
Derived from DFSA RM218/2018 (Made 22nd February 2018) [VER23/12-18]