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Aug 1 2006 - Jul 10 2010Jul 11 2010 onwards

24. Trustee’s power to outsource



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(1) The Trustee may, subject to any restrictions and requirements in the Trust Deed, this Law, the Collective Investment Law 2006 or any rules made for the purposes of those laws, delegate any of its activities or outsource any of its functions to a person (“service provider”) other than the Operator.
(2) When outsourcing any of its functions, the Trustee must ensure that the service provider is independent of the Operator as provided in (4).
(3) The DFSA may by rule prescribe for the purposes of this Article:
(a) activities that can or cannot be delegated by a Trustee;
(b) functions that can or cannot be outsourced by a Trustee;
(c) the eligibility criteria for service providers;
(d) the activities or functions that must be performed in the DIFC;
(e) any notification procedures and DFSA approval requirements that apply to appointment of service providers; or
(f) any other matter incidental or relating to delegations and outsourcing by a Trustee for the purposes of this Article.
(4) A service provider is not independent of the Operator for the purposes of (2) if it:
(a) is, or has been in the previous 2 years, an employee of the Operator or a body corporate in the same group (a “related body corporate”);
(b) is, or has been in the previous 2 years, an executive officer of a related body corporate;
(c) is, and has been in the previous 2 years, involved in material business dealings, or in a professional capacity, with the Operator or a related body corporate;
(d) is a member of a partnership or a trustee of a trust that is, or has been in the previous 2 years, substantially involved in business dealings, or in a professional capacity, with the Operator or in a related body corporate;
(e) has a material interest in the Operator or a related body corporate; or
(f) is a relative or de facto spouse of a person who has a material interest in the Operator or a related body corporate of a kind described in (a) to (e) of this Article.
(5) Where the Trustee engages a service provider, the Trustee remains liable to the Unitholders for any acts or omissions of the service provider even if such service provider was acting fraudulently or outside the scope of its authority or engagement.