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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

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(3 versions)

CIR 8.3.2

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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.

Past version: effective from Jul 11 2010 - Jan 31 2016.
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To view past versions of this module in PDF format, please visit the Archive.

(1) A Fund ManagerG must not enter into a TransactionG in respect of the Fund PropertyG with an Affected PersonG unless it is in accordance with the requirements in this Rule.
(2) A Fund ManagerG must ensure that any transaction in respect of the Fund PropertyG undertaken with an Affected PersonG is on terms at least as favourable to the FundG as any comparable arrangement on normal commercial terms negotiated at arm's length with an independent third party.
(3) The Fund ManagerG must, before entering into a transaction with an Affected PersonG :
(a) obtain Unitholders'G prior approval by Special ResolutionG in respect of the proposed transaction if the total consideration or value of the transaction is 5% or more of the most recent net asset value of the FundG as disclosed in the latest published audited accounts of the FundG ; and
(b) issue to the UnitholdersG a circular containing the details of the transaction.
(4) The Fund ManagerG must:
(a) if prior UnitholderG approval is required pursuant to (3)(a), issue a notice to UnitholdersG providing details of the results of the Unitholders'G voting at the general meeting as soon as practicable after the meeting;
(b) include a brief summary of the Affected PersonG transactions in the Fund'sG next published interim or annual report; and
(c) include, in the annual report of the FundG , the total value of any Affected PersonG transactions, their nature and the identities of the Affected PersonsG with whom such transactions were made. Where there is no such transaction conducted during the financial year covered by the annual report, an appropriate negative statement to that effect must be made in the annual report.
Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]