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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
Rulebook Modules
Collective Investment Rules (CIR) [VER26/12-19 ]
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

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  • CIR 8.3.2 Guidance

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