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Dubai Financial Services Authority (DFSA): Contents

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  • REP 4.7 Marketing of Foreign Funds

    • REP 4.7.1

      (1) A Representative OfficeG must not market a UnitG of a Foreign FundG unless the FundG meets the criteria either for a Designated FundG under REP Rule 4.7.2 or for a non-Designated Fund under REP Rule 4.7.3.
      (2) In this section "market" has the meaning prescribed to "marketing" under GEN Rule 2.26.1.
      Derived from DFSA RM68/2009 (Made January 3rd 2010). [VER1/01-10]

    • REP 4.7.2

      A Representative OfficeG may market a UnitG of a Foreign FundG where:

      (a) the FundG is a Designated FundG in a Recognised JurisdictionG ; and
      (b) if the FundG is a Property FundG , the requirements in REP Rule 4.7.4 are satisfied.
      Derived from DFSA RM68/2009 (Made January 3rd 2010). [VER1/01-10]

      • REP 4.7.2 Guidance

        In relation to the requirements of Rules REP 4.7.2 and REP 4.7.3, in respect of Recognised JurisdictionsG and Designated FundsG , the DFSAG has issued and published a Recognised Jurisdictions NoticeG on its website which sets out the list of Recognised JurisdictionsG and which also specifies the Designated FundsG .

        Derived from DFSA RM68/2009 (Made January 3rd 2010). [VER1/01-10]

    • REP 4.7.3

      (1) A Representative OfficeG may market a UnitG of a Foreign FundG where:
      (a) one or more of the following apply:
      (i) the custodian of the FundG meets one of the requirements in (4) and the investment manager of the FundG meets one of the requirements in (5);
      (ii) both the custody and investment management activities of the FundG are performed by a PersonG who meets the requirements in (6); or
      (iii) the FundG has been rated in accordance with the requirement in (7);
      and
      (b) if the FundG is a Property FundG , the requirements in REP Rule 4.7.4 are satisfied.
      (2) For the purposes of (1)(a), the "custodian" is a PersonG who is retained by the FundG , the Fund ManagerG or the Fund'sG DirectorsG or PartnersG under a commercial arrangement which is not an employee contract of service to safeguard the Fund'sG assets.
      (3) For the purposes of (1)(a), the "investment manager" is a PersonG who is retained by the FundG , the Fund ManagerG or the Fund'sG DirectorsG or PartnersG under a commercial arrangement which is not an employee contract of service to manage the Fund'sG assets.
      (4) For the purposes of (1)(a)(i), the custodian must be:
      (a) an Eligible CustodianG ;
      (b) a member of a GroupG that is subject to consolidated supervision by a Financial Services RegulatorG in a Recognised JurisdictionG and the activities of the custodian are included within the scope of that supervision;
      (c) appointed under an agreement by a PersonG who is subject to supervision by a Financial Services RegulatorG in a Recognised JurisdictionG and the agreement is in accordance with the requirements of that RegulatorG ; or
      (d) a PersonG as to whom the Representative OfficeG is satisfied has adequate custody and asset safety arrangements in respect of the Foreign FundG after performing due diligence taking into consideration each of the following factors:
      (i) whether the PersonG providing custody is authorised and supervised by a Financial Services RegulatorG for the purposes of providing custody;
      (ii) the extent of segregation of assets;
      (iii) independence and management of conflicts of interests;
      (iv) the terms of the safe custody agreement; and
      (v) periodic reporting requirements.
      (5) For the purposes of (1)(a)(i), the investment manager must be a PersonG who is:
      (a) authorised and supervised by the DFSAG or a Financial Services RegulatorG located in a Recognised JurisdictionG ;
      (b) a member of a GroupG that is subject to consolidated supervision by a Financial Services RegulatorG in a Recognised JurisdictionG and the activities of the investment manager are included within the scope of the supervision; or
      (c) appointed under an agreement by another PersonG who is subject to supervision by a Financial Services RegulatorG in a Recognised JurisdictionG and the agreement is in accordance with the requirements of the RegulatorG .
      (6) For the purposes of (1)(a)(ii), the PersonG carrying out both the custody and investment management activities of the FundG must be a PersonG who is:
      (a) authorised and supervised by the DFSAG or a Financial Services RegulatorG located in a Recognised JurisdictionG in respect of both of its custody and investment management activities;
      (b) a member of a GroupG that is subject to consolidated supervision by a Financial Services RegulatorG in a Recognised JurisdictionG and its custody and investment management activities are included within the scope of that supervision; or
      (c) appointed under an agreement by another PersonG who is subject to supervision by a Financial Services RegulatorG in a Recognised JurisdictionG and the agreement is in accordance with the requirements of that RegulatorG .
      (7) The requirement in (1)(a)(iii) in respect of the Foreign FundG is that the FundG has been rated or graded as at least "investment grade" by Moody's, Fitch or Standard & Poor's or such other international rating agency as may be recognised by the DFSAG .
      Derived from DFSA RM68/2009 (Made January 3rd 2010). [VER1/01-10]
      [Amended] DFSA RM72/2010 (Made 11th July 2010). [VER2/07-10]

    • REP 4.7.4

      (1) A Representative OfficeG must ensure that it does not market a UnitG of a Foreign FundG which is a Property FundG unless:
      (a) the FundG is a closed-ended structure; and
      (b) the FundG is listed and traded on an Authorised Market InstitutionG or on an exchange regulated in a Recognised JurisdictionG , unless the UnitsG are to be OfferedG , issued or sold by means only of Private PlacementG .
      (2) For the purposes of (1), a "Property FundG " is a Foreign FundG in respect of which 60% or more of the Fund'sG assets comprise Real PropertyG , Property Related AssetsG or UnitsG in another Property FundG .
      Derived from DFSA RM68/2009 (Made January 3rd 2010). [VER1/01-10]

      • REP 4.7.4 Guidance

        A closed ended legal structure is an investment vehicle used by a FundG that does not continuously issue or redeem UnitsG based on the net asset value of the FundG .

        Derived from DFSA RM68/2009 (Made January 3rd 2010). [VER1/01-10]