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  • Chapter 3: Marketing of Foreign Funds

    • 54. Marketing of Foreign Funds

      (1) An Authorised Firm may only Offer a Unit of a Foreign Fund if:
      (a) the Foreign Fund meets either:
      (i) the criteria for a Designated Fund in a Recognised Jurisdiction; or
      (ii) other criteria prescribed in the Rules;
      (b) the Authorised Firm has a reasonable basis for recommending the Unit of the Foreign Fund as suitable for the particular Client to whom the Offer is made; or
      (c) the Foreign Fund is a type of Fund that:
      (i) has its Units offered to persons only by way of a private placement;
      (ii) has its Units offered to persons who meet the criteria to be classified as Professional Clients; and
      (iii) requires an initial subscription of at least US$50,000 to be paid by a person to become a Unitholder in the Fund.
      (iv) requires an initial subscription of at least US$50,000 to be paid by a person to become a Unitholder in the Fund.
      (2) For the purposes of Article 54(1), the DFSA may, by Rules, prescribe any additional criteria, requirements or conditions that apply to the Offer of Units of Foreign Funds including:
      (i) disclosure to be made to persons to whom such Offers are made;
      (ii) when an offer document produced in accordance with the legislation applicable in a jurisdiction other than the DIFC is to be taken to comply with the requirements of this Law and any Rules made for the purposes of this Law;
      (iii) whether such Funds are required to be Open-ended or Closed-ended, listed or unlisted or meet any additional requirements relating to its legal form or manner of distribution; and
      (iv) the circumstances in which the Islamic quality of the Fund may be promoted by using the words Shari'a compliant or Islamic in the name of the Foreign Fund or otherwise holding out that the Fund is in any way Islamic or Shari'a compliant.

    • 55. Recognition and Designation

      (1) The DFSA may recognise any country or territory and designate any type of Fund constituted and domiciled in such a country or territory for the purposes of this Law.
      (2) The DFSA may not recognise any country or territory nor designate any Fund in that country or territory for the purposes of this Article unless it is satisfied:
      (a) that the law and practice under which the relevant Foreign Fund is authorised or approved and supervised in that country or territory is broadly equivalent to the DFSA's regulatory regime as it applies to Domestic Funds;
      (b) that the law and practice under which fund managers and eligible custodians are authorised or licenced and supervised in that country or territory is broadly equivalent to the DFSA's regulatory regime as it applies to such a person; and
      (c) that adequate arrangements exist, or will exist, for co-operation between the Regulator in that country or territory, responsible for such authorisation, licensing, approval and supervision and the DFSA.
      (3) Any country or territory recognised under this Article shall be a "Recognised Jurisdiction" and the DFSA shall publish a list of such jurisdictions by means of a written notice. The DFSA may remove from that list any jurisdiction or Fund where the DFSA is no longer satisfied that the jurisdiction or Fund meets the criteria in Article 55(2).
      (4) Any Foreign Fund designated under this Article shall be a "Designated Fund" and a description of such a Fund shall be included in the list referred to in Article 55(3).
      (5) Any notice issued under this Article may contain such limitations or restrictions as the DFSA considers appropriate and make different provisions for different cases.