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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
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
Notices
Financial Markets Tribunal
Archive

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  • CIR 8.4 Valuation of Fund Property

    • CIR 8.4.1

      (1) A Fund ManagerG must:
      (a) ensure that the Fund PropertyG is valued at regular intervals as appropriate to the nature of the FundG , except where such valuation is suspended in any circumstances that are set out in the Fund'sG ConstitutionG or ProspectusG ;
      (b) prepare a valuation in accordance with (3) for each relevant type of UnitG at each relevant valuation point; and
      (c) as soon as practicable after each valuation point, both publish and make available to the UnitholdersG and prospective UnitholdersG of the FundG , the price of the UnitsG of the FundG .
      (2) The value of the Fund PropertyG is the net value of the Fund PropertyG after deducting any expenses and outstanding borrowings, including any capital outstanding on a mortgage of any Real PropertyG .
      (3) The value of the Fund PropertyG must, except as otherwise provided in this section, be determined in accordance with the provisions of the ConstitutionG and the ProspectusG , as appropriate.
      (4) For the purposes of (2), any charges that were paid, or would be payable, on acquiring or disposing of the asset must be excluded from the value of that asset.
      (5) A Fund ManagerG must not make a dilution levy or dilution adjustment unless stated as permitted in the Fund'sG ProspectusG . Such a measure must be applied in a fair manner to reduce dilution and solely for that purpose.
      Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

      • CIR 8.4.1 Guidance

        1. A dilution levy or adjustment means a charge of such amount or such rate as is determined by a Fund ManagerG of a FundG to be made for the purpose of reducing the effect of dilution, i.e., the amount of dealing costs incurred, or expected to be incurred, by a Fund ManagerG , to the extent that these costs may reasonably be expected to result, or to have resulted, from the acquisition or disposal of Investments by the Fund ManagerG as a consequence (whether or not immediate) of the increase or decrease in the cash resources of the FundG resulting from the issue or cancellation of UnitsG over a period.
        2. Dealing costs referred to in Guidance 1 include both the costs of dealing in an InvestmentG , professional fees incurred, or expected to be incurred, in relation to the acquisition or disposal of Real PropertyG and, where there is a spread between the buying and selling prices of the InvestmentG , the indirect cost resulting from the differences between those prices.
        Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

    • CIR 8.4.2

      (1) A Fund ManagerG must:
      (a) ensure that at each valuation point there are at least as many UnitsG in issue of any class as there are UnitsG registered to UnitholdersG of that class; and
      (b) not do, or omit to do, anything that is or is reasonably likely to confer on itself a benefit or advantage at the expense of a UnitholderG or prospective UnitholderG .
      (2) Where a Fund ManagerG has not complied with (1) or there is any other valuation error, it must correct the error as soon as possible and must reimburse the FundG any costs it may have incurred in correcting the position, subject to any reasonable minimum level for such reimbursement as set out in the ProspectusG .
      (3) If the FundG is structured as an Investment TrustG :
      (a) the Fund ManagerG must notify the TrusteeG of the matters specified in (2);
      (b) the TrusteeG must also:
      (i) take reasonable steps to ensure that the Fund ManagerG complies with the matters specified in (1) and (2); and
      (ii) provide any other notification required under these RulesG .
      Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

      • CIR 8.4.2 Guidance

        CIR Appendix 4 (App4) contains guidance on asset valuation and pricing.

        Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]