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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 6 Rules Specific to Specialist Classes of Domestic Funds
CIR 13 Additional Requirements for Specialist Funds
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases

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  • Joint Ownership Arrangement

    • CIR 13.4.6

      The Fund ManagerG must ensure that when a joint ownership arrangement is entered into, the FundG has a majority stake or holding in respect of that arrangement, that is, more than 50% ownership and control in each property at all times.

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

    • CIR 13.4.7

      (1) In making any joint ownership investment under CIR Rule 13.4.6, the Fund ManagerG must:
      (a) be able to demonstrate that the arrangement, including the decision to own less than a 100% interest in the property, is in the interests of the UnitholdersG ; and
      (b) must obtain a legal opinion in accordance with (2).
      (2) The legal opinion referred to in (1)(b) must include:
      (a) a description of the significant terms of the joint ownership arrangement;
      (b) a statement whether the FundG will have a good and marketable legal and beneficial interest in the property;
      (c) a description of the equity and profit sharing arrangements of the parties to the agreement;
      (d) a statement that the relevant contract and joint ownership arrangements are legal, valid, binding and enforceable under applicable law;
      (e) a statement that all necessary licences and consents required in the location where the subject property is located have been obtained by the FundG or its Special Purpose VehicleG ;
      (f) any restriction on divestment by the FundG of its interest, in whole or in part, in the property; and
      (e) if applicable, the implication of foreign rules and regulations that may prohibit full ownership of the property by the FundG .
      Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
      [Amended] RM158/2015 (Made 9th December 2015). [VER19/02-16]

    • CIR 13.4.8

      The Fund ManagerG must ensure that:

      (a) proper due diligence is conducted in identifying restrictions and constraints that may limit a Fund'sG direct ownership of a 100% interest in a property; and
      (b) the liability of, or assumed by, the FundG does not exceed the percentage of its interest in the joint ownership arrangement and there is to be no assumption of unlimited liability by the FundG .
      Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

    • CIR 13.4.9

      The Fund ManagerG must disclose to UnitholdersG ;

      (a) the ownership structure of the property interest and the material terms thereof, including restrictions on divestments and the impact or implication of such restrictions on the divestment value of the interest in the property;
      (b) the identity, background and ownership of the remaining legal and beneficial owners in the property, transactional history of these owners with the FundG in relation to the property;
      (c) financial, remuneration, fee-sharing or other material arrangements that have been or will be entered into between the FundG and the other owners of that property or their associates;
      (d) a summary of the contents of the legal opinion in CIR Rule 13.4.7(1)(b) in relation to the property; and
      (e) where appropriate:
      (i) the nature of restrictions on foreign ownership and the duration of them, and the impact of such restrictions on the operations and financial position of the FundG as a whole;
      (ii) the Valuer'sG opinion and evaluation of the impact of such prohibitions on the value of the property; and
      (iii) any other information which may reasonably be relevant to a UnitholderG .
      Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]