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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]
Sourcebook Modules
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DFSA Codes of Practice
Amendments to Legislation
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  • CIR 13.6.1

    A Fund ManagerG of a Hedge FundG must ensure that the risks inherent in the operation of a Hedge FundG are adequately addressed, with due regard to the nature of the strategies and investment process employed by the Fund ManagerG and the role of Fund AdministratorsG and CustodiansG and where appointed, prime brokers.

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

    • CIR 13.6.1 Guidance

      A prime broker is a PersonG who provides to a FundG a range of services including custody and depository services, trading and execution services, clearing and settlement services and financing to support the Fund's investment activities. Such financing activities generally include stock lending and borrowing. The restrictions in Rules CIR A1.3.1(c) and (f) of Appendix 1 (App 1) prevent a Fund ManagerG of a Hedge FundG from authorising a prime broker to commingle the assets of the FundG with any other assets held by or available to the prime broker and use those assets as collateral to support the prime broker's cross lending and borrowing activities involving FundsG to which it acts as the prime broker. However, the restrictions in CIR A1.3.2(c) and (f) do not apply if a Fund ManagerG of a Hedge FundG can comply with the requirements relating to the use of prime brokers set out in CIR Rule 13.6.3.

      Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
      [Amended] RM158/2015 (Made 9th December 2015). [VER19/02-16]