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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Collective Investment Rules (CIR) [VER24/02-19]
CIR App 3 Approvals and Notifications
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 App 3 Approvals and Notifications

    • CIR A3.1 Alterations to a Fund

      • CIR A3.1.1

        (1) The Fund ManagerG of a Public FundG must, by way of a Special ResolutionG , obtain prior approval from the UnitholdersG for any proposed change to the Domestic FundG which is a fundamental change.
        (2) In addition to the specific fundamental changes in relation to a FundG prescribed under Article 35(1) of the Law and also under Rules CIR Rule 8.3.2, CIR Rule 8.13.3, CIR Rule 13.4.4(2) and CIR Rule 16.1.3(2), a "fundamental change" under (1) is a change or event which:
        (a) changes the purpose or nature of the FundG ;
        (b) may materially prejudice a UnitholderG ;
        (c) alters the risk profile of the FundG ; or
        (d) introduces any new type of payment out of Fund PropertyG .
        (3) Notwithstanding (2) above, any change may be fundamental depending on its degree of materiality and effect on the FundG and its UnitholdersG . Consequently, the Fund ManagerG must determine whether in each case a particular change is fundamental in nature and, if the FundG is an Investment TrustG , obtain the Trustee'sG agreement to the outcome of the determination.
        Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
        [Amended] DFSA RM137/2014 (Made 21st August 2014). [VER17/06-14]

        • CIR A3.1.1 Guidance

          For the purpose of this section, a fundamental change to a FundG is likely to include:

          a. any proposal for a scheme of arrangement;
          b. a change in the investment policy to achieve capital growth from investment in one country rather than another;
          c. a change in the investment objective or policy to achieve capital growth through investment in fixed interest rather than in equity investments;
          d. a change in the investment policy to allow the FundG to invest in derivatives as an investment strategy which increases its volatility;
          e. a change to the characteristics of a FundG to distribute income annually rather than monthly;
          f. the introduction of limited redemption arrangements; or
          g. a change of the custodian, trustee or other oversight arrangement.
          Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

      • CIR A3.1.2

        (1) The Fund ManagerG of a Public FundG must give prior written notice to UnitholdersG in respect of any proposed change to the operation of a FundG where the change constitutes a significant change.
        (2) A "significant change" in (1) is a change or event which is not a fundamental change under CIR Rule A3.1.2 but:
        (a) affects a Unitholder'sG ability to exercise his rights in relation to his investment;
        (b) would reasonably be expected to cause the UnitholderG to reconsider his participation in the FundG ;
        (c) results in any increased payments out of the Fund PropertyG to the Fund ManagerG , the TrusteeG or any other director or an associate of either; or
        (d) materially increases other types of payment out of Fund PropertyG .
        (3) Changes may be significant depending in each case on their degree of materiality and effect on the FundG and its UnitholdersG . Consequently the Fund ManagerG will need to determine whether in each case a particular change is significant in nature or not and if the FundG is an Investment TrustG obtain the Trustee'sG agreement of the outcome of the determination.
        Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
        [Amended] DFSA RM137/2014 (Made 21st August 2014). [VER17/06-14]

        • CIR A3.1.2 Guidance

          1. The notice period required for a pre-event notification to the UnitholderG should be of a reasonable length, which is expected to be at least 30 days.
          2. For the purpose of this section, a significant change is likely to include:
          a. a change in the method of price publication;
          b. a change in any operational policy such as dilution policy or allocation of payments policy; or
          c. an increase in the preliminary charge where UnitsG are purchased through a group savings plan.
          Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

      • CIR A3.1.3

        (1) A Fund ManagerG must to inform UnitholdersG in an appropriate manner and timescale of any notifiable changes that are reasonably likely to affect, or to have affected, the operation of the FundG .
        (2) A notifiable change in (1) is a change or event, other than a fundamental change or a significant change specified in this Appendix, which a UnitholderG must be made aware of unless the Fund ManagerG concludes that the change is insignificant.
        Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

        • CIR A3.1.3 Guidance

          1. The circumstances causing a notifiable change may or may not be within the control of the Fund ManagerG .
          2. For the purpose of this section, a notifiable change might include:
          a. a change of a named investment manager where the FundG has been marketed on the basis of that investment manager's involvement;
          b. a significant political event which impacts on the FundG or its operation;
          c. a change to the time of the valuation point;
          d. the introduction of limited issue arrangements; or
          e. a change in the name of the FundG .
          3. The appropriate manner and timescale of notification in this section would depend on the nature of the change or event. Consequently, the Fund ManagerG will need to assess each change or event individually.
          4. An appropriate manner of notification could include:
          a. sending an immediate notification to the UnitholderG ;
          b. publishing the information on a website; or
          c. the information being included in the next periodical report of the FundG .
          Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]