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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 6 Rules Specific to Specialist Classes of Domestic Funds
Sourcebook Modules
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Policy Statements
DFSA Codes of Practice
Amendments to Legislation
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  • Self-custody of Real Property for Public Funds

    • CIR 13.4.2

      (1) A Fund ManagerG of a Public Property FundG is not required to appoint an Eligible CustodianG under CIR Rule 8.2.2(2) for Real PropertyG if the Fund ManagerG :
      (a) acts as custodian of the Real PropertyG ;
      (b) has in place adequate systems and controls to ensure the proper segregation and protection of the Real PropertyG ; and
      (c) has in place effective arrangements which ensure that the real Property is not available to creditors if the Fund ManagerG becomes insolvent.
      (2) The systems and controls referred to in (1)(b) must, as a minimum, ensure that:
      (a) legal title to the Real PropertyG is registered in the name of the FundG ;
      (b) the Fund ManagerG identifies, manages and monitors any conflicts of interest that may arise due to it acting as custodian of the Real PropertyG ;
      (c) the Fund ManagerG clearly designates the employees who are responsible for safeguarding the ownership rights of the FundG over any Real PropertyG including but not limited to:
      (i) safekeeping title deeds and other legally relevant documents relating to the Real PropertyG ; and
      (ii) ensuring that legal title to the Real PropertyG is registered in the name of the FundG ; and
      (d) the employees referred to in (c) are not required to carry out duties and functions which may conflict with their duties and functions referred to in that paragraph.
      [Added] RM158/2015 (Made 9th December 2015). [VER19/02-16]

      • CIR 13.4.2 Guidance

        1. A Fund ManagerG of a Public Property FundG may itself act as custodian of Real PropertyG if it has in place adequate systems and controls to ensure the segregation and protection of the Real PropertyG . This option only applies for Real PropertyG (defined as land or buildings, whether freehold or leasehold, where the unexpired term of any lease exceeds 20 years). It does not permit the Fund ManagerG to act as custodian of Property Related AssetsG such as SharesG in a Body CorporateG which invests in Real PropertyG or Units in another Property FundG .
        2. In identifying, managing and monitoring conflicts of interest that may arise due to it acting as custodian, the Fund ManagerG must take into account that it is required under the Law to give priority to Unitholders'G interests if there is a conflict between its own interests and the interests of UnitholdersG .
        3. If a Fund ManagerG decides to act as custodian of Real PropertyG as permitted under this Rule, it must disclose in the Fund's Prospectus that it acts as custodian, the additional risks that may arise due to it acting as custodian, and how it has addressed those risks (see CIR Rule 14.4.4A).
        [Added] RM158/2015 (Made 9th December 2015). [VER19/02-16]