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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
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Collective Investment Rules (CIR) [VER25/07-19]
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  • Prospectus of a Property Fund

    • CIR 14.4.2

      A Fund ManagerG of a Property FundG must ensure that the following information is disclosed in the Fund'sG ProspectusG :

      (a) the nature of the commitment which prospective UnitholdersG will enter into;
      (b) the risks involved in this type of FundG ;
      (c) the prominent risk warning which makes reference to circumstances in property markets which can cause difficulties in meeting redemptions;
      (d) details of the Property Fund'sG appointed ValuerG under CIR Rule 13.4.18(1);
      (e) in a prominent position in the ProspectusG , the redemption procedures;
      (f) the dividend or income distribution policy;
      (g) the insurance arrangement for the FundG ;
      (h) a statement with respect to any material policy regarding real property activities;
      (i) details of transactions or agreements entered into with Related PartiesG ;
      (j) full particulars of the nature and extent of the interest, if any, of Related PartiesG , in the property owned or proposed to be acquired by the FundG ;
      (k) details of significant holders and the number of units held and deemed to be held by each of them;
      (l) details of principal taxes levied on the Fund'sG income and capital, including tax, if any, deducted on distribution to UnitholdersG ;
      (m) a statement to explain the standards according to which the property valuations are conducted; and
      (n) if applicable, the FundG is a REITG and whether the investment vehicle is an Investment CompanyG or an Investment TrustG .
      Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
      [Amended] RM158/2015 (Made 9th December 2015). [VER19/02-16]

    • CIR 14.4.3

      A Fund ManagerG of a Public Property FundG must also disclose in the Fund'sG ProspectusG , in addition to the standard disclosure requirements, in respect of investment limits, the following information:

      (a) what percentage of the Property Fund'sG net assets may consist of property related assets which are not traded in or dealt on markets provided for in the ConstitutionG ;
      (b) unless the ConstitutionG and the ProspectusG state that the FundG invests in a single property, the maximum percentage of the Fund'sG net assets which may be invested in any single property or, if applicable, the conditions under which the FundG may derogate from this restriction;
      (c) the maximum percentage of the Property Fund'sG net assets which may be invested in properties which are vacant, in the process of development or requiring development; and
      (d) the maximum percentage of the Property Fund'sG net assets which may be invested in properties which are subject to a mortgage.
      Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
      [Amended] DFSA RM137/2014 (Made 21st August 2014). [VER17/06-14]

    • CIR 14.4.4

      Without limiting any other disclosure obligations of the Fund ManagerG under these RulesG , a Fund ManagerG of a Property FundG which is a Public FundG that invests in a single property must prominently disclose in the ProspectusG of the FundG :

      (a) that the FundG invests in a single property;
      (b) details relating to the single property such as whether the property comprises individual properties or buildings, whether there are different types of uses of or businesses conducted in the property, and proportions of anticipated income to be derived from the types of uses or occupants of the property; and
      (c) any risks associated with the investment in the single property, including risks arising from or affecting income to be derived from the uses or occupants of the property.
      Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]

      • CIR 14.4.4 Guidance

        A FundG may be considered to invest in a single property if the Fund PropertyG (apart from cash or other assets held for management purposes) comprises a single building (or a single building with ancillary or adjacent buildings) managed by or on behalf of the OperatorG of the FundG as a single enterprise.

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

    • CIR 14.4.4A

      Without limiting any other disclosure obligations of the Fund ManagerG under these Rules, if the Fund ManagerG of a Public Property FundG itself acts as custodian of Real PropertyG in accordance with CIR Rule 13.4.2, it must prominently disclose in the Fund'sG ProspectusG :

      (a) that it acts as custodian of the Real PropertyG ;
      (b) the risks that may arise as a result of it acting as custodian rather than delegating the function to an Eligible CustodianG ; and
      (c) the measures and safeguards it has in place to ensure the proper segregation and protection of the Real PropertyG .
      [Added] RM158/2015 (Made 9th December 2015). [VER19/02-16]

    • CIR 14.4.4B

      Without limiting any other disclosure obligations of the Fund ManagerG under these Rules, if the Fund ManagerG of a Public Property FundG has approval to enter into Related Party TransactionsG in accordance with CIR Rule 13.4.11A, it must disclose that fact in the Fund'sG ProspectusG .

      [Added] RM158/2015 (Made 9th December 2015). [VER19/02-16]