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Dubai Financial Services Authority (DFSA): Contents

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  • REP 4.7 Marketing of Foreign Funds

    • REP 4.7.1

      (1) A Representative Office must not market a Unit of a Foreign Fund unless the Fund meets the criteria either for a Designated Fund under REP Rule 4.7.2 or for a non-Designated Fund under REP Rule 4.7.3.
      (2) In this section "market" has the meaning prescribed to "marketing" under GEN Rule 2.26.1.
      Derived from DFSA RM68/2009 (Made January 3rd 2010). [VER1/01-10]

    • REP 4.7.2

      A Representative Office may market a Unit of a Foreign Fund where:

      (a) the Fund is a Designated Fund in a Recognised Jurisdiction; and
      (b) if the Fund is a Property Fund, the requirements in REP Rule 4.7.4 are satisfied.
      Derived from DFSA RM68/2009 (Made January 3rd 2010). [VER1/01-10]

      • REP 4.7.2 Guidance

        In relation to the requirements of Rules REP 4.7.2 and REP 4.7.3, in respect of Recognised Jurisdictions and Designated Funds, the DFSA has issued and published a Recognised Jurisdictions Notice on its website which sets out the list of Recognised Jurisdictions and which also specifies the Designated Funds.

        Derived from DFSA RM68/2009 (Made January 3rd 2010). [VER1/01-10]

    • REP 4.7.3

      (1) A Representative Office may market a Unit of a Foreign Fund where:
      (a) one or more of the following apply:
      (i) the custodian of the Fund meets one of the requirements in (4) and the investment manager of the Fund meets one of the requirements in (5);
      (ii) both the custody and investment management activities of the Fund are performed by a Person who meets the requirements in (6); or
      (iii) the Fund has been rated in accordance with the requirement in (7);
      and
      (b) if the Fund is a Property Fund, the requirements in REP Rule 4.7.4 are satisfied.
      (2) For the purposes of (1)(a), the "custodian" is a Person who is retained by the Fund, the Fund Manager or the Fund's Directors or Partners under a commercial arrangement which is not an employee contract of service to safeguard the Fund's assets.
      (3) For the purposes of (1)(a), the "investment manager" is a Person who is retained by the Fund, the Fund Manager or the Fund's Directors or Partners under a commercial arrangement which is not an employee contract of service to manage the Fund's assets.
      (4) For the purposes of (1)(a)(i), the custodian must be:
      (a) an Eligible Custodian;
      (b) a member of a Group that is subject to consolidated supervision by a Financial Services Regulator in a Recognised Jurisdiction and the activities of the custodian are included within the scope of that supervision;
      (c) appointed under an agreement by a Person who is subject to supervision by a Financial Services Regulator in a Recognised Jurisdiction and the agreement is in accordance with the requirements of that Regulator; or
      (d) a Person as to whom the Representative Office is satisfied has adequate custody and asset safety arrangements in respect of the Foreign Fund after performing due diligence taking into consideration each of the following factors:
      (i) whether the Person providing custody is authorised and supervised by a Financial Services Regulator for the purposes of providing custody;
      (ii) the extent of segregation of assets;
      (iii) independence and management of conflicts of interests;
      (iv) the terms of the safe custody agreement; and
      (v) periodic reporting requirements.
      (5) For the purposes of (1)(a)(i), the investment manager must be a Person who is:
      (a) authorised and supervised by the DFSA or a Financial Services Regulator located in a Recognised Jurisdiction;
      (b) a member of a Group that is subject to consolidated supervision by a Financial Services Regulator in a Recognised Jurisdiction and the activities of the investment manager are included within the scope of the supervision; or
      (c) appointed under an agreement by another Person who is subject to supervision by a Financial Services Regulator in a Recognised Jurisdiction and the agreement is in accordance with the requirements of the Regulator.
      (6) For the purposes of (1)(a)(ii), the Person carrying out both the custody and investment management activities of the Fund must be a Person who is:
      (a) authorised and supervised by the DFSA or a Financial Services Regulator located in a Recognised Jurisdiction in respect of both of its custody and investment management activities;
      (b) a member of a Group that is subject to consolidated supervision by a Financial Services Regulator in a Recognised Jurisdiction and its custody and investment management activities are included within the scope of that supervision; or
      (c) appointed under an agreement by another Person who is subject to supervision by a Financial Services Regulator in a Recognised Jurisdiction and the agreement is in accordance with the requirements of that Regulator.
      (7) The requirement in (1)(a)(iii) in respect of the Foreign Fund is that the Fund has been rated or graded as at least "investment grade" by Moody's, Fitch or Standard & Poor's or such other international rating agency as may be recognised by the DFSA.
      Derived from DFSA RM68/2009 (Made January 3rd 2010). [VER1/01-10]
      [Amended] DFSA RM72/2010 (Made 11th July 2010). [VER2/07-10]

    • REP 4.7.4

      (1) A Representative Office must ensure that it does not market a Unit of a Foreign Fund which is a Property Fund unless:
      (a) the Fund is a closed-ended structure; and
      (b) the Fund is listed and traded on an Authorised Market Institution or on an exchange regulated in a Recognised Jurisdiction, unless the Units are to be Offered, issued or sold by means only of Private Placement.
      (2) For the purposes of (1), a "Property Fund" is a Foreign Fund in respect of which 60% or more of the Fund's assets comprise Real Property, Property Related Assets or Units in another Property Fund.
      Derived from DFSA RM68/2009 (Made January 3rd 2010). [VER1/01-10]

      • REP 4.7.4 Guidance

        A closed ended legal structure is an investment vehicle used by a Fund that does not continuously issue or redeem Units based on the net asset value of the Fund.

        Derived from DFSA RM68/2009 (Made January 3rd 2010). [VER1/01-10]