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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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  • CIR 13.8.2

    To determine whether a Deposit or Debenture is of high quality for the purposes of CIR Rule 13.8.1(2)(a), a Fund Manager of a Money Market Fund must carry out due diligence to an adequate standard on the Deposit or Debenture, taking into account the following factors:

    (a) the credit quality of the Issuer, and any guarantor, of the Investment;
    (b) the nature and quality of the asset class represented by the Investment;
    (c) the liquidity of the Investment; and
    (d) any other risks associated with the Investment or the market in which it is traded.
    [Added] RM158/2015 (Made 9th December 2015). [VER19/02-16]

    • CIR 13.8.2 Guidance

      1. A Fund Manager must carry out the due diligence required under CIR Rule 13.8.2 as part of its internal procedures. However, this does not prevent it from using a service provider to carry out the necessary due diligence, provided the outsourcing requirements in these Rules are met.
      2. A Fund Manager will not meet the due diligence requirements in the Rule if it relies solely on credit ratings issued by a credit rating agency. This is because assessment of credit quality is only part of the due diligence required under the Rule.
      3. A Fund Manager should keep appropriate records of the due diligence it has conducted on an Investment to demonstrate that it has complied with the Rule.
      [Added] RM158/2015 (Made 9th December 2015). [VER19/02-16]