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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
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  • Prospectus of a Property Fund

    • CIR 14.4.2

      A Fund Manager of a Property Fund must ensure that the following information is disclosed in the Fund's Prospectus:

      (a) the nature of the commitment which prospective Unitholders will enter into;
      (b) the risks involved in this type of Fund;
      (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's appointed Valuer under CIR Rule 13.4.18(1);
      (e) in a prominent position in the Prospectus, the redemption procedures;
      (f) the dividend or income distribution policy;
      (g) the insurance arrangement for the Fund;
      (h) a statement with respect to any material policy regarding real property activities;
      (i) details of transactions or agreements entered into with Related Parties;
      (j) full particulars of the nature and extent of the interest, if any, of Related Parties, in the property owned or proposed to be acquired by the Fund;
      (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's income and capital, including tax, if any, deducted on distribution to Unitholders;
      (m) a statement to explain the standards according to which the property valuations are conducted; and
      (n) if applicable, the Fund is a REIT and whether the investment vehicle is an Investment Company or an Investment Trust.
      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 Manager of a Public Property Fund must also disclose in the Fund's Prospectus, in addition to the standard disclosure requirements, in respect of investment limits, the following information:

      (a) what percentage of the Property Fund's net assets may consist of property related assets which are not traded in or dealt on markets provided for in the Constitution;
      (b) unless the Constitution and the Prospectus state that the Fund invests in a single property, the maximum percentage of the Fund's net assets which may be invested in any single property or, if applicable, the conditions under which the Fund may derogate from this restriction;
      (c) the maximum percentage of the Property Fund's 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's 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 Manager under these Rules, a Fund Manager of a Property Fund which is a Public Fund that invests in a single property must prominently disclose in the Prospectus of the Fund:

      (a) that the Fund 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 Fund may be considered to invest in a single property if the Fund Property (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 Operator of the Fund 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 Manager under these Rules, if the Fund Manager of a Public Property Fund itself acts as custodian of Real Property in accordance with CIR Rule 13.4.2, it must prominently disclose in the Fund's Prospectus:

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

    • CIR 14.4.4B

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

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

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© 2015 DFSA refers to the Dubai Financial Services Authority, a body established under Dubai law as the independent regulator of financial sevices and related activities for the DIFC.