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Prospectus of a Property Fund
CIR 14.4.2
A
Fund Manager of aProperty Fund must ensure that the following information is disclosed in theFund's Prospectus :(a) the nature of the commitment which prospectiveUnitholders will enter into;(b) the risks involved in this type ofFund ;(c) the prominent risk warning which makes reference to circumstances in property markets which can cause difficulties in meeting redemptions;(d) details of theProperty Fund's appointedValuer under CIR Rule 13.4.18(1);(e) in a prominent position in theProspectus , the redemption procedures;(f) the dividend or income distribution policy;(g) the insurance arrangement for theFund ;(h) a statement with respect to any material policy regarding real property activities;(i) details of transactions or agreements entered into withRelated Parties ;(j) full particulars of the nature and extent of the interest, if any, ofRelated Parties , in the property owned or proposed to be acquired by theFund ;(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 theFund's income and capital, including tax, if any, deducted on distribution toUnitholders ;(m) a statement to explain the standards according to which the property valuations are conducted; and(n) if applicable, theFund is aREIT and whether the investment vehicle is anInvestment Company or anInvestment 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 aPublic Property Fund must also disclose in theFund's Prospectus , in addition to the standard disclosure requirements, in respect of investment limits, the following information:(a) what percentage of theProperty Fund's net assets may consist of property related assets which are not traded in or dealt on markets provided for in theConstitution ;(b) unless theConstitution and theProspectus state that theFund invests in a single property, the maximum percentage of theFund's net assets which may be invested in any single property or, if applicable, the conditions under which theFund may derogate from this restriction;(c) the maximum percentage of theProperty 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 theProperty 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 theseRules , aFund Manager of aProperty Fund which is aPublic Fund that invests in a single property must prominently disclose in theProspectus of theFund :(a) that theFund 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 theFund 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 theOperator of theFund 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 theFund Manager of aPublic Property Fund itself acts as custodian ofReal Property in accordance with CIR Rule 13.4.2, it must prominently disclose in theFund's Prospectus :(a) that it acts as custodian of theReal Property ;(b) the risks that may arise as a result of it acting as custodian rather than delegating the function to anEligible Custodian ; and(c) the measures and safeguards it has in place to ensure the proper segregation and protection of theReal 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 theFund Manager of a Public Property Fund has approval to enter intoRelated Party Transactions in accordance with CIR Rule 13.4.11A, it must disclose that fact in theFund's Prospectus .[Added] RM158/2015 (Made 9th December 2015). [VER19/02-16]