• Chapter 4 Chapter 4 Investment Trusts

    • 113. General prohibition

      (1) A person shall not enter into an agreement to create a trust for collective investment purposes unless it is an agreement of the kind referred to in section 114.
      (2) The Regulator may by Rules prescribe circumstances in which the prohibition in subsection (1) does not apply.

    • 114. Creation of an Investment Trust

      (1) An Investment Trust shall be created by a Trust Deed entered into between —
      (a) an Authorised Person who has a Financial Services Permission to Manage Assets or Manage a Collective Investment Fund; and
      (b) an Authorised Person who has a Financial Services Permission to Act as the Trustee of an Investment Trust.
      (2) The Trustee of an Investment Trust must be independent of the Fund Manager of that Investment Trust. A Trustee will not be independent of a Fund Manager if —
      (a) the Fund Manager or the Trustee holds, or exercise voting rights in respect of, any Shares of the other;
      (b) the Fund Manager and the Trustee have a common holding company or a common ultimate holding company;
      (c) the Fund Manager or the Trustee have Directors on its Governing Body, who are also Directors of the other;
      (d) the Fund Manager or the Trustee has individuals performing Controlled Functions who are also individuals performing Controlled Functions for the other; or
      (e) the Fund Manager and the Trustee have been involved in the previous two years in any professional or material business dealings, other than acting as Fund Manager or Trustee respectively of any other Fund.
      (3) An Investment Trust shall be formed solely for collective investment purposes.
      (4) The Trust Deed shall —
      (a) meet all the requirements that apply in respect of the Constitution of a Fund under the Rules made by the Regulator;
      (b) set out clearly whether the Trustee is to provide the oversight function relating to the Investment Trust;
      (c) confer on the Trustee all the powers that are necessary for the Trustee to discharge all its duties and perform all its functions under these Regulations and any Rules made by the Regulator; and
      (d) not contain any provision which conflicts with the requirements in any Rules made by the Regulator.

    • 115. Effect and validity of the Trust Deed

      (1) The provisions of the Trust Deed are binding on the persons who become Unitholders of the Investment Trust, as if they were a party to the Trust Deed.
      (2) Any provision of a Trust Deed, which is inconsistent with these Regulations or any Rules made by the Regulator, shall be void.

    • 116. Unitholder liability

      (1) The Unitholders of an Investment Trust created under these Regulations are not liable for any debts or other liabilities incurred by or in respect of the Investment Trust except to the extent of any amount outstanding for the payment of the Units or interests in the Units at the price at which the Unitholder agreed to acquire the Units or interest in the Units.
      (2) No action shall be brought by any person against a Unitholder for any debts or other liabilities of, or in respect of, an Investment Trust or any actions or omissions of the Trustee or Fund Manager except to the extent provided in subsection (1).

    • 117. Power to make a Direction

      If, in the opinion of the Regulator, the name of a Fund or of a Sub-Fund conflicts with the name of another Fund or Sub-Fund or is undesirable or misleading, it may direct the Fund Manager to change the name of the Fund or the Sub-Fund.

    • 118. Recognised Jursidiction

      The Regulator may by Rules designate as a Recognised Jurisdiction any jurisdiction where it is satisfied that the laws and regulations of such jurisdiction are sufficiently equivalent to those of the Abu Dhabi Global Market in as far as they apply to the management and operation of Domestic Funds. The Regulator shall publish and maintain a list of such jurisdictions.