• FUNDS PART 3: FUNDS PART 3: AUTHORISATION

    • FUNDS 6. FUNDS 6. DOMESTIC FUNDS

      • FUNDS 6.1 FUNDS 6.1 Registration of Public Funds

        • The application for registration

          • FUNDS 6.1.1

            (1) An application pursuant to Section 107 of the FSMR for the registration of a Public Fund must be made to the Regulator by the legal Person which is to be the Fund Manager of a Domestic Fund. If the Fund is an Investment Trust, then the Trustee and Fund Manager must jointly apply.
            (2) The Fund Manager and, if applicable, the Trustee must complete and submit the appropriate form or forms (which shall be in such form as the Regulator may prescribe).
            (3) In addition to the requirements of Section 107 of the FSMR, the application must be accompanied by:
            (a) copies of the Fund's Constitution and Prospectus; and
            (b) certification by the Fund Manager and (where applicable) the Trustee to the effect that:
            (1) the Constitution of the Fund complies with the requirements prescribed under these Rules and the FSMR;
            (2) the Prospectus complies with the requirements prescribed under these Rules and the FSMR; and
            (3) if the Fund is managed by a Foreign Fund Manager, the requirements in Rule 7.1 are met.

          • FUNDS 6.1.2

            If, at any time between the filing of an application for registration and the grant of a registration, the Fund Manager or, if appointed, the Trustee becomes aware of any material change, error, or omission reasonably likely to be relevant to the application under consideration, it shall inform the Regulator in writing of such change without delay.

          • FUNDS 6.1.3

            In assessing an application for registration, the Regulator may:

            (a) make any enquiries which it considers appropriate, including enquiries independent of the Fund Manager and Trustee; or
            (b) require the Fund Manager or Trustee to provide further information.

        • Requirements for registration

          • FUNDS 6.1.4

            Subject to the provisions of these Rules, a Fund will only be registered by the Regulator if it satisfies the following conditions:

            (a) the registration or other legal formalities relating to the formation of the Fund are completed;
            (b) the Fund has appointed to it a Fund Manager which is:
            (i) authorised by the Regulator under its Financial Services Permission to carry on the Regulated Activity of Managing a Collective Investment Fund; or
            (ii) a Foreign Fund Manager;
            (c) the Fund, if it is an Investment Trust, has a Trustee which meets the requirements in these Rules and the FSMR;
            (d) the Fund, if it is a Domestic Fund, is constituted as an Investment Company, Investment Partnership or Investment Trust;
            (e) the Fund Manager has made satisfactory arrangements in relation to the oversight function of the Fund and the delegation of the Regulated Activity of Providing Custody as required under the FSMR and these Rules;
            (f) the Fund Manager has appointed an Auditor to the Fund who complies with the requirements in Rule 16.3; and
            (g) the name of the Fund is not undesirable or misleading and its purpose is reasonably capable of being successfully carried into effect.

        • Rejection of an application

          • Guidance

            Under Section 109 of the FSMR, the Regulator may refuse to grant an application for the registration of a Fund if it is not satisfied that the requirements referred to in Section 129 of the FSMR have been met.

        • Granting registration

          • Guidance

            1. Under Section 110 of the FSMR, once the Regulator grants registration of a Fund, it will without undue delay inform the relevant applicant in writing of:
            a. such decision; and
            b. the date on which the registration shall be deemed to take effect.
            2. The Regulator maintains a list of Public Funds which have been registered on its Public Register.

        • Withdrawal of registration

          • Guidance

            Under Section 111 of the FSMR, the Regulator may withdraw the registration of a Fund in specified circumstances.

      • FUNDS 6.2 FUNDS 6.2 Notification Requirement applicable to Exempt Funds and Qualified Investor Funds

        • FUNDS 6.2.1

          A Fund Manager of an Exempt Fund, when notifying the Regulator pursuant to Section 112 of the FSMR, must also include:

          (a) a general description of the Fund including the nature of its investments and the intended size of the Fund in monetary terms;
          (b) if it is a Fund which has appointed a prime broker pursuant to Rule 12.3.9:
          (i) the details relating to the identity of the prime broker and its Regulator; and
          (ii) a legal certification that all the requirements in Rule 12.3.9 relating to the use of prime brokers have been fully complied with by the Fund Manager;
          (c) if it is a Foreign Fund Manager, the name of the jurisdiction in which that Foreign Fund Manager is domiciled, and the details of the Appointed Fund Administrator or Trustee to that Fund for the purposes of Rule 7.1.2,

          and such other information as the Regulator may from time to time request.

        • FUNDS 6.2.2

          A Fund Manager of a Qualified Investor Fund, when notifying the Regulator pursuant to Section 112 of the FSMR, must also include a general description of the Fund including the nature of its investments and the intended size of the Fund in monetary terms, and such other information as the Regulator may from time to time request.

      • FUNDS 6.3 FUNDS 6.3 Domestic Funds formed as PCCs or ICCs

        • Regulator Consent

          • FUNDS 6.3.1

            A Protected Cell Company and an Incorporated Cell Company cannot be established in the Abu Dhabi Global Market without the consent of the Regulator.

          • FUNDS 6.3.2

            An application to the Regulator in connection with the proposed establishment of a Protected Cell Company and an Incorporated Cell Company must be made in such form, and be accompanied by such documentation, as the Regulator may from time to time prescribe.

          • FUNDS 6.3.3

            A Domestic Fund, other than a Qualified Investor Fund, that is a Protected Cell Company or an Incorporated Cell Company may not create a new Cell unless approval has been granted by the Regulator.

          • FUNDS 6.3.4

            An Authorised Fund Manager of a Qualified Investor Fund must give notice to the Regulator of its intention to create a new Cell of a Domestic Fund which is a Protected Cell Company or an Incorporated Cell Company by submitting a notification to the Regulator, which shall be in such form as the Regulator may prescribe, as soon as reasonably practicable before creation of the Cell.

          • FUNDS 6.3.5

            An application to the Regulator for the approval for the creation of a new Cell must be made on the appropriate form (which shall be in such form as the Regulator may prescribe), and shall be accompanied by such documents and information and verified in such manner, as the Regulator may require.

          • FUNDS 6.3.6 FUNDS 6.3.6

            (1) The Regulator may:
            (a) grant approval;
            (b) grant approval with conditions or restrictions; or
            (c) refuse approval;
            for the creation of a new Cell.

            The procedures in Part 21 of the FSMR apply to a decision of the Regulator under (1)(b) and (c).
            (2) If the Regulator decides to exercise its power under (1)(b) and (c), the Domestic Fund may refer the matter to the Regulatory Committee for review.

            • Guidance

              For the purposes of Rule 6.3.4, "as soon as reasonably practicable before creation of the Cell" requires, at a minimum, at least seven calendar days' notice to be given before the creation of such Cell by the Authorised Fund Manager.

    • FUNDS 7. FUNDS 7. FOREIGN FUNDS AND FOREIGN FUND MANAGERS

      • FUNDS 7.1 FUNDS 7.1 Authorisation Requirements for Foreign Fund Managers of Domestic Funds

        • Subjecting to the Abu Dhabi Global Market jurisdiction / Equivalence

          • FUNDS 7.1.1

            A Foreign Fund Manager to whom this Chapter applies must:

            (a) be subject to regulation by, or registration with, a Financial Services Regulator in a Recognised Jurisdiction or a jurisdiction otherwise acceptable to the Regulator with respect to its activity of managing Funds; and
            (b) either:
            (1) subject itself to the Abu Dhabi Global Market laws and regulations and the jurisdiction of the Abu Dhabi Global Market Courts so far as they apply to its activities relating to the Domestic Fund; or
            (2) be subject to the laws and regulations of a Zone 1 jurisdiction or Recognised Jurisdiction as they apply to managing Funds; or
            (3) be subject to laws and regulations that are otherwise, in the opinion of the Regulator, reasonably equivalent to those of the Abu Dhabi Global Market as they apply to management of Domestic Funds,

            and, in each case, sign the appropriate declaration for that purposes as may be required by the Regulator.

        • Appointment of Fund Administrator/Trustee/Custodian

          • FUNDS 7.1.2 FUNDS 7.1.2

            (1) A Foreign Fund Manager to whom this Chapter applies must:
            (a) ensure that there is appointed to the Fund a Fund Administrator or a Trustee licensed by the Regulator or such other administrator or trustee as is otherwise acceptable to the Regulator (hereafter referred to as the "Appointed Fund Administrator" or "Appointed Trustee") before commencing the management of that Fund;
            (b) ensure that there is appointed to the Fund an Eligible Custodian before commencing the management of that Fund; and
            (c) either itself procure, or require the Appointed Fund Administrator or Appointed Trustee to (and for this purpose grant to that Person such powers as are necessary to), facilitate:
            (i) if it is an open-ended Fund, the issue, resale and redemption of the Units of the Fund and the publication of the price at which such issue, resale or redemption will occur in accordance with these Rules and the Constitution;
            (ii) the sending to Unitholders of the Fund all the reports required under these Rules and the Constitution;
            (iii) access to the Constitution and most recent Prospectus of the Fund to Unitholders and prospective Unitholders; and
            (iv) access to the books and records relating to the Fund as required by the Regulator and any person providing the oversight functions of the Fund.
            (2) If the Fund is structured as an Investment Trust, the Foreign Fund Manager may appoint the Trustee as its Appointed Trustee for the purposes of (1).

            • Guidance

              In addition to the requirements in this Chapter which apply to the Appointed Fund Administrator or Appointed Trustee, Persons who are appointed to Funds as Fund Administrators or Trustees have other obligations (see for example Rule 17.1).

      • FUNDS 7.2 FUNDS 7.2 Authorisation Requirements for Authorised Fund Managers of Foreign Funds

        • Regulator Notification

          • FUNDS 7.2.1 FUNDS 7.2.1

            An Authorised Fund Manager to which this Chapter applies must give notice to the Regulator of its intention to manage a Foreign Fund by submitting a notification to the Regulator as soon as reasonably practicable before launch in accordance with the requirements of this Chapter.

            The notification shall be in such form as the Regulator may prescribe and should be submitted together with the most recent versions of:

            (a) the constitution of the Fund;
            (b) the offering document (or equivalent) relating to the Fund; and
            (c) such other required information as the Regulator may from time to time prescribe.

            The Authorised Fund Manager shall, as part of its notification, evidence that the requirements of Rule 7.2.3 and Rule 10.1.6 have been met or will, by the time that the Authorised Fund Manager commences management of the Foreign Fund, be met.

            • Guidance

              For the purposes of Rule 7.2.1, "as soon as reasonably practicable before launch" requires, at a minimum, at least seven calendar days' notice to be given before the commencement of management functions by the Authorised Fund Manager.

        • Systems Requirements for Authorised Fund Managers of Foreign Funds

          • FUNDS 7.2.2

            An Authorised Fund Manager of a Foreign Fund must have systems and controls which are adequate to ensure compliance with the requirements that apply to the Foreign Fund in the jurisdiction in which it is established or domiciled.

        • Appointment of Fund Administrator/Trustee/Custodian

          • FUNDS 7.2.3

            An Authorised Fund Manager to whom this Chapter applies must:

            (a) ensure that there is appointed to the Fund an administrator or trustee before commencing the management of that Fund;
            (b) ensure that there is appointed to the Fund an Eligible Custodian before commencing the management of that Fund; and
            (c) procure access to the books and records relating to the Fund as required by the Regulator and any person providing the oversight functions of the Fund.

          • FUNDS 7.2.4

            The AML Rules apply to an Authorised Fund Manager of a Foreign Fund to the extent that  it carries on  the Regulated Activity of Acting as  the Manager of a Collective Investment  Fund  in  relation  to  such  Foreign  Fund as  if each  reference  in AML  to a  "customer"  is  a  reference to a "Unitholder" or "prospective Unitholder" as appropriate to the context.