• FUNDS APP 6 FUNDS APP 6 GUIDANCE ON FITNESS AND PROPRIETY FOR OVERSIGHT FUNCTIONS

    • Guidance

      • General

        1. The guidance in this Appendix is intended to assist a Fund Manager when making appointments in accordance with Rule 13.3.3 in respect of oversight functions.

      • Integrity

        2. The Fund Manager may have regard to matters including, but not limited to, the following.
        a. the propriety of an individual's conduct whether or not such conduct may have resulted in the commission of a criminal offence, the contravention of a law or the institution of legal or disciplinary proceedings of whatever nature;
        b. a conviction or finding of guilt in respect of any offence, other than a minor road traffic offence, by any court of competent jurisdiction;
        c. whether the individual has ever been the subject of disciplinary proceedings by a government body or agency or any recognised self- regulatory organisation or other professional body;
        d. a contravention of any provision of financial services legislation or of rules, regulations, statements of principle or codes of practice made under or by a recognised self-regulatory organisation, Recognised Body, regulated exchange or regulated clearing house or Financial Services Regulator;
        e. a refusal or restriction of the right to carry on a trade, business or profession requiring a licence, registration or other authority;
        f. a dismissal or a request to resign from any office or employment;
        g. whether the individual has been or is currently the subject of or has been concerned with the management of a Body Corporate which has been or is currently the subject of an investigation into an allegation of misconduct or malpractice;
        h. an adverse finding in a civil action by any court of competent jurisdiction of fraud, misfeasance or other misconduct, whether in connection with the formation or management of a corporation or otherwise;
        i. an adverse finding or an agreed settlement in a civil action by any court or tribunal of competent jurisdiction resulting in an award against an individual in excess of $10,000 or awards that total more than $10,000;
        j. an order of disqualification as a director or to act in the management or conduct of the affairs of a corporation by a court of competent jurisdiction or regulator;
        k. whether the individual has been a director, or concerned in the management of, a Body Corporate which has gone into liquidation or administration whilst that individual was connected with that Body Corporate or within one year of such a connection;
        l. whether the individual has been a partner or concerned in the management of a partnership where one or more partners have been made bankrupt whilst that individual was connected with that partnership or within a year of such a connection;
        m. whether the individual has been the subject of a complaint in connection with a financial service, which relates to his integrity, competence or financial soundness;
        n. whether the individual has been censured, disciplined, publicly criticised by or the subject of a court order at the instigation of any Regulator, or any officially appointed inquiry, or Financial Services Regulator; or
        o. whether the individual has been candid and truthful in all his dealings with the Fund Manager.

      • Financial soundness

        3. In determining the financial soundness of the individual, the Fund Manager may have regard to any factors including, but not limited to, the following:
        a. whether the individual is able to meet his debts as they fall due; or
        b. whether the individual has been adjudged bankrupt, been the subject of a receiving or administration order, had a bankruptcy petition served on him, had his estate sequestrated, entered into a deed of arrangement (or any contract in relation to a failure to pay due debts) in favour of his creditors or, within the last 10 years, has failed to satisfy a judgement debt under a court order, whether in the U.A.E. or elsewhere.