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  • FUNDS 3. FUNDS 3. FUND CRITERIA

    • FUNDS 3.1 FUNDS 3.1 Domestic and Foreign Funds

      • FUNDS 3.1.1

        (1) A Fund is either a Domestic Fund or a Foreign Fund.
        (2) A Fund is a Domestic Fund if it is established or domiciled in the Abu Dhabi Global Market.
        (3) A Fund that does not meet the Domestic Fund criteria is a Foreign Fund.

    • FUNDS 3.2 FUNDS 3.2 Types of Domestic Funds

      • FUNDS 3.2.1

        (1) A Domestic Fund shall be one of the following types of Fund:
        (a) a Public Fund;
        (b) an Exempt Fund; or
        (c) a Qualified Investor Fund.
        (2) The types of Fund set out above are listed in terms of the level of regulation (from most intensively regulated to least intensively regulated).
        (3) The Regulator may treat any type of Domestic Fund as a specialist class of a Domestic Fund pursuant to Rule 4 hereof.

    • FUNDS 3.3 FUNDS 3.3 Domestic Fund criteria

      • FUNDS 3.3.1

        (1) A Domestic Fund shall be constituted as a Public Fund if:
        (a) some or all of its Units are offered to investors by way of a public offer; or
        (b) its Unitholders include Retail Clients.

      • FUNDS 3.3.2

        (1) A Domestic Fund may be constituted either as an Exempt Fund or as a Qualified Investor Fund but only if that Fund satisfies all of the conditions in Rule 3.3.3 or Rule 3.3.4 below, as applicable.

      • FUNDS 3.3.3

        (1) A Domestic Fund is an Exempt Fund, if:
        (a) its Units are offered to persons only by way of a private placement;
        (b) all its Unitholders are persons who meet the criteria to be classified as Professional Clients; and
        (c) the initial subscription to be paid by a person to become a Unitholder is at least US$50,000,
        and it does not satisfy the conditions in Rule 3.3.4 below to be a Qualified Investor Fund.

      • FUNDS 3.3.4

        (1) A Domestic Fund is a Qualified Investor Fund, if:
        (a) its Units are offered to persons only by way of a private placement;
        (b) all its Unitholders are persons who meet the criteria to be classified as Professional Clients; and
        (c) the initial subscription to be paid by a person to become a Unitholder is at least US$500,000.

      • FUNDS 3.3.5

        (1) A Domestic Fund does not cease to be an Exempt Fund or a Qualified Investor Fund under Rule 3.3.3 or Rule 3.3.4 above merely because one or more Units in that Fund is registered in the name of a person who does not meet the criteria to be a Unitholder of that particular type of Fund as a result of:
        (a) inheritance from a registered Unitholder of the Fund; or
        (b) any legal action brought for or against a registered Unitholder.

    • FUNDS 3.4 The different types of Domestic Funds

      This table illustrates the different Rules applicable to the three categories of Domestic Fund.

      The Fund Rules Chapters Public Fund Exempt Fund QIF
      Chapter 1: Application and Client Classification ✓ ✓ ✓
      Chapter 2: Arrangements Not Constituting a Fund ✓ ✓ ✓
      Chapter 3: Fund Criteria ✓ ✓ ✓
      Chapter 4: Specialist Classes of Funds ✓ ✓ ✓
      Chapter 5: Excluded Offers ✓ ✓ ✓
      Chapter 6: Domestic Funds ✓
      Rule 6.2 does not apply      		 ✓
      Rule 6.1 does not apply      		 ✓
      Rule 6.1 does not apply
      Chapter 7: Foreign Funds and Foreign Fund Managers ✓ ✓ ✓
      Chapter 8: Regulator Notification ✓ ✓ ✓
      Chapter 9: Marketing of Domestic Funds and Prospectus Disclosure ✓
      Rules 9.5.2 and 9.5.4 do not apply      		 ✓
      Rules 9.5.1 and 9.5.3 do not apply      		 ✓
      Only Rules 9.1.1, 9.2, 9.3, 9.4.1, 9.4.2, 9.5.2, 9.5.4, 9.6.1, 9.7 & 9.8 apply
      Chapter 10: Marketing of Foreign Funds and Prospectus Disclosure ✓ ✓ ✓
      Chapter 11: Constitution ✓ ✓ ✓
      Only Rules 11.1.1, 11.1.2(1)(a), 11.1.2(1)(c), 11.1.2(1)( d), 11.1.2(1)(e), 11.1.3(1)(b), 11.1.3(2) and 11.1.5 apply
      Chapter 12: Management and Operation of a Fund ✓ ✓ ✓
      Only Rules 12.1, 12.2, 12.3.1, 12.3.2, 12.3.3, 12.3.4, 12.3.5, 12.3.6, 12.3.7(b), 12.3.8, 12.3.9, 12.3.10, 12.3.12(1), 12.4.1 (b) and 12.10.1 and the Guidance to Rule 12.12.2 apply
      Chapter 13: Requirements Specific to Public Funds ✓    
      Chapter 14: Requirements Specific to Exempt Funds   ✓  
      Chapter 15: Requirements Specific to Qualified Investor Funds     ✓
      Chapter 16: Accounting, Audit and Periodic Reporting of a Fund ✓ ✓
      A comparative table as set out in Rule 16.4.8 for the annual report is not required.
      Rules 16.3.8 and 16.4.5(a) need not be complied with if a waiver is obtained pursuant to Rule 16.3.9      		 ✓
      Rules on interim reports do not apply unless there has been a material change during the interim accounting period. A comparative table for the annual report is not required Rules 16.3.8 and 16.4.5(a) need not be complied with if a waiver is obtained pursuant to Rule 16.3.9
      Chapter 17: Fund Administrators ✓ ✓ ✓
      Rule 17.1.4 does not apply
      Chapter 18: Transfer Schemes Relating to Domestic Funds ✓ ✓ ✓
      Chapter 19: Winding Up of Domestic Funds ✓ ✓ ✓
      APP 1: Delegation and Outsourcing ✓ ✓  
      APP 2: Meeting Procedures ✓    
      APP 3: Approvals and Notifications ✓    
      APP 4: Guidance on Asset Valuation and Pricing ✓ ✓  
      APP 5: Constitution of a Domestic Fund ✓ ✓  
      APP 6: Guidance of Fitness and Propriety for Oversight Functions ✓    
      APP 7: Public Fund Prospectus Disclosure ✓    
      APP 8: Recognised Jurisdiction List ✓ ✓ ✓