• Prospectus disclosure relating to Foreign Funds

    • FUNDS 10.1.2 FUNDS 10.1.2

      Where an Authorised Fund Manager or other Authorised Person Offers a Unit of a Foreign Fund to a Person in the Abu Dhabi Global Market, it must make available to that Person at the time of the Offer a copy of a current Prospectus relating to the Fund which complies with the additional requirements in Rule 10.1.3 and Rule 10.1.4.

      • Guidance

        A Prospectus includes, in the case of a Foreign Fund the Units of which are marketed in or from the Abu Dhabi Global Market, any prospectus or other disclosure document prepared in accordance with the laws applicable to that Foreign Fund.

    • FUNDS 10.1.3

      (1) The Prospectus of a Foreign Fund made available by an Authorised Fund Manager or other Authorised Person must be available in the English language.
      (2) The Prospectus must contain in a prominent position, or have attached to it, a statement that clearly:
      (a) describes the foreign jurisdiction and the legislation in that jurisdiction that applies to the Fund;
      (b) states the name of the relevant Financial Services Regulator in that jurisdiction;
      (c) describes the regulatory status accorded to the Fund by that Regulator;
      (d) includes the following warning:
      "The Regulator accepts no responsibility for reviewing or verifying any Prospectus or other documents in connection with this Fund.
      The Units to which this Prospectus relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers should conduct their own due diligence on the Units.
      If you do not understand the contents of this document you should consult an authorised financial adviser."; and
      (e) if the Offer is not directed to Retail Clients, includes a prominent statement to that effect to be incorporated within the warning in (d).

    • FUNDS 10.1.4

      An Authorised Fund Manager or other Authorised Person must ensure that the Prospectus contains adequate disclosure to investors, including:

      (a) the investment policy and strategy, as well as risks associated with the strategy;
      (b) management, performance, distribution and redemption fees payable or borne by investors;
      (c) terms on which an investor may terminate its investment or exit the Fund including, where applicable, gating, side-pocketing, lock-up or suspensions of redemptions, including any penalties that may apply under such circumstances;
      (d) the valuation policy and performance measurement standards;
      (e) where there are investments in hard-to-value or illiquid assets, the methodology and procedures for their valuation;
      (f) the use of leverage, to the extent permitted by the investment mandate, including a description of the types of leverage that may be employed and the circumstances in which leverage may be used; and
      (g) any counterparties appointed in respect of the Fund.

    • FUNDS 10.1.5 FUNDS 10.1.5

      An Authorised Fund Manager or other Authorised Person which makes an Offer of a Unit of a Foreign Fund must maintain at its place of business or other designated location in the Abu Dhabi Global Market copies of the relevant Prospectus for inspection by Clients and by the Regulator during normal business hours.

      • Guidance

        1. In relation to Rule 10.1.5, copies of the Prospectus may be stored electronically so long as Clients and the Regulator have ready and immediate access.
        2. These disclosures should be provided at the inception of the fund or (as the case may be) before the relevant investor makes an investment in the Fund. A Fund Manager should also ensure that such disclosures are provided to its investors not only on a periodic basis, but as and when material changes occur.
        3. Should such a requirement conflict with any requirements that apply to a Foreign Fund in the jurisdiction in which the Fund is domiciled, the Authorised Fund Manager may apply to the Regulator for appropriate waivers or modifications of the Regulator requirements.