1. Section 18 of the FSMR contains the restrictions on the financial promotion of Units in a Fund by any person other than an Authorised Person, and Schedule 2 of the FSMR specifies the limited circumstances in which such a person may market Units in a way that does not breach the general prohibition. In addition, these Rules prescribe that an Authorised Person may not market a Unit in the Abu Dhabi Global Market unless:
a. a Prospectus that complies with any relevant requirements in the FSMR and these Rules is made available to the person to whom the Offer is made;
b. a notification is provided to the Regulator in compliance with these Rules;
c. the Person marketing the Unit is an Authorised Person whose Financial Services Permission authorises it to do so; and
d. the Offer of a Unit is made in accordance with the applicable requirements in the FSMR or these Rules.
2. Rules 5.1.3 and 5.1.4 exclude from being treated as Offers any Transactions undertaken by an Authorised Person where such Transactions are Execution-only Transactions, or Transactions for the purposes of managing a discretionary portfolio for a Client, or for the purposes of redeeming a Unit of a Fund for a Client. Similarly, an offer made by an Authorised Person to a Market Counterparty is also excluded from being an Offer that is restricted by these Rules. As a result, such excluded Transactions and offers are not subject to the requirements in these Rules relating to the marketing of Units.
3. This Part of the Rulebook sets out the detailed requirements that apply to the Offer of Units of Domestic and Foreign Funds, including Prospectus disclosure by Authorised Persons. The Rules in this Chapter supplement provisions of COBS, which also govern the carrying on of Regulated Activities by an Authorised Person, except where otherwise provided.
4. Part 6 of MKT governs the listing of the Units of a Fund and continuous disclosure obligations that apply to in relation to Listed Funds.
|Amended on (3 February, 2020).|