Guidance

1. This Chapter sets out the general requirements that apply to a Fund Manager, or where appointed the Trustee, of a Domestic Fund where it delegates or outsources any Regulated Activity or function to another Person. Such a Person is defined as a "Service Provider" for the purposes of these Rules.
2. A Fund Manager or, where appointed, the Trustee of a Fund respectively may, subject to any restriction in the Constitution of the Domestic Fund and any provisions of these Rules, delegate any of its Regulated Activities or outsource any of its functions to a Service Provider, which may be located in or outside the Abu Dhabi Global Market.
3. Fund Managers of Domestic Funds structured other than as an Investment Trust are required under Rule 12.3.2(2) to delegate the Regulated Activity of Providing Custody to an Eligible Custodian. This obligation does not apply where there are adequate alternative arrangements. This Chapter sets out the circumstances in which the obligation under Rule 12.3.2(2) does not apply.
4. A Fund Manager or Trustee 'outsources' a function relating to the operation of the Fund where the function, whether or not relating to a Regulated Activity, is contracted to be performed by a Service Provider. Where the extent of any such function or functions is such that they effectively constitute the carrying on of a Regulated Activity, the Regulator will consider this to comprise a 'delegation' of the Regulated Activity.
5. These Rules permit the use of a Service Provider do not relieve the Fund Manager or the Trustee from their obligations, including any restrictions on delegation or outsourcing arising from the Fund's Constitution or Prospectus.
6. GEN Rules 3.3.31 and 3.3.32 also govern outsourcing of functions and activities by an Authorised Person. Those Rules are not disapplied by this Chapter.