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Executive Bylaws - CMA

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2-22-2 Conditions to be provided in the Promotion or Marketing of a Fund Of Module Thirteen: Collective Investment Schemes
Section: Chapter Two: Funds
  • Monday, 13 February 2017

    A Fund Manager shall abide by the provisions of the Financial Promotion stipulated in Chapter Seven of Module Eight (Conduct of Business) of these Bylaws. In addition, the Fund Manager shall, upon promoting for Funds, be obliged to the following: 1. Clarify the purpose of the promotion. 2. State the name and address of the Fund Manager and the Executive Committee for the Fund. 3. State how to obtain a copy of the Articles of Association and the financial reports of the Fund. 4. If the promotion includes a list of all investments in the Fund or a list of selected investments, the selection shall be conducted objectively and in a balanced manner and state the basis for this selection. 5. If the promotion includes information about the performance of the Fund or the Fund Manager, the promotion must meet the following requirements: a. A statement on the Fund’s total return after deducting all expenses. If the promotion includes a statement on the total return before deducting the expenses, these two statements must be included in the same degree of clarity in the promotion. b. A comparison between the Fund’s total return and the total return of an adequate index or another standard as specified in the Articles of Association for the same period. If the index or the other standard does not include all the elements of the total return, the elements that are not included and their effect must be stated in this comparison. c. A statement of the total return for the first financial year, and the total return of every three consecutive years as of the incorporation of the Fund. If the period of return is less than the multiple of three years, the return shall be stated since the year of incorporation till the last quarter according to the annual calendar applied in preparing the Fund’s financial statement. The performance may not be stated for a period less than one year. d. Clarify that the value of the investment Unit in the Fund is variable and may be subject to decrease or increase. e. Disclose any information or exceptional circumstances (if any) that had an effect or may affect the Fund’s performance.

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