CIR Hub › Appendices (App 1–9)

App 1 – App 9 · Supporting Rules & Guidance

CIR Appendices

Appendices 1–9: Supporting Rules, Guidance & Content Tables

The CIR Appendices contain binding rules, mandatory content tables, and detailed guidance that supplement the main chapters. They range from prescribed Delegation Agreement requirements (App 1) and Meeting Procedures (App 2), to the complete Public Fund Prospectus content table (App 7) and the Price Information Provider standards for ETFs and Crypto Token Funds (App 9).

Total Appendices

Binding Rules

App 1, 2, 3, 5, 9

Guidance Only

App 4, 6, 8

Content Tables

App 5, 7

Pricing Error Threshold

0.5% NAV

🔗

App 1 — Delegation & Outsourcing

Mandatory Agreement Provisions

Mandatory terms for Delegation and Outsourcing Agreements. Custody, fund administration and record-keeping standards. Does NOT apply to QIFs.

Binding Rules

🗳️

App 2 — Meeting Procedures

Unitholder Meetings

Chair nomination, 14-day notice requirements, quorum rules, voting restrictions for FM and Related Parties, adjourned meeting procedures.

Binding Rules

📢

App 3 — Approvals & Notifications

Fund Changes Framework

Three-tier change framework: Fundamental changes (Special Resolution), Significant changes (30-day prior notice), Notifiable changes (post-event notice).

Binding Rules

📊

App 4 — Asset Valuation & Pricing

Pricing Controls Guidance

Guidance on NAV calculation, pricing controls, outsourced pricing, oversight review standards, and incorrect pricing thresholds (0.5% de minimis).

Guidance

📋

App 5 — Fund Constitution

Mandatory Content Table

14 prescribed categories (A–N) of information that every Fund Constitution must contain. Exempt Funds need only categories A, C, D, F, G, H, K, M. QIFs exempt entirely.

Binding Rules

🏛️

App 6 — Fitness & Propriety for Oversight

Oversight Person Suitability

15 integrity factors and 2 financial soundness factors Fund Managers must consider when appointing oversight persons under Rule 10.3.2.

Guidance

📄

App 7 — Public Fund Prospectus Content

Mandatory Disclosure Table

Comprehensive prescribed disclosure table for all Public Fund Prospectuses — 20+ categories covering persons responsible, Fund details, investment info, fees, and specialist class sections.

Binding Rules

📈

App 8 — Hedge Fund Managers

Code of Practice Reference

References the DFSA's Hedge Fund Code of Practice — a separate document covering best practice for risk management, leverage, valuation independence, and prime broker relationships.

Guidance

🔍

App 9 — Price Information Providers

ETF & Crypto Token PIP Standards

7 binding requirements for Price Information Providers used by ETFs (for index tracking) and any Fund holding Crypto Tokens (for valuations). Ongoing due diligence required.

Binding Rules

🔗 App 1 — Delegation & Outsourcing

📋 A1.2 — Mandatory Agreement Provisions (applies to all Delegation & Outsourcing Agreements)

⚠️ QIF Exemption — App 1 Does NOT Apply to QIFs (A1.1.1(2))

App 1 applies only to Public Funds and Exempt Funds — not Qualified Investor Funds

Every Delegation & Outsourcing Agreement Must Include (A1.2.1(1))

Description of functions/activities and service standards to be applied
Prohibition on Service Provider sub-delegating or sub-outsourcing without the FM/Trustee's prior approval
Record-keeping obligation for Service Provider: maintain records of all transactions for each activity; retain records for at least 6 years; keep open to DFSA, Fund's Auditor, and oversight function persons at all reasonable times; reproduce in hard copy in English within 3 days if requested by DFSA

Delegation Agreements Must Also Include (A1.2.1(2))

Service Provider undertaking to comply with all applicable DFSA Rules
Service Provider undertaking to disclose material information to DFSA and FM/Trustee that it would disclose to its own Financial Services Regulator

FM/Trustee Record Keeping (A1.2.1(3))

FM or Trustee must maintain records of all agreements and any instructions given to Service Providers under those agreements — for at least 6 years

DFSA Minimum Expectations for Agreement Content (Guidance)

Unambiguous descriptions and definitions of activities/functions and duties of both parties
Agreed performance standards with measures in accordance with applicable Rules
Requirement for regular detailed reporting from the Service Provider at a specified frequency
Provisions for reporting of relevant events (technological changes, error reporting, events undermining Service Provider's ability to fulfil duties)
Requirement for an annual review (minimum) of the Service Provider's performance

📋 A1.3 — Eligible Custodian Agreement Requirements

Mandatory Terms for Custody Delegation Agreements (A1.3.1)

(a) Account title must sufficiently distinguish the Fund account from any account containing the Eligible Custodian's own Investments — in the form requested by FM/Trustee
(b) Fund's Investments may only be credited and withdrawn per the FM's/Trustee's instructions
(c) Eligible Custodian must hold Fund Investments separately from its own assets (subject to prime broker exception)
(d) Arrangements for recording, registration, claiming dividends/entitlements, interest, and giving/receiving instructions
(e) Eligible Custodian must deliver regular statements to FM/Trustee detailing Fund Investments in the account
(f) All Investments in the account are held by the Eligible Custodian as agent for the FM/Trustee; Eligible Custodian is NOT entitled to combine the account with any other account or exercise any charge, mortgage, lien, right of set-off or counterclaim against Fund Investments in respect of any sum owed to the Eligible Custodian on any other account (subject to prime broker exception)
(g) Extent of Eligible Custodian liability in the event of default

Prime Broker Exception (A1.3.1(2))

Requirements (c) and (f) above (segregation and no-set-off) do NOT have to be met if the Eligible Custodian or prime broker does so in compliance with Rule 13.6.3 (the Hedge Fund prime broker collateral pooling rule)
This means the prime broker must still be an Eligible Custodian and the 140% cap must apply

Fund Administration Agreement — Cash/Asset Restriction (A1.4.1)

Fund Administration Delegation Agreement must require the Service Provider NOT to hold or control monies or assets belonging to third parties in connection with the administration, EXCEPT:
- Cheques to the order of the Fund's bank account (held securely for maximum 3 business days before depositing or returning to drawer)
- Where the Service Provider controls bank accounts for the Fund — accounts must be conducted strictly per FM's instructions and any agreed mandate with the bank

🗳️ App 2 — Meeting Procedures

📋 A2.1 — Chair, Notice, Quorum & Voting Rules for Unitholder Meetings

Rule	Requirement	Key Detail
A2.1.1	Chair Nomination	FM of a Public Fund (or Trustee for Investment Trust) must nominate in writing a Unitholder (other than the FM) as chairman. If no nominee present within 15 minutes of start time, Unitholders present must choose another chairman. Chairman has a casting vote in the event of an equality of votes.
A2.1.2	Notice Period	Unitholders must be given at least 14 days written notice (or longer if specified in the Constitution), inclusive of the date notice is first served and the day of the meeting. Notice must specify: place, day, hour, and the terms of all resolutions to be proposed. If Investment Trust and Trustee has not convened the meeting, a copy must be sent to the Trustee no later than the time it is sent to Unitholders. Accidental failure to give notice does NOT invalidate the meeting proceedings.
A2.1.3	Quorum Requirements	Investment Trust: Unitholders in person/proxy representing 1/10 in value of all Units in issue (or any higher proportion specified in Trust Deed). Investment Company: 2 Unitholders present in person or by proxy. Business must not be transacted unless quorum is present at commencement. If no quorum within 30 minutes: Unitholder-requisitioned meetings must dissolve; all other meetings must adjourn (7+ days, place to be appointed by chairman). At the adjourned meeting, if no quorum within 15 minutes, 1 person constitutes a quorum.
A2.1.4	FM Voting Exclusion	No FM (or other Governing Body member) is entitled to be counted in the quorum or to vote at any Unitholder meeting — unless they hold Units on behalf of, or jointly with, a non-excluded person who has given voting instructions. Units held or treated as held by the FM or Governing Body member do not count as being in issue (for quorum/voting purposes), except where voting instructions have been received.
A2.1.5	Related Party Voting Exclusion	If a resolution is required for approval of a Related Party Transaction, neither the Related Party proposing the transaction nor any Associate of that Related Party is entitled to vote on the resolution.

📢 App 3 — Approvals & Notifications for Fund Changes (Public Funds)

📋 A3.1 — Three-Tier Change Framework

Tier	Rule	Trigger	Required Action	Examples
Fundamental Change	A3.1.1	Change that: (a) changes the purpose or nature of the Fund; (b) may materially prejudice a Unitholder; (c) alters the risk profile of the Fund; or (d) introduces any new type of payment out of Fund Property. Also includes specific changes in Rules 8.3.2, 8.13.3, 13.4.4(2), 16.1.3(2).	Prior Special Resolution of Unitholders required before implementation	Scheme of arrangement; change from equity to fixed-income investment policy; change from one-country to another country focus; introduction of derivatives as investment strategy; change from monthly to annual income distribution; introduction of limited redemption; change of custodian/trustee/oversight
Significant Change	A3.1.2	Not a fundamental change, but: (a) affects a Unitholder's ability to exercise rights; (b) would cause a Unitholder to reasonably reconsider participation; (c) results in increased payments to FM, Trustee, director or associate out of Fund Property; or (d) materially increases other types of payment out of Fund Property.	Prior written notice to Unitholders before implementation. Notice period should be at least 30 days.	Change in method of price publication; change in dilution or payment allocation policy; increase in preliminary charge for group savings plan
Notifiable Change	A3.1.3	Any change or event (other than fundamental or significant) that a Unitholder must be made aware of — unless the FM concludes it is insignificant.	Inform Unitholders in an appropriate manner and timescale (post-event)	Change of named investment manager (if marketed on that basis); significant political event impacting the Fund; change to the valuation time; introduction of limited issue arrangements; change of Fund name

📌 Note on Materiality

Both the fundamental and significant change categories are subject to a materiality analysis — the FM must determine whether any particular change reaches the threshold, and for Investment Trusts, must obtain the Trustee's agreement on the determination. The DFSA's examples in the Guidance are illustrative, not exhaustive. A change that appears minor could still be fundamental depending on its degree of impact on the Fund and its Unitholders.

📊 App 4 — Guidance on Asset Valuation & Pricing

📋 Pricing Controls, Oversight Standards & Incorrect Pricing Thresholds

Key Valuation Principles

Unit price = Fund Property attributable to that class ÷ number of Units of that class in issue
All Fund Property must be valued at each valuation point; non-Investment Fund Property must be valued at fair value
For Securities quoted on an Exchange: Constitution must set out whether to use the official mid-market price or last trade price — must be documented and applied consistently
For unquoted/illiquid/recently untraded Securities: use a fair and reasonable price (e.g. average of valuations from 3 experienced brokers); document the basis and assumptions
FM must agree on pricing methodology with the Trustee/Eligible Custodian/oversight persons and apply it consistently

Pricing Controls — FM Obligations

Prices and currency rates must be up to date from a reputable source; source reliability must be kept under regular review
Use of a third-party pricing agent = outsourcing — FM retains full responsibility and liability
Pricing agent's system must be reviewed at least annually and on any significant system change
All transactions should be confirmed in writing/electronically as quickly as possible; deals notified ≤1 hour before a valuation should be included in that valuation (at estimated prices if needed)
Cash must be reconciled to bank accounts regularly; full reconciliation sent to Trustee/depositary monthly
Investment and borrowing power limits must be monitored at every valuation — breaches identified and rectified
Dividends must be accrued as soon as stocks go ex-dividend; fixed interest and interest should be accrued at each valuation point (unless materiality makes a longer interval appropriate)
Weekly copy of valuation sent to FM/investment manager for review of correct securities being recorded

Oversight Function — Pricing Check Obligations

Conduct a thorough review of the FM's overall pricing system at the start of appointment AND when major changes are made
Annual review to confirm FM's systems and controls are satisfactory (more frequent if systems are known to be weak)
Annual verification (on sample basis if needed) of assets, liabilities, accruals, Units in issue, and other relevant factors for each Fund
Report in the annual oversight report the number of incorrect pricing instances: how many exceeded 0.5% and how many were below 0.5% with inadequate FM controls

<0.5%

Pricing error below 0.5% of Unit price. Compensation to Unitholders or Fund not normally required — unless Custodian/oversight function decides otherwise. FM must still record the error and report to oversight.

≥0.5%

Pricing error of 0.5% or more. Compensation to Unitholders will normally be required. If Trustee/oversight function considers compensation inappropriate, they must report to DFSA with recommendation and justification. FM must also immediately notify DFSA of such errors.

📋 App 5 — Constitution of a Domestic Fund (Mandatory Content)

📋 A5.1 — Prescribed Constitution Categories by Fund Type

Application (A5.1.1)

Public Funds: Constitution must contain ALL categories A through N
Exempt Funds: Constitution must contain only categories A, C, D, F, G, H, K and M
QIFs: App 5 requirements do NOT apply

15 Integrity Factors to Consider

(a) Propriety of conduct — whether or not it resulted in a criminal offence or legal/disciplinary proceedings
(b) Conviction or finding of guilt for any offence (other than minor road traffic offence) by any court
(c) Whether subject to disciplinary proceedings by a government body, regulatory, or professional body
(d) Contravention of financial services legislation or rules/regulations/codes by a recognised body, AMI, or FSR
(e) Refusal or restriction of licence, registration or other authority to carry on trade, business or profession
(f) Dismissal or request to resign from any office or employment
(g) Involvement in management of a Body Corporate subject to a misconduct or malpractice investigation
(h) Adverse finding in a civil action for fraud, misfeasance or other misconduct (whether connected with company formation/management or otherwise)
(i) Adverse finding or agreed settlement in civil action resulting in an award exceeding US$10,000 (or total awards exceeding US$10,000)
(j) Disqualification order as a director or from company management by a court or regulator
(k) Director of, or concerned in management of, a Body Corporate that went into liquidation/administration while connected (or within 1 year of connection)
(l) Partner or concerned in management of a partnership where partners became bankrupt while connected (or within 1 year)
(m) Subject of a complaint in connection with a financial service relating to integrity, competence or financial soundness
(n) Censured, disciplined, publicly criticised, or subject to a court order at the instigation of the DFSA, officially appointed inquiry, or any Financial Services Regulator
(o) Whether the individual has been candid and truthful in all dealings with the Fund Manager

2 Financial Soundness Factors to Consider

(a) Whether the individual is able to meet debts as they fall due
(b) Whether the individual has been adjudged bankrupt; subject to a receiving or administration order; had a bankruptcy petition served; had their estate sequestrated; entered into a deed of arrangement in favour of creditors; or within the last 10 years has failed to satisfy a judgment debt under a court order (UAE or elsewhere)

📄 App 7 — Content of a Public Fund Prospectus

📋 A7 — Mandatory Disclosure Categories for All Public Fund Prospectuses

Application (A7.1.1–A7.1.4)

Applies to the Persons referred to in Rule 14.1.1(1) — FM, Directors, Governing Body members
If the Public Fund is a Listed Fund: additional requirements under MKT section 6.3 apply
If an Islamic Fund: refer to IFR section 6.5
A Prospectus must contain all information a reasonable investor would need to make an informed investment decision — App 7 sets out the key mandatory disclosures

#	Category	Key Content Required
1	Persons Responsible	Names and details of all responsible persons; parts for which they are responsible; statement that information is accurate to the best of their knowledge and contains no material omissions; mandatory DFSA front-page disclaimer statement
2	Document Status	Prominent statement that it is the Prospectus; information is valid as at the signing date; no Units will be issued after the expiry date; location where a free copy is available
3	Fund Details	Full name; type and legal form; DIFC registration details; Sub-Fund information (if Umbrella Fund); Fund Manager details; Trustee details (if Investment Trust); Governing Body details
4	Investment Information	Investment objectives and policy; investment restrictions; asset types; borrowing policy and limits; derivatives use; stock lending; liquidity risk management powers, procedures, and triggers (if open-ended)
5	Risk Information	Risk factors and warnings appropriate to the Fund's investment strategy and asset class; risk/reward profile; capital risk warnings
6	Fund Operation	How Units are valued; valuation frequency; issue and redemption procedures; dealing days and cut-off times; publication of prices; suspension provisions; dilution policy
7	Fees, Charges & Expenses	All fees payable to FM, Trustee, custodian, and other service providers (with rates, calculation method and payment frequency); performance fees if applicable; set-up cost amortisation if applicable
8	Taxation	Taxation of the Fund; tax on distributions to Unitholders
9	Rights of Unitholders	Rights attaching to Units of each class; meetings and voting rights; income distribution policy; redemption and transfer restrictions
10	Past Performance / Performance Scenarios	Past performance data (if available) or performance scenarios for new Funds — with appropriate caveats
11	Service Providers	Details of all material service providers: Eligible Custodian, Registered Auditor, Fund Administrator, legal advisers, and any sub-custodians
12	Summary Document	Fund identity/classification; brief description of investment objectives/policy; past performance or scenarios; costs and charges; risk/reward profile with appropriate guidance and warnings
Specialist	Specialist Class Additional Disclosures	Feeder Fund: layered fee warning and fee breakdown. Property Fund: valuer details, redemption risk, RPT details, single-property disclosure if applicable. Hedge Fund: mandatory disclosure statement. MMF: capital guarantee warning. ETF: tracking methodology, iNAV, cost structure, AP details. VC Fund: illiquidity warning and disapplied requirements. Credit Fund: risk warning, lending strategy, diversification strategy. (See App 7 sections 2–7 for full specialist content)
Digital	Digital Asset Disclosures	If Units are Security Tokens: MKT App 7 equivalent information. If ≥10% GAV in Investment Tokens: MKT App 7 equivalent. If Crypto Tokens in Fund Property: MKT Rule A7.1.2 information (sub-paragraphs (a), (c), (e), (h), (i), (j))

📈 App 8 — Guidance for Hedge Fund Managers

External Reference Document

App 8 consists entirely of a reference to the DFSA's Hedge Fund Code of Practice — a separate document published on the DFSA website
The Code of Practice sets out best practice guidance for Hedge Fund Managers covering: risk management frameworks, leverage management, valuation independence, use of prime brokers, investor transparency, and operational controls
Under Rule 13.6.1 and 13.6.2, the DFSA expects Fund Managers of Hedge Funds to have proper regard to this Code of Practice as well as international developments in Hedge Fund regulation (such as IOSCO and FSB standards)
The Hedge Fund Code of Practice is referenced by Rule 13.6.2 (valuation/investment management separation) and Rule 13.6.3 (prime broker arrangements)
The Code is non-binding guidance — but failure to follow it without good reason may be taken into account by the DFSA in supervisory assessments

🔍 App 9 — Use of Price Information Providers (PIPs)

📋 A9.1 — PIP Standards for ETFs and Funds Holding Crypto Tokens

Application (A9.1.1)

Applies to Fund Managers of: (a) Exchange Traded Funds (for index/benchmark tracking); and (b) any Fund that has any Fund Property consisting of Crypto Tokens (for valuation purposes)
Due diligence must be undertaken before using a PIP and maintained on an ongoing basis

7 Mandatory PIP Requirements (A9.1.2(3))

(a) Fair and non-discriminatory pricing procedures — procedures for establishing prices must be made public
(b) Adequate methodology transparency: (i) all rules governing the methodology, composition, components, value and relative weighting of securities must be made publicly available within a reasonable timeframe; and (ii) no changes to index compilation rules may be made without giving advance public notice before any changes
(c) Priority to concluded transactions — where appropriate, assessment should prioritise concluded transactions and adopt measures to minimise selective reporting
(d) Good standing and repute — PIP must be of good standing and repute as an independent and objective price reporting agency or index provider
(e) Sound corporate governance framework
(f) Adequate conflict of interest arrangements — staff must not have material conflicts; in particular, the PIP must not employ ETF staff for the creation, development or modification of index compilation rules or their review
(g) Adequate complaint resolution mechanisms — to resolve complaints about the PIP's assessment process and methodology

DFSA Due Diligence Assessment Factors (Guidance)

PIP's standing and reliability in relevant physical or derivatives markets as a credible price reporting agency
Quality of corporate governance: independent board members; independent internal audit and risk management; for Shari'a-compliant indices, Shari'a governance arrangements
Whether methodologies and processes (including material changes) are made publicly available
Whether adequate conflict of interest procedures are in place, including codes of ethics
Clear conveyance to users of the economic realities of the underlying interest being measured
Characteristics of the underlying interest: size and liquidity (smaller markets = higher manipulation risk); relative market size (if referencing market is much larger than underlying, manipulation incentive increases); transparency of trading volumes and positions

Related Party PIP — Additional Obligation

If the PIP used by an ETF Fund Manager for index/benchmark tracking is a Related Party, the FM must treat that arrangement as a Related Party Transaction subject to Rule 8.3.2 (Rule 13.9.5)
Note: the circular/pre-approval requirements in Rule 8.3.2(3) are exempted for the initial appointment of a Related Party PIP at establishment — but the arm's length requirement always applies

📌 Practical Compliance Note

An ETF Fund Manager using an index provider should conduct formal documented due diligence against all 7 A9.1.2(3) criteria before using the PIP, and then repeat or update this diligence periodically (at least annually). The due diligence records must be maintained and available for DFSA inspection. If the index provider makes changes to its methodology or governance, the FM should promptly review whether the PIP continues to meet all requirements — the ongoing nature of the obligation means a one-time review at appointment is not sufficient.

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DFSA Collective Investment Rules (CIR) · Version VER40/01-26 · January 2026
For educational reference only. Always refer to the official DFSA Rulebook for authoritative text.