المادة 15: Delegation by the Fund Manager

Article 15: Delegation by the Fund Manager

a. The Fund Manager may delegate one or more third parties or any of its affiliates to act as a Sub-Fund Manager for managing the Fund’s investments within the Kingdom, the following must be fulfilled:

1) The delegate must be appointed pursuant to a written agreement.

2) The delegate must be a capital market institution licensed to carry out the activity of managing Investments and operating funds or the activity of managing investments.

b. The fund manager may delegate one or more third parties or any of its affiliates to act as a fund operator, or may delegate one or more third parties to carry out fund operations, including administrative services of the fund, the following must be fulfilled:

1) The delegate must be appointed pursuant to a written agreement.

2) The fund operator or delegate must be a capital market institution licensed to carry out the activity of managing investments and operating funds.

c. A sub-fund manager operating outside the Kingdom may be delegated to manage the Fund’s foreign investments, or one or more third parties may be delegated to carry out Fund operations outside the Kingdom in relation to the Fund’s foreign investments, provided that such delegate is duly established, licensed, and subject to the supervision of a regulatory authority that applies regulatory standards and requirements at least equivalent to those of the Authority. The delegate must be appointed pursuant to a written agreement. The Authority shall, at its sole discretion, assess whether the regulatory standards and requirements applicable to the sub-fund manager outside the Kingdom or to the third party delegated to carry out Fund operations outside the Kingdom are at least equivalent to those of the Authority.

d. The fund manager may delegate one or more third parties or any of its affiliates to act as a distributor of the Fund’s units. The distributor must be appointed pursuant to a written agreement, and any distributor delegated within the Kingdom must be a capital market institution licensed to carry out the activity of dealing or the activity of advising; and the fund manager may delegate a party outside the Kingdom to undertake distribution activities outside the Kingdom.

e. The fund manager may rely on the distributor delegated pursuant to paragraph (d) of this Article to carry out customer due diligence measures in accordance with the relevant provisions of the anti-money laundering law and its implementing regulations.