Article 9: Fund Management and Duties of the Fund Manager

Article 9: Fund Management and Duties of the Fund Manager

a. The fund manager must act for the benefit of unitholders in accordance with these Regulations, the Capital Market Institutions Regulations and the Fund’s Terms and Conditions.

b. The fund manager shall comply with all principles and duties required under the Capital Market Institutions Regulations including the fiduciary duty towards unitholders, which includes the duty to act in the best interests of the unitholders and duty to exercise all reasonable care and skill.

c. With respect to the investment funds, fund manager’s responsibilities shall include:

1) Fund management.

2) Offering of fund units.

3) Ensuring the accuracy of the Fund’s Terms and Conditions, and verify that the terms and conditions are complete, clear, accurate, and not misleading.

d. In relation to investment funds, the fund operator shall be responsible for operating investment funds.

e. The fund manager shall have the primary responsibility for compliance with these Regulations, whether it directly performs its responsibilities and duties or delegated them to an external party under these Regulations and the Capital Market Institutions Regulations. The fund manager shall be responsible toward unitholders for losses incurred by the investment fund, which are caused by, fraud, negligence, misconduct or wilful default of the fund manager.

f. The fund manager must develop policies and procedures that detect risks effecting the fund's investments and ensure treatment of these risks as soon as possible. These policies and procedures must include conducting risks assessment, at least, once a year.

g. Unless the Authority determines otherwise, the fund manager may not limit the eligibility of the investment in the fund to nationals of any state or group of states or in a particular fund. This clause does not prevent the fund manager from rejecting investment from any person or entity that is deemed unqualified for such investment by any other relevant law.

h. All disclosures by the fund manager must be complete, clear, accurate and not misleading.

i. The fund manager must comply with the provisions of Annex (10) of these Regulations when applying for an approval from or notifying the Authority requests.

j. The fund manager must implement a compliance monitoring program for every fund under its management. The fund manager must provide the Authority with the results of the implementation of the program upon its request.

k. The fund manager must cooperate with all persons concerned with the performance of tasks for the fund, including the custodian and the auditor, and the fund manager must provide them with whatever necessary to perform their duties and tasks in accordance with these Regulations.

l. The fund manager must prepare an annual report that includes an assessment of the performance and quality of services provided by the parties involved in providing material services to the fund - including the custodian, developer and property manager (as applicable) - and the fund manager must submit the report referred to in this Paragraph to the fund's board of directors.

m. The fund manager must prepare an annual report that includes all complaints and actions taken towards them. The fund manager must submit the report referred to in this Paragraph to the fund's board of directors.

n. The fund manager must comply with the Instructions for Investment Funds Announcements.