المادة 13: Fund Management

Article 13: Fund Management

a) The fund manager must act for the benefit of unitholders in accordance with these Regulations, the Capital Market Institutions Regulations and the terms and conditions of the fund .

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

d) The Fund will be managed by a portfolio manager working for the Fund Manager, and who must be a registered person with the Authority as per the provisions of the Capital Market Institutions Regulations.

e) Fund Manager’s Duties:

1) set out decision making procedures that should be followed when executing technical and administrative issues of the Fund’s businesses and projects.

2) comply with all laws and regulations valid in the Kingdom related to the Fund’s business.

3) implementing a compliance monitoring program for every real estate fund under its manages, the fund manager must provide the Authority with the results of the implementation of the program upon its request.

4) developing 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.

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

6) 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.

7) to manage the Fund’s assets in favor of the Unitholders benefit according to the Fund’s Terms and Conditions

8) ensuring the legality and validity of all contracts concluded for the benefit of the Fund.

9) The fund manager shall have the primary responsibility for compliance with these Regulations. Any delegation of the fund manager’s responsibilities and duties to any other person pursuant to these Regulations shall not in any way limit, reduce or satisfy the fund manager’s responsibilities under these Regulations and the Capital Market Institutions Regulations. The fund manager shall be responsible to unitholders for losses incurred by the investment fund which are caused by, fraud, negligence, misconduct or willful default of the fund manager.

10) The Fund Manager must immediately notify the Authority upon the commencement of the Fund’s operation.

11) The fund manager must comply with the provisions of Annex (12) of these Regulations when applying for an approval from or notifying the Authority requests.

12) The fund manager must comply with the fund's terms and conditions.

13) The fund manager must prepare an annual report that includes all complaints and the measures taken to address them, and it shall submit such report to the Fund’s board.

14) The Fund Manager must comply with the Instructions for Investment Funds Announcements.