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APR 13 2024

Last Data Update

APR 12 2024

Financial Trusts and Collective Investment Funds

Article (37)

Financial trusts or collective investment funds may only be established with a license from the CMA in accordance with the terms and conditions prescribed in the regulations; Foreign Capital Investment Law shall not apply to financial trusts and collective investment funds.

Article (38)

Financial trust and collective investment fund shall be treated as independent legal entities registered with CMA. Their assets shall not be included in the financial accounts of the entities establishing or managing such trusts and funds. Their revenues shall not be included in the accounts of such entities and they shall not be liquidated in the event of the bankruptcy of their sponsors or managers. توحید مصلح اما solvency or bankruptcy

Article (39)

Personal creditors of shareholders or beneficiaries of financial trust and collective investment funds can not claim payment of their debt from the assets kept in the financial trust or collective investment fund.

Article (40)

The entities establishing or managing the financial trust or collective investment fund shall administer and organize the financial trust as set out in the Regulation.

Article (41)

CMA or a person designated by CMA shall maintain updated and complete record of each financial trusts or collective investment fund as per the terms and conditions set out in the Regulation.

Article (42)

The license to establish a financial trust or collective investment fund shall be terminated where the purpose for establishment ends or it is proven the establishment was in violation of the provisions of this law and regulation or other cases specified in the regulation. In all cases, the termination decision shall be conveyed with the reasons.

Article (43)

Financial trusts may be used for operating and managing collective investment funds, structured products, special purpose company and management of securities portfolios or any other purpose specified under the Regulation.

Article (44)

Collective investment funds shall aim at pooling and investing assets and savings in various types of investment. Persons contributing therein shall not have control over investment decisions and day-to-day operations.

Article (45)

Without prejudice to the Income Tax Law promulgated by Royal Decree No. 28/2009, collective investment fund offered for public subscription shall be exempt from income tax. Financial trust shall also be exempt from income tax.

Article (46)

Collective investment fund may issue units with equal rights in the assets of the financial trusts and offer for subscription as set out in the regulation.