CMA Resolution Emphasizes Responsibility Of Fund Managers

In late May, the Capital Market Authority (CMA) issued a routine resolution approving the public offering of a real estate fund. However, in doing so, the CMA also emphasized the importance of clearly drafted terms and conditions (T&Cs), and placed the burden on fund managers to get this right.

The key points highlighted by the CMA were as follows:

• Investors should read carefully the T&Cs before making any investment decision. Not reading the T&Cs carefully or fully reviewing its contents was specifically noted as "high risk".
• T&Cs should include detailed information on the fund, investment strategy and risk factors.
• If the T&Cs prove difficult to understand, investors must refer to the fund manager for more information.