Asset Management plays a distinctive role in capital markets by pooling the savings of investors and investing them strategically in financial instruments and other assets with the aim of generating returns. Investing is typically thought of as a way to increase the value of money and as a way of trying to protect the value of money against the impact of inflation over time. All investments carry risks and are generally accepted as higher risk than simply depositing money with a bank. Investments vary in terms of the degree of risk and also complexity and not all investment products are suitable for everyone.
AIFC opens up opportunities for global as well as local private equity, hedge fund, real estate fund managers and segregated managing investment to add diversity to their portfolios.
Types of Licenses
- Managing Investments means managing on a discretionary basis assets belonging to another Person where the assets include any Investment
- Unlike Managing Collective Investment Scheme, Managing Investments means managing investment in segregated accounts are otherwise known as ‘separately managed accounts’ because they can be tailored to specific investment guidelines. As the investment manager is hired as the sole decisionmaker in the investment process is done though the discretionary mandate. The investment management is based on the company’s investment policy.
- Managing a Collective Investment Scheme means establishing, managing or otherwise operating or winding up a Collective Investment Scheme (AIFC Gen Rules)
- Collective Investment Scheme is a pool of capital that several investors contribute to, which is then used to collectively make investments in accordance with the investment strategy. In such pooled investments the money of all the investors is aggregated and invested by a fund or investment manager. This allows the investment manager to spread the money invested across a range of different company shares or assets and may even allow investors access to different global markets within a single investment product.
Providing Fund Administration means providing one or more of the following services in relation to a Fund:
- processing dealing instructions including subscriptions, redemptions, stock transfers and arranging settlements;
- valuing of assets and performing net asset value calculations;
- maintaining the share register and Unitholder registration details;
- performing anti money laundering requirements;
- undertaking transaction monitoring and reconciliation functions;
- performing administrative activities in relation to banking, cash management, treasury and foreign exchange;
- producing financial statements, other than as the Fund’s registered auditor; or
- communicating with participants, the Fund, the Fund Manager, and investment managers, the prime brokers, the Regulators and any other parties in relation to the administration of the Fund.
- Advising on Investments means giving advice to a Person in his capacity as an investor or potential investor, or in his capacity as agent for an investor or a potential investor, on the merits of his buying, selling, holding, subscribing for or underwriting a particular Investment (whether as principal or agent).
“advice” includes a statement, opinion or report:
- where the intention is to influence a Person, in making a decision, to select a particular Investment or an interest in a particular Investment; or
- which could reasonably be regarded as being intended to have such an influence.
- Arranging Deals in Investments means making arrangements with a view to another Person buying, selling, subscribing for or underwriting an Investment (whether that other Person is acting as principal or agent). (AIFC Gen Rules)
- The intermediary that arranges deals as a third party. It is not a brokerage service. The Arranger does not take risks of the deal while Dealing in investment as agent is (as broker). The Arranger can introduce the interested party to a broker.