1.1 Name

These Rules are the AIFC Dematerialised Investment Rules 2017 (or DIR).

1.2 Commencement

These Rules commence on 1 January 2018.

1.3 Legislative authority

These Rules are adopted by the Board of Directors of the AFSA under:

1. (a) section 181 (Power to adopt rules etc.) of the AIFC Companies Regulations; and
2. (b) section 43 (Power to adopt rules etc.) of the AIFC Personal Property Regulations.

1.4 Application of these Rules

These Rules apply within the jurisdiction of the AIFC to any Person to whom the AIFC Companies Regulations apply and any other Issuer of Investments that are or are to be held in Uncertificated form.

1.5 Definitions etc.

1.5.1 Subrule 1.5.4 and Schedule 1 contain definitions used in these Rules.

1.5.2 Terms used in these Rules (other than terms defined in subrule 1.5.4 and Schedule 1) have the same meanings as they have, from time to time, in the AIFC Companies Regulations, or the relevant provisions of those Regulations, unless the contrary intention appears.

Note: For definitions in the AIFC Companies Regulations applying to these Rules, see Schedule 1 to those Regulations. The definitions in that Schedule relevant to these Rules include the following:

• AIFC Regulations

• AIFC Rules

• Company

• Document

• Recognised Company

• Registrar of Companies (or Registrar)

• Writing.

1.5.3 Subject to subrule 1.5.2, terms used in these Rules (other than terms defined in Schedule 1 or the AIFC Companies Regulations) have the same meanings as they have, from time to time, in the AIFC Personal Property Regulations, or the relevant provisions of those Regulations, unless the contrary intention appears. Note: For definitions in the AIFC Personal Property Regulations applying to these Rules, see Schedule 1 to those Regulations. The definitions in that Schedule relevant to these Rules include the following:

• Authorised Market Institution

• Endorsement

• Instruction

• Investment.

1.5.4 For purposes of the AIFC Personal Property Regulations (PPR) and these Rules, the term Investment and the term Security mean, respectively, an Investment and a Security as defined in the AIFC Glossary where, in each case, one or more of the following circumstances applies:

a) it is issued by a legal entity incorporated or otherwise formed under the Acting Law of the AIFC, or otherwise issued under the Acting Law of the AIFC;

b) it is offered or placed in or from the AIFC;

c) it is admitted to the Official List of Securities of an Authorised Market Institution;

d) it is admitted to trading, clearing or settlement by an Authorised Market Institution;

e) it is transferred according to the Acting Law of the AIFC; or

f) the register of its legal title holders is maintained in the AIFC by an AIFC Participant, except for any such financial product that is declared by any Rules not to be an Investment or Security for purposes of these Rules.

1.6 Administration of these Rules

These Rules are administered by the Registrar of Companies.