Guaranteed returns
Regulation 124
Guaranteed returns
IFSCA (Fund Management) Regulations, 2025No change in 2026Chapter VIII · General Obligations and Responsibilities
Chapter VIII · General Obligations and Responsibilities
Regulation 124 – Guaranteed returns
High importance about 4 min
Ongoing obligations & governance: Conduct, reporting, risk, custody, change in control and the day-to-day compliance load.
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In plain English
No guaranteed return may be offered in a or PMS unless the return is fully guaranteed by the FME, the guarantee and its details are stated in the /agreement, and the manner of meeting it is stated.
In plain English
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The rule, in its own words
Read the exact text of Regulation 124
124. No guaranteed return shall be offered in a scheme or under an agreement for PMS,
(a) unless such returns are fully guaranteed by the FME;
(b) unless a statement indicating the guarantee including details thereof is made in the offer document / agreement;
(c) the manner in which the guarantee is to be met has been stated in the offer document / agreement.
Statutory text — Principal Regulations, 2025 (as amended to 30 January 2026), consolidated where amended. The notified Gazette text prevails. Tap a highlighted word for how it functions.
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Exceptions and conditions
Taken from the wording of this provision — the carve-outs and conditions worth reading closely.
(a) unless such returns are fully guaranteed by the FME
(b) unless a statement indicating the guarantee including details thereof is made in the offer document / agreement
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What this means in practice
Compliance actions
- Applies to
- All schemes, FME offering PMS
- Frequency
- Per scheme/agreement
- Evidence
- Offer document/agreement guarantee disclosure
Common mistake
Marketing an implied or informal return assurance without a fully-backed, disclosed guarantee.5
Where it connects
Read alongside
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Check yourself
Quiz Centre
Test yourself on Regulation 124
5 questions in the unified bank test this regulation. Each explains every option and cites the provision.
A guaranteed return may be offered only if:
An FME may imply an assured return in marketing as long as it is not written in the agreement.
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Your notes
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Ongoing obligations & governance