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Version from: 01/01/2023
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Article 349 - General criteria for CIUs

Article 349

General criteria for CIUs

CIUs shall be eligible for the approach set out in Article 350, where all the following conditions are met:


the CIU's prospectus or equivalent document shall include all of the following:


the categories of assets in which the CIU is authorised to invest;


where investment limits apply, the relative limits and the methodologies to calculate them;


where leverage is allowed, the maximum level of leverage;


where concluding OTC financial derivatives transactions or repurchase transactions or securities borrowing or lending is allowed, a policy to limit counterparty risk arising from these transactions;


the business of the CIU shall be reported in half-yearly and annual reports to enable an assessment to be made of the assets and liabilities, income and operations over the reporting period;


the shares or units of the CIU shall be redeemable in cash, out of the undertaking's assets, on a daily basis at the request of the unit holder;


investments in the CIU shall be segregated from the assets of the CIU manager;


there shall be adequate risk assessment of the CIU, by the investing institution;


CIUs shall be managed by persons supervised in accordance with Directive 2009/65/EC or equivalent legislation.