CRR Tool
Capital Requirements Regulation (CRR)
Article 349

Article 349 - General criteria for CIUs

Status
In force
Selected consolidated version from
30/09/2021
Search all articles and keywords within this legal act

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:

(a) 

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

(i) 

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

(ii) 

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

(iii) 

where leverage is allowed, the maximum level of leverage;

(iv) 

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;

(b) 

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;

(c) 

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;

(d) 

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

(e) 

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

(f) 

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

Related documents