Entire Section

  • Look Through Methods

    • PIB A5.7.5

      An Authorised Firm may determine the Collective Investment Fund Risk Capital Requirement for positions in Funds, using the standard Collective Investment Fund look-through method, provided the relevant positions meet the criteria set out in PIB Rule A5.7.6.

      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB A5.7.6

      An Authorised Firm may use the standard Fund look-through method, only if the positions are in Funds which meet the following eligibility criteria:

      (a) the Fund's prospectus or equivalent document must include:
      (i) the categories of assets the Fund is authorised to invest in;
      (ii) if investment limits apply, the relative limits and the methodologies to calculate them;
      (iii) if leverage is allowed, the maximum level of leverage; and
      (iv) if investment in OTC financial derivatives or repo-style transactions are allowed, a policy to limit Counterparty Risk arising from these transactions;
      (b) the Fund must publish half-yearly accounts and annual reports to enable an assessment to be made of the assets and liabilities, income and operations over the reporting period;
      (c) the Units of the Fund are redeemable in cash, out of the Fund's assets, on a daily basis at the request of the Unitholder;
      (d) investments in the Fund must be segregated from the assets of the Fund Manager; and
      (e) there must be adequate risk assessment, by the investing firm, of the Fund.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB A5.7.7

      [Not currently in use]

      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]