CIR 16.1.3

(1) Part 9 of the Regulatory Law 2004 is to be read and, to have effect, as if it were subject to the provisions set out in this Rule.
(2) Where, for the purpose of a transfer scheme, it is proposed that the property of a Fund should become the property of another Fund or the property of a Sub-Fund of an Umbrella Fund, the proposal must not be implemented without the sanction of a Special Resolution of the Unitholders in the Fund, unless (3) applies.
(3) Where, for the purposes of a transfer scheme, it is proposed that Fund Property attributable to a Sub-Fund of an Umbrella Fund should become the property of another Fund, the proposal must not be implemented without the sanction of:
(a) a Special Resolution of the Unitholders in the Sub-Fund of that Umbrella Fund; and
(b) in the case of an Umbrella Fund that does not use the form of a Protected Cell Company, unless implementation of the transfer scheme is not likely to result in any material prejudice to the interests of the Unitholders in any other Sub-Fund of that Umbrella Fund, a Special Resolution of the Unitholders of other Sub-Funds of that that Umbrella Fund.
(4) If it is proposed that a Fund or a Sub-Fund of an Umbrella Fund should receive property, other than its first property pursuant to a transfer scheme, or an arrangement equivalent to a scheme of arrangement entered into with some other Fund or Sub-Fund, or a Body Corporate, the proposal must not be implemented without the sanction of a Special Resolution of the Unitholders in the relevant Fund or Sub-Fund and, in the case of an Umbrella Fund which is not in the form of a Protected Cell Company, the class or classes of Units related to the Sub-Fund, unless (5) applies.
(5) In (4), if the Fund Manager and if appointed the Trustee agree that the receipt of the property concerned for the account of the Fund:
(a) is not likely to result in any material prejudice to the interest of the Unitholders of the Fund;
(b) is consistent with the objectives of the Fund or Sub-Fund of an Umbrella Fund; and
(c) could be effected without any breach of the requirements relating to the borrowing and investment restrictions relating to the Fund or Sub-Fund in CIR chapter 10.5;
then the transfer may be effective and the issue of Units in exchange for assets as part of a transfer scheme may be undertaken.
Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]
[Amended] RM158/2015 (Made 9th December 2015). [VER19/02-16]