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]