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Capital Requirements Regulation (CRR)
Article 349

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:

  1. the CIU's prospectus or equivalent document shall include all of the following:
    1. the categories of assets in which the CIU is authorised to invest;
    2. where investment limits apply, the relative limits and the methodologies to calculate them;
    3. where leverage is allowed, the maximum level of leverage;
    4. 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;
  2. 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;
  3. 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;
  4. investments in the CIU shall be segregated from the assets of the CIU manager;
  5. there shall be adequate risk assessment of the CIU, by the investing institution;
  6. CIUs shall be managed by persons supervised in accordance with Directive 2009/65/EC or equivalent legislation.