GENERAL CRITERIA

The general eligibility criteria for using the methods in points 53 to 56, for CIUs issued by companies supervised or incorporated within the Community are that: the CIU's prospectus or equivalent document shall include: the categories of assets the CIU is authorised to invest in; if investment limits apply, the relative limits and the methodologies to calculate them; if leverage is allowed, the maximum level of leverage; and if investment in OTC financial derivatives or repo-style transactions are allowed, a policy to limit counterparty risk arising from these transactions; 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; the units/shares of the CIU are redeemable in cash, out of the undertaking's assets, on a daily basis at the request of the unit holder; investments in the CIU shall be segregated from the assets of the CIU manager; and there shall be adequate risk assessment of the CIU, by the investing institution. Third country CIUs may be eligible if the requirements in points (a) to (e) of point 51 are met, subject to the approval of the institution's competent authority.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-10 · Text as adopted (Official Journal); later amendments are not incorporated in this text.