51.

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.

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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.