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: (a) the CIU's prospectus or equivalent document shall include all of the following: (i) the categories of assets the CIU is authorised to invest in; (ii) where investment limits apply, the relative limits and the methodologies to calculate them; (iii) where leverage is allowed, the maximum level of leverage; (iv) 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; (b) 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; (c) the shares or units of the CIU are redeemable in cash, out of the undertaking's assets, on a daily basis at the request of the unit holder; (d) investments in the CIU shall be segregated from the assets of the CIU manager; (e) there shall be adequate risk assessment of the CIU, by the investing institution; (f) CIUs shall be managed by persons supervised in accordance with Directive 2009/65/EC or equivalent legislation.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04