Article 349

CIUs shall be eligible for the approach set out in Article 350, where all the following conditions are met: the CIU's prospectus or equivalent document shall include all of the following: the categories of assets the CIU is authorised to invest in; where investment limits apply, the relative limits and the methodologies to calculate them; where leverage is allowed, the maximum level of leverage; 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; 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 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; investments in the CIU shall be segregated from the assets of the CIU manager; there shall be adequate risk assessment of the CIU, by the investing institution; 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 2026-09-25 · Text as adopted (Official Journal); later amendments are not incorporated in this text.