Right of redemption
12.—(1) The unit-holders of the merging and the receiving UCITS may require their UCITS—
(a)to purchase or redeem any units they hold in either the merging or the receiving UCITS; or
(b)to convert any units they hold in either the merging or receiving UCITS into units of another UCITS which—
(i)has similar investment policies to those of the merging or receiving UCITS; and
(ii)is managed by the same manager or by a manager which is associated with that manager within the meaning of section 256 of the Companies Act 2006.
(2) The rights referred to in paragraph (1) shall become effective from the moment when the unit-holder is informed of the proposed merger in accordance with rules made by the Authority to implement Article 43 of the UCITS directive, and must cease five working days before the date on which the exchange ratio must be calculated under Article 47.1 of the directive.
(3) No charge may be made for the exercise of the rights in paragraph (1) except to enable the UCITS to meet disinvestment costs.
(4) Where one of the merging or receiving UCITS is a master UCITS within the meaning of section 237(3) of the Act, the master UCITS must enable its feeder UCITS to repurchase or redeem all the units of the master UCITS in which they have invested before the consequences of the merger become effective, unless the Authority approves the continued investment by the feeder UCITS in the UCITS resulting from the merger.