1.AIFMs can only carry out an AIF order in aggregate with an order of another AIF, a [F2UK UCITS] or a client or with an order made when investing their own funds where:
(a)it can be reasonably expected that the aggregation of orders will not work overall to the disadvantage of any AIF, [F2UK UCITS] or clients whose order is to be aggregated;
(b)an order allocation policy is established and implemented, providing in sufficiently precise terms for the fair allocation of aggregated orders, including how the volume and price of orders determines allocations and the treatment of partial executions.
2.Where an AIFM aggregates an AIF order with one or more orders of other AIFs, [F2UK UCITS] or clients and the aggregated order is partially executed, it shall allocate the related trades in accordance with its order allocation policy.
3.Where an AIFM aggregates transactions for its own account with one or more orders of AIFs, [F2UK UCITS] or clients, it shall not allocate the related trades in a way that is detrimental to the AIF, [F2UK UCITS] or a client.
4.Where an AIFM aggregates an order of an AIF, [F2UK UCITS] or another client with a transaction for its own account and the aggregated order is partially executed, it shall allocate the related trades to the AIF, [F2UK UCITS] or to clients in priority over those for own account.
However, if the AIFM is able to demonstrate to the AIF or to the client on reasonable grounds that it would not have been able to carry out the order on such advantageous terms without aggregation, or at all, it may allocate the transaction for its own account proportionally, in accordance with the policy referred to in point (b) of paragraph 1.
Textual Amendments
F2Words in Art. 29 substituted (31.12.2020) by The Alternative Investment Fund Managers (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/328), regs. 1(3), 24(5) (as amended by S.I. 2019/325, regs. 1(3), 58); 2020 c. 1, Sch. 5 para. 1(1)
Textual Amendments
F1Words in Ch. 3 Section 1 heading omitted (31.12.2020) by virtue of The Alternative Investment Fund Managers (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/328), regs. 1(3), 24(1) (as amended by S.I. 2019/325, regs. 1(3), 58); 2020 c. 1, Sch. 5 para. 1(1)