CIUs shall be eligible for the approach set out in Article 350, where all the following conditions are met:

1. (a)

   the CIU's prospectus or equivalent document shall include all of the following:

   1. (i)

      the categories of assets in which the CIU is authorised to invest;

   2. (ii)

      where investment limits apply, the relative limits and the methodologies to calculate them;

   3. (iii)

      where leverage is allowed, the maximum level of leverage;

   4. (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;

2. (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;

3. (c)

   the shares or units of the CIU shall be redeemable in cash, out of the undertaking's assets, on a daily basis at the request of the unit holder;

4. (d)

   investments in the CIU shall be segregated from the assets of the CIU manager;

5. (e)

   there shall be adequate risk assessment of the CIU, by the investing institution;

6. (f)

   CIUs shall be managed by persons supervised in accordance with F1United Kingdom legislation which implemented Directive 2009/65/EC or equivalent legislation.