PART 3REPORTING FUNDS AND THE TREATMENT OF PARTICIPANTS IN REPORTING FUNDS

CHAPTER 6TRANSACTIONS BY CERTAIN REPORTING FUNDS WHICH ARE NOT TREATED AS TRADING

Conditions to be met by reporting funds for this Chapter to apply

The equivalence condition74

1

The equivalence condition is met if the fund meets condition AF2, B or C throughout the period of account.

2

Condition A is that the fund is recognised by the F3Financial Conduct Authority within the meaning of section 264F4... or 272 of FISMA 2000.

3

Condition B is that the fund is a UCITS fund.

F14

Condition C is that the fund—

a

is constituted in another EEA state and authorised by the competent authority in that state to market to retail or professional investors, and

b

is required either by the competent authority in that state or by other binding arrangements to limit its borrowing and its exposure under derivative contracts and forward transactions to 100% of its net asset value.

5

In paragraph (4), the competent authority in an EEA state is the authority designated in accordance with Article 97 of Council Directive 2009/65/EC in relation to that fund.