Article 20(a): Power of the Authority to Remove and Replace Fund Manager

a. The Authority shall have the power to remove a fund manager in relation to a particular investment fund and to take any action it deems appropriate to appoint a replacement fund manager for that investment fund or to take any other measures it deems necessary in the event of:

1) the fund manager ceasing to carry out managing investments and operating funds activity or managing investments activity without notification to the Authority under the Capital Market Institutions Regulations;

2) the cancellation, withdrawal or suspension by the Authority of the fund manager’s authorisation(s) to carry out managing investments and operating funds activity or managing investments activity under the Capital Market Institutions Regulations;

3) a request by the fund manager to the Authority to cancel its relevant authorisation to carry out managing investments and operating funds activity or managing investments activity;

4) the Authority believing that the fund manager has failed, in a manner which the Authority considers material, to comply with the Capital Market Law or its Implementing Regulations;

5) the death, incapacity or resignation of a portfolio manager who manages the assets of the investment fund, if no other registered person employed by the fund manager can manage the assets of the relevant investment fund or the assets of the funds managed by the portfolio manager;

6) the issuance of a special fund resolution by unitholders of a close ended fund requesting the Authority of removal of the fund manager; or

7) any other event determined by the Authority on reasonable grounds to be of sufficient material.