Article 33: Procedures and Power of the Authority toward the Application

Article 33: Procedures and Power of the Authority toward the Application

a. The Authority, after receiving all the required information and documents referred to in Paragraph (a) of Article (32 ) of these Regulations, shall notify the applicant of the completion of its application and shall review the application within (30) days from the date of the notification, and it shall take any of the following decisions:

1) a decision to approve the application, and the Authority will provide the applicant with a notice;

2) a decision to approve the application subject to such conditions and limitations as it considers appropriate by the Authority, and the Authority will provide the applicant with a notice; or

3) a decision to reject the application, and the Authority will provide the applicant with a notice with a statement of reasons.

b. If the Authority deems that offering the proposed fund units may not be in the interest of the investors, or may result in a breach of the Capital Market Law, its Implementing Regulations or the Exchange Rules, then it may take any of the following actions:

1) carry out any enquiries which it considers appropriate;

2) require the applicant or its representative, to appear before the Authority to answer questions and explain any matters that the Authority considers relevant to the application;

3) require the applicant to provide additional information or confirm in such manner as the Authority may specify, that the information provided is accurate; and

4) defer making a decision for such period as may be reasonably necessary to carry out further study or examination.

c. If having taken actions pursuant to Paragraph (b) of this Article, the Authority determines that the offer to be made pursuant to the application may not be in the interest of the investors or may result in a breach of the Capital Market Law, its Implementing Regulations or the Exchange Rules, the Authority may issue a notification to the applicant stating that the application has been rejected.

d. An applicant may not offer or hold itself out as offering units in a public fund unless it has received the Authority’s decision in a written notice referred to in Subparagraphs (1) or (2) of Paragraph (a) of this Article.

e. An applicant must commence the offer and issuance of units in a public fund within (12) months from the date of the Authority’s decision referred to in Subparagraph (1) or (2) of Paragraph (a) of this Article. If the applicant did not commence the offer and issuance of units during such period, the Authority’s approval shall be deemed to be cancelled.