Article 61: Breach of Investment Limitations

Article 61: Breach of Investment Limitations

a. If any of the investment limitations referred to in these Regulations or in the Fund’s Terms and Conditions are breached due to an act of the fund manager or the fund sub-manager, the fund manager shall notify the Authority in writing immediately and shall take, within five (5) days from the date of the occurrence of such breach, the necessary steps to rectify the breach, and the Authority may change this period at its discretion.

b. If any of the investment limitations referred to in these Regulations or in the Fund’s Terms and Conditions are breached due to a change of circumstance that is beyond the control of the fund manager or the fund sub-manager, and the breach has not been rectified within (5) days from the date of the occurrence of such breach, the fund manager shall notify the compliance officer and/or compliance committee of such event immediately, indicating the rectification plan and ensure the rectification of the matter as soon as possible.

c. The fund manager must report all breaches of the investment limitations referred to in Paragraph (a) of this Article to the compliance officer and/or compliance committee and to the fund board upon occurrence.

d. The compliance officer and/or compliance committee must maintain a permanent record of all breaches of the investment limitations referred to in Paragraphs (a) and (b) of this Article, and document the action taken and period of time required to rectify any such breach.

e. The fund manager must include in the annual report all breaches of the investment limitations referred to in Paragraph (a) of this Article, and disclose cases of non-compliance with the rectification plan referred to in Paragraph (b) of this Article.