Article 28: Notification to the Authority and Unitholders of Non-fundamental Changes

Article 28: Notification to the Authority and Unitholders of Non-fundamental Changes

a) The fund manager must notify the Authority and unitholders, and disclose on its website and any other website available to the public according to the controls set out by the Authority of any non-fundamental changes to the fund (10) days prior to the change becoming effective. Unitholders of an open-ended fund may redeem their units before the non-fundamental change becomes effective, and without incurring any redemption fees (if any).

b) The fund manager must obtain the fund board approval on any non-fundamental changes.

c) For the purposes of these Regulations, “non-fundamental change” means any change that does not fall within the provisions of paragraph (e) of Article (27) of these Regulations.

d) Details of all non-fundamental changes must be included in the next fund report prepared by the Fund Manager pursuant to Article (26) of these Regulations.

e) A traded fund shall be exempted from the unitholders notification requirement set out in paragraph (a) of this Article, provided that the announcement of such is made on the fund manager’s website and the Exchange’s website. Chapter 5: Fund Assets Requirements, Custody of its Assets and Operation Rules