Collective Investment Scheme for Accredited Investors

Supervisory Authority  (“FINMA”)

             The application is deemed to be  approved as of its receipt by the FINMA for (i) Securities Funds (UCITS-type), (ii) Real Estate Funds and (iii) Other funds for  traditional investments

             The application is deemed to be  approved after four weeks of its receipt by the FINMA for Hedge Funds

The FINMA may request amendments to the structure within 3 months as of the end of the deadlines above.

The deadlines above apply only if the Fund documents meet the required standard agreed by the FINMA

• unit trusts, under the Unit Trusts Act, 1990;

• investment companies under the Companies Act, 1990 Part XIII;
• investment limited partnerships under the Investment Limited
  Partnerships Act, 1994; or
  • common contractual funds
  under the Investment Funds,
  Companies and Miscellaneous
  Provisions Act, 2005.

 No investments in precious metals,
precious metals certificates,
commodities and commodity paper
 No short sales
 Voting rights limited to 10% of the
total voting rights
 Exposure per issuer in principle
10% of the Fund‟s Asset
 Overall derivatives exposure 100%
of the Net Fund‟s Asset
 Borrowing 10% of the Net Fund‟s
Asset
 Overall exposure with borrowing
210% of the Net Fund‟s Asset
 Pledging / transferring the
ownership of collateral 25% of the
Net Fund‟s Asset
 Investment per target fund 20% of
the Net Fund‟s Asset
 Investment in non-EU-compatible
target funds 30% of the Fund‟s
Asset

Other funds for traditional investments:

 Borrowing 25% of the Net Fund‟s

Asset

 Pledging / transferring the ownership of collateral 60% of the

Net Fund‟s Asset
 Overall exposure 225% of the Net

Fund‟s Asset

 Short selling of securities Permitted. Limited

Hedge Funds:

 Borrowing 50% of the Net Fund‟s

Asset

 Pledging / transferring the ownership of collateral 100% of the

Net Fund‟s Asset
 Overall exposure 600% of the Net

Fund‟s Asset

 Short selling Permitted. Type/scope to be determined in the fund regulations

apply (see NU 13.10).

PIFs are subject to the following investment restrictions in respect of direct investments:

PIFs are not permitted to acquire shares carrying voting rights which would enable them to exercise significant influence over the management of issuing bodies (this restriction does not apply to holdings in underlying funds);

PIFs structured as investment companies must comply with the principle of “spreading investment risk” as required under section 253(2)(a) of the Companies Act, 1990 Part XIII. It is left to the discretion of the Board of Directors to determine actual diversification with reference to particular strategies;

PIFs may invest up to 100% of assets in underlying regulated or unregulated funds but no more than 20% of net assets in a single underlying unregulated fund and no more than 40% of net assets in a single regulated fund where, in this context, “regulated” means a fund which provides an equivalent level of investor protection to that provided under Irish laws, regulations and conditions governing Irish PIFs;

Investment in an underlying fund in excess of 40% of net assets will be treated as a feeder type investment. PIFs may only invest on a feeder basis into “regulated” masters; and when transacting over-the-counter in circumstances where collateral is being passed by the PIF outside the Irish trustee / custodian’s custodial network, PIFs are generally required to deal with counterparties with a minimum credit rating of A2/P2 (or A1/P1 where the PIF’s exposure to such a counterparty may exceed 40% of its net asset value).

Currently a PIF in the form of an investment company (as opposed to a unit trust, common contractual fund or limited partnership) is limited to this 40% figure because of the statutory obligation to spread its investment risk to which it is subject.

For PIFs, borrowing and leverage are generally restricted to 50% of net asset value but limits in excess of this level are permitted on a case-by-case basis.

A professional investor FoHF may invest up to 100% of its assets in regulated or unregulated funds, subject to a maximum of 20% of net assets in any one unregulated fund and a maximum of 40% of net assets in any one regulated fund. In this context, the Financial Regulator would consider an underlying fund to be “unregulated” where it does not provide an equivalent level of investor protection to that provided under Irish laws, regulations and conditions governing Irish PIFs.

PIF funds of funds may only invest a maximum of 10% of net assets in aggregate in units of other funds of funds and may only invest in a feeder fund if such feeder fund provides the only means of accessing the underlying fund and the feeder fund and master fund act, in effect, as a singular structure.

The PIF‟s prospectus must
disclose the implications of the
fund of funds investment policy to
investors, including the fact the
fees may arise at multiple levels,
the lack of transparency that may
arise as well as the potential lack of
liquidity.
If the PIF intends to invest in
unregulated funds, then it must
also disclose that such funds will
not provide a level of investor
protection equivalent to funds
authorised under Irish laws and
subject to Irish regulations and
conditions.

Accredited Investors:
(i) Financial Intermediaries subject to
surveillance such as banks,
securities dealers, fund
management companies, assets
manager of Swiss collective
investments.
(ii) Insurance Companies subject to
surveillance.
(iii) Public Corporations, Pension
Funds and Other Corporations with
professional treasury management.
(iv) High Net Worth Individuals on
condition that they own, directly or
indirectly, net financial assets in
the amount of CHF 2,000,000 or
more. Financial assets include
bank deposits, fiduciary deposits,
securities, derivatives, precious
metals and redeemable life
insurance policies. Financial assets
do not include real estate, social
benefits pension money. In
situations where the financial
intermediary manages less than
CHF 2,000,000 in financial assets,
the investor is required to confirm
in writing that his global net
financial assets amount to at least CHF 2,000,000. In case of doubts, the offeror has a duty of verification.

(v) Asset Pooling Vehicles to the extent they hold a net amount of CHF 2,000,000 in financial assets.
(vi) External Asset Managers and Managed Clients to the extent that have entered into a discretionary management agreement and that
(i) the asset manager is subject to the Swiss Anti-Money Laundering Act of 10 October 1997, (ii) the asset manager is governed by the Code of conduct enacted by a professional organization which is recognized by the regulator as minimum standard and (iii) the discretionary agreement meets the recognized standards enacted by a professional organization

• is directly involved in the investment activities of the scheme, or

• is a senior employee of the company and has experience in the provision of investment management services.

filed with the FINMA

In the context of Qualified Investment Funds, the FINMA can waive the obligation to file a semi-annual report

No obligation to produce semi-annual report

The central administration and the registered office must be in Luxembourg

The auditors must be Luxembourg-based

Investment managers do not need to be approved by the CSSF. There is no restriction as to the location of the
investment manager

No specific requirements are defined in
terms of registered prime broker

The location of the service providers must be carefully selected to avoid regulatory and tax consequences in other jurisdictions

PIFs, as well as all other investment funds in Ireland, are required to appoint an Irish Administrator (or an Irish management company) which will perform certain minimum administrative activity in Ireland such as the calculation of the net asset value of the fund and its

dealing price, the maintenance of
the books and records of the fund,
etc.

Investment Manager:
The investment manager for the
PIF must be approved by the
Financial Regulator. Acceptable
investment management firms
include those which are regulated under MiFID and non-EU firms
regulated by a supervisory
authority which is recognised by the IFSRA..
Custodian:
The assets of Irish regulated funds must be entrusted to a custodian bank for safe-keeping. Such custodian must be a credit
institution authorised in Ireland, an
Irish branch of an EU credit
institution or an Irish incorporated
company which is wholly owned by
an EU credit institution (or
equivalent from a non-EU
jurisdiction) provided that the
liabilities of the Irish company are
guaranteed by its parent.
Promoter:
The IFSRA will only accept
promoters who are of good repute,
have sufficient financial resources
and adequate experience and a
proven track record in collective
investment schemes. The promoter
must be regulated by a supervisory
authority recognized by the IFSRA.

Yes in Switzerland, but advertisement
must states that the Fund is only aimed at
Accredited Investors