FUNDS 12.3.13

Past version: effective from 21/10/2015 - 20/10/2015
To view other versions open the versions tab on the right

(1) A Fund Manager must not enter into a Transaction in respect of the Fund Property with an Affected Person unless it is in accordance with the requirements in this Rule.
(2) A Fund Manager must ensure that any Transaction in respect of the Fund Property undertaken with an Affected Person is on terms at least as favourable to the Fund as any comparable arrangement on normal commercial terms negotiated at arm's length with an independent third party.
(3) The Fund Manager of a Public Fund must, before entering into a Transaction with an Affected Person:
(a) obtain written confirmation from any Person responsible for providing the oversight arrangements for that Public Fund that the terms of such Transaction satisfy Rule 12.3.13(2); and
(b) issue to the Unitholders a circular containing the details of the Transaction.
(4) The Fund Manager of an Exempt Fund must, before entering into a Transaction with an Affected Person, either:
(a) obtain written confirmation from a Person who meets the suitability criteria for persons providing oversight functions to Public Funds set out in Rule 13.3.3 that the terms of such Transaction are being conducted on at least an arm's length basis; or
(b) obtain Unitholders' prior approval by Special Resolution in respect of the proposed Transaction if the total consideration or value of the Transaction is 5% or more of the most recent net asset value of the Fund as disclosed in the latest published audited accounts of the Fund.
(5) The Fund Manager must:
(a) in the case of an Exempt Fund, if prior Unitholder approval is required pursuant to (4)(b), issue a notice to Unitholders providing details of the results of the Unitholders' voting at the general meeting as soon as practicable after the meeting;
(b) include a brief summary of the Affected Person Transactions in the Fund's next published interim or annual report; and
(c) include, in the annual report of the Fund, the total value of any Affected Person Transactions, their nature and the identities of the Affected Persons with whom such Transactions were made. Where there is no such Transaction conducted during the financial year covered by the annual report, an appropriate negative statement to that effect must be made in the annual report.