# Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Text with EEA relevance), Article 349: General criteria for CIUs

Extent: E+W+S+N.I.

CIUs shall be eligible for the approach set out in Article 350, where all the following conditions are met:
(a) the CIU's prospectus or equivalent document shall include all of the following:
(i) the categories of assets in which the CIU is authorised to invest;
(ii) where investment limits apply, the relative limits and the methodologies to calculate them;
(iii) where leverage is allowed, the maximum level of leverage;
(iv) where concluding OTC financial derivatives transactions or repurchase transactions or securities borrowing or lending is allowed, a policy to limit counterparty risk arising from these transactions;
(b) the business of the CIU shall be reported in half-yearly and annual reports to enable an assessment to be made of the assets and liabilities, income and operations over the reporting period;
(c) the shares or units of the CIU shall be redeemable in cash, out of the undertaking's assets, on a daily basis at the request of the unit holder;
(d) investments in the CIU shall be segregated from the assets of the CIU manager;
(e) there shall be adequate risk assessment of the CIU, by the investing institution;
(f) CIUs shall be managed by persons supervised in accordance with United Kingdom legislation which implemented Directive 2009/65/EC or equivalent legislation.

---
Source: https://www.legislation.gov.uk/eur/2013/575/article/349 (the official version)
Page: https://openlegislation.uk/eu-regulation-2013-575/article-349
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.