CmaBylaw
Executive Bylaws
2-31-3 Breaches of Investment and Borrowing Controls Of Module Thirteen: Collective Investment Schemes
Section: Chapter Two: Funds
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Monday, 13 February 2017
In the event of a Violation of the investment and borrowing controls, the following procedures shall be followed: 1. In the event of violating the investment limits set forth in the investment controls of each type of Fund or in the Fund’s Articles of Association due to any mistake or negligence by the Fund Manager, the Fund Manager shall notify the Authority immediately and take the necessary procedures and measures to correct the Violation. 2. In the event of violating the investment limits set forth in the investment controls of each type of Fund or in the Fund’s Articles of Association as a result of an event beyond the control of the Fund Manager, the Fund Manager shall notify the Authority immediately if the violation is not corrected it within five Business Days, provided that the notification should include the procedures and measures required to resolve the Violation and the period required for that and the Authority may minimize such period. 3. The Fund Manager shall notify the Investment Controller of all the Violations of investment limits referred to in paragraphs (1) and (2) of this Article. The Fund Manager must keep a permanent record of Violations and document the procedures undertaken and the period required for remedy.
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