Subsection 6: Master and feeder UCITS

I. – The articles of association or fund rules of a feeder UCITS stipulate that at least 85% of its assets must be invested in shares or units of a single master UCITS or sub-fund thereof. A feeder UCITS may invest up to 15% of its assets in the following: 1° Cash on an ancillary basis ; 2° Financial contracts referred to in 5° of I of Article L. 214-20,…

The feeder UCITS enters into an information exchange agreement with the master UCITS. This agreement may, however, be replaced by internal conduct of business rules when both funds are managed by the same management company. When the master UCITS temporarily suspends subscriptions or redemptions of its units or shares pursuant to Articles L. 214-7-4 or L. 214-8-7, the feeder UCITS may suspend subscriptions or redemptions of its own units or…

I. – Where the feeder UCITS and the master UCITS do not have the same depositary, the depositaries of each of these two bodies shall enter into an information exchange agreement in order to ensure the fulfilment of their respective obligations. The feeder UCITS shall provide its depositary with all necessary information concerning the master UCITS to enable the latter to fulfil its obligations. II. – The depositary of the…

The statutory auditors and other auditors of the feeder UCITS and the master UCITS shall exchange the information necessary to fulfil their respective obligations. The General Regulation of the Autorité des marchés financiers shall specify the conditions of application of this article.

The feeder UCITS shall monitor the activity of the master UCITS. In order to fulfil this obligation, it may rely on information and documents received from the master UCITS or, where applicable, from the management company, the depositary and the auditor of the master UCITS, unless it has reason to doubt the accuracy of such information and documents. The General Regulation of the Autorité des marchés financiers shall specify the…

The master UCITS approved by the Financial Markets Authority shall immediately inform the latter of the identity of any feeder UCITS investing in its units or shares. When the feeder UCITS is established in a Member State of the European Union or in another State party to the Agreement on the European Economic Area, the Autorité des marchés financiers shall immediately inform the competent authorities of that Member State or…

I. – When the master UCITS and the feeder UCITS are authorised by the Autorité des marchés financiers, the latter shall immediately inform the feeder UCITS of any decision, measure or observation relating to non-compliance with their obligations by the master UCITS, its management company, its depositary or its auditor. II. – When only the master UCITS is authorised by the Autorité des marchés financiers, the latter shall immediately inform…