Financial Markets Conduct Regulations 2014

Top 10 investments[Revoked]

Heading: revoked, on 17 December 2015, by regulation 41(30) of the Financial Markets Conduct Amendment Regulations 2015 (LI 2015/276).

70 Top 10 investments

(1)

Under the subheading Top 10 investments, the fund update must contain, as at the relevant date, a list of the 10 highest-value individual assets of the specified fund identified in accordance with subclause (2) and,—

(a)

against that list, the following information about each individual asset:

(i)

the name of the individual asset:

(ii)

the country of the individual asset:

(iii)

the type of the individual asset according to one of the categories specified in clause 1(4) (however, if subclause (5) applies, the type of the individual asset is an interest in a diversified fund):

(iv)

if the individual asset is a debt security, the credit rating of the debt security that the manager reasonably considers to be reliable or, if there is no reliable credit rating of the security, the credit rating of its issuer that the manager reasonably considers to be reliable (or the classification “unrated” if neither the debt security nor the issuer has a reliable credit rating):

(v)

the value of the individual asset as a percentage of the net asset value of the specified fund; and

(b)

below the list, a statement of the total value of the 10 individual assets as a percentage of the net asset value of the fund.

(2)

For the purposes of providing the information required under this clause, the manager must identify the specified fund’s 10 highest-value individual assets, assessed as a percentage of the net asset value of the fund, based on—

(a)

the individual assets directly held by the specified fund; and

(b)

if any part of the specified fund is invested in a related underlying fund, treating the individual assets of that related underlying fund as if they were individual assets directly held by the specified fund.

(3)

If the specified fund and any related underlying fund each have a holding of the same unique asset, then, under subclause (2), the aggregate of those holdings is treated as a single individual asset of the specified fund.

(4)

If the category “other” is used in providing the information under subclause (1)(a)(iii), the fund update must include, as a note to the list, an explanation of the nature of each of the assets included in that category.

(5)

For the purposes of subclause (1)(a)(iii), if an individual asset is an interest in a fund that is not a related underlying fund and there is no one asset type that is judged to be the most appropriate, the asset must be classified as an interest in a diversified fund.

Schedule 4 clause 70(1)(a)(iii): amended, on 17 December 2015, by regulation 41(31) of the Financial Markets Conduct Amendment Regulations 2015 (LI 2015/276).

Schedule 4 clause 70(5): replaced, on 17 December 2015, by regulation 41(32) of the Financial Markets Conduct Amendment Regulations 2015 (LI 2015/276).