Cross-Border Distribution of UCITS

 M5

Article 24a

1. The prospectus shall indicate in which categories of assets a UCITS is authorised to invest. It shall mention iftransactions in financial derivative instruments are authorised; In this event, it must include a prominent statement indicating If these opera- tions may be carried out for the purpose of hedging or with the aim of meeting investment goals, and the possible outcome of the use of financial derivative instruments on the risk profile. 2. When a UCITS invests principally in any category of assets defined in Article 19 other than transferable securities and money market instruments or replicates a stock or debt securities index in accordance with Article 22a, its prospectus and, where necessary, any other promotional literature must include a prominent statement drawing attention to the investment policy. 3. When the net asset value of a UCITS is likely to have a high volatility due to its portfolio composition or the portfolio manage- ment techniques that may be used, its prospectus and, where necessary, any other promotional literature must include a prominent statement drawing attention to this characteristic. 4. Upon request of an investor, the management company must also provide supplementary information relating to the quanti- tative limits that apply in the risk management of the UCITS, to the methods chosen to this end and to the recent evolution of the main instrument categories’ risks and yields.

▼

 B

Article 25

1. An investment company or a management company acting in connection with all of the unit trusts which it manages and which fall within the scope of this Directive may not acquire any shares carrying voting rights which would enable it to exer- cise significant influence over the management of an issuing body. Pending further coordination, the Member States shall take account of existing rules defining the principle stated in the first subparagraph under other Member States’ legislation.

2. Moreover, an investment company or unit trust may acquire no more than:

— 10 % of the non-voting shares of any single issuing body;

— 10 % of the debt securities of any single issuing body;

 M5

— 25 % of the units of any single UCITS and/or other collective investment undertaking within the meaning of the first and second indent of Article 1(2);

— 10 % of the money market instruments of any single issuing body.

The limits laid down in the second, third and fourth indents may be disregarded at the time of acquisition if at that time the gross amount of the debt securities or of the money market instruments, or the net amount of the securities in issue, cannot be calculated. 3. A Member State may waive application of paragraphs 1 and 2 as regards: (a) Transferable securities  M5 and money market instruments  issued or guaranteed by a Member State or its local authorities; (b) Transferable securities  M5 and money market instruments  issued or guaranteed by a non-member State; (c) Transferable securities  M5 and money market instruments  issued by public international bodies of which one or more Member States are members; (d) Shares held by a UCITS in the capital of a company incorporated in a non-member State investing its assets mainly in the securities of issuing bodies having their registered offices in that State, where under the legislation of that State such

 B

Appendice 1 | 1985L0611 — EN — 13.04.2005 — 006.001 - page 26