Past version: effective from 21/10/2015 - 20/10/2015
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(1) A Fund may be classified as an Exempt Fund only if it fulfils the criteria in Rule 3.3.3 at the inception of the Fund and on an on-going basis.
(2) A Fund Manager must ensure that a Fund which is or is intended to be established and operated as an Exempt Fund meets the criteria in Rule 3.3.3 both at the inception of the Fund and on an on-going basis.
(3) For the purposes of (2), where a Fund Manager makes arrangements with other Authorised Persons or Persons in other jurisdictions to Offer to issue or sell the Units of an Exempt Fund, then it must take reasonable steps to ensure that those Authorised Persons or other Persons do not Offer to issue or sell the Units in a manner that would result in a breach of the criteria in Rule 3.3.3.
(4) As soon as a Fund Manager becomes aware that an Exempt Fund it manages no longer meets or is likely to not meet the criteria in Rule 3.3.3, it must immediately:
(a) commence proceedings relating to the winding up of the Fund, or alternatively, take necessary steps to have the Fund registered as a Public Fund; and
(b) notify the Regulator of that fact and the measures it has taken and proposes to take under (a).
(5) A Fund Manager of an Exempt Fund which is subject to the valuation requirement in Rule 12.4.1(b) of these Rules must appoint either: (i) a Fund Administrator or, (ii) a Person regulated by a Financial Services Regulator, as the Person undertaking the valuation of that Fund, in each case with the assistance of independent third party valuation experts, where required.