1. The Retail Investor AIF shall, in its prospectus, clearly indicate the extent to which it is intended to invest in underlying investment funds and state that additional fees will arise from this investment policy. The prospectus must disclose, and quantify to the extent possible, the types of charges and other costs relating to the underlying investment funds which will be borne by the Retail Investor AIF. In addition to disclosure regarding fees which will arise at the level of the Retail Investor AIF, the prospectus must also disclose, to the extent possible, the fees which will arise at the level of the underlying investment funds.

2. The Retail Investor AIF shall only invest in a jurisdiction and/ or type of underlying investment where both have been clearly disclosed in its prospectus. If it is intended to invest in unregulated investment funds, full disclosure regarding the nature of the underlying investment fund, including information on whether the underlying investment fund may be leveraged and the attendant risks must be specified by the Retail Investor AIF in its prospectus.