Where the Retail Investor AIF invests more than 20% in unregulated investment funds, including investments in hedge funds and other alternative investment funds, its shall comply with the following requirements which are in addition to the general rules applicable to all Retail Investor AIFs.
Diversification
1. The Retail Investor AIF shall not invest more than 20% of net assets in the units of any one unregulated investment fund.
Underlying investment funds
2. The underlying investment funds:
(a) shall be subject to independent audit in accordance with generally accepted international auditing standards; and
(b) shall have arrangements in place such that all assets are held by a party/parties independent of the management company of the investment funds.
Management
3. The Retail Investor AIF shall ensure that its management (and such management's delegate(s)) must demonstrate appropriate experience and expertise in relation to alternative investment funds.
The Retail Investor AIF s
…