1. The Qualifying 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 Qualifying Investor AIF. In addition to disclosure regarding fees which will arise at the level of the Qualifying 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. Where the Qualifying Investor AIF is a fund of funds it may only invest in another investment fund which itself invests more than 50% of net assets in other investment funds where the Qualifying Investment AIF has made clear disclosure regarding increased costs and lack of transparency concerning the ultimate exposure. Any such investments must not be made for the purpose of duplicating management and/or investment management fees.