1. A Qualifying Investor AIF may invest up to 100% in other investment funds subject to a maximum of 50% of net assets in any one unregulated investment fund. A Qualifying Investor AIF must not make investments which circumvent this restriction, for example, by investing more than 50% of net assets in two or more unregulated investment funds which have identical investment strategies.

2. Subject to paragraph (8), a Qualifying Investor AIF which invests more than 50% of net assets in one other investment fund is subject to the following rules:

• the underlying investment fund is authorised in Ireland; or

• authorised in another jurisdiction by a supervisory authority established in order to ensure the protection of unitholders and which, in the opinion of the Central Bank, provides an equivalent level of investor protection to that provided under Irish laws, regulations and conditions governing Qualifying Investor AIFs.

3. For the purposes of paragraph 2 of this section, acceptable investment funds are:

Category 1

Investment funds:

• established in a Member State of the European Union which are authorised under Directive 2009/65/EC;