(1) Paragraph (2) applies if a master UCITS -
(a) merges with another UCITS, or
(b) is divided into two or more UCITS.
(2) The Authority must require the directors of any open-ended investment company which is a feeder UCITS of the master UCITS to prepare a proposal to wind up the affairs of the feeder UCITS under regulation 21 unless -
(a) the Authority approves under section 283A of the Act the investment by the company of at least 85% of its assets in the units of -
(i) the master UCITS which results from the merger;
(ii) one of the UCITS resulting from the division; or
(iii) another UCITS or master UCITS; or
(b) the Authority approves under regulation 22A an amendment of the instrument of incorporation of the company which would enable it to convert into a UK UCITS which is not a feeder UCITS.