2. Regulation 8(1)(a) of the Central Bank UCITS Regulations states:
"A responsible person shall only invest assets of the UCITS in an FDI if:
(a) the FDI does not expose the UCITS to risks which the UCITS could not otherwise assume".
A responsible person should not gain exposure to an instrument/issuer/currency to which the UCITS cannot have a direct exposure.
3. Financial derivative instruments ("FDI") on commodities are not permitted FDI for a UCITS.