(1) 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,
(b) the FDI does not cause the UCITS to diverge from its investment objectives disclosed in its prospectus, and
(c) the FDI is dealt in on a regulated market or alternatively the conditions in paragraph (3) are satisfied.
(2) Where a responsible person enters, on behalf of a UCITS, into a total return swap or invests in other FDIs with similar characteristics, the assets held by the UCITS shall comply with Regulations 70, 71, 72, 73 and 74 of the UCITS Regulations.
(3) A responsible person shall only invest assets of the UCITS in an OTC derivative if the derivative counterparty is within at least one of the following categories:
(a) a credit institution that is within any of the categories set out in Regulation 7;
(b) an investment firm authorised in accordance with MiFID;
(c) a group company of an entity approved as a
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