(1) A responsible person shall ensure that, where the constitutional document of a UCITS provides for subscription in specie, it also contains provisions that require, in respect of such a subscription in specie, that -
(a) the nature of the assets to be transferred into the UCITS would qualify as investments of the UCITS in accordance with the investment objectives, policies and restrictions of the UCITS,
(b) assets that are to be transferred must be vested with the depositary or arrangements must be made to vest the assets with the depositary,
(c) the amount of units to be issued must not exceed the amount that would be issued for the cash equivalent of the subscription in specie, and
(d) the depositary is satisfied that either -
(i) the terms of any exchange will not be such as are likely to result in any material prejudice to the existing unit-holders of the UCITS, or
(ii) there is unlikely to be any material prejudice to the existing unit-holders of the UCITS.
(a) This paragra
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