(1) Subject to paragraph (3), where the prospectus of a UCITS provides for redemption in specie, the responsible person shall, in the prospectus of the relevant UCITS, also provide as follows:
(a) redemption in specie is -
(i) at the discretion of the UCITS, and
(ii) subject to the consent of the redeeming unit-holder;
(b) asset allocation is subject to the approval of the depositary;
(c) a determination to provide redemption in specie may be at the sole discretion of the responsible person where the redeeming unit-holder requests redemption of a number of units that represent at least 5 per cent of the net asset value of the UCITS.
(2) In the event of a redemption in specie in accordance with subparagraph (c) of paragraph (1) -
(a) the responsible person shall, if so requested by the redeeming unit-holder, sell the assets on behalf of that unit-holder, and
(b) the cost of the sale of the relevant units may be charged to the unitholder.
(3) Paragraph (1) does not apply to an exchange-t
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