(1) A responsible person may only make a distribution out of capital where the prospectus of the relevant UCITS includes each of the following:
(a) an explanation of the rationale underlying the policy to make distributions out of capital;
(b) in accordance with paragraph (2), a risk warning, set out prominently at the front of the prospectus, that describes the effects of making a distribution from capital;
(c) a statement that a distribution out of capital may have different tax implications to a distribution of income so that investors are recommended to seek advice in this regard;
(d) a statement indicating the greater risk of capital erosion that exists and the likelihood that, due to capital erosion, the value of future returns would also be diminished.
(2) A risk warning referred to in paragraph (1)(b) shall highlight that, in the event of the making of a distribution out of capital -
(a) capital will be eroded,
(b) the distribution is achieved by forgoing the potential for futu
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