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Version status: Revoked | Document consolidation status: Updated to reflect all known changes
Version date: 29 May 2003 - onwards
  Version 3 of 3    

Regulation 69 Borrowing.

Revoked from 29 May 2003

(1) Subject to paragraphs (2) and (3) neither -

(a) an investment company, nor

(b) a management company or a trustee acting on behalf of a unit trust

may borrow money.

(2) A UCITS may acquire foreign currency by means of a "back-to-back" loan.

(3) A UCITS may borrow -

(a) up to 10 per cent of its assets, in the case of an investment company, or 10 per cent of the value of the fund, in the case of a unit trust, provided that such borrowing is on a temporary basis; and

(b) up to 10 per cent of its assets, in the case of an investment company, provided that the borrowing is to make possible the acquisition of real property required for the purpose of its business; in this case, the borrowing and that referred to in paragraph (a) may not in total exceed 15 per cent of the borrower's assets.

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