Q. Regulation 15(4)(b)(iii) of the Central Bank UCITS Regulations requires details of the exposure to the underlying asset of an FDI be provided in the prospectus of a UCITS. Should this disclosure be general or specific in nature?
A. As such exposures can change overtime, it may not be appropriate to include a specific disclosure in the prospectus. As an alternative, the prospectus could refer to the type of exposure that might arise but should be as specific as the proposed investment approach permits.