Notice Of Investable Securities And Money Market Instruments For Investment Associations And Special-Purpose Associations And Approved Restricted Association Which Invest As Investment Funds

Original Language Title: Notice of investable securities and money market instruments for investment associations and special-purpose associations and approved restricted associations which invest as investment funds

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Read the untranslated law here: https://www.retsinformation.dk/Forms/R0710.aspx?id=124621

Overview (table of contents) Chapter 1 Chapter 2 Money market Securities instruments Chapter 3 Copying the stock or bond index Chapter 4 Penalties Chapter 4 Commencement The full text of the Notice of investable securities and money market instruments for investment associations and special-purpose associations and approved restricted Association which invest as investment funds 1) Pursuant § 92 (a) and two § 132 paragraph. 3 of the Act on investment funds and special funds and other collective investment schemes, etc., cf.. Act No. 929 of 18 September 2008, as amended by Law No. 133 of 24 January 2009: Part 1 Securities § 1. Investment funds and special funds and approved restricted Association which invest as investment funds may only invest in securities referred to. § 3 paragraph. 1 pt. 2 of the Act on investment funds and special funds and other collective investment schemes, etc., which meet all the following criteria: 1) the potential loss which an association or division may incur with respect two holding those securities is limited to the amount, association or fund has paid for the securities. 2) Securities Liquidity does not bring the Association's or Division's ability to meet the requirement of redemption of units in section 48 paragraph. 2-4 of the Act on investment funds and special funds as well as other colleagues tive Investment Schemes Act in danger. 3) reliable valuation of the securities are available in the following manner: (a)) For the securities that are admitted on a regulated market referred two trading two. section 87. 1-3 of the Act on investment funds and special funds and other collective investment schemes, etc., in the form of accurate, reliable and regular prices which are either market prices or prices made available by the providers of market information that is independent of issuers of securities. (b)) For securities, see. section 87. 4 of the Act on investment funds and special funds and other collective investment schemes, etc., in the form of a periodic valuation based on information from the issuer of the security or reliable investment research. 4) Relevant information on the securities are available in the following forms: (a)) For the securities that are admitted on a regulated market referred two trading two. section 87. 1-3 of the Act on investment funds and special funds and other collective investment schemes, etc. in the form of regular, accurate and comprehensive information to the market on the security or, possibly, the securities portfolio. (b)) other securities covered by § 87 paragraph. 4 of the Act on investment funds and special funds and other collective investment schemes, etc. in the form of regular and accurate information to the Association of security or, where the securities portfolio. 5) The securities are negotiable. 6) association or division, the acquisition of the securities must be in conformity with the association or the Fund's investment objectives or investment policy, or both, under Chapter 13, 14, 15 and 16 of the Act on investment funds and special funds and other collective investment schemes, etc. 7) The Association's risk management process shall adequately capture the risks associated with investment in the securities referred two. section 37 paragraph. 1, no. 5 of the Act on investment funds and special funds and other Collective Investment Schemes etc. Act. 2. Unless the Association has access to information that shows the opposite, it is assumed in relation to the paragraph. 1 pt. 2 and 5, the securities are admitted on a regulated market, two trading does not jeopardize the Association's or Division's ability to meet the requirement in section 48 paragraph. 2-4 of the Act on investment funds and special funds and other collective investment schemes, etc. in danger. These securities are assumed to be marketable. PCS. 3. The following financial instruments are also included in the definition of securities,. § 3 paragraph. 1 pt. 2 of the Act on investment funds and special funds and other collective investment schemes, etc: 1) investment undertakings of the closed type, which is constituted as investment companies or as unit trusts which fulfill the following criteria: (a)) the shares meet the criteria in paragraph. 1 b) UCITS governed by the principles of corporate governance that apply to companies, and (c)) where asset management is handled by another entity on name of the institution of the closed type, this unit must be covered by national legislation on investor protection. 2) Units of the closed type, formed in accordance with contract law, and meet the following criteria: (a)) the shares meets the criteria below. 1, b) investment institution covered by the principles of corporate governance similar to those that apply to companies, and c) UCITS managed by a unit that must be covered by national legislation on investor protection. 3) Financial instruments that meet the criteria in paragraph. 1, and which are secured by or linked to the performance of other assets, which may differ from those referred two in §§ 87-92 of the investment Purpose Associations and other Collective Investment Schemes etc. Act. 4. If a security as falling within paragraph. 3, no. 3, contains a derivative referred two in section 16 of the Ordinance on investment associations, special-purpose associations and approved restricted use of derivative financial instruments, the procedures of section 37 paragraph. 1, no. 5, and the requirements of § § 97-99 of the Act on investment funds and special funds and other collective investment schemes, etc. apply to this security. Chapter 2 Money market instruments § 2. Investment funds and special purpose associations and approved restricted Association which invest as investment funds may only invest in money market instruments referred to. § 3 paragraph. 1 pt. 3 of the Act on investment funds and special funds and other collective investment schemes, etc. Money market instruments include both money market instruments that are admitted on a regulated market and two trading money market instruments that are not admitted on a regulated market trading two. PCS. 2. Money market instruments which are normally dealt in the money market, see. § 3 paragraph. 1 pt. 3 of the Act on investment funds and special funds and other collective investment schemes, etc., are financial instruments that meet one of two criteria: 1) the instruments have a maximum term of issued when 397 days, 2) instruments with a remaining maturity of no more than 397 days, 3) the instruments ' regular yield adjustments to least every 397 days in line with money market , or 4) money market instruments ' risk profile, including credit and interest rate risks, corresponds to two that of financial instruments which have a maturity as referred two in no. 1 or 2, or a yield adjustment as stated in no. 3 § 3. Cash and money market instruments referred to. § 3 paragraph. 1 pt. 3 of the Act on investment funds and special funds and collective investment schemes, etc., are financial instruments that can be sold to limited cost in a satisfactory short deadline, taking account of the association or repurchase or redeem its two bond division units at the request of any participant. PCS. 2. Money market instruments that can be valued at any time, see. § 3 paragraph. 1 pt. 3 of the Act on investment funds and special funds and other collective investment schemes, etc., are financial instruments for which accurate and reliable supply of quotes that meet the following criteria: 1) the information makes it possible for the association to calculate the net value of assets equivalent to the value at which the financial instrument in the portfolio could be exchanged between knowledgeable , willing parties in an arm's length transaction, and 2) the information is based either on market data or on valuation models including systems based on amortized costs. PCS. 3. The provisions of paragraph. 1 and 2 above criteria are considered to be met in the case of financial instruments which are normally traded on the money, see. § 3 paragraph. 1 pt. 3 of the Act on investment funds and special funds and other collective investment schemes, etc., and which are admitted on a regulated market, two trading unless the association has access to information that shows the opposite. § 4. Other money market instruments other than those traded on a regulated market, of which the issue or the issuer is regulated in order to protect investors and savings, see. section 87. 4 of the Act on investment funds and special funds and other collective investment funds, etc., are financial instruments that meet the following: 1) one of the criteria in section 2. 2 and all the criteria in section 3, paragraph. 1 and 2, 2) there is adequate information on the financial instruments, including information which allows an appropriate assessment of the credit risk associated with the investment in such instruments, taking. Paragraphs. 2, 3 and 4, and 3) the financial instruments are freely transferable. PCS. 2. For money market instruments referred to. section 87. 4 of the Act on investment funds and special funds and other collective investment schemes, etc., or money market instruments issued by a central, regional or local authority of a country within the European Union, a country which the Community has concluded an agreement for the financial area or a third country or a public international body two which one or more Member States belong , but are not guaranteed by a Member State, appropriate information in the paragraph. 1 pt. 2:1) information on the issue or the issuance programme and the issuer's legal and financial situation prior to the issue of money market instrument, 2) updates of the No.1 above information to regular intervals and whenever a significant event occurs 3) in no. 1 above information verified by appropriately qualified third parties not subject to instructions from the issuer , and 4) available and reliable statistics on the issue or the issuance programme. PCS. 3. In the case of money market instruments in accordance. § 87 a paragraph. 2, no. 4 of the Act on investment funds and special funds and other collective investment schemes, etc., appropriate information in the paragraph. 1 pt. 2:1) information on the issue or issuance programme or on the legal and financial situation of issuer's prior to the issue of money market instrument, 2) updates of the No.1 above information to regular intervals and whenever there occurs a significant event, and 3) available and reliable statistics on the issue or issuance programme or other data enabling an appropriate assessment of the credit risk associated with investing in such instruments. PCS. 4. For money market instruments referred to. § 87 a paragraph. 2, Nos. 1-3 of the Act on investment funds and special funds and other collective investment schemes, etc., with the exception of money market instruments that are listed in the paragraph. 2, and money market instruments issued by the European Central Bank or the EU Member State's central bank, appropriate information, see. Paragraph. 1, no. 2, information on the issue or issuance programme or on the legal and financial situation of issuer's prior to the issue of the money market instrument. PCS. 5. An institution which is subject to and complies with prudential rules by the competent authorities consider to be the least as strict as the Community rules, see. section 87. 4 of the Act on investment funds and special funds and other collective investment schemes, etc., is an issuer that is subject to and complies with prudential rules, and fulfills one of the following criteria: 1) the issuer is resident in the European Economic Area, 2) the issuer is located in the OECD countries of origin which belong to the G-10 group , 3) the issuer has obtained the least ' investment grade rating, "or 4) it can be based on a thorough analysis of the issuer that the prudential rules applicable two that issuer are at least as strict as the Community rules. Chapter 3 Copying the stock or bond index section 5. Copy of the composition of a certain stock or bond index, see. section 95 of the Act on investment funds and special funds and other collective investment funds, etc., is replicating the composition of the index's underlying assets. PCS. 2. An index whose composition is sufficiently diversified, see. section 95 paragraph. 2, no. 1 of the Act on investment funds and special funds and other collective investment schemes, etc., meets the following criteria: 1) risk diversification rules of § 95 paragraph. 2 of the Act on investment funds and special funds and other collective investment schemes, etc., and 2) the index is composed in such a way that price movements or trading activities regarding one component do not unduly influence the performance of the overall index. PCS. 3. The index which represents an adequate benchmark, see. section 95 paragraph. 2 pt. 2 of the Act on investment funds and special funds and other collective investment schemes, etc., meets the following criteria: 1) the index measures the performance of a representative group of underlyings in a relevant and appropriate way, 2) the index is revised or rebalanced periodically two ensure that it continues two reflect the markets two which it refers in accordance with publicly available criteria , and 3) the underlying assets are sufficiently liquid, which allows users to replicate the index, if necessary. PCS. 4. Index, to be published in an appropriate manner, in accordance. section 95 paragraph. 2, no. 3 of the Act on investment funds and special funds and other collective investment schemes, etc., is an index that meet the following criteria: 1) the process of index publication relies on sound procedures two collect price's and two calculate and subsequently publish the index value two, 2) relevant information on matters such as index calculation and rebalancing methodologies , index changes or any operational difficulties in providing timely and accurate information available, repaired wide and timely basis, and 3) index providers are independent from the index-replicating association. This does not prec lude index providers and the Association may belong to the same group, provided that effective arrangements for managing conflicts of interest. Chapter 4 Penalties § 6. Violation of the provisions of § 1 and § 2 is punishable by a fine. Chapter 4 Commencement section 7. This Order shall enter into force on 1 May 2009. Subsection. 2. At the Sametime guidance No. 9102 of 23 March 2008 on investable assets of investment funds, special funds and approved restricted. FSA, April 28, 2009 Karen Dortea abelskov Ulrik Nødgaard/Official notes 1) This Executive Order contains provisions that implement Commission Directive 2007/16/EC of 19 March 2007 implementing Council Directive 85/611/EEC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (investment banks) as regards the clarification of certain definitions (EU gazette 2007 No. L 79 , p. 11).