Following approval of the amendments to its General Regulation (RGAMF), FR AMF updated its policy on the capping of redemptions (gates) in master-feeder structures.
Updated Instruction DOC-2017-05 procedures re liquidity management mechanisms.
In order to introduce a mechanism whereby, when a master collective investment undertaking (CIU) triggers its gates, its feeder can trigger its gates at its own level.
This option enables the feeder CIU to avoid having to suspend redemptions altogether.
For this mechanism to apply the feeder CIU must execute at least the proportion of redemptions executed by the master CIU; the capping must be in the prospectus.
And also in the fund rules or articles of incorporation of the feeder CIUs and they must specify the procedures for capping redemptions of units or shares by the master CIU.
Also, the information exchange agreement between the feeder and the master CIU must specify how the master will inform the feeder if the redemption cap is triggered.
Change to rules for employee savings plan investment funds if the gates are triggered.
Relevant policy documents updated, extending transitional period re gates incentives.
I.e., Instruction DOC-2011-19 on authorization procedures, preparation of a KIID and a prospectus and periodic reporting for French and foreign UCITS marketed in France.
Instruction DOC-2011-19 and annex XI with apparent changes (in French only).
Instruction DOC-2011-20 on authorization procedures, preparation of a KIID and a prospectus and periodic reporting for retail investment funds, funds of alternative funds and professional alternative investment funds (in French only).
Instruction DOC-2011-20 and annex XII with apparent changes (in French only).
Instruction DOC-2011-21 on authorization procedures, preparation of a KIID and a prospectus, and reporting for employee investment undertakings (in French only).
Instruction DOC-2011-21 and annexes XI XII with apparent changes (in French).
Instruction DOC-2011-22 on authorization procedures, preparation of a KIID and rules, and reporting for private equity funds and with apparent changes (in French only).
Instruction DOC-2012-06 on procedures for making disclosures and introducing changes, preparation of a prospectus and reporting for specialized professional funds and professional private equity funds; and with apparent changes (in French only).
