S.L. 123.51 Art. 7Change of status of fund.

(1) When a collective investment scheme declares in the manner provided for in these regulations that the average daily value of the assets situated in Malta allocated to a prescribed fund has been, throughout any period of thirty consecutive days, less than eighty-five per cent of the average daily value of the total assets so allocated the Commissioner may, in his discretion, classify that fund as a non-prescribed fund and that fund shall as from the date of such new classification be treated as a non-prescribed fund.

(2) When a Malta based scheme declares in the manner provided for in these regulations that the average daily value of the assets situated in Malta allocated to a non-prescribed fund has been, throughout any period of thirty consecutive days, at least eighty-five per cent of the average daily value of the total assets so allocated the Commissioner may, in his discretion, classify that fund as a prescribed fund and that fund shall, subject to the provisions of regulation 8, be treated as a prescribed fund with effect from the date specified in the said classification.

(3) For the purpose of these regulations the average daily value of assets allocated to a fund on any day (hereinafter in this paragraph referred to as "the particular day") shall be determined by reference to the value of assets situated in Malta and the value of the total assets allocated to that fund on each day over a period of ninety days ending on the particular day:

Provided that if that fund had been classified as a prescribed or a non-prescribed fund less than ninety days before the particular day the said period shall be a period commencing on the date of the last classification and ending on the particular day.

(4) The Commissioner may, as a condition for a classification in terms of subregulation (1) or (2), impose such conditions as he may deem appropriate in the circumstances to ensure the proper application of the investment income provisions and of these regulations.