S.L. 370.16 Art. 4Use of Special Investment Vehicle.

(1) A contractual fund set up in terms of these regulations may establish a company, formed and constituted under the laws of

Malta, to act as a Special Investment Vehicle for the sole purpose of investing and holding assets on behalf of the fund in accordance with the fund’s deed of constitution and prospectus.

(2) A Special Investment Vehicle established in terms of subregulation (1) shall be licensed and regulated by the competent authority under the same licence of the contractual fund establishing it in terms of article 4 of the Act. The Special Investment Vehicle shall accordingly be subject to that contractual fund’s licence conditions as well as to any other licence conditions that may be made specifically applicable to that Special Investment Vehicle.

(3) The competent authority may, following advance notification to the contractual fund or to the Special Investment Vehicle, vary or revoke any licence condition or impose any new condition or conditions as it may deem appropriate.

(4) Where the competent authority suspends or cancels a licence of a contractual fund in accordance with the provisions of the Act, such suspension or cancellation shall extend to a Special Investment Vehicle established by that contractual fund. The competent authority may however make specific provisions regulating the Special Investment Vehicle in these circumstances.

(5) Any act or omission by the Special Investment Vehicle which, had it been made by the contractual fund, would have amounted to a breach of a licence condition that may lead to suspension or cancellation of the licence of the contractual fund under the Act, may be considered by the competent authority as if it had been made by the contractual fund and may lead to the suspension or cancellation of the licence of that contractual fund.

(6) For the better carrying out of the provisions of these regulations the competent authority may, from time to time, issue and publish Investment Services Rules which shall be binding on contractual funds Special Investment Vehicles and any other persons as may be specified therein.