S.L. 370.18 Art. 3Scope.

(1) These regulations shall apply to Maltese UCITS wishing to market their units in a Member State or an EEA State, and also to European UCITS wishing to market their units in Malta, in terms of the UCITS Directive.

(2) For the purpose of these regulations, UCITS shall mean undertakings which are harmonised in accordance with the UCITS Directive and which have -

(a) as sole object the collective investment in transferable securities or in other liquid financial assets, as specified in the Investment Services Rules, of capital raised from the public and which operate on the principle of risk-spreading; and

(b) units which are, at the request of holders, repurchased or redeemed, directly or indirectly, out of those undertakings’ assets. Action taken by a UCITS to ensure that the stock exchange value of its units does not significantly vary from their net asset value shall be regarded as equivalent to such repurchase or redemption:

Provided that if a master UCITS has at least two feeder UCITS as unit holders, paragraph (a) shall not apply, giving the master UCITS the choice whether or not to raise capital from other investors.

(3) The undertakings referred to in sub-regulation (2) may be constituted as:

(a) common funds which are managed either by Maltese or European management companies; or

(b) investment companies or limited partnerships with variable share capital.

(4) These regulations shall not apply to:

(a) investment companies and limited partnerships, the assets of which are invested through the intermediary of subsidiary companies mainly otherwise than in transferable securities;

(b) collective investment schemes of the closed-ended type;

(c) collective investment schemes which raise capital without promoting the sale of their units to the public within the European Union or EEA States or any part thereof: Provided that if a master UCITS has at least two feeder UCITS as unit holders, it shall have the choice as to whether or not to raise capital from other investors;

(d) collective investment schemes the units of which, under the constitutional documents, may be sold only to the public in third countries;

(e) categories of UCITS whose investment and borrowing policies do not conform with those specified in the provisions of the Investment Services Rules;

(f) collective investment schemes that are not harmonised in accordance with the UCITS Directive; or

(g) a Maltese UCITS which is a master UCITS and which does not raise capital from the public in Malta, but has one or more feeder UCITS established in Malta.

(5) A Maltese UCITS which is subject to these regulations shall not convert itself into a collective investment scheme which would not be subject to these regulations, and any purported conversion shall be null and void. MARKETING OF MALTESE UCITS IN A MEMBER STATE OR IN AN EEA STATE