S.L. 370.20 Art. 11Activity of collective portfolio management on a cross-border basis by European management companies.

(1) A European management company which pursues the activity of collective portfolio management of a Maltese UCITS on a cross-border basis by establishing a branch in Malta or in exercise of the freedom to provide services shall comply with the Act, any applicable regulations and the Investment Services Rules, and in particular such European management company shall comply with the requirements applicable to:

(a) the setting up and licencing of the UCITS;

(b) the issuance and redemption of units and shares;

(c) investment policies and limits, including calculation of total exposure and leverage;

(d) restrictions on borrowing, lending and uncovered sales;

(e) the valuation of assets and the accounting of the UCITS;

(f) the calculation of the issue or redemption price and rules regarding errors in the calculation of the net asset value and the related investor compensation;

(g) the distribution or reinvestment of income;

(h) the disclosure and reporting requirements of the UCITS, including the prospectus, the key investor information and periodic reports;

(i) the arrangements made for marketing;

(j) the relationship with unit-holders;

(k) the merging and restructuring of UCITS;

(l) the winding up and liquidation of the UCITS;

(m) where applicable, the content of the unit-holder register;

(n) the licencing and supervision fees regarding the UCITS; and

(o) the exercise of unit-holders’ voting rights and other unit-holders’ rights in relation to paragraphs (a) to (m).

(2) A European management company shall comply with the obligations set out in the prospectus and in the instruments of incorporation of the Maltese UCITS which it wishes to manage. Such documents shall be consistent with the requirements referred to in sub-regulation (1).

(3) The competent authority shall be responsible for supervising compliance of the European management company with the requirements of sub-regulations (1) and (2).

(4) A European management company shall adopt and implement all the arrangements and organisational decisions necessary to ensure compliance with the applicable provisions relating to the constitution and functioning of the Maltese UCITS. The European management company shall also be responsible for compliance with the obligations set out in the prospectus and in the instruments of incorporation of the Maltese UCITS.

(5) A European management company duly authorised in its home Member State or EEA State in terms of the UCITS Directive shall not be subject to any additional requirements applicable in Malta in respect of the subject matter of the UCITS Directive, except in the cases expressly specified by the UCITS Directive.